{"data":{"type":0,"title":"Monetization stack","content":"{\"title\":\"Monetization stack\"}","id":"75a0330c-0d12-4826-a178-b05cd26e1afc","parentId":"1345c70a-e032-482b-8993-d65dafc8ac23","children":[{"type":1,"title":"Monetization stacks","content":"{\"title\":\"Monetization stacks\"}","id":"4fc9d760-5b6f-472b-b7fa-1fd7445ae6ec","parentId":"75a0330c-0d12-4826-a178-b05cd26e1afc","children":[{"type":2,"title":"Monetization stacks","content":"{\"title\":\"Monetization stacks\"}","id":"a8bf4ad6-80b8-49af-9d3f-73e34b9500a1","parentId":"4fc9d760-5b6f-472b-b7fa-1fd7445ae6ec","children":[{"type":25,"content":"{}","id":"f84e0c8f-a03f-4abd-96c2-1c447aef2ac2","parentId":"a8bf4ad6-80b8-49af-9d3f-73e34b9500a1","children":[{"type":26,"position":{"row":2,"index":0},"size":[832,0],"content":"{\"position\":{\"row\":2,\"index\":0},\"size\":[832,0],\"offset\":[0,0]}","id":"62c26ea4-4e25-4792-914a-9cbec01c14ba","parentId":"f84e0c8f-a03f-4abd-96c2-1c447aef2ac2","children":[{"type":27,"text":"

Generating revenue is priority number #1 for every company I've worked for. Yet, it's surprising how often the monetization stack, which is the backbone of revenue generation, takes a back seat in a company's technology priorities. Organizations often invest in ERPs and HR systems before focusing on optimizing and streamlining their monetization stack. When they finally address this critical aspect of their business, they are confronted with a range of challenges that need immediate attention.

Disconnected Systems

In a typical monetization stack, four core capabilities come into play, which often mirror separate systems. These capabilities include opportunity management (often associated with CRM), configuring and pricing offers for customers (CPQ), generating contracts and invoices (billing systems), and accounting for recognized revenue (Revenue Recognition). However, the problem is that no single system in the market seamlessly integrates all four of these capabilities. As a result, businesses must rely on the orchestration of multiple systems, each with its own data structures, independent databases, and workflows.

System Duplication

If I had a dollar for every time I've encountered multiple instances of CRM, duplicated pricing catalogs (one for the web, one for the direct sales force, one for channel partners), and different invoicing systems, I'd be a wealthy person by now. The proliferation of such duplication can lead to a plethora of issues for both customers and those responsible for maintaining consistent experiences and information across all these disparate systems.

Complex Requirements

Today's businesses have diverse digital needs when it comes to their offerings. They require solutions for one-off offerings, subscription-based models, usage-based pricing, the ability to amend mid-term, co-terming, and more. Many traditional systems don't offer these features out-of-the-box, forcing businesses to customize their legacy systems. The result? A complex and convoluted tech ecosystem that's not only expensive to maintain but also challenging to upgrade.

The Nightmare of Migration

When businesses decide to modernize their tech ecosystem, they face the daunting task of migrating client databases, product catalogs, contracts, and invoices to new systems. Without careful planning and the right tools, these migrations can be riddled with issues. Some companies must transition paper contracts to digital formats, while others have invoices scattered across multiple legacy ERPs, none of which align with the new databases and formats.

Ownership

Surprisingly, there's often a lack of consistency when it comes to determining which part of the business owns the monetization stack. Sales typically owns the CRM elements, but when it comes to CPQ, things become murkier. Who should own configurations and pricing—product or sales? What about quoting? Isn't that a sales responsibility? The absence of clear accountability can lead to confusion and finger-pointing down the line, making it critical to establish ownership for effective management.

Central Entitlement Database

A common issue is the absence of a single, central database that serves as the source of truth for tracking what each customer owns and is entitled to. Customer data is scattered across different systems: CRMs house customer information, ERPs track invoices, and product catalogs may be hidden in spreadsheets. This makes it extremely challenging to maintain clean reporting, ensure customer consistency, and reduce the overhead of tracking and matching financials.

The Good News

The good news is that it doesn't have to be this way. Modern systems are emerging that consolidate core capabilities, while automation and integration software are becoming easier to use. Data tools are also making data manipulation and migration more manageable. The future holds promise, with the potential for significant improvements in how companies manage their monetization stacks.

By addressing these challenges head-on, businesses can streamline their monetization processes, reduce costs, enhance customer experiences, and ultimately drive growth. Embracing modern solutions and best practices will be the key to a more efficient and effective monetization stack.

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Disconnected Systems

System Duplication

Complex Requirements

The Nightmare of Migration

Ownership

Central Entitlement Database

The Good News

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Why are monetization stacks broken?

","content":"{\"text\":\"

Why are monetization stacks broken?

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