Subscription Billing for Professional Services with SAP BRIM

SAP Billing & Revenue Innovation Management
For Professional Services
Enabling Business Model Transformation
Customer Engagement and Commerce

2Confidential 2© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Agenda
Business Challenges
Solution Overview
Customer Examples
Benefits

Everything is Turning Digital
On the Market
74%
of US adults with smart phones in 2017
Customers
Channels
50%
of US retail sales influenced by smart devices
Source: Forrester December 2014
Competition
X2
# of subs for Netflix in 2014 compared to Comcast

Everything is Turning Digital
In Operations
60 K subs
For BMW ”Drive Now” by adding service to physical product
Products
Insights
100 stores
Of American Eagle Outfitters equipped with Appel’s IBeacon to deliver contextual
experiences based on shopper’s habits
Source: Forrester December 2014
Employees
25%
Of employees using their own mobile phone to get their job done
Business Operations
100%
Of Nissan Renault vehicles customized to buyer specifications using the
AIMS partnership

Digital Revolution Drives
Business Model Transformation
Develop New
Revenue Model
77% of CEOs in Professional Services
think that their business will be disrupted by Digital Technologies
22% of CEOs
think that Business Model change is the #1 priority
Deliver New Value
Proposition
Develop Valued
Partnerships
Work on Organization &
Resources Alignment
Create New
Customer Relationship
Reach
Untapped Market

Reach Untapped Market
Expand in new geographiesCustomers
Enhance core with ancillary offerings, explore
adjacent services
Investigate new segments, new industries

Deliver New Integrated Value Proposition
Services
Product
Applications
Customers
Offer new innovative “business solutions” to clients:
Digitally integrated services, products, usage
Connectivity & product sales
Connected services

Creating New Customer Relationship
Services
Product
Applications
Customers
Enterprise
Inside
Out
Outside
In
Customer New Profiles & Attitudes
Simplicity
Consistency Transparency
Omni-Connected
CollaborativeSocially Networked
Self-Empowered
Profitability Market Value
Enterprise Daily Challenges
New Revenues
New Entrants
Customer Satisfaction

Develop Valued Partnerships
Multi-Sided Business ModelsServices
Product
Applications
Marketing
Sales
HR
Operations
Product
Suppliers
Customers
Enterprise
Digital
Suppliers
Inside
Out
Outside
In

Develop New Revenue Model
From One shot …
… to Subscription
… to Outcome based
Input or headcount based
Pricing is directly linked to
headcount
Output & non-headcount based
Pricing is directly linked to discrete
units of output/consumption
Outcome & non-headcount based
Pricing is based on measurable cost of
revenue impact delivered to the buyer
Pay on Performance
Gain Share
Application-based
Transaction / Ticket-Based
Device Based
Delivery Unit-Based
Service Catalog Based
Fixed capacity
Time & Material
(T&M)
Fixed bid
Fixed bid/capacity
plus T&M (hybrid)
Emerging
Service vendors Risk / Reward HighLow
High
Buyer’sperceptionofServicevensors
Source: Cognizant – “Output- and Outcome- Based Service Delivery and Commercial Models“ – April 2014

11© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Organization & Resources Alignement
Cross functional agility
Integrated communities & collaboration
networks of customers and partners
Rapid fact-based decision making
Empowered employees

Technical Impacts
of the Digital transformation
Integrated
Business
SolutionUntapped
Markets
Direct
customer
relationship
Valued
Partnership
Usage-
Based
Org. &
Resources
Aligned
• Localization, taxation
• Master agreement management
• Pricing flexibility for new geographies &
industries
• Revenue recognition
• Sales Order management & fulfilment
• Contract management with single view
• Bid Management
• ONE single quote
• Combined Invoices
• Reconciliation
• Partner settlement
• Integration with general ledger
• Reduction of number of systems
• Automation
• Sophisticated pay-per-use & pay-per-
performance models
• Usage handling in contract

Expected Features
of the Digital transformation
Master
Agreement
Service Design &
Quotation
Management
Contract
Management
Partner
Settlement
Usage rating
Automatically creates relevant
contracts and orders to drive
downstream processes
Combine all types of services and
products in a single quote,
including usage based services
Define service offerings,
globally agreed prices and
authorized partners
Complex, pay-per-use price models
Calculates billing amount based on
usage defined in contract
Generating combined
invoices for all services,
products and projects
Leverage standard SAP
SD invoicing for posting to
standard G/L
Pre-Billing
Billing, Invoicing
& Accounting
Share value with 3rd party
providers through flexible
settlement capabilities

Agenda
Business Challenges
Solution Overview
Customer Examples
Benefits

SAP BILLING AND REVENUE INNOVATION MANAGEMENT
SAP BRIM Solution Overview
Usage Metering, Pricing,
Rating & Charging
Pre-Billing, Billing &
Invoicing
Master Agreement /
Service Design
Quote / Contract Management Accounting
HANA AS A PLATFORM
COMMERCE MARKETING SERVICE SALES SOCIAL

Master Agreement
DELIGHT YOUR ENTERPRISE CUSTOMERS
Manages master/frame agreements between a
service provider and its large enterprise customers,
Setup enterprise hierarchies
Define contract terms for who can order what
against the master agreement, run bulk
ordering/changes
Configure pricing terms and volume discounts
including shared/pooled usage across tens of
thousands of service recipients
Decide who needs to receive what kind of invoice
or statement and who pays what

Service Design
ACCELERATE TIME-TO-MARKET
Define orderable solutions, services and products,
agreed prices and entitled business partners
Business users design subscription pricing, usage-
pricing and bundling through configuration, not
code
Allocate fees and credits to multiple financial
accounts
Innovate your offers with credit, quota and
entitlement pooling across multiple enterprise
employees, seats or devices

Quote / Contract management
OFFER TRANSPARENCY & COHERENCY
Drive recurring revenue stream by enabling
solution packages including usage-based,
recurring and one-time services
Offer customized service packages with ONE
single quote, and one contract view
Eliminate service leakage by automatic
entitlement verification
Achieve consistent SLA compliance by monitoring
service levels
Alert agents when a contract is at expiration, and
enable the renewal
Offer guidance for mass contract changes

Pricing, Rating & Charging
CUSTOMIZATION versus CONFIGURATION
Bundle one-time sales of products with
projects, service offerings, subscriptions and
usage-based charging
Maintain allowances (quotas and entitlements)
for individual customers; Configure pricing
terms and volume discounts including
shared/pooled entitlements across tens of
thousands of service recipients in real-time
Define contract terms for who can order what
against the master agreement, handle
quotation, bulk ordering & changes plus split
billing
Metering System
Metered usages
• GB
• Printed Pages
• MIPS
• User
• SAPS
• …
Order &
Contract Mgmt.
System
Pricing contract data:
dates and negotiated
tariffs
“”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
Pricing & Rating
Events, Tariffs, Algorithms

Priced transactions
for customer billing &
partner rev share
Configuring Uniqueness on a Proven Core Pricing Platform
Your Business
Users
Your Unique
Business Models
Platform Dedicated
to Pricing: SAP
BRIM
Platform for
Pricing
Management and
Execution
Pricing Flexibility
Scalability
Reliability
Real-timeBusiness events
from multiple
operational systems
External
Customer Master,
CRM

Multi-sided Business Models
Business relationships are bi-directional
Revenue sharing models are designed
alongside with revenue generation models
Partner payments can be made dependent
on receipt of customer payments so credit
exposure risk is shared
Gain partner loyalty with transparent
statements and prompt payments
28%
decrease in IT expenditures as a
percentage of revenue with a
consolidated single solution and platform
landscape
Source: SAP Performance Benchmarking

Pre-Billing, Solution Billing
AGILE INVOICING PROCESS
Reduce time and cost to create invoices
Decrease number of bill disputes due to
collective invoices in multi-system
landscapes
Increase customer retention for presenting
invoices in agreed format and layout, and
performing review and approval process
based on invoice
Leverage your existing SAP SD landscape
Rating Engine
Rated usages
Pre-Billing
Billing due list,
grouping,
aggregation,
splitting
Billing
Doc
SAP CRM
or 3rd Party CRM
Existing Billing SAP SD Billing
Billing & Invoicing
Create package with
parked invoices &
post it to the
accounting
Invoice
Single Invoice
27%
fewer customer complaints when
organizations expand billing and invoicing
capabilities to meet customer needs

Omni-Channel Customer Engagement
CUSTOMERS PREFER SELF-CARE
Newly designed offers, pricing and agreements
are instantly available for quoting and ordering
across all channels
Order capture and change management
handles the complexity of dynamically bundled
service packages to ensure that what is
ordered can be delivered and billed
Customers gain service control with real-time
visibility into their spending and allowance
status

Watertight Revenue Management
Automate payment handling from any channel
Operate globally in complex multi-currency,
multi-country businesses
Continuously evaluate credit risk and run
efficient collections for lower DSO
Handle customer inquiries and disputes
promptly to ensure prompt payment
Post and recognize revenues and project cash
flow with confidence
Aid compliance with rules for revenue
recognition, tax reporting, PCI-DSS and SEPA
74%
decrease in billing and collections cost as
percentage of revenue with optimized collections
and dispute handling

Designed for Scalability and Openness
Solution proven to scale from small trials up to
handling multi-billion dollar businesses
Modular and open to give you choice, leverage
your existing investments and ensure rapid time to
value
Packaged in rapid deployment solutions with
industry best-practices

Best Practices Built-in
Leveraging
Pre-configured
Baseline
Up to a possible 40% time
and effort reduction
compared to a traditional
project with same scope*
Traditional
* Reduction assumes best-case 100% fit to baseline content scope.
0
Prep Business Blueprint Realization Testing Go-live
Start Deploy Run
10 20 30 40 50 60 70 80 90 100%
RAPID DEPLOYMENT SOLUTION FOR BRIM

Private Cloud Deployment in HEC
SAP HANA Enterprise Cloud Scenarios
SAP BRIM
(BYOL)
SAP HANA
(BYOL)
Infrastructure
Managed
Service
SAP BRIM
(BYOL)
SAP HANA
Infrastructure
Managed
Service
Infrastructure
Managed
Service
Increasing Subscription Flexibility
Perpetual / BYOL (Bring Your Own License) Subscription
SAP BRIM
(new subscription)
SAP HANA

Agenda
Business Challenges
Solution Overview
Customer Examples
Benefits

“”
T-Systems Runs Better for B2B
The speed at which the team developed solutions was
impressive. Thanks to the scrum methodology, we
managed in just a year to replace a software system
that had become one of the biggest CRM installations in
Europe .
Peter Detsch, T-Systems International GmbH
15%
TCO Reduction
3,500
Business Users
OBJECTIVE
360° view of the customer for a better
customer experience
SOLUTION
SAP for Customer Sales, Service and
Billing
BENEFITS
Guided selling for complex B2B solution
packages, improved customer
experience, reduced cost of ownership

Hear from our Customers
Learn How Cloud Services Support
Customer-Centric Business Models
Lexmark, Microsoft and eBay discuss at
SAPPHIRENOW Orlando, May 2013
http://events.sap.com/sapphirenow/en/session/4757
Transform Business Models for Printing,
Imaging, and Content Management
Lexmark talks at SAPPHIRENOW Orlando,
May 2013
http://events.sap.com/sapphirenow/en/session/4848

Agenda
Business Challenges
Solution Overview
Customer Examples
Benefits

SAP BRIM Solution Benefits
Faster Business Model
Innovation
With greater flexibility for introducing
new packages offerings
Up to
40%
Decrease in operational costs
Of billing and collections as percentage
of revenue with optimized collections
and dispute handling
74%
Lower DSO
When accounts receivable tracks
short payments and alerts staff of
recurring issues or those outside a
given tolerance
27%
Reduction in customer support
calls
With simplified, transparent invoicing25%
Up to

33Confidential 33© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Feel free to connect with us at :
THANK YOU!
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 33
isabelle.roussin@sap.com
@SAPBRIM ; @IRoussin
BRIM on LinkedIn http://linkd.in/T7v01L
fr.linkedin.com/in/isabelleroussin/en

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Subscription Billing for Professional Services with SAP BRIM

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