Subscribed
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“How much do you know about subscription models? How much do you really know?” 🤨 I asked myself those questions as I started working for Mendix, a software company with a Software-a-a-Service (SaaS) business model. I knew the basics, but I wanted to get in-depth understanding about subscription-based businesses.
Tien Tzuo, in his book Subscribed, explains the shift in economy that we have been experiencing in recent years: services gaining popularity 📈 over products; customization overtaking standardization; ownership becoming a thing of the past. Tzuo explains how these trends are shifting linear product-centric models to circular models in which the customer takes a central role surrounded by experiences, services, and channels.
The first half of the book is a waterfall of company examples, from different industries, that have shifted part of their business to subscription-based streams. My favorite example (not in the book) is Rolls-Royce’s Jet propulsion-as-a-Service. I leave a link 🔗 below for those who want to know more about it.
Examples are interesting, but the real value of the book, in my opinion, is on the second half, where Tzuo covers different corporate aspects necessary to “succeed” in transitioning to subscription models 📃. He covers some ground on agile methodology, sales, marketing, finance, and corporate culture.
I highly recommend this book to anyone who wants to learn about the building blocks of subscription-based businesses and why their popularity is increasing within different industries. Personally, I would have preferred more detail on the second half, as I think Tzuo gives an entry point to subscriptions, but does not follow through with depth.
🤔 Reflections for you: When will subscription become the standard business model? Which companies will have more difficulty transitioning? Let me know your thoughts in the comment’s below.
🔗 Rolls-Royce Jet Propulsion-as-a-Service
