13 Jul Speed is the new currency: Community Live Wrap Up
Before we get started, let me lay down some context around my perspective. I am new to the FinancialForce ecosystem and community, and to Nubik, joining the team with more than 10 years track record in the Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) solutions realm, and the first thing that I can tell you is – This was very refreshing.
Community Live 2017 in Las Vegas was packed with so much great content, from hands-on training sessions to thought leadership keynotes, and live customer success stories. And for me, it all came down to some inspiring and very well delivered keynotes and panels, and realizing how FinancialForce is dedicated to helping customers shape the future.
This is a first of a series of articles. More is on the way!
The new services economy
I think we can all agree, our economy is changing. As a result, 89% of Fortune 500 companies have disappeared in the last 60 years. The biggest change is happening right now as we enter the New Services Economy. We are in an era where businesses are easily disrupted by technology and customers, which both evolve faster than we can keep up with.
Ultimately, companies are left with two choices; disrupt your market and exceed customer expectations or become disrupted by your customers and disappear.
From Tod Nielsen’s, CEO, FinancialForce, point of view – “The pace of change in our industry is relentless right now, services are continuing to drive and the way we experience value over products is outdone through services”. And it is true, our economy is changing rapidly and it is hard for organizations to keep up with next-generation buyers. Speed is the new currency.
FinancialForce gave examples here, like music, where not so long ago people would go to the music store to buy albums. Then we went digital, and people now buy digital albums or even specific songs, which was impossible before. Fast forward to today: consumers want instant access to every song that’s ever been created. The music industry flipped to a service model through subscription services like Google Unlimited, Spotify, Apple Music and more.
Another case in the entertainment industry shared by FinancialForce was how Netflix was an actor in the demise of Blockbuster by disrupting the rental model and delivering movies direct to your television screen. And further disrupting the market by going full digital, recently announcing that they now have more subscribers in the USA than all the cable suppliers combined, accounting for more than 30% of the bandwidth on the internet today.
And all of it happened fast, and will just keep happening faster in more industries.
The new services model
As we keep moving forward, coming to this phase of our economy, where products and services are blurring into one another, the way customers will want to experience and interact with brands, products, and services is fundamentally changing. In fact, Tod stated that more than 80% of companies are seeing a change in how customers want to access and pay for goods and services. Which means customers will expect to have a completely new type of relationship with organizations.
FinancialForce suggests; “As customers drive these changes forward, we will see packaged products include service components to them, there will be more support services, utility models, organizations will face having to deal with subscription models, renewals and usage contracts, managed services, and will need to pay closer attention to customer attrition and retention”.
I love the slide below! It was shared during the opening keynote and summarizes very well what the new services economy is.
Companies will need to be able to adapt, iterate and try new things. And they need to act fast.
Tod from FinancialForce also noted that in a recent study that was published in CFO Magazines – “70% of CFOs say that more than half of their revenues are generated from services, and that services can no longer be ignored, or considered as part of a different business unit”.
As a result, companies need to ensure they include services as part of their model and track customer’s complete lifetime value, from lead/customer acquisition to contract renewal. Companies that are used to selling goods will need to start thinking about how they can sell services, and what tools they can leverage to ensure they meet their customer expectations and operational efficiency.
Moving forward into this new phase of our industry means companies need to fundamentally disrupt the way things are done both from a customer point of view and from an internal operating point of view. They need to start thinking about how they can adapt through iterative changes and transform to new business models.
What about you? Are you ready to face empowered customers, to change your product offering into a service hybrid or become the next AaaS (Anything as a Service) company? Undergoing such a transformation, with speed and success, relies heavily on People, Process and Technology.
On the technology front, FinancialForce, is a leading Cloud ERP on the Salesforce Cloud Platform, that is built with the new services economy in mind. It is a great place to start your transformation with speed.
Tim Brown, CFO and FinancialForce customer said – “The power of using FinancialForce has really been about having the data-centered around a single customer record. Our Sales Team, our Service Team, and the Finance Team, are all able to drill down the same customer record and data. It really provides us with the core data that we use to drive a lot more business intelligence around the company”.
Stay tuned for more articles around the great content from FinancialForce CommunityLive 2017 and feel free to catch up in our blog section where we cover anything from best practices, customer case studies thought leadership and solution how to’s. Nubik is a different breed of implementation partner. We bring best practices, industry knowledge and experience in delivering a complete solution, from “Lead acquisition to contract renewal”, leveraging over 15 years of Salesforce CRM experience coupled with strong ERP background.
By Patrick Gouin