Infosys Revenue Management
Transforming Revenue Management for the Digital Age
In today's digital era, traditional organizational silos are dissolving, paving the way for innovative business models and new revenue opportunities. As businesses adapt to this evolving landscape, their application and process frameworks must be agile and scalable. The conventional Prospect to Fulfillment lifecycle is now transforming into a comprehensive Quote to Cash process. Key components of this transformation, such as pricing and billing, are crucial drivers in the revenue management lifecycle.
Infosys leverages its extensive experience in revenue management transformations to partner with clients, helping them design, evaluate, and implement solutions that drive business growth.
Our Revenue Management Offerings
Strategy Consulting
- Advisory Services
- Revenue Management Strategy
- Blueprinting and Solution
- Build vs Buy Decisions
- Market Scan and Vendor Selection
- Value-Driven Business Case
- Architecture Assessment
- Data Strategy
- Program Management & Governance
- Process Redesign
Technology
- Solution Architecture
- Implementation of Vendor Products
- Support and Enhancements
- Data Conversion
- Upgrades
Partners
- Oracle: Oracle Revenue Management and Billing (ORMB)
- SAP: SAP Billing and Revenue Innovation Management (BRIM)
- Salesforce: Salesforce Revenue Cloud
- Finacle: Finacle Revenue Hub
- Zuora
Revenue Management Journey
The Evolution of Pricing Strategies
Pricing has always been a fundamental aspect of any product or service offering. Initially, it was a straightforward cost-plus markup approach. Over time, this evolved into usage-based pricing, where charges were based on the actual use of a product or service. This shift marked the beginning of pricing as a strategic tool, allowing businesses to leverage it for their offerings.
As the market matured, relationship-based pricing models emerged, designed to achieve specific strategic objectives. While initially adopted by only a few large enterprises, the strategic importance of pricing has grown significantly, making it a core component of business strategy across various industries.
Key Challenges in Revenue Management Transformation
- High-Cost Barriers
- Slow Benefit Realization
- Monolithic Offerings
- Harmonized Capabilities
- Change Adoption
- Independent Function
Enterprise-wide product implementations come with high costs for licenses, infrastructure, and implementation.
Long implementation cycles delay the value realization of strategic benefits. The transformations are aimed at uplifting capabilities, modernizing ways of working, and generating new ways to compete. With significant costs incurred, the benefits quantification over time to self-fund these transformative programs can be challenging.
Traditional pricing and billing products are often monolithic, lacking modularity, which increases cost pressures and challenges in overcoming legacy technology debt.
Driving harmonization and/or standardization in quotation, pricing and billing process across product lines, balanced with room for local business nuances or regulatory needs across markets and geographies drive complex balance between business needs and scalable solution designing for global pricing/billing model.
Business transformation induced change management aimed at significant business process efficiency and efficacies need deliberate change adaption across people, processes and adoption of new organizations design to reap business benefits.
Pricing needs to be an independent function with a strategic focus for large-scale transformations.
How are Revenue Models changing in Digital Economy?
The digital economy has ushered in new business models, highlighting the need for innovative revenue generation approaches. As a result, pricing and billing solutions are evolving to become essential components of the revenue management lifecycle. This lifecycle, encompassing the entire Quote to Cash process, now integrates billing and pricing with CRM functions to enhance value delivery.
Quote to Cash Framework:
Essential Features for an Effective Quote-to-Cash Process
To ensure a seamless quote-to-cash process, a revenue management solution must include the following key capabilities:
Simulation Models
Enterprises require pricing simulation tools to define product pricing and assess profitability based on historical data or market trends.
Product Bundles and Simulations
The ability to create and simulate bundled products from various vendors is crucial, especially in industries with offerings from multiple sources, such as those enabled by open banking initiatives.
CPQ Process
Quotation management is vital during onboarding. Modern CPQ systems should offer personalized, relationship-based pricing and pricing simulations to enhance the onboarding experience.
Subscription Management
With the prevalence of subscription models, pricing can differentiate renewals. Instead of fixed charges, pricing can be based on the value delivered to the customer, with options for usage-based charges.
Usage-Based Charges
Traditional pricing and billing systems excel in rule-based usage pricing, essential for delivering agreed pricing models and managing settlements across multiple entities.
Revenue Recognition
Subledger accounting, including AR/AP management, provides valuable insights for AI-based simulations. The system should also interface with enterprise accounting systems for comprehensive revenue management.
Modularized Architecture
The solution should support a modular approach, allowing for flexible licensing models and catering to the entire quote-to-cash process.
SaaS/PaaS Deployment
For many Fintechs and new offerings, a SaaS deployment model is essential, providing low initial costs and scalability as the business grows.
AI Capabilities
An end-to-end revenue management platform should leverage AI tools for deeper customer insights, predictive modeling, and profitability analysis, enhancing business decision-making.
How Infosys Can Help
At Infosys, our Centre of Excellence for Revenue Management integrates our business consulting and technology expertise to deliver comprehensive solutions. With extensive experience in executing transformation programs and consulting engagements across various industries, we offer significant advantages to our clients:
Reduced Revenue Leakage
By streamlining revenue management processes from disparate systems into an enterprise-wide, rule-based application, we enhance the understanding of client relationship value. Automated processing helps plug any revenue leaks.
Increased Revenue Growth
Our innovative pricing models, based on relationship value, enable cross-product pricing strategies that foster revenue growth as client relationships deepen.
Quicker Time to Market
Our flexible solution architecture with configurable pricing mechanisms accelerates go-to-market timelines.
Reduced Servicing Costs
Increased automation leads to a reduction in operational costs, enhancing overall efficiency.
Partner with Infosys to leverage our expertise and drive your revenue management transformation.
