Buyer behavior is changing. B2B buyers expect more and want to be able to buy when, where, and how they want. This shift is driving B2B businesses to accelerate their digital transformation and introduce new business models that enable recurring revenue streams, flexible pricing, and mixed orders with physical goods and services, etc.
As a result, the subscription economy is set to grow to $1.5 trillion by 2025 as more businesses move to subscription models to stabilize/extend company revenue streams, meet customer demand, and solidify stronger competitive positions. Customers are only willing to pay based on the value they get out of a product. Flexible consumption or usage-based pricing models allow them to choose how much they want to use a service or product and only pay for what they use.
To accelerate this digital transformation to bring new products to the market faster, organizations are now focusing more on the quote-to-cash process, which refers to the entire cycle of activities from the time a customer requests a quote, completes a purchase, receives the service or product, to the point of billing and revenue recognition. This process involves multiple departments, including sales, finance, and supply chain operations, and can be time-consuming and complex.
Managing subscription revenue is a struggle for businesses with limited (or no) integration in between their front- and back-office systems. Oracle Fusion Cloud Applications’ recent launch of its enhanced quote-to-cash process helped solve this problem. The new solution is an integrated platform that connects Oracle Subscription Management, Oracle Configure, Price, Quote, Oracle Order Management, and Oracle Financials.
The integrated solution offered by Oracle Fusion Cloud Applications helps organizations to quote, capture, and fulfill orders more efficiently and recognize revenue accordingly. It eliminates the need for multiple systems and manual processes, reducing the risk of errors and delays. It also provides a seamless customer experience by offering self-service portals, automated billing, and subscription renewals.
The newly enhanced quote-to-cash process in Oracle Fusion Cloud Applications is a powerful tool that can help organizations streamline their operations, reduce costs, improve financial visibility, optimize order fulfillment, and deliver a seamless customer experience. With an integrated connection between Oracle Subscription Management, Oracle Configure, Price, Quote, Oracle Order Management, and Oracle Financials, businesses are empowered to accelerate product time-to-market and create new revenue streams.
Oracle Subscription Management enables businesses to manage new subscriptions, renewals, and upgrades by connecting their customer relationship management (CRM) and back-office and providing a complete view of customers’ purchasing behavior. It provides organizations with a centralized repository to manage their subscription data, including subscription plans, pricing, and usage ratings to simplify the management of contracts, billing, and revenue.
Oracle Configure, Price, Quote streamlines the quoting process by helping sellers configure the right mix of products or services and create accurate, professional quotes to quickly meet their customers’ pricing needs. With its user-friendly interface, it allows sales reps to configure complex products, bundles, and promotions with ease. It also offers advanced pricing capabilities, such as price lists, discounts, and promotions.
With Oracle Order Management, organizations can streamline the order fulfillment process to allow customers to order anything they want, at anytime, anywhere, creating a frictionless customer experience. It enables businesses to accelerate product time-to-market by capturing and processing orders of mixed physical goods, subscriptions, and services more efficiently and orchestrating orders across multiple systems, while simplifying product configuration, enabling dynamic pricing and global order promising.
Oracle Financials automates the revenue recognition process, giving finance teams better data to increase forecasting accuracy, shorten reporting cycles, simplify decision-making, and better manage risk and compliance. It ensures that revenue is recognized accurately and in compliance with accounting requirements such as ASC 606 and IFRS 15, with features such as revenue management, contract management, and revenue forecasting for a clear view into the organization’s total financial health.
Recently, we partnered with Ventana Research and KPMG to explore how technology is enabling revenue-generating leaders and their teams to stay ahead of customer expectations. Download the report here.
Carrie West is a Senior Product Marketing Manager at Oracle. Focused on go-to-market initiatives for Oracle Sales, Carrie has extensive experience in setting strategy, driving execution, and obtaining measurable ROI for marketing and sales initiatives.