Traditional mail revenue declining while cost rising is what all postal companies are confronted with? Diversification and streamlining their business processes become a must, and with this, a transformation from an order-based approach to an event-based billing process.

1. SAP Hybris Billing
Monetizing Postal Services
Isabelle ROUSSIN
August 2016

2. LEGAL DISCLAIMER
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially
from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as
of their dates, and they should not be relied upon in making purchasing decisions.

3. AGENDA
 BUSINESS CHALLENGES
 HOW HYBRIS BILLING HELPS
 CUSTOMER EXAMPLES

4. Business Challenges

5. Declining Traditional Mail Volumes & Revenue Leakage
Revenue
Costs

6. Business Model Transformation Journey for Postal Companies
A Cycle of Transformational Initiatives
FOCUS
protectgrow
MOTIVATION
Reduce Leakage
core periphery
understand your
customer
Diversify with New servicesProvide New Customer Experience
Develop New Channels, Geos …

7. Business Model Innovation Journey for Postal Companies
What They Say Around the Globe
FOCUS
protectgrow
MOTIVATION
core periphery
Susanne Ruoff,
Swiss Post CEO
Union Postale - MARCH 2015 / N°1
“It is critical that we continue to move from our
historical position,[…], to a market-focused
company that responds to customer needs.
And who better than our customers can teach us
what these effectively are”
“For Postals to adapt and grow, they must
not only adapt and innovate in the path of
the traditional mail services, but also try to
find other growth drivers »
Jean-Paul Bailly
CEO La Poste France – UPU 2012
“Innovation and the integration of networks,
products and services are key to building a
seamless postal network in line with the
changing global environment,”
Bishar A.Hussein,
director general of the Universal Postal
Union

8. Mapping Digital Transformation for
Customer Engagement and Commerce
FOCUS
protectgrow
MOTIVATION
CREATE THE VALUE
DELIVER THE VALUE
Capture the Value
Find New Revenue Streams
Streamline Costs
core periphery

9. Five Main Monetizing Challenges for Postal Cies
FOCUS
protectgrow
MOTIVATION
MONETIZING NEW BUSINESS MODELS
core periphery
RENOVATING MONETIZATION BUSINESS PROCESSES
Product &
Services Bundles
Subscriptions, Usage-
based
Internet of Things &
Connected Devices
Real-time, usage-based
services
Digital Commerce
High-volume, global
payment flexibility
Platform
Business Model
Revenue share
From Order Based Billing
to Event Based Billing
Agility
Revenue
Leakage Reduction
Automated1
2 3 4
5

10. The Monetization Journey
For
Postal Companies

11. FROM ORDER BASED
BILLING...
TO ACTUAL
EVENT BASED
BILLING
What Is Ordered is not necessarily What is Consumed!
To Invoice on
the facts not
on the
Promise
1

12. EVENT BASED DESIGN: BENEFITS
MOVING FROM PLANNED EVENT TO ACTUAL EVENT
“Moving from planned event to
actual event gave us the
flexibility we needed to rate and
bill properly our customers”
Actual Volume Discount
Actual Tiered Pricing
Customer accurate view
Less revenue leakage
Credit
Quota
Entitlement

13. Event Based Billing
Convergent
Charging
Billing and
Invoicing
Customer
Financial
Management
Pricing and
Charging
SAP Hybris Billing
Acquisition
and
Metering
800,000
events per second
Source: SAP Performance Benchmarking 2011
Upto
 No need to reconcile between what is ordered and what is
actually sent or consumed
 Volume discounts based on customer’s actual consumption, not
on assumptions at contract time
 Pricing provided in real-time to multiple systems
 Additions or modifications of fees or surcharges applied across all
product and contract variants

14. Prerequisites: Product and Pricing Flexibility
Class: Parcel
SAP hybris Billing
1 article, n features
Basic Price $7.80
Price per Kg $1.51
Tracking required $1.00
Proof of Delivery $1.50
n billing outputs
Characteristics:
• Speed
• From Postcode
• To Postcode
• Height
• Width
• Length
• Weight
Value add features:
• Tracking notification
• Parcel-pick up
• Returns
• Cash-on-delivery
• Dangerous goods
• Day of delivery
• Signature required - HP Produkcija
(member of the group HP Croatian Post Inc.)
“Time-to-market was
one of our top priorities”

15. FROM PRODUCTS AND
SERVICES AGILITY...
TO MULTI SIDED
MONETIZATION
3
Additional Revenue Streams
Through Diversification & Eco-System of Partners!
4 5

16. COMBINING DIFFERENT SERVICES
With a Cross-Industry Solution
ONE LANDSCAPE TO COMBINE
• TRADITIONNAL POSTAL SERVICES
• And NEW INNOVATIVE REVENUE STREAM
Single Pricing platform
Single Customer view
… New Cross Product bundles
2
Commercial
contract

17. EFFICIENT B2B QUOTE TO CASH MANAGEMENT
74% decrease in billing and collections
cost as percentage of revenue
with optimized collections and
dispute handling
Source: SAP Performance
Benchmarking
 Develop personalized & complex enterprise
agreements and discounts while keeping
highly-replicable offerings
 Introduce credit pooling across the enterprise
 Provide One single Quote & One consolidated
Invoice
 Protect from credit-exposure risk with
appropriate scoring and collections rules
customer
contract
$
public rate
Public rate
2

18. RAISE YOUR CUSTOMER EXPERIENCE WITH E-SERVICES
Connect Efficiently the Front & Back Office
3
Single View of Customers’ Journey and Value across Services
WEB MOBILE EMAIL
CALL
CENTER
MARKET
PLACE
INTERNET
OF THINGS
CONTACT
CENTERPOS
MARKETING
CHANNELS
DIGITAL
GOODS
SOCIAL
Consistent Customer Experience across Channels and Touch Points
CUSTOMER JOURNEY
BILLING JOURNEY
Activate Services
Subscribe
Capture Order
& Create Contract
Use Services
Rate & Charge
Services
Handle Payment
& Receivable
Observe Customer
Data
Build Personalized
Offer
Subscribe to New
Offer
Service
Disruption
Search Online
Call Care
Create & Send Bill
for All Services
Post & Recognize
Revenues
Simulate New
Pricing
Capture Order
& Change Contract
Receive Services Tweet
Pay Bill – Different
Options
Receive Bill Receive Offer
Resolve Inquiries

19. BUILD STRONG BUSINESS NETWORKS
Multi-Sided Business Model as Service Enablers
Partners and sub
contractors
Postal
Organization
Destination
Customers
contract
4

20. BECAUSE ADDING
REVENUE IS NOT
ENOUGH...
REDUCING
REVENUE
LEAKAGE
5
Network
Billing
Fraud
Collections

21. SAP HYBRIS BILLING to COMBAT REVENUE LEAKAGE
OPEN END TO END
PLATFORM
ACCOUNT RELATED
CUSTOMER CARE
HIGH PERFORMANCE
USAGE MANAGEMENT
TRANSPARENT & FLEXIBLE
INVOICING
WATERTIGHT REVENUE
MANAGEMENT
STRAIGHT-THROUGH
PROCESS AUTOMATION

22. SAP HYBRIS BILLING 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%
Upto
25% 27% 74%
Upto

23. Customer Stories

24. 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 Hybris Billing 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.”

25. PostNL
SIMPLIFYING OPERATIONS FOR PARCEL AND MAIL
OBJECTIVE
Solve revenue leakage and bring
more agility
SOLUTION
SAP Hybris Billing with Mediation,
Charging, Invoicing
and SAP HEC
EXPECTED BENEFITS
Reduce IT costs with a full cloud
based solution, consolidate
landscape

26. HP Produkcija
AGIL MULTI-SERVICE CHARGING SYSTEM
Being a start-up, time-to-market was one of
our top priorities. Choosing SAP CC enabled
us to issue first bills to customers after only 3
months from project kick-off. Due to the
ability to quickly change tariff plans even last
minute adjustments did not postpone our go-
live plans
“
OBJECTIVE
Implement innovative charging of digital TV services fulfilling very
complex charging and discounting requirements
SOLUTION
SAP Hybris Billing, Charging
EXPECTED BENEFITS
One flexible convergent charging system which simplifies overall IT
architecture
Ability to implement any kind of new services which requires customer
charging without the need of acquiring a new charging system
Ability to charge any kind of services (apart from Telco/Media) through
one unique charging system which decreases overall total cost of
ownership of IT infrastructure
”

27. SF Express
DRIVE INNOVATION IN EXPRESS DELIVERY
Headquartered in Shenzhen, China, S.F.
Express (Group) Co., Ltd. Provides
international and domestic express delivery,
shopping and e-commerce services
OBJECTIVE
Automate contractors’ commissions for on-road courier services ,
carried out manually currently
Decrease revenue leakage for calculating revenue split to
different subsidiaries / gantries for each transportation route
SOLUTION
SAP CRM and Hybris Billing, & SAP ECC
EXPECTED BENEFITS
Convergent Charging for real-time contractors’ settlement
charges and revenue split calculation for each transportation
route
Future plans to include pricing/rating of transportation bookings
using Convergent Charging
4xIncrease in compensation processing efficiency

28. Summary
• Deliver new products, services and bundles while stopping revenue leaks by
introducing event based billing and native multi-sided revenue sharing
management
• Consolidate heterogeneous billing systems to provide a real-time source of truth
for pricing while delighting customers and partners with consolidated invoicing.
• Improve the customer experience and make it easier for customers to do
business with you via seamless, real-time and omni-channel commerce and
customer specific contract options.
• Reduce costs by consolidating systems onto a lean, standardized software stack

29. THANK YOU!
Feel free to connect with us at:
@SAPHybris
http://linkd.in/T7v01L
https://hybris.com/en/billing
isabelle.roussin@sap.com

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presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated
companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be
changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.