We are in the world of subscription economy. The current approach of buy/build/operate for products /platforms does not scale in the digital world. Let’s take cue from Digital native companies in moving to a subscription approach. Say good-bye to long implementation cycles in Enterprise service delivery. As part of our continuing blog series, we are looking at how a Business model shift will impact the Digital Services of the future. We are evaluating the business model paradigm shift across three dimensions a. Shift from Buy/Build model to a subscribe model b. Source services from Service Marketplace c. Move from a fixed to a variable cost model We will evaluate the shift from Build to Subscribe model in this blog and continue the rest as part of our ongoing series.. Free Sign up to discover human stories that deepen your understanding of the world. Distraction-free reading. No ads. Organize your knowledge with lists and highlights. Membership Tell your story. Find your audience. Read member-only stories Support writers you read most Earn money for your writing Listen to audio narrations Read offline with the Medium app What are the challenges associated with the current model? Sign up for free Most enterprises are invovled in a buy/build model. Try for $5/month Long implementation times: Whether it is an ITSM tool, automation solution or an analytics engine, every product involves a buy/build/operate cycle that typically takes 4-6 months or more to stabilize and return benefits. While the features of the products and solutions cannot be refuted, the question remains if Enterprises can afford to wait for as long and spend as much in going thru these long implementations in future. The current process is time consuming both for the customer and provider. Inefficiency & Poor reusability : In many instances we see services being built from scratch. The problem with this approach is the limited reusability of services across Enterprises. What is needed by one Enterprise is also need by another. Take examples associated with services needed for every organization — server build, access provisioning, environment provisioning, server restarts, data updates etc, There are so many standard resolutions that are highly automated that could be used across organizations. However we see automations being built from scratch. This is highly inefficient. Speed and agility are key in Digital Enterprises. The current model of buy/build /operate will not scale in the Digital world. And the solution…. We look to Digital native companies for a solution in this space. Their world has slowly but surely moved into subscription economy. They have responded well the rising user expectations. People are only interested in the outcomes. They want the milk not the cow, music not the CDs, the ride not the car.. Digital Native companies are exactly offering Enterprises what they need. They digitize services, move them to cloud and offer them as subscriptions to users. We are already aware of 2 waves of digitization so far Enteprise service delivery will move from a buy/build/operate to a subscription of delivery. This is the third wave of digitization. This approach of digitization and cloudification works exactly the same irrespective of the underlying tools /technology/platforms. They key benefit here is that of speed much needed by an enterprise. The subscription approach also screens Enterprises from any complexities associated with tools and platforms. More and more productized services will now be available as outcomes for subscription. This behaviour triggers the need for Marketplaces for services, another major dimension in business model shift. We will cover this topic in detail as part of our next blog. Meanwhile share your views on Subscription model of service delivery. Digital Transformation Digital Innovation Technology Enterprise Technology Written by DigitalXC AI 13 Followers · 2 Following DigitalXC AI is a GenAI enabled Hyper Automation and Employee Experience platform. We offer cloud based service delivery for Enteprise IT. No responses yet Write a response What are your thoughts? Follow More from DigitalXC AI DigitalXC AI Digital Service Model — Service Blueprint for Digital Age Rising above the storm — Accelerate Digital, significantly enhance outcomes (10x impact… May 15, 2020 11 1 DigitalXC AI The Silo Conundrum: Bridging the Automation Mosaic Enterprise IT automation has achieved remarkable progress, yet it often remains a… Jan 18 DigitalXC AI Digital Service Model Part 3: Consumerize Experience and… Most Enterprises are stuck in a fixed cost model in this downturn. 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