In case you hadn’t noticed, we’re living in a pay-as-you-go world. Software, storage, data access, music, and even aircraft engines are all available on a subscription basis now.
By all accounts, businesses and consumers like living in the on-demand economy, and the companies that supply and serve them have responded by transforming entire industries. An Economist Intelligence Unit survey (report free with registration) found four out of 10 companies have implemented subscription options for goods and services, with up to 10 percent of their revenue generated by subscriptions. And this is just the beginning: 84 percent of companies surveyed expect their share of subscription revenues will continue to grow.
Rather than traditional one-time transactions, recurring-revenue businesses are focused on the ongoing customer-vendor relationship. Subscribers don’t pay for products; they pay for value. This means performance must be measured on a continuous basis using modern metrics like annual contract value (ACV), annual recurring revenue (ARR) and total contract value (TCV).
A foundational principle of Tidemark is that we collaborate closely with customers to make sure our apps deliver the value they need (after all, we’re a recurring-revenue business ourselves). As part of that collaboration, we learned that traditional financial planning and analysis (FP&A) solutions are seriously limited in their ability to track, measure and report metrics like ACV, ARR, TCV and churn-rate. Developing accurate recurring revenue forecasts requires extensive calculations that are time-consuming and disconnected. The process is further plagued by constant manual adjustments that threaten the integrity and timeliness of entire business plans.
In other words, the world may have embraced on-demand service and subscription commerce companies, but FP&A tools have not. That is, until today.
Introducing Tidemark’s Subscription Commerce App
As part of our new Tidemark Spring ’15 release, we’re introducing the industry’s first Subscription Commerce app. This groundbreaking solution delivers advanced analytics to help decision-makers understand key metrics and variances for TCV, ACV, ARR, and MRR, and to analyze metrics by customer, product and region.
We’ve also built in driver-based processes and native integration with CRM, ERP and billing applications so forecasts can now account for recurring revenue from existing and new customers, renewals and churn-rates.
Subscription revenue businesses can now use Tidemark for recurring revenue, people and expense planning in one environment while gaining the ability to drive analytics across departments to collaboratively lead strategic decision-making.
More Breakthroughs in Spring ’15
The Spring ’15 release includes other new advances as well. Forecasting and predictive modeling capabilities now include Proactive Intelligence (delivering automatic notifications and root cause analysis), as well as Search and Command capabilities that helps anyone in the organization ask questions on financial and performance-related activities and results.
We’ve also enriched our industry-leading user experience (UE). Take our Easy Formulas functionality for example, which lets users accelerate planning by creating their own analysis within the context of a business process, and do it all with a simple click. Fast reporting allows you to create department-specific reports at the drop of a hat. These are but a few examples of what you can expect from the new Spring ’15 release. Since the world is changing, business models are being disrupted, and the old ways of doing things are no longer relevant…we continue to focus on innovations that re-imagine outdated processes and make a difference for you.
You can see Tidemark’s Subscription Commerce app and all the Spring ’15 innovations in action at Zuora’s Subscribed 2015 user conference May 20 and 21 in San Francisco. In addition, we’re holding special demos on May 20 and May 27 so you can see how FPA is being reshaped for you.