A Successful Journey To A Transform Subscription-Based Business
In a time when businesses are disrupting and innovating themselves to keep up with the pace, the most profound disruption is the definitive move away from a product-based business model to a consumption-based business. The substantial benefits of this transition include predictable, durable new streams of revenue.
From packaging a specific product aimed at a broad number of customers, carefully setting goals to deliver, and monetizing the value-based pricing, it demands a fundamentally different way of doing business. To realize the conversion from upfront to recurring revenue, businesses should have organizational capabilities to support a consumption-based business model.
Now SAP BRIM understands the inherent complexity and streamlines product bundling, sales optimization, customer incentives, accounting and revenue management. It fundamentally transforms the way companies transition from a product-focused type of environment to an everything-as-a-service landscape.
SAP had to renew its digital core to prepare the move toward the SAP BRIM-driven ecosystem. The first phase of this transition is, creating a high-volume system that stands in contrast with traditional account receivable (FI-AR). This outdated module is a single thread which means it can handle only one batch of processes at a time. That’s when FICA, a sub-ledger accounting system, was introduced. It can offer industry-specific, robust account receivable solutions for Telecom, Insurance.
SAP’s journey to SAP BRIM: why implement SAP BRIM?
SAP BRIM offers a structured mechanism to price your services. It tends to be attractive to customers and identify the potential markets in which enterprises can operate profitably. The packaged monetization solution supports the pricing decisions so that you can have flexibility in offerings depending on the customers’ needs. This integrated approach, rather than the decoupled practices, retools the existing platform and augments the business model dynamics.
Before SAP BRIM, the story of subscription was entirely different. The limited ability of the standard billing platform to handle complex billing scenarios is notable. The lack of well-developed product usage and adoption metrics, accelerated by problems such as complex contracts, makes it difficult to manage product-based pricing and billing.
SAP BRIM offers end-to-end integrated solutions to support a combination of new and existing subscription offerings. It transforms your operational capabilities to support a new delivery model. It facilitates customer self-service, faster adaptability to new business model and time to market, configurable contracts, and usage-based pricing and billing.
SAP has renewed its digital core from ECC to S/4HANA, and this move has tremendously helped businesses in their seamless transition into the SAP BRIM ecosystem. It helps volume businesses for highly customized financial and controlling processes. Whereas the former ERP limited the flexibility and speed, S/4HANA helps SAP BRIM to run simple and avoid process complexity and system issues.
Moreover, S/4HANA’s architecture has been designed to be compatible with digital transformation and intelligent enterprise. Whereas the former ERP was highly modified and massively changed by custom code, S/4HANA made high volume billing, contract and revenue accounting possible. SAP’s decision to move to SAP BRIM is tightly integrated with moving to SAP S/4HANA.
SAP BRIM For The New-Age Subscription Economy
SAP BRIM replaces highly manual process execution and workarounds. It is the proven building blocks of success that comes with complex pricing and billing design capabilities, configurable product management, and high-performance billing processing. Besides, SAP BRIM is a prerequisite to automate and scale SAP’s strategic business initiatives.
Only the full SAP BRIM implementation will provide high visibility into subscription management, the capability to processing high transactions volumes, billing data, and robust reporting. Its robust out-of-the-box billing functionalities will unleash the full flexibility and capabilities to support a consumption-based business model.
The new and complex product suite of billing systems will help businesses develop customer usage metrics, drive product sales and improve customer relationships.