Billing and Revenue

Innovation Management
Wettbewerbsvorteil durch Echtzeitabrechnung oder
MONETIZING DIGITAL TRANSFORMATION
Holger Ochsenknecht

April 2015

Value creation

DIGITAL TRANSFORMATION

DIGITAL TRANSFORMATION
OF BUSINESS MODELS

DIGITAL CUSTOMER ENGAGEMENT

DIGITAL CONNECTIVITY & DIGITAL PRODUCTS

1990s

2000s

2010s

OPPORTUNITIES TO CHANGE
THE BUSINESS MODEL

10%

11%

13%

15%

Changes to
costs/pricing

New product/
service offerings

Changes to
consumer demand

New market
opportunities

22%
Business
model change

WHAT CEOS THINK IS THE CAUSE OF THE NEXT BIG THING

Source: http://www.pwc.com/gx/en/ceo-survey/2014/assets/pwc-17th-annual-global-ceo-survey-jan-2014.pdf (page 24)

90 TRADITIONAL BUSINESS MODELS

Selling through
RETAILER

MFG has NO Customer

INTIMACY

MFG has NO direct

end-customer
RELATIONSHIP

SELL
Manufacture

Distribute

Use

00 SOCIAL MARKETING

ENGAGE

SELL
Manufacture

Distribute

Use

MARKETING

OPINION BUILDING

INCREASED REACH

MICRO SEGMENTS

10 MONETIZATION OF NEW BUSINESS MODELS

MONETIZE

ENGAGE

SELL
Manufacture

Distribute

Use

NEW REVENUES

Subscriptions

Metered Usage

COMPETITIVE
DIFFERENTIATION

CUSTOMER INTIMACY

SMART COMMERCE

MOVING FROM PRODUCTS TO SERVICES

Connected Services

Manufacture

Distribute

Use

Pay As You Go
Pay Per X (View etc.)
Metered Charging
Micropayments
Subscriptions
Price Plans
Bundles
Personalized Offerings
Freemium
Try Before You Buy
eWallets
Virtual Currencies,
Points & Rewards Systems
Partner Settlement
Revenue Sharing,
Multi-Sided Transactions
Spending Controls &
Alerts, Allowances

Three Drivers for New Monetization Models

Agility
for Subscriptions
& Usage-Based
Business Models

Flexibility
for Multi-sided
Partner Revenue
Sharing

Scalability
for High Volumes
of Billings and
Settlements

FROM PRODUCT TO SERVICE

SELL PRODUCTS

SELL SERVICES

Vendor

Service Provider

Orders

Subscriptions & Metering

Items

kWh,Meter,Liter,Megabyte,Time

Price Table/List

Price Formula

MULTI-SIDED BUSINESS MODELS

Suppliers

Consumers

Service Provider

Content and
App Developers

Advertisers

Service Provider

Service Provider

Small Businesses

Enterprises

SCALE AND VELOCITY

500,000
New customer
accounts per day

100 to 1,000
Transactions per
second 24x7

Commerce

Marketing

Sales

Service

SAP Billing and Revenue Innovation Management (BRIM)

Business Model
Design & Pricing
Simulation

Subscription
Order
Management

Usage Metering &

Transaction Pricing

Billing,
Receivables,
Collections

Partner Revenue
Share

SAP Billing and Revenue Innovation Management

SOLUTION LANDSCAPE
Manage
Subscribers

SAP Sales and

Order
Management
Product catalog
and offer
management
Order capture
Order
distribution

Collect
Usage

Price and
Charge

Bill and
Settle

Manage
Credit and
Collections

Handle
Payments

SAP Convergent
Mediation
by DigitalRoute

SAP Convergent
Charging

SAP Convergent
Invoicing

Online and
offline
mediation
Policy
management

Service pricing
and modeling
Online and
offline rating
Partner
revenue share
calculation
Online account
balance
management

Customer
billing &
invoicing
Partner
payment
statements

Provide
Customer
Care

SAP Customer Financial

Management
Revenue
management
Credit
Management
Payment
handling
Online bill
presentment

Financial
customer care
Collections
management
Dispute
management

SAP ERP
Backend

SAP FI
FI-AR
FI-CO
etc

Technically Part of SAP ERP ECC Platform

SAP Convergent Pricing Simulation
What-if simulations of pricing changes based
on mass historical data

SAP Customer Usage Analytics

Customer analysis
Usage analysis
Financial analysis

SAP HANA Real-Time Data Platform

2015 SAP SE or an SAP affiliate company. All rights reserved.

13

DPD GEOPOST: SIMPLIFYING

FINANCE OPERATIONS FOR PARCEL EXPRESS
OBJECTIVE
Simplify finance and accounting operations
with a single solution landscape

SOLUTION
SAP BRIM for Billing, Revenue
Management and Receivables

BENEFITS
Less revenue leakage, cross-subsidiary
reporting and business transparency

0.5%

45

Revenue increase with

improved data quality

Disparate systems
consolidated into one

We achieved the business transformation

in finance and accounting through a
reshape of our IT landscape by
harmonizing data, reducing applications,
and automating processes.
Lothar Preis, Board Member, DPD GeoPost
Service GmbH

ASCENDI GROUP: TRANSFORMING TOLL COLLECTION

OBJECTIVE
Increased business flexibility as part of
toll modernization project

SOLUTION
SAP BRIM for Electronic Toll Collect
Billing

BENEFITS
High customer satisfaction with great
invoice transparency, lower operating
costs

90%
First-call resolution rate with fast access to
customer account details

Modular Deployment Choices for Rapid Time-to-value

Efficient invoicing &
receivables in
existing CRM and
rating landscape

Product Catalog

Existing Rating
Existing Billing

Add-on pricing and

charging flexibility

SAP Convergent
Charging

Complete end-toend solution

Customer Master

SAP Convergent
Invoicing

Existing Billing
Existing Prepaid

SAP Customer
Financial
Management

SAP ERP
Financials

Payments and
Collections

ERP Financials

SAP Customer
Financial
Management

SAP ERP
Financials

hybris & SAP 360 Customer

SAP Convergent
Mediation

These are just examples of

common deployment
options, others are possible
2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP Convergent
Charging

SAP Convergent
Invoicing
SAP Customer Usage Analytics

16

40%

Up to

Up to

SAP BRIM SOLUTION BENEFITS

25%

27%

74%

Faster Business
Model Innovation

Reduction
in customer
support calls

Lower DSO

Decrease in
operational costs

With greater flexibility for

introducing new commercial offers

With simplified, transparent

invoicing

When accounts receivable tracks

short payments and alerts staff of
recurring issues or those outside a
given tolerance

Of billing and collections as

percentage of revenue with
optimized collections and dispute
handling

Holger Ochsenknecht
Sales Director DACH
Holger.Ochsenknecht@sap.com
+ 49 151 1142 7716

THANK YOU

BUSINESS MODEL DESIGN

ACCELERATE TIME TO MARKET

Business users design subscription

pricing, usage-pricing and bundling
through configuration, not code

Allocate fees and credits to multiple

financial accounts: prepaid, postpaid,
hybrid

Innovate your offers with credit, quota and

entitlement pooling across multiple
enterprise employees, seats or devices

Interlink partner revenue share terms

EXPRESS YOUR BUSINESS MODEL

AND EVOLVE IT RAPIDLY

Cloud Pricing Model

Usage-charge
Lookup event type
Check SLA
Tariff based on Time & Date
If event class is premium
Update usage tracking

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.

Charge a flat fee

Otherwise
Charge a calculated fee
Monthly recurring charge
Check historical usage
Calculate corresponding fee

Raphal Bichon
Project Manager, SFR