Whether you are looking to grow your subscription-based business or undergo a full-scale business model transformation, you can unlock hidden opportunities through value-added services. In this deck, we discuss how you can use these services to secure a sustainable, agile approach in today's continuously shifting market landscape. For more from SAP Hybris, please visit us at: https://hybris.com/en/products/billing

1. Fergus O’Reilly, Global VP Strategy & Solution Management, SAP Hybris
October,2017
The Unlimited Revenue Potential
of Value-Added Services

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
TONNES
UK Annual Domestic Material Consumption per capita
1970s 1980s 1990s 2000s 2010s 2015
0.2 t
Metal ores
2.4 t
Fossil fuels
2.7 t
Biomass
3.5 t
Non-metallic
minerals

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“In the West we
have probably
hit peak stuff.”
Steve Howard, Chief
Sustainability Officer, IKEA

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“What do you like doing best in the
world, Pooh?“
"Well," said Pooh, "what I like best –"
and then he had to stop and think.
Because although Eating Honey was a
very good thing to do, there was a
moment just before you began to eat it
which was better than when you were,
but he didn't know what it was called.

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Waiting for Merlot:
Anticipatory Consumption
of Experiential and Material
Purchases
Amit Kumar,Matthew A. Killingsworth,
and Thomas Gilovich
Cornell University; University of California,
Berkeley;and University of California,
San Francisco

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
CREATE
MAGICAL
EXPERIENCES

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
HOW TO SELL
THE VALUE OF
EXPERIENCES?

9. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Pricing Products vs Experiences
STANDALONE
TRANSACTIONS
Price per item
CONTINUOUS
MONETIZATION
Price per month, per
use, volume tiers,
minimum commits,
freemium, per
outcome, etc.

10. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Align front-office and back-office across the customer journey
COMMERCE
MANUFACTURING
REVENUE
OPERATIONS
REVENUE
SALES SERVICE
REVENUE
FULFILLMENT
MARKET
FINANCE
MARKETING

11. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Where are you focusing your marketing efforts?
CUSTOMER ACQUISITION CUSTOMER RETENTION
40%
more on acquisition
45%
equally on both
15%
more on retention

12. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Massive Scalability: Handle Success, Give Customers Insight and Control
SCALE UP WITH
CONFIDENCE
GIVE CUSTOMERS
CONTROL WITH REAL-
TIME SPENDING
TRACKING

13. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Platform Business Model: Monetization in Multi-sided Partner Networks

14. 16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
DATA
TELLS YOU
WHAT
BUSINESS
MODEL TO
TRY NEXT

15. Thank you.
@fergusj
Fergus O’Reilly
Global Vice President, Strategy & Solution Management
SAP Hybris
fergus.o-reilly@sap.com