Gartner estimated that more than 80% of software providers would have migrated to a subscription-based business model by the end of 2020. Another research predicts that the global subscription economy for SaaS companies will be a $100 billion market opportunity by 2020.
There are several challenges that subscription businesses face when setting up their services and maintaining a robust relationship with their customers. The only way that businesses can address and overcome these challenges is by using an effective recurring billing and payment system that is flexible enough to meet customers’ requirements.
Oracle Monetization Cloud (subscription management software) is a new offering from Oracle in the subscription business market. This new cloud software provides a market for digital and subscription management-enabled services and products by leveraging the life cycle of customer rating and discounting, onboarding, billing, offer creation, customized invoicing, and reporting capability. Oracle also has its ERP systems like e-Business Suite and Fusion Cloud that come with several out-of-the-box adapters that can seamlessly integrate on-premise and cloud applications and make them work with various databases and services. Learn more about Oracle Revenue Management Cloud Service
What is Oracle Monetization Cloud (OMC)?
Oracle Monetization Cloud offers subscription management-enabled products and services for subscription billing, payments, and revenue management solutions.
What can you do with OMC?
Oracle Monetization Cloud offers the following services:
- Design product offerings to sell to customers.
- Create and manage accounts of customers when you sell your product offerings.
- Bill clients for subscription fees and usage charges.
- Collect payments.
- Get reports about management and financial activity.
What benefits do you get from OMC?
- Manages the entire life-cycle: Oracle Monetization Cloud supports the full life-cycle of subscription services, from onboarding the subscribers to launching and changing inventive contributions as required to leveraging flexible rating, discounting, and billing capabilities to customizing invoices and analyzing business performance through robust reporting.
- Integrates with external systems: The software provides in-built connectors and standard web-based SOAP and REST APIs to integrate with front-office and back-office systems, such as CRM applications, e-commerce applications, enterprise resource planning (ERP) systems, and payment and tax gateways.
- Complies with industry standards: It complies with widely accepted industry standards like Generally Accepted Accounting Principles (GAAP), ASC 606, and IFRS 15 revenue recognition guidelines. It offers re-invoicing and recognition of different revenue types that allow you to reduce risk, minimize revenue leakage, and ensures compliance with an audit.
- Customer Experience: OMC helps enterprises serve their customers through easy-to-use, user friendly interfaces that provide real-time customer activity data and allow access to all aspects of customer account history. Customer loyalty can be built by awarding non-currency assets such as options to download movies or games. When customers are about to reach their consumption thresholds, notifications are sent to make them aware of their usage. Moreover, flexible invoice design and delivery options create additional opportunities to build subscriber relationships and improve client retention.
- Revenue Management: It supports complete Accounts Receivable activities such as payments, adjustments, refunds, disputes, and write-offs. On the General Ledger side, support of full rev rec is available. The data can also be exported to other financial systems, including Oracle ERP.
What does the OMC look like?
The home page of the OMC contains the links to the following applications –
- Subscriber Management
- Offer Design
- Business Configuration
- Business Operations
- Oracle BI Publisher
- System Configuration
- User Management
It is used for creating accounts and managing customers, accounts receivables, invoices, and payments. It is a real-time, user-friendly interface that provides updated views of the customer’s balances and entitlements and access to full billing and receivables history.
Offer Design is used for designing the product offerings. It allows the creation and bundle of services and products to deploy digital services and hybrid offerings rapidly. It is also used to configure non-currency resources such as customer loyalty points.
It is a main component of cloud service setup used for configuring services, events, balance elements, and business configuration parameters.
It is used for scheduling and monitoring billing, payment, invoicing, and general ledger (GL) report jobs and for tracking business trends.
Oracle BI Publisher
It is used for running financial, subscriber, and compliance reports.
System configuration is used for configuring connections to external systems.
User Management creates and manages user accounts, roles, and passwords.
The subscription-based business model is increasing, and businesses must adopt it now or later. The sooner they move, the lesser the pain. A considerable chunk of all the digital and physical services we use today are subscription based. The success of any recurring business model depends on its ability to build robust and positive relationships with its customers. With a flexible and well-designed Oracle subscription management, every sign-up can be the start of something beautiful instead of an operational and maintenance headache.
Is your business running on a subscription-based model, and are you looking to implement robust subscription and billing management software? If the answer is yes, contact our experts today at Jade Global. Read the blog: Oracle Subscription Contracts - 4 Ways to Save (and Earn) Money