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Sap Billing for Public Transport & Passenger Rail

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Various estimates put global investment in smart transportaion systems nearly to $15B from 2011 through 2017. Smart ticketing is a subset of this market. Railway carriers face high operating costs for siloed homegrown systems. Learn more about 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. 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. © 2013 SAP AG. All rights reserved. 2
  3. 3. Market Drivers Solution Overview Scenarios Benefits What are the Main Challenges Influencing Your Business? © 2013 SAP AG. All rights reserved. 3
  4. 4. Market Drivers Solution Overview Scenarios Benefits Challenges Environment al regulations Intense Competition Complex Ecosystem Cost Pressure Ubiquity of Channels Informed Customers © 2013 SAP AG. All rights reserved. 4
  5. 5. Market Drivers Solution Overview Benefits Scenarios Very Diverse Economic & Political Environment 250% Increase of fuel prices between 2009 and 2013  EU 4th Railway Package (2013)  NORAM passenger rail in midst of renaissance  City’s taking lead in public transit  Public transit: central strategy in addressing national priorities • A 4th alignment since beginning of 2000’s • International passenger rail transport already liberalized • Next step to liberalize thedomestic passenger transport • Health care • Energy efficiency • Traffic congestion relief  APJ, LATAM, Africa focus on “” 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 • Good governance • User empowerment • Community engagement • Service innovation • Urban resilience Rail Trends , UK 2011/2011 © 2013 SAP AG. All rights reserved. 5
  6. 6. Market Drivers Solution Overview Benefits Scenarios Multimodal Environment Service providers Interoperability Service Providers Cinemas Banks Retailors Sports City Services Library Itinerary Others …. Swimming pool PT Cities PT Region Interoperability PT Long distance Interoperability Parking City Services Rent a Bike Multimodality Car-sharing Multimodality PT: Public Transport Based on:VDV-Kernapplikations GmbH & CO. KG © 2013 SAP AG. All rights reserved. 6
  7. 7. Market Drivers Challenges Environment al regulations Solution Overview Scenarios Benefits Needs Pricing Innovation Intense Competition Bundles Complex Ecosystem Cost Pressure Ubiquity of Channels Informed Customers © 2013 SAP AG. All rights reserved. Partner Settlement Streamline IT process Segment of One 7
  8. 8. Market Drivers Solution Overview Scenarios Benefits Innovate in Your Business Model 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 © 2013 SAP AG. All rights reserved. 8
  9. 9. Market Drivers Solution Overview Scenarios Benefits The One Stop Shop for New Services 5% Revenue increase for London Oyster card “” 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 © 2013 SAP AG. All rights reserved. 9
  10. 10. Market Drivers Solution Overview Scenarios Benefits Partner Settlement © 2013 SAP AG. All rights reserved. 10
  11. 11. Market Drivers Solution Overview Benefits Scenarios Defining a common back office with interoperability as key Bus lane fines Road Charging Parking Work Place Parking Public Transport Concessionary “Wave & Pay” Charging 80%+ Of cost for maintaining status quo Chargeable & Concessionary Events E-mail Voice “” £400 million a year spent on revenue collection at TFL Matthew Hudson, TFL Business Development Chief © 2013 SAP AG. All rights reserved. Event & Usage Bundling SMS White Mail Self Service € Pricing & Charging Mobile Phones Contactless Card Vending machines Collection / Reimbursement Finance 11
  12. 12. Market Drivers Solution Overview Scenarios Benefits Simplify Business Interactions & Meet Real Time Expectations US$10, 15 M Of hotspot revenue could be generated annually from 100 000 passengers/day for a single carrier Real Time Insight for True customer 360° view 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” Real Time Interactions for quoting & 1:1 customer engagement Mauro Moretti CEO of Ferrovie dello Stato © 2013 SAP AG. All rights reserved. 12
  13. 13. Market Drivers Challenges Solution Overview Scenarios BRIM Benefits Results Environmental regulations Intense Competition Complex Ecosystem Cost Pressure Reduce Time To Market Maximize Profitability Customer at the Center Ubiquity of Channels Informed Customers © 2013 SAP AG. All rights reserved. Reduce Opex 13
  14. 14. Market Drivers Solution Overview Scenarios Benefits Closed Loop between Business Need and IT Constraints © 2013 SAP AG. All rights reserved. 14
  15. 15. Market Drivers Solution Overview Benefits Scenarios Process Flow with BRIM for Ticketing 4 3 1 Orchestration Layer Marketing Analytics 5 2 Cash desk 1 Web portal Time Table Seat, Beds … DB CRM Mobile App Customers Info E-Kiosk Customers Partner Products Contracts Points Customers Invoices Interactions Pricing & Charging POS 1 Check Available Seat 4 Payment Status 2 Price Request / Response Collections Financial Care Billing Payments 5 Customer & Payment Data 3 Available Seats & Prices Customers Interactions 6 Ticket Accounting © 2013 SAP AG. All rights reserved. 5 6 15
  16. 16. Market Drivers Solution Overview Scenarios Benefits 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 Awarded DigitalRoute is the 2011 Stratecast Global CSP Billing Mediation Competitive Strategy Innovation Award Winner © 2013 SAP AG. All rights reserved.  Translate protocols and formats to create new unified data format 16
  17. 17. Market Drivers Solution Overview Scenarios Benefits SAP Convergent Charging Easy to Use   Raphaël Bichon, Project Manager SFR © 2013 SAP AG. All rights reserved. Rapid time to market  “” Service-agnostic, proven  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 nontechnical financial managers are able to introduce new tariffs. Visual design of charging models with discounts, surcharges, apportionment 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 17
  18. 18. Market Drivers Solution Overview Scenarios Benefits Multi-Sided Partner Settlement 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 28% decrease in IT expenditures as a percentage of revenue with a consolidated single solution and platform landscape Source: SAP Performance Benchmarking © 2013 SAP AG. All rights reserved. 18
  19. 19. Market Drivers Solution Overview Scenarios Benefits SAP Convergent Invoicing 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. 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 © 2013 SAP AG. All rights reserved.  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 19
  20. 20. Market Drivers Solution Overview Scenarios Benefits SAP Customer Financial Management Automation & Optimization  Automate routine tasks  Optimize efficient cash collection through segmented strategies Transparency On Revenue  74% Decrease in billing and collections cost as percentage of revenue with optimized collections and dispute handling Monitor an up-to-date picture of customer payment behavior  Comply to accounting standards Customer Satisfaction  Source: SAP Performance Benchmarking © 2013 SAP AG. All rights reserved. Immediate access to customer contracts & payment instruments & accounts 20
  21. 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. Market Leading Results SAP Convergent Charging 200 M subscribers 773,000 2.8 B events / sec events / hour SAP Convergent Invoicing 50 M subscribers © 2013 SAP AG. All rights reserved. 100,000 1175 billable items invoices/sec 21
  22. 22. Market Drivers Solution Overview Benefits Scenarios Rapid Deployment Solution for Billing with Best Practices 0 10 Prep Standard 20 30 40 Business Blueprint 50 60 70 Realization 80 Testing 90 100 Go-live Up to a possible 40% time and effort reduction compared to a traditional project with same scope* Leveraging Preconfigured Baseline Start Deploy Run Blueprint - up to 50%, Savings Realization - up to 50%, Savings Testing- up to 30%, Savings • Best Practice processes modeled and described • Best Practices processes already configured and documented • Delta implementation built on-top of existing best practices • Test Case Template supplied * Reduction assumes 100% fit to baseline content scope. © 2013 SAP AG. All rights reserved. 22
  23. 23. Market Drivers Solution Overview Scenarios Benefits Summary 1 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 2 Efficient Revenue Management: increase customer satisfaction and improve financial performance with a converged view of customer accounts, receivables, payables and disputes. 3 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! © 2013 SAP AG. All rights reserved. 23
  24. 24. Market Drivers Solution Overview Scenarios Benefits Explore Different Scenarios © 2013 SAP AG. All rights reserved. 24
  25. 25. Market Drivers Solution Overview Scenarios Benefits Belgian Railways – Optimization for Distribution Process NMBS/SNCB– Autonmous government company split in 3 parts in 2005: • Infrabel, Infrastructure • NMBS/SNCB public railways managing freight and passengers • Holding, for supervision 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 3500 km  Pre-integration in general ledger Of network  Revenue recognition across a period 207 million passengers  Self-service billing, payments for travelers and 3rd parties In 2008  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 © 2013 SAP AG. All rights reserved. 25
  26. 26. Market Drivers Solution Overview Scenarios Benefits Beating the Competition © 2013 SAP AG. All rights reserved. 26
  27. 27. Market Drivers Solution Overview Scenarios Benefits BRIM Performance KPI Industry Benchmark Time to implement new pricing offers 30 days 1 day Price/performance for rating (TPS per CPU core) 90 days Days sales outstanding (DSO) © 2013 SAP AG. All rights reserved. 5 400 20% 54 days 0 launch in hours not weeks 150% 2 140 470 Improvement Potential 90 days 27
  28. 28. Market Drivers Solution Overview Scenarios Benefits Let’s Work on Your Future Together imagine … 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 © 2013 SAP AG. All rights reserved. Internal 28
  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. 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. © 2013 SAP AG. All rights reserved. 30

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