Subscription economy is the future

As businesses around the world have started to embrace advanced technologies, subscription economy is becoming the new norm. 

Tien Tzuo, founder and CEO of Zuora. Photo from Nick Graham

Dominating today's era are Internet of Things (IoT) and artificial intelligence (AI), a report from Forbes said. With the rising penetration of internet, connected devices and automation, improved by AI, are seen to help drive business growth.

Forbes interviewed Tien Tzuo, founder and CEO of Zuora, a company focuses on creation of platform for subscription-based data services. The tech leader stressed digital customers now prefer "access to services over ownership of physical products."

The economic incentives for owning things are less and less relevant than they once were. Consider cars, music and entertainment. Who purchase CDs or DVDs anymore?

People are now on the look out for the outcome of services--be it transportation, entertainment, or even food, where technology, particularly AI, anticipates. 

Actually we are seeing this demand already not just in foreign countries, but also in the Philippines. 

We call them Spotify for your music needs; Netflix for binge-watching movies and series; Grab and Uber for commuters out there, to name a few.

When you visit these technology-enabled apps, there are suggestions, right? Tzuo explained:

These products can observe how you're using them, observe the environment, talk to other devices, learn from us, and then actually make smart decision based on that data. They can anticipate some of the things that you might want. 

Tzuo also noted adoption of these technologies are happening in the sectors of manufacturing, hospital, transportation, among others. He urged business executives to study these emerging technologies and use them to advance in the market.

Do you agree with this?

Source: Forbes