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Automation & Tailored Services

Global Car Manufacturer Company

This company is a global car manufacturer which was founded in 1960 and currently employs 38,000 persons world-wide.

Situation

The company was locked into a process where offering services to customers was highly manual and time consuming with big operational and financial impacts. The company wanted to take full control over the service delivery chain in order to set up more flexible and dynamic business models.

The company wanted to automate and be able to roll out new services based on usage, behavior and context and to set up a service management system that allowed them to dynamically manage and provision all service offerings in real-time.

The first step in this project was to set up a cloud based IT infrastructure that could provide next generation connected cars services. Services such as remote heating, in-car delivery, and more, can now be introduced by enabling connectivity between the car manufacturer and the partnering telco eco-system.

In order to realize this the company needed to collect and unify usage data from the service communication network and bind those to either, a specific vehicle, and or a specific individual.

With its old legacy IT infrastructure this was not possible. The company wanted to implement a platform that could act as an intelligent layer to help them drive business decisions towards its partnering telecom operators and its end-users.

An important aspect from a cost perspective was also to be able to completely disconnect subscription service operations between the actual car and the telecom operator for purposes of steering the car network behavior dynamically based on commercial agreement with the different operators, preventing over-usage and billshock.

Solution

Today, the DigitalRoute Usage Data Platform collects usage data across all communication networks.

With the ability to collect usage data in real-time the company can bind all incoming usage data to a specific vehicle or subscriber and respond to usage thresholds and other measurements.

Prior to the implementation of the DigitalRoute Usage Data Platform the company relied on manual processes for binding data to both internal systems as well as for the associated telecom operator.

Now, the company have fully automated their environment resulting in 100% transparency & accuracy in their billing processes and full control of service usage.

Benefits

With the implementation of the Usage Data Platform the company can bind, correlate and aggregate all usage from vehicle or individual driver with 100% accuracy giving the company primarily the ability to analyze and control the usage of in-car services and ensure proper utilization of communication infrastructure in real-time.

Secondary the solution offers fully transparent billable items and settlements to its partnering telecom operators.

This will also result in revenue leakage prevention and bill shock prevention. Additionally the company could more easily create new business models with tailored services and offerings based on behavioral insights.

The company can now run its entire operations in a cloud-based environment.

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Multinational Computer Software Company

This company is a Fortune 500 multinational computer software company. The company focus on multimedia and creativity software products. The company was founded in 1982 and has 15,000 employees.

Situation

The company’s has made two significant leaps in their digitalization journey, starting off with moving from in-store to online purchase. The second, and most innovative move was from purchase to a PAYG (pay as you go) and Bundled offerings for B2B.

Like many other software companies, the company offered one pricing model, a one-time purchase offering. With the rise of e-commerce and new customer behavior, and the new buying patterns associated with it, it was time for new pricing and business models.

Leaders recognized that their homegrown technology IT system couldn’t keep up with growing usage volumes and processing complexity.

It was challenging for the company to maintain and improve the system due to legacy software and inability to process usage data in real-time.

Solution

The DigitalRoute Usage Data Platform, collects fine-grained usage data across the full software suite for each offering and binds that to each individual user. This capability enables targeted analytics for B2B offerings and innovative charging bundles for software suites.

The Usage Data Platform introduced real-time data collection which allows the user to change and make changes in his/her subscription model based on the actual usage, such as contract updates or similar.

Getting rid of the company’s homegrown IT platform and replacing it with DigitalRoute Usage Data Platform the company could now bind all usage, in a fine grained way, to the user resulting in transparent invoicing.

Benefits

Once its consumption-based business models were enabled, the company experienced explosive growth, growing 500% in 5 years! Margins grew due to accurate invoicing. The company saw improved customer retention due to the fine grained invoicing practices.

And, watertight revenue leakage prevention was a key additional benefit with the insights into revenue transactions.

With the introduction of new business models based on consumption, this company reached an entirely new level of revenues, built a much larger customer community, and solidified its position as the industry leader within its software category.

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Manufacturer and Distributor of Electricity & Gas

This company is a multinational manufacturer and distributor of electricity and gas. The company has 63.000 employees, founded 1962.

Situation

Due to EU energy regulations change, the company had to upgrade all of its customers from manually-read meters to smart meters. This gave the company an opportunity to monitor and collect more granular usage data. The smart meters were able to give the company insight into electricity consumption and to gain behaviour insights.

Now the company could introduce a PAYG payment model to their customer community. To support this the company needed to reimagine its billing structure.

The scale of migrating a large number of users to the new billing structure together with the complexity of the new billing structure means it was impossible to handle with their current systems. Introducing PAYG also required a system that could detect and monitor account balances and over-usage.

Since the company is a multinational distributor, they also needed to account for VAT variables in different markets.

Solution

The DigitalRoute Usage Data Platform was implemented to collect usage data from the smart meters both in real-time and batch and bind that to the individual user for transfer to the CRM and Billing systems.

By binding consumption to individual users the company got one billable item from usage of different tariffs and the opportunity to map, authenticate and validate each smart card payment. An important function is the new platform’s session-handling capabilities, which can monitor account balances and detect over-usage automatically.

As a result, the company can ensure that users have the necessary credits on their account balances and block blacklisted cards and over-usage at the moment of the transaction. The system also facilitated financial settlement towards third party vendors.

The VAT issue could easily be managed by the platform's capabilities to collect usage data from several sources and bind that to the respective individual.

Benefits

By shifting to the DigitalRoute Usage Data Platform the company will add flexible and transparent invoicing and settlements with 100% accuracy. The new billing procedure also helped prevent revenue leakage due to full billing transparency.

The authentication and validation process eliminates over-usage and prevents fraudulent consumption.

With all usage data running through a single platform the company could dramatically decrease time to market for new business models.

The insights of consumption enabled the company to offer tailored promotions to individuals based on their behavior which led to customer retention and loyalty.

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Accurate Billing & New Business Models

World Leading Manufacturers of Electronic Products

This company is a multinational conglomerate with headquarters in Asia. It is one of the world’s largest manufacturers of electronic and electrical products, with 320,000 employees working world-wide.

Situation

Within its mobile division, the company offers several major platforms for media and entertainment, music, apps, smart TV, in-game purchasing.

To be able to offer a seamless buyer experience as well as accurate billing and settlement process they needed a solution that could collect data from and between each platform, the user and the third party vendors.

The existing IT platform was not able to automate usage data collection and binding and required a lot of manual processes to assure the data quality.

The company also needed a real-time fraud detection process to prevent revenue leakage throughout the entire order transaction.

Solution

The DigitalRoute Usage Data Platform was implemented to reimagine the settlement and billing infrastructure. With the Usage Data Platform the company can now collect and bind usage data across all platforms in real-time and batch.

During order data processing, the flexibility being able to apply any business logic helped the company to prevent fraudulent behavior, through validation and mapping with the company's CRM system.

The solution automates the purchasing data from each service platform and payment data from payment gateways to create a billable item and settlement record for the user and the partners.

It also enables real-time processing of settlement, sales, and financial reports for the seller portal.

Benefits

By integrating the data collection from a wide variety of platforms and automating the binding of usage data, the company can now track billing and settlement events with 100% accuracy resulting in revenue leakage prevention.

By preventing fraud through the validation process the company could see increased revenue.
With all usage data running through a single platform the company could dramatically decrease time to market for new business models

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Pay-per-Use & Seamless Payments

Global Supplier of Technology and Services

This company is a leading global supplier of technology and services, connecting 5+ million devices with 700+ IoT experts around the world.

Situation

The company wanted to introduce new subscription-based business models across the wide range of devices that they traditionally sold. The first business area they chose to implement: the agriculture sector, where the company launched a pay-per-use business model for IoT sensors on asparagus crops.

The devices report several metrics for the soil that farmers can access to increase yields.

For the company, the new business models will increase revenue streams, as they allow for ongoing usage-based transactions instead of one-time purchases.

This model also reduces the startup CAPEX required for customers—and will help the company increase its market share.

Solution

Under the new pay-per-use business model, farmers can access valuable content and information on soil-related metrics such as moisture and temperature. The sensors send their readings to the cloud.

There, they are pushed through an API Gateway

where farmers can access the information via their smartphones. Each time a farmer uses the service to access the data, his or her consumption is bound to a billable session and charged per API call.

Benefits

The company can now provide a full-scale consumption-based business model with seamless payment processing. Purchase flows are now faster and more frequent.

Additionally, the as-a-service model lowers the investment threshold needed for farmers to begin taking advantage of IoT insights, and helps farmers streamline their business.

With detailed visibility into customers’ consumption behavior, the company can now analyze customer behavior and preferences in fine-grained ways.

They can use those insights to quickly launch and develop new business models. By rolling out new offers that they know will interest customers, the company can continually expand its business.

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Global Electronic Security Company

This global company provides electronic security for residential and business customers in 35 countries. Its product portfolio includes fire protection, burglary, health and safety, and cybersecurity.

Situation

The company had long relied on traditional product and service transactions—selling security equipment via a one-time transaction, with flat fees for associated services. Company leaders, however, recognized that their customers increasingly want to be billed based on their actual usage.

Company leaders wanted to shift to a Consumption-Based business model, using IoT Billing to track and bill for customer behavior. The biggest barrier to succeeding in this transition: the company’s mix of legacy and modern security equipment.

The company needed to collect and unify usage data from a wide range of devices and bind these sessions to one billable item per user account. Additionally,

they needed to set up a centralized billing and accounting system spanning previously siloed legacy systems, as well as new IoT devices. Ultimately, they wanted to unify the pricing model for both legacy and new equipment.

Solution

Today, the DigitalRoute Usage Data Platform collects usage data from all types of the company’s surveillance systems (legacy and modern) and merges the streams of usage data into a single billable session for the Billing System. The Usage Data Platform binds the usage data to time, device, company or household.

The sessions begin with device activation, and can include duration of use, as well as various activities reported by the devices. Under this new, consolidated model, the company can now set up centralized billing and accounting across previously siloed systems and devices, and unify their pricing models.

The company also now has more flexibility and transparency in invoicing, as the Usage Data Platform can collect data from a large number of devices in multiple formats in real-time as well as batch.

Crucially for this global company, the system can collect data at near-telco-scale volumes, as well as collect events from hundreds of different sources and devices including access control, home automation, surveillance and more.

Benefits

By shifting to consumption-based billing, the company can now offer customers more competitive and economically flexible solutions. Increased transparency in invoicing also enhances customer loyalty and retention.

With detailed visibility into customers’ consumption behavior, the company can now analyze customer behavior and preferences in fine-grained ways.

They can use those insights to quickly launch and develop new business models.

By rolling out new offers that they know will interest customers, the company can continually expand its business.

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Global Leader in Imaging and Managed Print Services

This company is a global leader in imaging and output technology solutions and managed print services. Founded in 1991, the company today sells its products and services in more than 170 countries.

Situation

This company has become one of the leading printer manufacturers in the world—and its leaders are committed to staying on top.

The company has long sold its printers the traditional way: as a product, under a one-time fee transaction. However, as competition heats up,

and the risk of printer hardware becoming commoditized grows, company leaders wanted to cultivate a more competitive business model.

The goal: to shift from selling a piece of hardware to selling printing services, and charging based on consumption.

Solution

Under the new model, the company will typically install printers free of charge, connecting them to a network that feeds all consumption data to the DigitalRoute Usage Data Platform.

Consumption events (customer behaviour for which the company will charge) could include printed pages, toner usage, printer status, and other events. Consumption events can be bound to specific individuals or departments,

allowing the company’s clients to allocate internal costs for printing services in an accurate, transparent way. The printers also use the connectivity to report on performance and health status.

With these insights, the company can now implement predictive maintenance that results in a higher grade of service to corporate clients.

Benefits

With valuable insights on consumption and predictive maintenance, the company can now grow its revenue margins and keep its customers happier.

With the new consumption-based business model, the company can lower the capital investment threshold for its products, since printers are installed at no cost and customers only pay for consumption.

Additionally, the Company can now use its deep visibility into customer behavior to develop and sell new services.

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Predictive Maintenance & Improved Performance

One of the World's Largest Manufacturers of Industrial Engines

This revered European industrial engine company began as one of the original pioneers of its industry. Today, the company is one of the world’s largest manufacturers of engines.

Situation

Like most companies, the manufacturer had operated under a pay-per-product business model for decades, selling engines to multiple industries.

Recognizing the opportunity to deliver more customer-centric solutions, as well as open up more profitable recurring revenue streams,

company leaders wanted to shift to a consumption-based model, charging their customers based on usage of the engines.

Achieving this, however, would require back-end IT and data integration capabilities unlike anything the company had dealt with before.

Solution

The DigitalRoute Usage Data Platform was implemented to support Consumption-Based billing and the Internet of Things (IoT).

Today, the company’s engines ship with multiple IoT sensors that collect data and report on a variety of KPIs such as engine health and fuel efficiency.

By identifying the optimal KPIs, and building an analytics platform capable of collecting and processing massive amounts of engine data, the company has

successfully transitioned to consumption-based commerce. Today, the company can deliver industry-leading engines to its customers and charge based on actual usage.

The wealth of new insights into the behavior of their products has also allowed the company to move from a reactive break/repair model to a predictive maintenance schedule, resulting in significant cost savings and a superior customer experience.

Benefits

By implementing predictive maintenance under a predictable schedule, the company optimized its engineering resources. The performance and reliability of its products has improved, and the company now knows exactly how many engineers will be needed at all times.

By shifting to consumption-based billing, the company can offer customers more competitive, economically flexible solutions. At the same time, the company has increased revenues through the higher margins on support contracts.

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