[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2017\/03\/08\/subscription-economy-come-of-age\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2017\/03\/08\/subscription-economy-come-of-age\/","headline":"The subscription economy has come of age: are you changing with it?","name":"The subscription economy has come of age: are you changing with it?","description":"We\u2019re at one of those point where the economy is changing, and fundamentally. The cycles that determine how our economy functions are driven by so many different factors. We\u2019ve been through faster, better manufacturing and the volumes of stuff it created. We\u2019ve had the advertising age and how it created desire for that stuff. Now, […]","datePublished":"2017-03-08","dateModified":"2020-11-17","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/dan-stevens\/#Person","name":"Dan Stevens","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/dan-stevens\/","identifier":208,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/a80fa19c51af94fe710a8086643d06d72dd4df6998101b5a6aca7c717e2fcdf0?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a80fa19c51af94fe710a8086643d06d72dd4df6998101b5a6aca7c717e2fcdf0?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2017\/03\/thumbnail-ea6274dd6aafafb74244a1357e080c5a.jpeg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2017\/03\/thumbnail-ea6274dd6aafafb74244a1357e080c5a.jpeg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2017\/03\/08\/subscription-economy-come-of-age\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]}],"wordCount":547,"articleBody":"We\u2019re at one of those point where the economy is changing, and fundamentally. The cycles that determine how our economy functions are driven by so many different factors. We\u2019ve been through faster, better manufacturing and the volumes of stuff it created. We\u2019ve had the advertising age and how it created desire for that stuff. Now, deep into the digital economy, the subscription economy has come of age. And it too is changing.At the launch of SAP Hybris\u2019s new Revenue Cloud solution at SAP Hybris LIVE: Digital Summit 2017, Fergus O\u2019Reilly, global vice president of solution management, explained how we\u2019re at what he calls \u201can inflection point. Now we can make desire, we\u2019ve got too much of it. Mass market messaging is no more. People want experiences.\u201dThis makes it the perfect time to change the way you do business, using the new slew of data and information to open up new opportunities. O\u2019Reilly cites the example of a GPS maker who, before everyone had maps on their phones, made handheld navigation devices.Then they bought a mapping data provider and discovered that the data had potential \u2013 it could be used by (and therefore sold to) traffic planners and autonomous car pioneers. Now the GPS maker doesn\u2019t make GPS devices \u2013 it deals in mapping and data. \u201cThe business model that got you here isn\u2019t necessarily the business model that you\u2019ll carry on with\u201d said O\u2019Reilly.This ability to transform what you do is crucial to success in the new economy, and to making the most of the subscription economy. Even this most modern way of doing business is changing. O\u2019Reilly described how one of the very first internet businesses was also one of the first to treat products as a service.Blacksocks.com started out delivering black socks to businessmen after its founder got caught out in tatty, mismatching socks at a Japanese tea ceremony. It took away the need to think about socks. Now it attaches tags to the socks it delivers so you can match them up out of the washing machine. And there\u2019s an app that will analyze the condition of your socks and order new ones if they\u2019re wearing out. As O\u2019Reilly said, \u201cblacksocks.com has moved its business on by providing new value.\u201dThen there\u2019s the wholesale transformation of Adobe, makers of professional-grade creative software, from seller of licensed product to an entirely subscription-based model. Adobe\u2019s Phil Pass joined O Reilly at SAP Hybris Live and explained that it\u2019s been a \u201cphenomenal success. We\u2019ve become a poster-child for the sharing economy.\u201d Not that this massive change came about easily \u2013 or cheaply. \u201cIt doesn\u2019t come from free,\u201d said Pass. \u201cIt required huge investment and a real onus of managing the customer cycle. And the other part of the journey is to be risk averse.\u201dGiven Adobe\u2019s success at completely changing its business model (and therefore adapting to the new demands of the economy while giving its customers what they want), it seems like we\u2019re not only at O\u2019Reilly\u2019s inflection point. We\u2019re also at the point where the chances to transform your business are too good to miss. "},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2017","item":"https:\/\/www.the-future-of-commerce.com\/2017\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"03","item":"https:\/\/www.the-future-of-commerce.com\/2017\/\/03\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"08","item":"https:\/\/www.the-future-of-commerce.com\/2017\/\/03\/\/08\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"The subscription economy has come of age: are you changing with it?","item":"https:\/\/www.the-future-of-commerce.com\/2017\/03\/08\/subscription-economy-come-of-age\/#breadcrumbitem"}]}]