20
Billing and Revenue Innovation Management Wettbewerbsvorteil durch Echtzeitabrechnung oder MONETIZING DIGITAL TRANSFORMATION Holger Ochsenknecht April 2015

Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

Embed Size (px)

Citation preview

Page 1: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

Billing and Revenue Innovation Management Wettbewerbsvorteil durch Echtzeitabrechnung oder

MONETIZING DIGITAL TRANSFORMATION

Holger Ochsenknecht

April 2015

Page 2: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

DIGITAL TRANSFORMATION V

alu

e c

rea

tio

n

DIGITAL CONNECTIVITY & DIGITAL PRODUCTS

1990s 2000s 2010s

DIGITAL CUSTOMER ENGAGEMENT

DIGITAL TRANSFORMATION

OF BUSINESS MODELS

Page 3: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

OPPORTUNITIES TO CHANGE THE BUSINESS MODEL

WHAT CEOS THINK IS THE CAUSE OF ‘THE NEXT BIG THING’

10% Changes to

costs/pricing

11% New product/

service offerings

13% Changes to

consumer demand

15% New market

opportunities

22% Business

model change

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

Page 4: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

‘90 TRADITIONAL BUSINESS MODELS

Manufacture Use Distribute

SELL

Selling through

RETAILER

MFG has NO Customer

INTIMACY

MFG has NO direct

end-customer

RELATIONSHIP

Page 5: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

‘00 SOCIAL MARKETING

Manufacture Use Distribute

SELL

ENGAGE

MARKETING

OPINION BUILDING

INCREASED REACH

MICRO SEGMENTS

Page 6: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

‘10 MONETIZATION OF NEW BUSINESS MODELS

Manufacture Use Distribute

SELL

ENGAGE

MONETIZE

NEW REVENUES

Subscriptions

Metered Usage

COMPETITIVE

DIFFERENTIATION

CUSTOMER INTIMACY

SMART COMMERCE

Page 7: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

MOVING FROM PRODUCTS TO SERVICES

Manufacture

Connected Services

Use Distribute

• 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

Page 8: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

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

Page 9: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

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

Page 10: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

MULTI-SIDED BUSINESS MODELS

Enterprises

Small Businesses Advertisers

Content and

App Developers

Suppliers

Service Provider

Service Provider

Service Provider

Consumers

Page 11: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

500,000 New customer

accounts per day

100 to 1,000 Transactions per

second 24x7

SCALE AND VELOCITY

Page 12: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

Subscription

Order

Management

Usage Metering &

Transaction Pricing

Billing,

Receivables,

Collections

Partner Revenue

Share

SAP Billing and Revenue Innovation Management (BRIM)

Business Model

Design & Pricing

Simulation

Commerce Marketing Sales Service

Page 13: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

13 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE

Manage Subscribers

Collect Usage

Price and Charge

Bill and Settle

Handle Payments

Manage Credit and Collections

Provide Customer

Care

SAP ERP Backend

SAP Convergent Pricing Simulation

What-if simulations of pricing changes based on mass historical data

Customer analysis Usage analysis Financial analysis

SAP Customer Usage Analytics

SAP Convergent Mediation

by DigitalRoute

Online and offline mediation

Policy management

SAP Convergent Charging

Service pricing and modeling

Online and offline rating

Partner revenue share calculation

Online account balance management

SAP FI

FI-AR FI-CO etc

Product catalog and offer management

Order capture Order

distribution

SAP Sales and Order

Management

SAP Customer Financial Management

Revenue management

Credit Management

Payment handling

Online bill presentment

Financial customer care

Collections management

Dispute management

SAP HANA Real-Time Data Platform

Technically Part of SAP ERP ECC Platform

SAP Convergent Invoicing

Customer billing & invoicing

Partner payment statements

Page 14: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

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 BRIM 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.”

Page 15: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

ASCENDI GROUP: TRANSFORMING TOLL COLLECTION

90% First-call resolution rate with fast access to

customer account details

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

Page 16: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

16 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

Modular Deployment Choices for Rapid Time-to-value

These are just examples of

common deployment

options, others are possible

SAP Convergent

Invoicing

SAP Customer

Financial

Management Existing Billing

Product Catalog Customer Master

SAP Convergent

Charging

Existing Billing

Existing Prepaid

Existing Rating SAP ERP

Financials

Payments and

Collections ERP Financials

SAP Convergent

Invoicing

SAP Customer

Financial

Management

SAP ERP

Financials SAP Convergent

Charging SAP Convergent

Mediation

hybris & SAP 360 Customer

SAP Customer Usage Analytics

Efficient invoicing &

receivables in

existing CRM and

rating landscape

Add-on pricing and

charging flexibility

Complete end-to-

end solution

Page 17: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

SAP BRIM 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% Up

to

25% 27% 74% Up

to

Page 18: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

THANK YOU

Holger Ochsenknecht

Sales Director DACH

[email protected]

+ 49 151 1142 7716

Page 19: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

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

Page 20: Billing and Revenue Innovation Management - · PDF fileSAP Billing and Revenue Innovation Management SOLUTION LANDSCAPE Manage Subscribers Collect ... SAP Convergent Invoicing Customer

“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.”

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

Charge a flat fee

Otherwise

Charge a calculated fee

Monthly recurring charge

Check historical usage

Calculate corresponding fee

Raphaël Bichon Project Manager, SFR