Billing and Revenue Innovation Management Wettbewerbsvorteil durch Echtzeitabrechnung oder MONETIZING DIGITAL TRANSFORMATION Holger Ochsenknecht April 2015
Billing and Revenue Innovation Management Wettbewerbsvorteil durch Echtzeitabrechnung oder
MONETIZING DIGITAL TRANSFORMATION
Holger Ochsenknecht
April 2015
DIGITAL TRANSFORMATION V
alu
e c
rea
tio
n
DIGITAL CONNECTIVITY & DIGITAL PRODUCTS
1990s 2000s 2010s
DIGITAL CUSTOMER ENGAGEMENT
DIGITAL TRANSFORMATION
OF BUSINESS MODELS
OPPORTUNITIES TO CHANGE THE BUSINESS MODEL
WHAT CEOS THINK IS THE CAUSE OF ‘THE NEXT BIG THING’
10% Changes to
costs/pricing
11% New product/
service offerings
13% Changes to
consumer demand
15% New market
opportunities
22% Business
model change
Source: http://www.pwc.com/gx/en/ceo-survey/2014/assets/pwc-17th-annual-global-ceo-survey-jan-2014.pdf (page 24)
‘90 TRADITIONAL BUSINESS MODELS
Manufacture Use Distribute
SELL
Selling through
RETAILER
MFG has NO Customer
INTIMACY
MFG has NO direct
end-customer
RELATIONSHIP
‘00 SOCIAL MARKETING
Manufacture Use Distribute
SELL
ENGAGE
MARKETING
OPINION BUILDING
INCREASED REACH
MICRO SEGMENTS
‘10 MONETIZATION OF NEW BUSINESS MODELS
Manufacture Use Distribute
SELL
ENGAGE
MONETIZE
NEW REVENUES
Subscriptions
Metered Usage
COMPETITIVE
DIFFERENTIATION
CUSTOMER INTIMACY
SMART COMMERCE
MOVING FROM PRODUCTS TO SERVICES
Manufacture
Connected Services
Use Distribute
• Pay As You Go
• Pay Per X (View etc.)
• Metered Charging
• Micropayments
• Subscriptions
• Price Plans
• Bundles
• Personalized Offerings
• Freemium
• Try Before You Buy
• eWallets
• Virtual Currencies,
• Points & Rewards Systems
• Partner Settlement
• Revenue Sharing,
• Multi-Sided Transactions • Spending Controls &
Alerts, Allowances
Three Drivers for New Monetization Models
Agility
for Subscriptions
& Usage-Based
Business Models
Flexibility
for Multi-sided
Partner Revenue
Sharing
Scalability
for High Volumes
of Billings and
Settlements
FROM PRODUCT TO SERVICE
SELL PRODUCTS SELL SERVICES
Vendor Service Provider
Orders Subscriptions & Metering
Items kWh,Meter,Liter,Megabyte,Time
Price Table/List Price Formula
MULTI-SIDED BUSINESS MODELS
Enterprises
Small Businesses Advertisers
Content and
App Developers
Suppliers
Service Provider
Service Provider
Service Provider
Consumers
500,000 New customer
accounts per day
100 to 1,000 Transactions per
second 24x7
SCALE AND VELOCITY
Subscription
Order
Management
Usage Metering &
Transaction Pricing
Billing,
Receivables,
Collections
Partner Revenue
Share
SAP Billing and Revenue Innovation Management (BRIM)
Business Model
Design & Pricing
Simulation
Commerce Marketing Sales Service
13 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
SAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE
Manage Subscribers
Collect Usage
Price and Charge
Bill and Settle
Handle Payments
Manage Credit and Collections
Provide Customer
Care
SAP ERP Backend
SAP Convergent Pricing Simulation
What-if simulations of pricing changes based on mass historical data
Customer analysis Usage analysis Financial analysis
SAP Customer Usage Analytics
SAP Convergent Mediation
by DigitalRoute
Online and offline mediation
Policy management
SAP Convergent Charging
Service pricing and modeling
Online and offline rating
Partner revenue share calculation
Online account balance management
SAP FI
FI-AR FI-CO etc
Product catalog and offer management
Order capture Order
distribution
SAP Sales and Order
Management
SAP Customer Financial Management
Revenue management
Credit Management
Payment handling
Online bill presentment
Financial customer care
Collections management
Dispute management
SAP HANA Real-Time Data Platform
Technically Part of SAP ERP ECC Platform
SAP Convergent Invoicing
Customer billing & invoicing
Partner payment statements
DPD GEOPOST: SIMPLIFYING FINANCE OPERATIONS FOR PARCEL EXPRESS
Lothar Preis, Board Member, DPD GeoPost
Service GmbH
0.5% Revenue increase with
improved data quality
45 Disparate systems
consolidated into one
OBJECTIVE Simplify finance and accounting operations
with a single solution landscape
SOLUTION SAP BRIM for Billing, Revenue
Management and Receivables
BENEFITS Less revenue leakage, cross-subsidiary
reporting and business transparency
“We achieved the business transformation
in finance and accounting through a
reshape of our IT landscape by
harmonizing data, reducing applications,
and automating processes.”
ASCENDI GROUP: TRANSFORMING TOLL COLLECTION
90% First-call resolution rate with fast access to
customer account details
OBJECTIVE Increased business flexibility as part of
toll modernization project
SOLUTION SAP BRIM for Electronic Toll Collect
Billing
BENEFITS High customer satisfaction with great
invoice transparency, lower operating
costs
16 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Modular Deployment Choices for Rapid Time-to-value
These are just examples of
common deployment
options, others are possible
SAP Convergent
Invoicing
SAP Customer
Financial
Management Existing Billing
Product Catalog Customer Master
SAP Convergent
Charging
Existing Billing
Existing Prepaid
Existing Rating SAP ERP
Financials
Payments and
Collections ERP Financials
SAP Convergent
Invoicing
SAP Customer
Financial
Management
SAP ERP
Financials SAP Convergent
Charging SAP Convergent
Mediation
hybris & SAP 360 Customer
SAP Customer Usage Analytics
Efficient invoicing &
receivables in
existing CRM and
rating landscape
Add-on pricing and
charging flexibility
Complete end-to-
end solution
SAP BRIM SOLUTION BENEFITS
Faster Business
Model Innovation
With greater flexibility for
introducing new commercial offers
Reduction
in customer
support calls
With simplified, transparent
invoicing
Lower DSO
When accounts receivable tracks
short payments and alerts staff of
recurring issues or those outside a
given tolerance
Decrease in
operational costs
Of billing and collections as
percentage of revenue with
optimized collections and dispute
handling
40% Up
to
25% 27% 74% Up
to
THANK YOU
Holger Ochsenknecht
Sales Director DACH
+ 49 151 1142 7716
BUSINESS MODEL DESIGN
ACCELERATE TIME TO MARKET
Business users design subscription
pricing, usage-pricing and bundling
through configuration, not code
Allocate fees and credits to multiple
financial accounts: prepaid, postpaid,
hybrid
Innovate your offers with credit, quota and
entitlement pooling across multiple
enterprise employees, seats or devices
Interlink partner revenue share terms
“The flexibility and speed at which we could
create and modify price plans was second to
none. It is so user friendly that now even
non-technical financial managers are able to
introduce new tariffs.”
EXPRESS YOUR BUSINESS MODEL AND EVOLVE IT RAPIDLY
Cloud Pricing Model
Usage-charge
Lookup event type
Check SLA
Tariff based on Time & Date
If event class is premium
Update usage tracking
Charge a flat fee
Otherwise
Charge a calculated fee
Monthly recurring charge
Check historical usage
Calculate corresponding fee
Raphaël Bichon Project Manager, SFR