The Industrial Subscription Economy

The subscription business model has become the primary way of doing business in many consumer sectors and in the B2B SaaS world. Many industrial companies have also launched subscription business models to complement, augment, or diversify their product business portfolio. Companies like Toyota, ABB, Thales, Siemens, Scania, Schindler, Honeywell, Caterpillar, Schneider Electric, and many more have successfully done so. Others are just getting started. This book offers a practical roadmap for getting started, designing a new business model, pricing industrial subscriptions, and scaling them successfully. It's designed to be a cookbook of best practices, tips, stories, and case studies to accelerate time to value. The industrial world is unique and requires its own approach to subscription business models. Welcome to the Industrial Subscription Economy!

A USA Today bestseller! Companies like Netflix, Spotify, and Salesforce are just the tip of the iceberg for the subscription model. The real transformation--and the real opportunity--is just beginning. Subscription companies are growing nine times faster than the S&P 500. Why? Because unlike product companies, subscription companies know their customers. A happy subscriber base is the ultimate economic moat. Today's consumers prefer the advantages of access over the hassles of maintenance, from transportation (Uber, Surf Air), to clothing (Stitch Fix, Eleven James), to razor blades and makeup (Dollar Shave Club, Birchbox). Companies are similarly demanding easier, long-term solutions, trading their server rooms for cloud storage solutions like Box. Simply put, the world is shifting from products to services. But how do you turn customers into subscribers? As the CEO of the world's largest subscription management platform, Tien Tzuo has helped hundreds of companies transition from relying on individual sales to building customer-centric, recurring-revenue businesses. His core message in Subscribed is simple: Ready or not, excited or terrified, you need to adapt to the Subscription Economy -- or risk being left behind. Tzuo shows how to use subscriptions to build lucrative, ongoing one-on-one relationships with your customers. This may require reinventing substantial parts of your company, from your accounting practices to your entire IT architecture, but the payoff can be enormous. Just look at the case studies: * Adobe transitions from selling enterprise software licenses to offering cloud-based solutions for a flat monthly fee, and quadruples its valuation. * Fender evolves from selling guitars one at a time to creating lifelong musicians by teaching beginners to play, and keeping them inspired for life. * Caterpillar uses subscriptions to help solve problems -- it's not about how many tractors you can rent, but how much dirt you need to move. In Subscribed, you'll learn how these companies made the shift, and how you can transform your own product into a valuable service with a practical, step-by-step framework. Find out how how you can prepare and prosper now, rather than trying to catch up later.

essentials is a series of books specially designed for readers who want to gain an overview of a topic in a short time. These books contain the essence of what is considered "state of the art" in the current professional discussion and in practice. essentials inform quick, straightforward and easy to understand. This book is the first to describe everything companies need to know in the context of the subscription economy. It explains the origins of this supposed new economic philosophy by using the automotive and real estate industries to illustrate and critically discuss the developments of recent decades. For the first time, the book paints a picture of the coming development phases of subscription economy. The book clears up all prejudices and misunderstandings, brings the current state of science and research to the point, and explains all important terms and concepts in the environment of AAS. It describes the author's tried and tested Assets-as-Service (AAS) process model in a pragmatic and easy-to-understand manner. The model consists of four steps that companies can implement without major investments and risks in order to become profitable in the subscription economy within a short period of time, thus securing sustainable competitive advantages. In addition, the AAS self-assessment tool is explained, which enables managers to immediately evaluate their own organization in terms of readiness with regard to AAS and the subscription economy, in order to know from where to start with which measures in a targeted and effective manner in the subscription economy. What you can find in this essential - An introduction to the current situation and importance of Assets-as-Service (AAS) business models - Various brief definitions of relevant terms in the context of AAS - An instrument for status analysis on AAS in an organization - A process model for aligning an organization with AAS - The Quick Check for the self-assessment to determine your own AAS readiness - Brief presentation of various tested AAS templates and tools - An outlook on the further development of AAS - Many further links to articles and sources to deepen the content in this essential About the author: Prof. h.c. Dr. Uwe Seebacher (MBA), who holds a doctorate in economics and business administration, has more than 25 years of experience as a consultant, (interim) manager but also entrepreneur in the media, production and service industries with international successes in strategic and operational marketing and communications as well as in process optimization, digitalization, human resources management and organizational development.

A USA Today bestseller! Companies like Netflix, Spotify, and Salesforce are just the tip of the iceberg for the subscription model. The real transformation--and the real opportunity--is just beginning. Subscription companies are growing nine times faster than the S&P 500. Why? Because unlike product companies, subscription companies know their customers. A happy subscriber base is the ultimate economic moat. Today's consumers prefer the advantages of access over the hassles of maintenance, from transportation (Uber, Surf Air), to clothing (Stitch Fix, Eleven James), to razor blades and makeup (Dollar Shave Club, Birchbox). Companies are similarly demanding easier, long-term solutions, trading their server rooms for cloud storage solutions like Box. Simply put, the world is shifting from products to services. But how do you turn customers into subscribers? As the CEO of the world's largest subscription management platform, Tien Tzuo has helped hundreds of companies transition from relying on individual sales to building customer-centric, recurring-revenue businesses. His core message in Subscribed is simple: Ready or not, excited or terrified, you need to adapt to the Subscription Economy -- or risk being left behind. Tzuo shows how to use subscriptions to build lucrative, ongoing one-on-one relationships with your customers. This may require reinventing substantial parts of your company, from your accounting practices to your entire IT architecture, but the payoff can be enormous. Just look at the case studies: * Adobe transitions from selling enterprise software licenses to offering cloud-based solutions for a flat monthly fee, and quadruples its valuation. * Fender evolves from selling guitars one at a time to creating lifelong musicians by teaching beginners to play, and keeping them inspired for life. * Caterpillar uses subscriptions to help solve problems -- it's not about how many tractors you can rent, but how much dirt you need to move. In Subscribed, you'll learn how these companies made the shift, and how you can transform your own product into a valuable service with a practical, step-by-step framework. Find out how how you can prepare and prosper now, rather than trying to catch up later.

SHORTLISTED FOR THE CMI MANAGEMENT BOOK OF THE YEAR INNOVATION AND ENTREPRENEURSHIP AWARD Today's consumers prefer the advantages of access over the hassles of ownership. It's not just internet services like Netflix and Spotify; even industrial firms like GE and Caterpillar are reinventing themselves as solutions providers. Whether you sell software, clothes, insurance, or industrial machines, you need to master the transition to the subscription model. Adapting to the subscription economy takes more than just deciding to sell subscriptions instead of products. You'll have to reinvent your company from the inside out -- from your accounting to your entire IT architecture. No matter how large or small your company, Subscribed gives you a practical, step-by-step framework to rebuild your business around a customer-centric, recurring revenue model.In ten years, we'll be subscribing to everything: information technology, transportation, retail, healthcare, even housing. Informed by insights straight from the servers of Zuora, the world's largest subscription finance platform, Subscribed is the book that explains how this shift really works -- and how business leaders can prepare and prosper.

The book reveals ideas about what is possible if we transform the present. The narrative is organized around what is actual and what is potential; what is the probable future that we can arrive at through change, and what is the possible future that we can build through transformation. When engaging in transformation the following strategic question develops: if you were designing your organisation today, how would you design it? In other words, how would you go about it starting from scratch?

World-renowned economist Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, explains that we have an opportunity to shape the fourth industrial revolu­tion, which will fundamentally alter how we live and work. Schwab argues that this revolution is different in scale, scope and complexity from any that have come before. Characterized by a range of new technologies that are fusing the physical, digital and biological worlds, the developments are affecting all disciplines, economies, industries and governments, and even challenging ideas about what it means to be human. Artificial intelligence is already all around us, from supercomputers, drones and virtual assistants to 3D printing, DNA sequencing, smart thermostats, wear­able sensors and microchips smaller than a grain of sand. But this is just the beginning: nanomaterials 200 times stronger than steel and a million times thinner than a strand of hair and the first transplant of a 3D printed liver are already in development. Imagine “smart factories” in which global systems of manu­facturing are coordinated virtually, or implantable mobile phones made of biosynthetic materials. The fourth industrial revolution, says Schwab, is more significant, and its ramifications more profound, than in any prior period of human history. He outlines the key technologies driving this revolution and discusses the major impacts expected on government, business, civil society and individu­als. Schwab also offers bold ideas on how to harness these changes and shape a better future—one in which technology empowers people rather than replaces them; progress serves society rather than disrupts it; and in which innovators respect moral and ethical boundaries rather than cross them. We all have the opportunity to contribute to developing new frame­works that advance progress.

The "membership" business models of Netflix, Weight Watchers, and other industry giants revealed—and how you can use them to lead your company to the top of the food chain For decades, consumers and businesses have joined clubs, bought products and accessed services using a subscription model. But it has only been in recent years that the model has been transformed and perfected through massive changes in technology. The Membership Economy shows how nimble companies that focus on ongoing, formal relationships over one-time transactions are thriving. By renting, lending, or offering access instead of just "ownership," organizations can leapfrog industry leaders. In terms of strategic business models, this is one that allows for breakthrough growth. With great case studies from American Express, LinkedIn, CrossFit, SurveyMonkey, and more, this book will show you how to radically rethink how your organization can build loyalty, viral growth, and recurring revenue.