Drivers and Benefits of changing the Business Model

The vast majority of respondents who know why their organization has changed/is changing the business model from hardware-based selling to software-based selling believe that being more competitive in the market (97%) and providing a better customer experience (96%) is important to the success of their organization.

According to respondents whose organization has changed their business model from hardware-based selling to software-based selling, some of the improvements that have been achieved due to this include: reduced SKU (through feature licensing) (86%), a better customer experience (84%), being more competitive in the market (73%) and more flexible packaging (65%).

50% of respondents from organizations that have already changed their business model from hardware-based selling to software-based selling have seen their organization’s costs increase, 94% have seen their revenue increase.

Every second company is experiencing challenges around hiring staff with a new skill set to match the software centric requirements. A third of the companies reported challenges around managing and executing new business models with existing legacy systems. 36% of the companies reported a lack of a central strategy as a challenge and noted that growing organically without a central strategy was a challenge with executing software-based revenue models.