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Consumption Economics: The New Rules of Tech

Consumption Economics: The New Rules of Tech from TSIA on Vimeo.

Link to the Book

This keynote is sponsored by ServiceSource.

If you’re a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won’t be felt in your company’s product line. The true disruption will be to your business model.

Future customers won’t want to pay you high prices out of big "CapEx" budgets anymore. They will expect lower prices paid from "OpEx" budgets when and if they successfully consume the business value of your products. CFOs and CIOs will gladly shift the upfront financial risk for technology off their balance sheet and onto yours. In the process, they will reset the economics of the entire tech business and send many tech companies hurdling into the margin wall.

How your company reacts to this risk shift could either accelerate the commoditization of your products or it could lead you to a new stage of profitable growth. Stick to your current operating and financial model too long and you might drain the profit pool for your entire category. But chart a new course by incorporating the power of Consumption Economics into your development, marketing, sales and service plans and you could capture market share, improve margins, and drive up your stock price.

Consumption Economics will help you re-imagine how to profitably build, sell, and deliver products in the age of the cloud. It is certain to revolutionize everyone’s notion of what serving a customer could mean.

Aggressive startups and incumbents are already beginning to employ these innovative tactics to take real ownership of their customers’ success. They will organize from the ground up around core strategies that make them masters of consumption. Left behind will be a trail of former big-name tech brands still trying to hand off hard-to-implement, hard-to-consume solutions to their customers’ understaffed IT departments, hoping for the best.

For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the owner’s manual for tech company executives who want to drive their company successfully into the next one.
Consumption Economics: The New Rules of Tech


J.B. Wood
President and CEO

J.B. Wood is president and CEO of the Technology Services Industry Association (TSIA). He is a frequent industry speaker, author of the popular book Complexity Avalanche (2009) and has appeared in Fortune, New York Times, Wall Street Journal and other leading publications. Through TSIA, Wood works with the world’s largest tech companies on strategies to extend their innovation platform beyond the lab and into the customer experience. He was formerly the CEO of Prognostics and Executive Vice President of InsightExpress.

Todd Hewlin
Managing Director
TCG Advisors
Todd Hewlin is managing director of TCG Advisors, a Silicon Valley consulting firm renowned for its work helping companies cross the chasm to breakout growth. Previously a partner at McKinsey and a senior executive at Symbol Technologies, Hewlin is regularly found in the boardroom of public and private technology leaders advising them on growth strategy and business transformation. He is an innovative thinker, compelling speaker, and influential author, with articles published in the Harvard Business Review and McKinsey Quarterly.