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Case studies

Managing the transition to flexible consumption

Client stories

Deloitte has guided a myriad of companies through the transformation to flexible consumption. Our professionals possess a deep understanding of consumption-based business models and understand the challenges they present. See how we've helped others with their transition.

Enabling re-invention of business model for transition to an “as-a-service” model

Issue

A software company had been facing revenue fall with its license revenue dropping significantly year-over-year. Additionally, intensifying competition from new entrants and a crowded mobile security market created new competitive pressures. The company wanted to understand shifts in the market and engaged Deloitte to make the case for a new “as-a-Service” (aaS) model, and help carry out a transformation of its business model, value proposition, offer strategy, operating model, strategic capabilities, and technology platforms.

Solution

The Deloitte engagement team developed a business case for shift to aaS, as well as defined offer constructs and use-cases providing answers to what is sold to whom, and clear articulation of strategic vision and value proposition. The transformation journey was grounded on customer experience and business simplification, and the desired customer and partner experience was defined at each touch-point. The team developed new go-to-market and buying models, and designed the business architecture and business requirements. To deliver the desired experience, lead-to-cash, operational capabilities, processes, and systems were defined.

Impact

The project resulted in an end-to-end design for business model transformation, including the strategic vision, offer-design and value proposition, capability assessment, and a detailed implementation plan. The team defined future software operating model capabilities (including SaaS) and launched the program office, delivering overall program management, simplified pricing, standardized processes, and enterprise architecture for lead-to-cash processes.

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Developing flexible consumption operating model design for global and regional operations

Issue

Following the commoditization of its traditional hardware offering, a market leader increased its focus on solutions and services sales. Given the compelling value proposition and shifts in competitor strategies, the company sought Deloitte’s help in developing flexible consumption at scale. The roll-out of consumption-based services entailed several operational challenges, including managing financial risk, regulatory compliance, and the ability to provision and fulfill while ensuring consistent processes and customer experience across all geographies.

Solution

The Deloitte engagement team designed operating model and deal constructs, including developing alternate operating models delineating responsibilities and outlining possible deal constructs. The team also developed a country-wise operating model decision framework which identified drivers from five key categories to arrive at the best-fit operating model by country.

Impact

The project uncovered alternate operating models and provided an evaluation framework to assess choice of approach across various deal constructs. Additionally, end-to-end processes for the quote-to-cash cycle and fixed asset management were designed for the 5 priority countries. The engagement helped to accelerate the development of business processes for the new business model to enable standardized execution and a faster go-to-market roll-out.

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Enabling a software company to scale and operationalize a quote-to-cash platform for their subscription business

Issue

Given the broad shifts in the technology landscape, a software company had to enable an accelerated transition to a Software-as-a-Service (SaaS) business model to protect and increase their revenues. Deloitte was engaged by the company to address several challenges, including how to shift from a perpetual licensing software model to usage-based software licenses and a cloud-based business model, and how to design operations support and overall lead-to-cash processes and tools to enable this shift.

Solution

The Deloitte engagement team rationalized lead-to-cash requirements across existing in-flight cloud initiatives and compared requirements to current capabilities to identify gaps. The gaps were then translated into lead-to-cash functional requirements and leveraged to develop “build vs. buy” considerations for systems/tools. To identify a best-fit vendor, various vendors were assessed across provided decision criteria.

Impact

The software company was able to build required operational lead-to-cash capabilities and supporting processes to enable usage-based business models. Consumption-based cloud services were successfully operationalized, and are part of the client’s current go-to-market model today.

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Assisting a leading software company undertake a web transformation for its SaaS business

Issue

A leading software company wanted to achieve significant growth in its consumption-based online business within a very short span of time. To achieve this goal, the organization needed to refresh their ecommerce platform and capabilities, integrate these capabilities with cloud services, and support in-product commerce. The company’s business and engineering teams were dissatisfied with previous waterfall methodologies, and Deloitte was engaged to enable the web transformation using an agile (scrum) based delivery model.

Solution

The Deloitte engagement team built a foundational platform over a series of sprints, culminating in monthly releases. At the height of the program, eight parallel scrum teams were involved in joint sprint planning and reviews, and concurrent integrated releases of functionality. The team deployed permanent agile coaches, educated leadership, integrated project management with defined product owner roles across business, and aligned IT / infrastructure for ongoing operational support.

Impact

The team delivered the solution in nine months for what might conservatively be estimated at 12-18 months if run in a traditional waterfall approach. Throughout the project, creative/XD teams, digital marketing, store operations, R&D, program management, and infrastructure teams were engaged in an agile model which continues to run today.

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