A Perfect Invoice That Matches a Perfect Service Experience
The rise of servitization in short: changing product-driven business models to more service or outcome-driven, has led to great opportunities in the manufacturing industry. Themes like Industry 4.0 and IoT-driven demand have opened opportunities for manufacturing to create an additional recurring revenue stream. Manufacturers transform their business models to better align themselves with the needs of their clients. But what does this mean for their billing and monetization?
Servitization is a transformation journey
Servitization is not just adding services to support your product portfolio. It is a transformation in the way you engage with your clients about how you support them in achieving their goals.
This transformation typically is taken in different steps, and you have a roadmap specifically for your company. As you transform, your functional IT platform must transform accordingly. You’ll want to ensure seamless business continuity all the way. In the end, your client receives a single, outcome-based recurring revenue invoice. This invoice compiles a myriad of services and products you delivered to your client to get to the outcome.
The proof of servitization is in the billing
While you work on new business models, it is time to have a look at the broad range of services you can provide to fulfill your customer’s needs. This might come in new services, but far-reaching servitization transforms the way you provide value. Flexible billing can well be part of it.
Recently, one of our customers told us their clients made them to adapt to their new reality. “Our clients love our product, but the usage of it varies wildly during the year. As they charge their clients after they delivered, our monthly fee is either too high and eats up a lot of the cash flow, or too low in relation to the usage. The subscription model is too narrow for us. We would love you to adopt a model that reflects pay per use”.
Adapting your manufacturing ERP to servitization
Traditional manufacturing systems are rapidly transforming to deliver on the promises of industry 4.0. For example, they adopt IoT metering to the supply chain and add service delivery modules to the solution.
Your company’s ERP installation, however, might not be that flexible. Typically, it was configured and implemented years ago to fit your specific needs at the time, and a new implementation might not be an option. Next to your ERP, you might already have implemented field service solutions and other service software components to your functional architecture. How do you add all these new billing items to your existing manufacturing ERP solution? You can simply solve this by adding an agile service billing solution that works seamlessly within your functional IT infrastructure.
Agile billing: flexible billing to fit your needs
How can you optimize your recurring revenue beyond subscription billing? By adopting a future proof agile billing system. An agile billing system can -no matter what happens - cope with the business models you apply to meet your future demand from your clients. Sounds complex? That is what Good Sign has been doing since it was founded, helping clients deal with complex contracts to meet the most demanding situations. As a result, we now have one of the most agile billing offers on the market.
Read more about adding a flexible billing solution to your ERP
Take us to the test
If you feel your billing needs will outgrow your current recurring revenue billing solution, or if you are just curious to learn how Good Sign does things differently, feel free to take us to the test! We will gladly take on your challenge and prove to you it can be done, and that the new world lies beyond just subscriptions.
We at Good Sign help our customers solve existing pain points in monetizing service contracts and managing subscriptions and pay-per-use services. We help companies freely grow scalable services.
Feel free to contact us and let’s have a chat on how we can support your company.