Worldwide spending on Digital Transformation has reached nearly $1.3 trillion this year, according to forecasts from IDC. By 2021, digital transformation spending will nearly double to more than $2.1 trillion.
In the current setup, 70% of these projects fail to achieve the goal they were created to accomplish. [McKinsey Research Report : How of ‘Digital Transformation’]
This means that close to $900 Billion in 2018 is wasted due to mismanagement. According to research conducted by Jabil Group the top challenges being currently faced by enterprises undergoing digital transformation are:
- Employee Pushback
- Lack of Expertise to Lead Digitization Initiatives
- Organizational Structure
- Lack of Overall Digitization Strategy
- Limited Budget
As with any transformation on a large scale, various factors come into the picture which makes it really tough to predict if the transformation will be able to achieve the desired goals.
Making it a really daunting project to undertake at any level. The ideal solution to this conundrum is if a solution provider is able to structure a commercial model in which the enterprise can dip their toes to see how it pans organizationally, before committing larger dollars and resources behind.
For exactly this need, a slew of self-serve digital startups (like Shopify, Corporate Fantasy League, KiDukaan, etc.) in the Indian ecosystem have structured their commercial model to cater to this exact need primarily via a revenue share model with little to no setup cost
This allows flexibility and low-risk entry for the enterprise to dip their toes into starting their digital transformation journey at the same time keeping the solutions provider financially motivated.
There are numerous benefits involved should you choose to adopt a Revenue Sharing model.
Revenue Realization during Trial
Better Alignment with Enterprise’s Goals
Deeper understanding of Enterprise’s functioning
Little to No Setup Cost
Acquire Domain Knowledge
Predictable Revenue Estimation
Data-Backed Business Case
On our part to prevent this digital waste Favcy builds the revenue share business model into all our digital products that we create or co-create with creators under FavcyX (our digital accelerator arm).