Forecast 2021: The subscription economy

In our Forecast 2021 podcast series, we’re focused on preparing you for the year ahead by offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics. Due to the pandemic, there has been a huge increase in both B2B and B2C online sales over the past year. As a result of this shift, companies have had to adapt their business models to acknowledge the digital customer experience and to include new revenue streams, such as subscriptions. This week, host Heather Horn sat down with Romit Dey, PwC’s national leader on Anything-as-a-Service (XaaS), to talk about XaaS and digitizing your business. Romit will help us understand how and why more and more companies are shifting to subscription-based business models, and what that means in terms of a CFO’s focus.  Topics include:0:57 - Anything-as-a-Service. Romit talks about how Silicon Valley software businesses changed their business models to subscription-based models over a decade ago and how subscription services are now offered through various industries. 5:13 - A digital business model. Romit explains the reasons companies are shifting their strategy to a digital business model. 10:16 - Benefits of an XaaS strategy. A digital customer experience also provides financial efficiencies. Romit explains. 14:35 - Challenges and adaptation. What are the challenges and hurdles faced by companies when modifying their existing business models? Romit gives examples of hybrid business models and what they mean for the company and the customer.22:24 - Role of the CFO. Romit explains what the C-suite should consider when making these critical strategy decisions, what is needed for success, and how different industries can consider adopting a digital strategy. 32:03 - Crystal ball. Romit tells us where we could expect this conversation to be in three years and what the post-pandemic mindset may look like. Want to learn more? Read PwC's 24th Annual Global CEO Survey to see how executives are thinking about digital transformation.

Romit Dey is PwC’s national leader on XaaS, focused on advising clients on business model transformation, digital transformation, revenue growth, and scalability through subscription- and consumption-based models. Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].