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Jul 27, 2016by Andrew Dailey, Managing Director of MGI Research
“Monetization.” The concept is at the heart of an economic relationship between a business and its customers. It does not represent a single product or business process but a business discipline supported by technology, skilled professionals and business workflow.
Monetization is how … market demand is transformed into revenue and profits.
To effectively monetize market opportunity, businesses must be agile, flexible and scalable while complying with regulatory demands. “Speed is the new black,” and the ability to quickly and precisely construct, change and propagate new offers and pricing plans within your operational ecosystems is becoming a sustainable differentiator among leading companies.
This drive towards speed has given rise to a new technological concept – the Agile Monetization Platform or AMP – a construct that MGI Research pioneered in 2015 and that unifies several key business technologies within and outside classical ERP boundaries to help companies more effectively tackle the quote-to-cash automation challenges. AMP provides an umbrella for disciplines like Agile Billing, CPQ, Contract Management, Payment Management, Order Management and others.
In our research fieldwork and in advisory practice with numerous clients, we have identified 15 key symptoms of companies unable to cope with rapidly evolving monetization challenges and benefiting from exploring AMP:
- Pricing model changes require a billing expert to make changes to your billing system
- Companies not able to launch new offers in less than six months
- Existing finance and billing systems being stretched beyond their capabilities
- Revenue leakage (not so fun fact: all businesses have 2-5% of total revenues lost due to operational holes)
- Wrong products and/or configurations being sold or shipped to customers
- Perennial Invoice Disputes with Cus tomers – High percentage of re-bills
- Sales productivity consumed by customer billing issues
- Heavy use of Excel for billing, revenue recognition, CPQ, provisioning, etc.
- No Single Source of Truth (SSOT)
- SKU sprawl – same items sold in different currencies, with different payment schedules, etc.
- Customer friction due to lack of invoice transparency and clarity
- Many “One-Off” deals
- Lengthy financial closings
- No tracking of contract terms and conditions
- No single product catalog or a single master price list
If you’re seeing any of these signals arise within your company, then it’s time to start learning more about AMP and take action.
Andrew Dailey is a Managing Director of MGI Research. Mr. Dailey has over twenty-five years of diversified technology and financial services experience. Prior to MGI Research, Dailey was a partner at the Jetstream Group, a management-consulting firm advising Fortune 500 CIOs on software procurement negotiations, enterprise applications strategies and outsourcing/offshoring strategies. He also has spent time at Baan Company and Gartner Group, publishing numerous research reports and winning awards such as the Gartner Analyst of the Year.