The document discusses the evolution of subscription-based business models and the benefits of SAP subscription billing. Subscription models have grown with increased mobile and internet use, allowing customers more flexible purchase options and businesses more predictable cash flow. Key features for an effective subscription billing system include flexibility in deployment, responsiveness, real-time centralized pricing, scalability, usage metering, and integration of financial reporting. Benefits of SAP's Business Revenue Innovation Management (BRIM) solution highlighted are supporting high transaction volumes, enabling new service-based business models, operational flexibility, and partner revenue sharing.

1. AcuitiLabs
Maximise Business Benefits with SAP
Subscription Billing and Revenue
Management
www.acuitilabs.co.uk
May 2020

2. The evolution
of subscription-
based business
models
With the increase in growth of mobile
communications and the internet, the face of
subscription-based business models has
dramatically evolved and is changing the way
customers use to look at buying options. Every
business is becoming a connected one by
moving from products to services.
Earlier it was only a handful of industries that
offered the choice of recurring payments, today
a lot of industries have already moved into this
business whereas, several others are planning
to opt the option of offering services and
products based on subscription.
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3. Subscription Based Billing –
Win for Customers and
Business
It is not only businesses that are being
benefited with the use of SAP Subscription
Billing model, but customers are also get
more options to choose from and buy only
what is required. This also help businesses
in maintaining continuous cash-flow and
building stronger and lifetime relationships
with the customers.
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4. Flexibility : The subscription billing model is
required to be flexible and should come with
the option to be easily deployed in the cloud,
on-premise or in a hybrid way depending
on the requirement of the customer.
Responsiveness : Businesses need to have a
solution that is responsive and powerful
with the ability to create any type of pricing
rules imaginable in hours or days – not
months. Any subscription billing system that
do not require a lot of highly
trained developers for its installation,
implementation or management is
considered to be the best.
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A Few Key Features Essential for
a Subscription Billing System
Real-time and Centralised Pricing
Model : An ideal billing system possesses a
real-time and centralized pricing model. It
should be capable of providing needed
support to all subscription products and
services that are offered by a particular
company.
Scalability : You can easily manage the
scenario in the initial phase of using a
subscription billing model for your business as
you might have fewer customers at that time.
But as you grow, this number will also increase
dramatically and will require a system that can
support a huge number of subscribers and can
process billions of transactions in a single day.
Thus, scalability is one of the important
features of any subscription billing system.

5. A Few Key Features Essential
for a Subscription Billing System
• Usage metering : We need to understand the
fact that the simplest subscription models are
based mostly based on flat recurring
fees. There are a lot of businesses that need to
meter customer usage so that they can
efficiently manage pricing, discounts and other
options like up-sell. Another advantage of
usage metering is reporting and revenue
recognition.
• Financials and reporting : An effective billing
solution provide complete customer financial
management and integration with the Backend
Accounting Module. Reporting and Business
Intelligence must be leveraged at real-time
speed to keep a check on the company’s health
and growth rate.
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6. Below are the key benefits of
using BRIM
• 1. Supports high-volume processing and Scales up
businesses : Provide support to the Internet of Things and
connected devices with high-volume, automated, and
transparent processing across usage-event and financial
postings.
• 2. Easy Migration from selling products to selling services
and physical goods bundled with services : Offer your
customers outcomes-based on subscriptions and real-time
usage-based services, while supporting revenue-sharing
models across your extended ecosystem.
• 3. Ease and flexibility of operationalizing your business
model : Get the freedom of enabling any variant or combination
of prepaid and pay-as-you-go business models with rules-
based, smart automation of invoicing and accounting processes.
• 4. Supports Partner Revenue Sharing : Partner Revenue
Sharing option by SAP BRIM helps the partners in establishing
a successful cloud practice with lower liabilities and risks
providing maximum benefits to them.
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7. Thank you
Acuiti Labs
1 Fore Street,
London EC2Y 9DT​
e: info@acuitilabs.co.uk
t: +44 (0)20 7101 9405​
w: www.acuitilabs.co.uk