INDUSTRY WATCH the SEI suggests that subscription models are empowering providers to continue to be resilient and adapt in the face of change .
Siemens puts subscriptions into action
One example of a company in the healthcare space already seeing the benefits of a subscription-based business model is Siemens Healthineers . Physicians around the world use equipment manufactured by Siemens Healthineers to produce millions of medical images every year . Medical images contribute to a continuously growing pool of multidimensional health data ranging from electronic medical records , image databases and other multi-layered health IT systems .
Historically , Siemens Healthineers operated via a transactional business model with one-off sales , selling both hardware and on-premise software . But with advances in cloud computing and AI , along with a shift in its customer ’ s preferences , the company saw a new opportunity emerging .
IF SUBSCRIPTIONS ARE DELIVERED WITH THE RIGHT BLEND OF FLEXIBILITY , CONVENIENCE AND CUSTOMISATION , THEY COULD PROVE TO BE A SUSTAINABLE SOLUTION .
to this sector in particular . Subscriptions enable healthcare companies to establish and maintain these relationships by gathering valuable insights from minute-by-minute service data , enabling them to better understand and serve patients in a way that wouldn ’ t be possible within a traditional healthcare environment .
In order to capitalise on this , the team introduced several digital health offerings such as a teamplay digital health platform which enables healthcare providers ’ Digital Transformation through AI RAD Companion – an AI-supported , cloud-based image interpretation tool – and AI-Pathway Companion – an AI-based software facilitating personalised and standardised diagnosis and treatment decisions .
However , the existing IT infrastructure ( built for one-time transactions ) didn ’ t have the capabilities to support a subscription business model with multiple customer touchpoints . Therefore , the company was unable to fully monetise these new products and unlock the true patient value . In order to solve this , Zuora Billing and Zuora Revenue was added to the IT stack , enabling the team to automate previously manual processes and institute new key performance indicators ( KPIs ) to power their subscription recurring revenue business model . For Siemens Healthineers , subscriptions mean new revenue streams , increased productivity and significantly less processing time – for example , bill run time was reduced by about 75 %.
According to this report , healthcare companies utilising subscription services also see higher levels of usage-based billing than any other sector . Usage-based pricing is a way of quantifying the value of the product or service provided . The goal is to let customers pay only for the services they need . Incorporating usage-based pricing makes it easier for healthcare providers to align and grow with customer needs – making them both more appealing and more profitable . For the healthcare industry specifically ,
Subscription models allow healthcare providers to re-imagine their businesses as a recurring service , as opposed to an accumulation of transactions . They can act as an enabler for more personalised patient experiences than ever before . Ultimately , if subscriptions are delivered with the right blend of flexibility , convenience and customisation , they could prove to be a sustainable solution , enabling the healthcare industry to survive the current climate of uncertainty and thrive in the future . p
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