Transforming IT Capabilities for as-a-service Business Models using Oracle

We live in a highly consumerized, digital-first world, where customer expectations are constantly changing and personalization is a key differentiator. In this environment, hi-tech manufacturing, independent software vendors, media and entertainment, life sciences, and medical devices industries can benefit immensely by adopting an as-a-service business model which is prevalent in telecom, utilities, and professional services. Servitization is the shift of the business model from only traditional products to a mix of products and services to their offerings. There are multiple benefits to becoming an end-to-end provider for these industry segments, such as generating predictable revenue streams, increased customer retention with lifetime value, improved product innovation, and a strengthened core value proposition. One of the earliest and most popular examples of servitization is of Rolls Royce in which they offered a service package whereby customers had the option to pay by the hour depending on the time the engine was in flight.

The latest digital technology can equip today’s enterprises with key IT capabilities needed to successfully transition to an everything-as-a-service business model (XaaS), instead of merely selling products or services. It’s no surprise, therefore, that the as-a-service market was valued at US $93.8 billion in 2018. Between 2019 and 2024, the as-a-service market is expected to grow at a CAGR of 24%. In this white paper, we discuss how businesses can pivot to everything-as-a-service, leveraging Oracle’s world-leading packaged applications suite to achieve tangible benefits.

Transforming IT Capabilities for as-a-service Business Models using Oracle