Riding the “As-a-Service” economy wave -

Platform Product Management 1

Riding the “As-a-Service” economy wave - Platform Product Management - Agenda

Why As a service business model

• Evolution of new business models
• Drivers of new business models
• Components of new business models

The Platform
How • How to define and build the Platform
• Case studies – Examples of Platform
• Platform Product Management

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Evolution of the “As-a-Service” business model

As a service offering -
Relationship based, subscription
sales based on consumption leading
to recurring revenues

Rewarding loyalty
Transaction based one-off unit sales
Throwing in service as an add-on
to increase unit sales
Transaction based one-off sales

Pure Product
Transaction based one-off unit sales

As-a-Service business model allows the buyers and suppliers transact based on outcomes. In
other words, “outcome” is the product 3
Evolution of As-a-Service business models - Examples

Apple General Electric

Consumer Tech Industrial Tech Software products Agri-Equipment Manufacturer Automobile Manufacturer

Product (Drills): Industrial Product (Drills): Graphics Product (Drills): Product (Drills): Cars
Product (Drills): Phones
Equipment software Harvester Customer needs (Holes):
Customer needs (Holes):
Customer needs (Holes): Customer needs (Holes): Customer needs (Holes): Personal transportation
Holes: Entertainment
Maintenance free equipment Creating designs Harvesting fields
As a service revenue, The Predix platform Made the shift to subscription Launched a new business Launched a subscription
11.46bn USD, is about connects about $1 trillion model in 2013 and about $5bn division, “Escorts Crop model for select models
20% of overall revenues, worth of assets to gather (>60%) is from recurring Solutions”, which offers from 1 year up to 4 years
growing at 40% data for predictive revenues. Offers pre-packaged Farming as a Service
maintenance templates for different user
personas with cloud storage

The shift towards As-a-Service model with recurring revenue is applicable to all industries 4
What is driving the As-a-Service business model
Demand side drivers Supply side drivers
• Ownership v/s access/rent • Recurring revenues
• Scalability and flexibility in payments • Cross sell and upsell
• Personalization and co-creation • New customer acquisition through lower upfront cost

Legal framework
Data privacy and security, Technology adoption
Accounting standards Cloud, IoT, Mobility, IaaS

As-a-Service Business Model benefits both sides of the business – supplier and buyer 5
Various types of As-a-Service models – Introducing BPaaS
As-a- Outcome
Service
Platform Value of apps built

Software Users, usage, features, content, etc.

Storage Size of data

Your text comes here
Network Number of ports, bandwidth utilization

Your text comes here Business Business KPIs – Days Sales Outstanding,
Process Early Payment Discounts availed, etc.
BPaaS
BPaaS: Business objectives delivered
through automated business processes on a
SaaS
subscription basis, priced based on
consumption, leveraging SaaS, IaaS and
PaaS other XaaS platforms

IaaS

BPaaS is the As-a-Service Business Model where the outcome is the business KPIs of the enterprise 6
How is BPaaS different from other as a service models?

Need What does the customer pay for

Software BPaaS
product/SaaS
product
Manage debtors Perpetual license or % of the debt
and collections subscription based on outstanding
users/usage/features, reduced
Order management independent of the % of the order
– validate, accept, business outcome value that is
allocate inventory, validated and
ship delivered

BPaaS is the As-a-Service Business Model where the payment is based on a business outcome – not
a perpetual license nor a subscription model 7
How to transition to new as a service business models? - Introducing the Platform

The Platform is the technology foundation that helps enterprises transform their
operating models to support business models to serve constantly evolving
customers’ needs

Platform keeps the operating model in synch with the business model and the customer needs
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Case studies – Wipro DeltaVerge
How Wipro BaseNXT platform helped an Indian Agriculture Manufacturer launch “Farming as a Service” and Wipro Consumer Care business
transform its order to Cash process

Farming as a Service Order to Cash Process as a Service

Product Farming Services Consumer Packaged Goods – Soap, Shampoo ,
(Harvesting, Land etc.(Santoor, etc.)
levelling, etc.)
Network Farmers, Agents, Machine Plant, Warehouses and Hubs, Distributors and e-
Owners, Machine Commerce Market Places (Amazon, Big Basket,
operators etc.)
Outcome On-boarded 500+ partners Increased fill rate for orders
Increased the utilization of Eliminated stock-outs
assets of machine owners Reduced the order to cash cycle from T+20 to T+5
by 50%
Reduced payment disputes

BaseNXT Platform

Helped the Indian Agri Equipment Manufacturer to launch Farming as a Service in 4 states
within 4 months and reduced the order cycle by 15 days for Wipro Consumer Care 9
 Farming as a Service – Paddy Farming Process
Process Step: Services offered
Process Step: Planting+ Process Step: Process Step: Process by Escorts
Land Transplantation Weeding Harvesting Step:
Preparation Baling
Equipment: Process Step: Equipment: Equipment: Equipment:
Equipment: Process Step: Process Step: Process Step:
Rotovators Water Power Weeder Harvester Baler
Nursery Drying Storage Milling
Management

T0 T0 + 20 days T0 + 60 days T0 + 120 days T0 + 120 days T0 + 150 days T0 + 150 days T0 + 180 days T0+180 days T0 + 180 days

Crop calendar

Region 1 T0 + 180 days

T0
Region 2 T0 + 180 days
T0
Region 3
T0 T0 + 180 days

Each region will have its own crop calendar based on the availability of water.
 Farming as Service – Market Structure and Information Flow
Machine Owners

Demand aggregation and

Crop calendar Inventory allocation

Level 1 Agents

Level 2 Agents

Farmers Delivery planning

Multi-layered structure with services consumed by the farmers and commissions exchanged with intermediaries
 Farming as a Service – Market Participants and Challenges
Machine owners
Difficult to reach and engage with farmers

Unable to track machines

Long settlement cycles

Low utilization, High machine maintenance costs and risk of obsolescence

Agents
Lack of visibility about the availability of equipment

Inefficient price discovery

Lack of understanding and the value proposition of the machines

Sub-optimal delivery planning

Unable to track machines

Farmers
Low farm mechanization levels – no end to end solution for all farming activities

Lack of price discovery

High cost of cultivation

Case study – Wipro DeltaVerge
How Wipro BaseNXT platform helped Wipro Consumer Care business to transform their Order to Cash Process

DEMAND (Market Places – Amazon, Big Basket, Nyka, etc., and Distributors) SUPPLY (Wipro Consumer Care)

Monthly Buy Plans Promotions Channel Orders Fulfillment Paxcom

Order DEMAND

WCC & Partner Enterprise System

Real Time Visibility into Orders &
Real Time Visibility into Buy Plans Fulfillment Status

E-comm Channel Performance Data

Track & Trace & Visibility

Supply Chain Data

Wipro BaseNXT Technology Platform

Customer Behavior , Assortment , Category, Promotions , Sales, Order , Fulltime, Inventory

Data

Wipro Base NXT Analytics

Order to Fulfillment – T+32 Days(Current)

T0

Integrated Demand & Supply Platform for Collaboration, Visibility backed by Analytics 13
Case study – Thomson Reuters
How Thomson Reuters transformed its content operations with a platform
Data suppliers Revenue Earning Products
Company data Thomson One for IB
Financials, Shareholding, Analytics, Workflow
Estimates, Research, etc. products for junior bankers
and relationship
management for senior
bankers
Fixed Income Data Datasteam
Treasury bonds, Municipal Analytics product for
bonds, Corporate bonds, economists and researchers
OTC bonds, etc.

Economics Eikon for Traders

Thomson Reuters
Interest rates, employment Trading platform to trade in
Content Market Place
rate, House prices, etc. equities and fixed income

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Platform product management – key tenets
Empower a variety Build the core and
of User personas partner for non-core
Unlike application product Build the service that define
managers, application the business and integrate
developers and partner APIs for the non-core
professional services teams services

Monetization is king Long term benefits

Define the commercial drive prioritization
strategy – APIs, gain share, Long term business value
etc. creation for the enterprise is
the guiding factor for
prioritization

Build for Scale Backward

Factor necessary compatibility
infrastructure and core In-built support for
systems to support growth backward compatibility to
of users on multiple maximize benefits of the
products platform

Platform product manager needs to have special skills to maintain the equilibrium of the
platform in light of perennially conflicting and competing priorities 15
Riding the “As-a-Service” economy wave - Platform Product Management - Agenda

Why As a service business model

• Evolution of new business models
• Drivers of new business models
• Components of new business models

The Platform
How • How to define and build the Platform
• Case studies – Examples of Platform
• Platform Product Management

16
Building the platform – The Platform Definition Process

Review the current Rationalize the Identify and define the Define the infrastructure
processes in an processes, define the to- micro-services required requirements to support
enterprise be process to achieve the to support the domain the expected
business goals model performance levels

DEFINE THE DEFINE THE EVALUATE

AS-IS PROCESS USER PROCESS PLAN FOR
DOMAIN MICRO- TECH EXTEND
EVALUATION JOURNEY DESIGN SCALING
MODEL SERVICES PARTNERS

Identify all the user Abstract the interactions Identify core micro-
personas that participate and the data used in the services and non core
in the selected process, process to define the and partner with 3rd Extend/replicate the
identify the “jobs to be core domain model for party providers/apps for micro-services for
done” . the selected process. non-core services partners on the network

Creating the domain model, identification of micro services and planning for scale is the key 17
Building the platform – The Structure of the Platform
Building the platform Network Services
Solutions that connect the participants in
the network and orchestrate the processes

Industry Solutions
Solutions that solve a problem specific to a
domain

Industry Agnostic Solutions

Business Services that are common for
majority of the industries. Example: Finance
and Accounting, Helpdesk, etc.

Common Platform Services

Functional services that are common
across all solutions and applications built
on the platform. Example:
Authentication, Analytics, etc.

Core IT Services
Includes ERPs and other systems of
record, multi-tenancy, Infrastructure
services, etc.

Key to successful platform definition is to segregate core and application specific services and
pre-configured packages to shorten the sales and delivery cycles 18
Building the platform – The market place for all the services
Value delivery Network Management
Core/common services Industry agnostic solutions
Authentication Accounts Receivables Industry solutions
Input and output channel integration Collections and Aging
Process template library Dispute and deductions Telecom:
SLA Management Cash application Voucher management
Audit and compliance Accounts payables Partnership
Scheduling
Invoice processing
Contextual analytics
Vendor helpdesk Retail
Anomaly detection
Case management Master data management Beat management
Process definition Record to Report: Performance management
Process versioning Period end closing
Shared ledger Fixed asset accounting
Analytics and reporting Regulatory reporting and compliance Network solutions
Usage tracking Requisition-to-PO
Billing and payments Product catalogue Partner on-boarding
Search Budget control Portals
Order Management Invitation and authentication
Order validation KYC
Partner APIs Product information management Terms of trade
Territory management Trade and payment terms
Google Maps
Kubernetes
Terms of Trade Credit allocation
RPA Inventory management API/Integration
OCR Stock capture Push and pull transaction data
System integration Safety stock calculation, Auto-replenishment Master data updates

Common Platform Services |Industry Agnostic Solutions |Industry Solutions | Network Solutions 19
Wipro BaseNXT – The digital process transformation platform

Base Accounts Payables as a

Service

Process Services turned on for the

Account Payables App
Apps

Base Accounts Receivables as

Service

Services turned on for the

Account Receivable App
Core Platform Services

Core IT services Wipro DeltaVerge

Distribution Management as a
Service
The network platform, connects
multiple partners in a multi-tier
distribution system

Wipro BaseNXT is the single platform to drive digital transformation 20

Platform Product Management – conclusion

Focus on customer needs

Transform the operating model with a platform to support the business model

Define the Platform as a set of configurable services to enable launching of multiple business processes as
a service on the same platform

Define the monetization strategy for platform, aligned with the customer needs

Stay focused on scaling the platform

Platform product Management is about aligning with and achieving customer goals and it is not about
managing a suite of technologies

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Appendix

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How is the business model going to change
Before After

During transition to the new subscription model

Transaction based, one-off unit sales Relationship based, subscription revenues,

with upfront payment with recurring payment

 In the short term, revenues will be hit in the short term and costs will be high due to investments in
technology and business processes
 In the long term, revenues and benefits more than compensate for the short term dip in revenues

Investment in technology and business process redesign is imperative for transitioning to a

new subscription business model to serve customers continuously 23
Case studies – Wipro DeltaVerge
How DeltaVerge helped an Indian agriculture equipment manufacturer launch Farming as a service business

Network System of
Partner Partner Partner on- Contract
Services Discovery invitation
Partner KYC
boarding Management
record
integration

Achieving scale by enabling partner invitations and network mgmt.

P1 : CDG Retail
P2 : Agricultural
services
…. Package N
Industry
Solutions
Product
Type(s) &
Product
Business
Document
Templates
Canned Roles
& Actions
Template

Creation of Domain specific templates to ease onboarding

DV PLATFORM DV Business
Product Product Party Master DV Product Territory
Document Tax Types
Classification Master List List Template Hierarchy
MASTER DATA Template

Role Based Shared

Case Mgmt Organization Territory
Contract Mgmt Access Ledger
Engine Str. Mgmt management
Control Framework
Business Services
Alerts & Billing &
Analytics Security
Notification Auditing Subscription Search Engine
Framework Protocols
Framework Mgmt
Core Platform Services

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Platform Product Management – Defining the Platform stack

BPaaS Solutions

Base))) 3.0 DeltaVerge Way2Go Other… Opus HPS

Common Cloud Runtime

Common
Multi-Tenant Multi-Tenant Security Common UI
Account Provisioning Reliability
Identity and Access Common Widget
(API Access, Metering and
Management Development Monitoring
Billing ) Environment Framework
Framework
Alluvius Framework

Common Build
and Delivery
Tooling
Multi-Tenant Common Common
Multi-Tenant Eventing & Command &
Insight & Analytics
Transaction Data Software Defined
Data Space PaaS Messaging Query
Space Management
Management Infrastructure Framework Framework

Private Cloud Wipro Cloud

The BPaaS platform is built on a technology foundation made up of multiple APIs