The confluence of SMAC (social, mobile, analytics and cloud) technologies has dramatically raised the bar—and pace—that businesses must innovate, operate and serve their customers. Interestingly, though, the drive of new technologies has many organizations instead, placing the bulk of attention not on their technology, but business models. In a recent CSG webcast pole, participants were asked what their organizations consider to be their biggest challenge; almost 50% of respondents indicated the right business model. The right technology ranked much lower on the list, coming in at only 5%.
Implementing a sound business model is imperative to digital success but with colliding trends such as the growing need for partner ecosystems and the use of machine learning quickly rising to the forefront, legacy, non-digital native organizations that don’t also place priority on technology that is purposely built for the digital world, simply won’t survive.
And regardless of the rumors flying around, legacy Business Support Systems (BSS) aren’t built for, and can’t transition into, the digital age. Legacy BSS is not constructed on a solution-based architecture that takes full advantage of microservices. To remain competitive, organizations must embrace the need for cloud adoption and an ecosystem-enabled Digital Support Systems (DSS) platform. A DSS can manage multifaceted ecosystems of products and services sourced from numerous third-parties across marketplaces, and capture, collect and analyze massive amounts of data, all with an aim to satisfy the digital customer. The words ‘legacy systems’ and ‘fast, agile and flexible’ don’t often go together, and according to McKinsey, “outdated IT systems are often the biggest Achilles’ heel for established companies seeking to compete successfully against upstarts.”
To achieve ‘fast, agile and flexible’ requires a SaaS DSS solution purpose built for the cloud. One that can unify, streamline and automate increasingly complex operations and support any business strategy and any business model regardless of B2C, B2B or B2B2X—and any combination thereof—on the same platform. This enables companies to embrace the launch fast, learn fast, fail fast, scale fast mentality and test a variety of innovative B2C, B2B and B2B2X business models at the same time. It’s these organizations with the ability to leave their comfort zone, experiment and blur the boundaries between all lines of business that will experience the most success.
Having the right DSS technology is the foundation for developing unsurpassed business models, enhanced partner ecosystems, and stellar customer experiences in the digital economy, while significantly reducing operating costs across the organization and paving the way to program monetization. But keep in mind, not all platforms are created equal, and for those companies that don’t choose wisely, it will become painfully evident.