Servitization Engine on Oracle Cloud
3
MINS READ
HIGHLIGHTS
- Product-centric companies are switching to subscription-based business models to improve customer-centricity.
- Servitization offers businesses better margins over a longer period and helps retain customers.
- TCS Servitization engine on Oracle Cloud helps enterprises to build subscription models to create recurring revenue streams and increase customer lifetime value.
In this article
Overview
Industries are shifting from one-time purchases to subscription-based services to unlock new revenue streams and strengthen customer relationships.
With product-centric business models leading to high procurement and operational costs resulting in high capex, organizations are adopting new technology to offer products as a service.
Servitization offers better margins over a longer period increasing customer lifetime value for providers. It reduces the total cost of ownership and empowers customers with the flexibility to consume products and services based on their needs.
Solution
TCS Servitization Engine on Oracle Cloud helps businesses launch subscription models with dynamic pricing models.
How it helps:
- Service-centric approach: Move from a product-centric to a service-centric organization by configuring and changing workflows and adding pricing strategies, user responsibilities, and administrative rules to enhance customer satisfaction and create customer-specific service offerings.
- Data monetization: Manage all customer information in a central hub and get the right insights to improve revenue.
- Optimize performance: Get equipment performance insights by enabling proactive and predictive service diagnostics to minimize business disruption.
- Personalize products: Leverage customer insights to deliver hyper-personalized products with financing options.
- Consumption-based model: Simplify and increase control over budgeting, billing, and technology life cycle management. Leverage the pay-as-you-go model to manage variable workloads.
Figure 1 : Overview of TCS Servitization Engine on Oracle Cloud to help businesses fast-track their servitization journey.
Servitization offers better margins over a longer period, increasing customer lifetime value for providers while lowering the total cost of ownership with flexible consumption of products and services for customers
Benefits
Improve business agility by accelerating time to market, cross-selling, and upselling to increase customer lifetime value.
- Increase customer lifetime: Increase the retention rate, trial conversion rate, and freemium conversion rate by enabling new revenue-generating business models with better margins over a longer span of time.
- Gain multichannel support: Leverage self-service capabilities via multiple channels to support simple updates or complex functions such as changing payment schedules.
- Reduce churn rate: Leverage consumption insights to create customized offerings and help customers pay only for the features they use.
- Lower cost of ownership: Define rules for unique business processes to optimize workflow management and automation with a configurable business rules engine, and increase average revenue per user, monthly, and annual recurring revenue.
- Bootstrap faster: Since the offering solution is inbuilt into TCS Crystallus platform, it reduces 25% of the time and effort during the design phase.
The TCS advantage
Fast-track your servitization journey to seize early opportunities.
With TCS Servitization Engine on Oracle Cloud, you can make the most of the following:
- Oracle’s line of business solutions: Our solution leverages Oracle’s line of business solutions, which can help accelerate business process transformation and technology integration with significant time, cost benefits, and value realization.
- TCS Innovation Centre for Oracle: Helps address your business challenges with innovations in CRM, digital commerce, subscription management, distributed order management, and service management. Leverage IoT, cloud, analytics, and conversational AI to enhance performance and service your customers better.