Innovate With New Business Models: How To Successfully Adjust Your Business Strategy
In the need to establish their own business models, global enterprises have found a subscription business model to define how they can create, deliver, and capture value. The subscription economy has reduced revenue leakage and provided data integrity and consistent revenue recognition. According to Gartner, a global research and advisory firm, 75% of the organizations selling direct to consumers will offer subscription services by 2023. They have also noted that 70% of organizations have already deployed or are considering the deployment of subscription services.
Remember the days before Spotify, Netflix, and online gaming? Back then, consumers bought physical copies of music, movies, and video games. But times have changed. Digital subscription-based services are replacing and augmenting physical products in almost every industry. This new service model has moved from ideation to innovation, as it is centered on customer-focused and high-performance solutions. In the automotive industry, for example, companies are developing the new subscription-based model. It enables concepts such as mobility-as-a-service which allows drivers to pay for usage rather than vehicles.
But new business models require new processes. You need to combine additional services and subscriptions with traditional products. How to realize recurring billing and flexible pricing? How to converge invoicing for services, subscriptions and physical goods? How to match high volume payments with invoices? How to integrate usage information in the invoicing process? How can you price your new subscription-based offering?
SAP BRIM forms the engine for innovating your business model in the subscription-based economy. The end-to-end packed solution enables you to bring new offerings to the market in less time, accelerate cash collection, and quickly design and modify the pricing model. So, instead of selling product, you can now offer your customers what they really want with positive outcomes and build more profitable customer relationships.
When businesses want to achieve greater productivity and performance, they optimize the existing processes. This can include investing in automation or becoming data-driven. SAP BRIM takes changing customer behavior into account and creates new business models. It facilitates subscription and usage-based billing options to meet customer expectations and support stable revenue streams. Besides, SAP BRIM implementation offers a financially viable business model that provides financial insight to predict profitable outcomes.
By selling product bundles and combining physical product and service subscriptions, SAP BRIM benefits several varieties of industries:
- Media & entertainment – 3rd party content streaming, virtual events / concerts
- IT / BPO services – business solutions and packaged IT solutions
- Software as a Service – software in the cloud
- Consumer products – IoT data monetization
- Mobility as a Service – usage-based insurance and car fleet management
- Retail – digital customer engagement, online shopping clubs
- Education – remote online learning
- Healthcare / life science – telemedicine, digital records
SAP BRIM is a complete solution to handle all the needs of different industries.
The end-to-end solution offers, rapid design of service-based business models, holistic management of recurring and usage-based revenue, and customer-focused settlement and service at scale.
The solution component incorporates
- Product & bundle modelling
- Quote, orders, and entitlement management
- Usage collection
- Pricing and charging
- Billing and settlement
- Revenue share & partner settlement
- Customer care, credit, and collections
- Revenue accounting
SAP BRIM’s comprehensive solution portfolio comes tightly integrated with offerings to develop new business models. The solution includes subscription management where subscription and pay-per-use offers can be explored in new ways. Service providers can easily combine billing data from different sources (orders, contracts, deliveries) into a single invoice and automate revenue recognition and analyze revenues and cost.
Top solution benefits
- SAP BRIM disrupts subscription business as it increases shareholder value and customer lifetime value. As a result, businesses can dramatically reduce 25% of customer support calls.
- Enterprises can diversify their business boundaries. Faster time to market and increased non-commodity revenues are thus assured. It can spark a business transformation that translates into a 95% reduction in time to market and 27% lower Days Sales Outstanding (DSO).
- With increased cash flow, reduced TCO, and optimized bottom line, SAP BRIM enables a financial renovation that reduces 74% of operational costs and ensures a 99% reduction in revenue leakage.
Mobolutions has immense experience operating in various industries by solving key industry-specific issues. We can help you with flexible implementation for all types of subscriptions, real-time and usage-based services, and multi-sided revenue models through SAP BRIM implementation.