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Drive Revenue Growth by Scaling Digital Business Models

Key Takeaways

⇨ Anything-as-a-Service (XaaS) business models enable organizations to transition from product-based to service/outcome-based approaches, enhancing customer value and revenue streams, but require a clear digital strategy aligned across the C-suite.

⇨ There are five major approaches to monetizing XaaS offerings, including flat rate/subscription, payment per user/transaction/usage, and monetary commit agreements, allowing flexibility to match the appropriate model to business needs.

⇨ PwC's XaaS-in-a-Box accelerator suite, built on SAP, provides preconfigured assets like the Business Model Canvas, Reference Architecture, and Process/Capability Frameworks to accelerate XaaS transformations and leverage existing SAP investments.

As business leaders look for ways to accelerate growth in their organizations, one emerging strategy to support prosperity, involves leveraging digital business models to position the organization for growth.

XaaS (Anything-as-a-Service) business model transformation powered by SAP

As business leaders look for ways to accelerate growth in their organizations, one emerging strategy to support prosperity, involves leveraging digital business models to position the organization for growth. These Anything-as-a-Service (XaaS) business models let you transition your operations from a product-based approach to a service or outcome-based approach enhancing your business’s value to the customer and improving your overall revenue structure.

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Four attributes that fuel digital XaaS transformation

Every digital strategy, including an XaaS transformation, has to be crafted with exceptional clarity and the full commitment of the CEO. Four key attributes that fuel a successful digital XaaS transformation include:

1. Digital strategy is designed to drive revenue growth by increasing revenue predictability and consistency, offering more flexibility to the customer, and improving long-term customer success
2. Business-aligned digital strategy is agreed upon at the C-level and shared across the enterprise.
3. Digital enterprise investments are made primarily for competitive advantage, and outcomes from those investments are consistently measured
4. Single, multi-year digital enterprise roadmap that includes business capabilities and processes as well as digital and IT components

Five approaches to monetizing an XaaS strategy

XaaS doesn’t mean the same thing to every enterprise. A variety of different monetization approaches are available under the XaaS banner, including these five major strategies:

1. Flat Rate/Subscription
2. Payment per User/Subscription
3. Payment per Transaction
4. Payment per Unit of Usage
5. Monetary Commit Agreement

Flat Rate/Subscription

Buyer pays a flat recurring fee independent of usage. This strategy is easy to manage and plan for financially, offering steady revenue – but costs may be higher than expected if customer usage is underestimated.

PwC’s prepackaged XaaS solution accelerates your digital business model transformation

Digital model transformation doesn’t have to be a daunting, long-term process. PwC’s SAP-based XaaS-in-a-Box accelerator suite helps you weigh the options and build sustainable revenue models that align with your organization’s goals, giving you access to a collection of frameworks and preconfigured assets carefully designed to get you up to speed quickly and helping you to make the most of your existing SAP investment.

The Business Model Canvas helps develop your XaaS business model and associated use cases. Using this as a framework, PwC can help to methodically define your XaaS strategy.

The XaaS Reference Architecture accelerates the definition of the end-to-end solution architecture and key design decisions for your digital transformation.

The Process and Capability Framework helps define future state processes and capabilities to support your XaaS business model by focusing on three key areas: XaaS Offer Setup, Opportunity to Cash, and XaaS Offering Analytics & AI.

XaaS Industry Edge Preconfigured Journeys can help reduce implementation time and improve the quality of the solution.

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