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SAP Billing for Public Transport & Passenger Rail

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Various estimates put global investment in smart transporttaion systems nearly to $15B from 2011 through 2017. Smart ticketing is a subset if this market. Railway carriers face high operating costs for siloed homegrown systems. Managing vouchers are still manual most oif the time, apportionment of a trip to 3rd party infrastructure carriers are cumbersome, and introduicng new subscription packages, promotions take too long. Learn how to streamline your smart ticketing system.

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SAP Billing for Public Transport & Passenger Rail

  1. 1. SAP BRIM for Public Transport & Passenger Rail Enabling Smart Ticketing Isabelle ROUSSIN
  2. 2. © 2013 SAP AG. All rights reserved. 2 © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
  3. 3. © 2013 SAP AG. All rights reserved. 3 Market Drivers Solution Overview Scenarios Benefits What are the Main Challenges Influencing Your Business?
  4. 4. © 2013 SAP AG. All rights reserved. 4 Market Drivers Solution Overview Scenarios Benefits Challenges Environment al regulations Intense Competition Complex Ecosystem Informed Customers Ubiquity of Channels Cost Pressure
  5. 5. © 2013 SAP AG. All rights reserved. 5 Market Drivers Solution Overview Scenarios Benefits 250% Increase of fuel prices between 2009 and 2013 Very Diverse Economic & Political Environment “”Franchised passenger miles in 2010/11 were over 40 per cent higher than in 2000/01 and over 60 per cent higher than in 1990/91 Rail Trends , UK 2011/2011  NORAM passenger rail in midst of renaissance  City’s taking lead in public transit  Public transit: central strategy in addressing national priorities • Health care • Energy efficiency • Traffic congestion relief  EU 4th Railway Package (2013) • A 4th alignment since beginning of 2000’s • International passenger rail transport already liberalized • Next step to liberalize thedomestic passenger transport  APJ, LATAM, Africa focus on • Good governance • User empowerment • Community engagement • Service innovation • Urban resilience
  6. 6. © 2013 SAP AG. All rights reserved. 6 Market Drivers Solution Overview Scenarios Benefits Multimodal Environment PT Cities Parking Rent a Bike Car-sharing Retailors Banks Service Providers Multimodality City Services PT Long distance PT Region Interoperability Cinemas Itinerary Swimming pool Library PT: Public Transport Based on:VDV-Kernapplikations GmbH & CO. KG Interoperability Sports Others …. City Services Interoperability Multimodality Service providers
  7. 7. © 2013 SAP AG. All rights reserved. 7 Market Drivers Solution Overview Scenarios Benefits Challenges Partner Settlement Bundles Streamline IT process Segment of One Pricing Innovation Needs Environment al regulations Intense Competition Complex Ecosystem Informed Customers Ubiquity of Channels Cost Pressure
  8. 8. © 2013 SAP AG. All rights reserved. 8 Market Drivers Solution Overview Scenarios Benefits Frecciarossa – Your journey made to measure - High Speed Train travelling between Turin and Salerno  Innovative packaging based on different segments  X minutes of free internet access and pay extra x€ for additional 3G access  Content-led services from on-board media servers  Film footage, music, video games and information services such as travel and weather info, timetables and station info  Online ticketing with different payment options  PostoClick to book and purchase ticket online, and pay with many different options: with a cash point card of the Unitcredit group, at SISAL shops, at self service retailers, via Poste Mobile etc .. Innovating on fare policies  Flat rate, internet access, retail services  Different subscription based per segments  Usage based: distance, peak hours, period, options, bundles with partners Innovate in Your Business Model
  9. 9. © 2013 SAP AG. All rights reserved. 9 Market Drivers Solution Overview Scenarios Benefits “”Create a single payment system for a better customer experience and savings on personnel and administrative costs with automation of tickets sales and control Openbaar Vervoer ChipKaart NL The One Stop Shop for New Services 5% Revenue increase for London Oyster card
  10. 10. © 2013 SAP AG. All rights reserved. 10 Market Drivers Solution Overview Scenarios Benefits Partner Settlement
  11. 11. © 2013 SAP AG. All rights reserved. 11 Market Drivers Solution Overview Scenarios Benefits Defining a common back office with interoperability as key Bus lane fines Road Charging Parking Work Place Parking Public Transport Concessionary “Wave & Pay” Charging Event & Usage Bundling Collection / Reimbursement € Chargeable & Concessionary Events Pricing & Charging Finance Voice E-mail White Mail Self Service SMS Mobile Phones Contactless Card Vending machines 80%+ Of cost for maintaining status quo £400 million a year spent on revenue collection at TFL Matthew Hudson, TFL Business Development Chief “”
  12. 12. © 2013 SAP AG. All rights reserved. 12 Market Drivers Solution Overview Scenarios Benefits Simplify Business Interactions & Meet Real Time Expectations Real Time Insight for True customer 360° view Real Time Interactions for quoting & 1:1 customer engagement Real Time Execution for context sensitive offerings « We have upgraded on-train telephone services and offered ‘always online’ options to cater to the work and entertainment needs of our travellers and broaden the range of services available on board Frecciarossa trains” Mauro Moretti CEO of Ferrovie dello Stato “” US$10, 15 M Of hotspot revenue could be generated annually from 100 000 passengers/day for a single carrier
  13. 13. © 2013 SAP AG. All rights reserved. 13 Market Drivers Solution Overview Scenarios Benefits Challenges Intense Competition Complex Ecosystem Informed Customers Ubiquity of Channels Cost Pressure Maximize Profitability Customer at the Center Reduce Opex Reduce Time To Market ResultsBRIM Environmental regulations
  14. 14. © 2013 SAP AG. All rights reserved. 14 Market Drivers Solution Overview Scenarios Benefits Closed Loop between Business Need and IT Constraints
  15. 15. © 2013 SAP AG. All rights reserved. 15 Market Drivers Solution Overview Scenarios Benefits Process Flow with BRIM for Ticketing Cash desk Web portal Mobile App E-Kiosk POS Time Table Orchestration Layer CRM Marketing Analytics Pricing & Charging Billing Payments Collections Financial Care Customers Partner Products Contracts Points Customers Invoices Interactions Customers Interactions 1 Check Available Seat 1 Available Seats & Prices3 3 2 Price Request / Response 2 4 Payment Status4 Customer & Payment Data5 5 Customers Info 6 Ticket Accounting 6 Seat, Beds … DB 1 5
  16. 16. © 2013 SAP AG. All rights reserved. 16 Market Drivers Solution Overview Scenarios Benefits Awarded DigitalRoute is the 2011 Stratecast Global CSP Billing Mediation Competitive Strategy Innovation Award Winner SAP Convergent Mediation Integrate new and old systems more simpler  Collection of multiple data streams  Merge asynchronous data together Ensure data quality  Error detection, with de-duplication  Alarm and monitoring management Transform raw data in usable information  Data enrichment in real time  Aggregation and counting Standardize Data format across platforms  Translate protocols and formats to create new unified data format
  17. 17. © 2013 SAP AG. All rights reserved. 17 Market Drivers Solution Overview Scenarios Benefits “”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. Raphaël Bichon, Project Manager SFR SAP Convergent Charging Easy to Use  Visual design of charging models with discounts, surcharges, apportionment  Service-agnostic, proven  Rapid time to market  Support for multi-sided partner-centric models  Support prepaid, postpaid and hybrid charging High Performance  Calculate prices and charges for hundreds of thousands of transactions per second for hundreds of millions of customers
  18. 18. © 2013 SAP AG. All rights reserved. 18 Market Drivers Solution Overview Scenarios Benefits Multi-Sided Partner Settlement 28% decrease in IT expenditures as a percentage of revenue with a consolidated single solution and platform landscape Source: SAP Performance Benchmarking Handle flexible partner contract terms  Use the same pricing engine to define these contracts Interlink customer pricing with partner revenue share  Better manage the profitability of your business models Tailor your offers to partners  Allow special incentives to most valuable partners
  19. 19. © 2013 SAP AG. All rights reserved. 19 Market Drivers Solution Overview Scenarios Benefits Consolidate multiple upstream systems for a single view of the customer’s account  Flexible invoice aggregation & presentation  Configurable invoice discounting  Integrate seamlessly with accounts receivable and payable for interest calculation, adjustments, etc.  Handle both customer invoicing and production of payment statements for partners in a single solution  Transactional journey by journey financial view Scalable Solution  High volume capabilities 32% decrease in errors when A/R and billing are integrated so open items are generated at the same time as the bill Source: SAP Performance Benchmarking SAP Convergent Invoicing
  20. 20. © 2013 SAP AG. All rights reserved. 20 Market Drivers Solution Overview Scenarios Benefits 74% Decrease in billing and collections cost as percentage of revenue with optimized collections and dispute handling Source: SAP Performance Benchmarking SAP Customer Financial Management Automation & Optimization  Automate routine tasks  Optimize efficient cash collection through segmented strategies Transparency On Revenue  Monitor an up-to-date picture of customer payment behavior  Comply to accounting standards Customer Satisfaction  Immediate access to customer contracts & payment instruments & accounts
  21. 21. © 2013 SAP AG. All rights reserved. 21 Market Drivers Solution Overview Scenarios Benefits SAP Convergent Charging and Invoicing scale massively A series of benchmark tests were run in Q4 2011 in IBM Labs in Montpellier, France, to measure the massive scalability of SAP Convergent Charging & SAP Convergent Invoicing on IBM hardware. 773,000 2.8 B events / sec events / hour subscribers 200 M Market Leading Results SAP Convergent Charging 100,000 1175 billable items invoices/secsubscribers 50 M SAP Convergent Invoicing
  22. 22. © 2013 SAP AG. All rights reserved. 22 Market Drivers Solution Overview Scenarios Benefits Rapid Deployment Solution for Billing with Best Practices * Reduction assumes 100% fit to baseline content scope. Leveraging Pre- configured Baseline Up to a possible 40% time and effort reduction compared to a traditional project with same scope* Blueprint - up to 50%, Savings • Best Practice processes modeled and described Realization - up to 50%, Savings • Best Practices processes already configured and documented • Delta implementation built on-top of existing best practices Testing- up to 30%, Savings • Test Case Template supplied 0 10 20 30 40 50 60 70 80 90 100 Standard Prep Business Blueprint Realization Testing Go-live Start Deploy Run
  23. 23. © 2013 SAP AG. All rights reserved. 23 Market Drivers Solution Overview Scenarios Benefits Efficient Revenue Management: increase customer satisfaction and improve financial performance with a converged view of customer accounts, receivables, payables and disputes. Deployment Flexibility: deploy a complete, integrated customer care and next gen billing system, or choose to deploy in smaller implementable steps for targeted incremental value. Don’t reinvent the Billing Wheel! Business Agility: launch new pricing, charging and billing models more flexible and faster: open up new revenue stream, personalize your B2B offerings and get to know your customers 1 2 3 Summary
  24. 24. © 2013 SAP AG. All rights reserved. 24 Market Drivers Solution Overview Scenarios Benefits Explore Different Scenarios
  25. 25. © 2013 SAP AG. All rights reserved. 25 Market Drivers Solution Overview Scenarios Benefits Belgian Railways – Optimization for Distribution Process Needs  B2B & B2C complex pricing (season tickets, one-off tickets)  Complex discounts, surcharges, commissions  Apportionment & reconciliation of journeys  Consolidation of data from 3rd party systems  Pre-integration in general ledger  Revenue recognition across a period  Self-service billing, payments for travelers and 3rd parties  Granular vie of customer account journeys SAP Solution  Improve TTM and increase business flexibility for launching mobility & European travel offers with SAP CC  High performance real-time pricing & quotations  Minimize customer developments and manual processing with configurable & pre-integrated components 3500 km Of network NMBS/SNCB– Autonmous government company split in 3 parts in 2005: • Infrabel, Infrastructure • NMBS/SNCB public railways managing freight and passengers • Holding, for supervision 207 million passengers In 2008
  26. 26. © 2013 SAP AG. All rights reserved. 26 Market Drivers Solution Overview Scenarios Benefits Beating the Competition
  27. 27. © 2013 SAP AG. All rights reserved. 27 Market Drivers Solution Overview Scenarios Benefits BRIM Performance KPI Industry Benchmark Improvement Potential Time to implement new pricing offers Price/performance for rating (TPS per CPU core) Days sales outstanding (DSO) launch in hours not weeks 150% 20% 1 day 90 days 30 days 470 5 400 2 140 0 90 days 54 days
  28. 28. © 2013 SAP AG. All rights reserved. 28 Market Drivers Solution Overview Scenarios Benefits © 2013 SAP AG. All rights reserved. 28Internal … unlocking new growth opportunities and gaining market leadership by inventing new business models and opening new revenue streams … increasing customer satisfaction by reacting more quickly to customer demand with immediate insight to action … improving top-line effectiveness by reducing cost of operations while simplifying and speeding core business process imagine Let’s Work on Your Future Together
  29. 29. Thank you Isabelle ROUSSIN VP Solution Management Next Gen Billing Transportation, Logistics, Postal, Utilities Mail: isabelle.roussin@sap.com
  30. 30. © 2013 SAP AG. All rights reserved. 30 © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

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