Sustainability Magazine May 2023 | Page 53

“ Businesses are shifting toward consumption-based pricing because it offers agility , affordability , and minimal capital commitment ”

MICHAEL KANAZAWA , PRINCIPAL AND EQUITY PARTNER , EY
“ Businesses are shifting toward consumption-based pricing because it offers agility , affordability and minimal capital commitment – which is , in turn , translating into scalable profitability ,” explains Michael Kanazawa , EY Global Innovation Realised Leader and EY Americas ’ Consulting Growth Strategy Leader .
“ The business models are evolving even further as companies combine their subscription services with consumptionbased pricing , helping customers to extend or enhance offerings as needed . These new blended models can require innovation to value propositions and product designs , as well as the need to transform commercialisation approaches and backend capabilities .
“ A main takeaway point from this year ’ s research is that these XaaS models are moving toward the mainstream , and as they scale , they are driving the need for transformational changes across the enterprise .”
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