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Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

  • 1.  Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

    Posted Sep 30, 2020 15:19
    These days lot of manufacturers are offering subscription based products e.g. Car Vendors, Xerox Machines and many more. This is often referred as EaaS(Equipment as a Service). I have been trying to research what can be top 5 revenue leakage scenarios for them? Will appreciate if the people from such organization can share their experience and views.
    #BusinessAssurance
    #DigitalEcosystems
    #General

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    Rajiv Bansal
    TO BE VERIFIED
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    Action Week 2021


  • 2.  RE: Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

    TM Forum Member
    Posted Oct 01, 2020 04:13

    The following are mayor risks in this area

    1. Different types of impersonation and Identity theft resulting in stolen equipment
    2. Inventory management issues resulting in stranded assets or offering of missing assets
    3. Billing errors (especially concerned equipment received or returned in the middle of the billing cycle – if they use bill cycles)
    4. Issues related returned equipment - verify that they are correctly annotated in all the system, that they do not disappears, etc.
    I hope this helps.

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    Gadi Solotorevsky
    Amdocs Management Limited
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    Action Week 2021


  • 3.  RE: Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

    Posted Oct 01, 2020 05:10
    Thanks a lot Gadi for sharing your thoughts. The issues you have listed are broadly into Fraud and accounting of returned equipment. I believe it should be lot more in entire Quote to Cash process. There should be more scenarios related to subscription, renewals, quote, contract, billing etc. When we go into the B2B space, the challenges of stolen equipment etc should be minimal; but there should be others especially when the needs of customer are constantly changing over the time. Similarly in B2C space also challenges would be different. Do you think that the process and systems in Manufacturing subscription are matured as similar to Telco? In my view they are just starting there journey and will need time to mature and stabilize.

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    Rajiv Bansal
    TO BE VERIFIED
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    Action Week 2021


  • 4.  RE: Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

    TM Forum Member
    Posted Oct 01, 2020 06:00

    Hi Rajiv

     EaaS have many flavors, and of course the risks might change significantly based on the exact flavor, in some situations the EaaS quote  to bill might be based on self-service order and be completely automatic, in orders each quote is negotiated individually, etc. of course the risks change drastically depending on the different scenarios. The list above represents my best bet  without knowing anything about a specific case. Of course in real life we should do a risk assessment before deciding what are the principal risks.

    I agree with you that there is are not well defined RA best practices for the EaaS.  It would be great if you could join the TM Forum Business Assurance team, and contribute to create it.



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    Gadi Solotorevsky
    Amdocs Management Limited
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    Action Week 2021


  • 5.  RE: Revenue Leakage in Subscription based Business Model for Manufacturing Industry (EaaS)

    Posted Oct 01, 2020 07:59
    Thanks Gadi. I would love to contribute but at this stage I am still researching to know the key potential areas for leakage in the industry. I believe people who are either working with such manufacturing organizations or RA professionals, who have implemented some processes; if they can share their experiences here, it will be a good starting point for me to gain the knowledge and suggest the tweaks required in the current RA practicies.

    Once again thanks. Looking forward for more inputs from community.

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    Rajiv Bansal
    TO BE VERIFIED
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    Action Week 2021