SAP BRIM vs. SAP Subscription Billing: The Differences, Unique Solutions
In order to facilitate competitive business offerings, enterprises are rapidly moving into the more complex territory of selling solutions—a distinct move from selling products outright to more effectively cater to customer needs and deliver value.
Industrials, Automotive, Hi-Tech, OTT media, and even tolling businesses are packaging a combination of hardware, software, and services. Increasingly offering cloud-based flexible consumption solutions shifts the focus onto the user expectation of instant, flexible, and cost-effective consumption.
SAP had introduced its own homegrown solutions to provide agility and increase transparency across the entire revenue management process. It brings in higher business value to the table valuations by optimizing the subscription earnings in such a way so as to ensure predictable revenue and offer more revenue. The highly-automated billing and invoicing solution provided a robust platform for revenue management solutions.
At the same time, the subscription businesses are presented with 2 solution packages — SAP BRIM & SAP Subscription Billing. These two seemingly similar subscription solutions have their own flavor of revenue recognition modules. Both of these solutions completely optimize as-a-service model to handle multiple pricing methods, such as fixed price, quantity and usage-based pricing, discount tiers, and more.
SAP Subscription Billing sets the foundation model by effectively designing the lifecycle management of subscription product. It helps the companies to develop their strategic road maps and determine which markets they can operate profitably.
The solution reimagines the sales organization to provide a structured method to price your offerings. It enables businesses for a successful transition into selling products into selling licenses. The effective set of quoting and pricing tools and updated competitive benchmarking empowers businesses to monetize any combination of usage consumption. SAP Subscription Billing solution transforms the operational capabilities to support new delivery models.
SAP BRIM, on the other hand, is an end-to-end integrated subscription solution that supports a combination of new and existing offerings. The solution streamlines product entitlements, provisioning, customer support, and real-time billing and invoicing. SAP BRIM’s unmatched revenue recognition capabilities, combined with subscription billing, rating, and usage metering solution fundamentally changes the face of subscription economy.
Moreover, compared to SAP Subscription Billing, SAP BRIM serves more complex landscape of, for example, XaaS model. The task is to integrate feature-rich, value-based solutions into the existing organizational capabilities to enable them to support a consumption-based business model.
SAP Subscription Billing, for its part, facilitates a comprehensive subscription lifecycle management for reliable growth. It helps create flexible subscription contracts to establish a contract-based subscription billing. Various contract approaches can be built into the solution ecosystem — one-time, in-advance, installment-based, or multiple invoices. This unique capability to mix multiple billing models in a contract and the functionality to manage the automated billing schedules ensures uninterrupted cash-flow.
Whereas SAP Subscription Billing is transaction-based, in which the flexibility is not that robust because of the one-time transaction to obtain software license, SAP BRIM provides companies with the speed and agility they need to adapt in the fast-paced economy. The outcome-Based model of paying once business outcome is achieved, is incredibly flexible.
In a traditional model, as the workload increases and scale demands it, manual billing processes drain enterprises’ productivity and require specialised functionality for their financial management systems. But the Pricing and Packaging of SAP Subscription Billing is deployed in the cloud, and the solution is made available as software as a service (SaaS). This and new total cost of ownership (TCO) is cost-effective and allows the services to be consumed readily.
Moreover, SAP Subscription Billing offers Order Capture and rate plan configuration. The solution thus enables customer retention and reliable order to cash management. The result? It synchronizes contract information with the financial system.
SAP BRIM is effective when it comes to tightly integrating an end-to-end revenue management into the billing system. The solution offers separate billing and revenue recognition schedules, fully integrated contracts, billing, and rating plans. The wealth of solution packages include recurring billing modules, cash management, vendor management, financial consolidation, inventory management, and financial reporting modules.
SAP Subscription Billing empowers enterprises to iterate multiple offers quickly with a consolidated view of customer-usage data. Billing reconciliation feature makes it easier to manage customer disputes with a transparent billing process.
The solution reduces time to market as the payment can be set-up in minutes. The payment processing can directly be integrated into the subscription billing and lifecycle management platform.
SAP BRIM serves as a powerful solution to automatically calculate usage collection and integration. This automated process is essential to avoid errors and bottlenecks. The reporting and metrics solution is another notable solution. Enterprises can have important metrics such as recurring revenue, cash flow, churn, and total earned revenues. Users can also have visibility into how different products and services are performing by letting you gain valuable insights into your customer base.
In the end, both SAP BRIM and SAP Subscription Billing are effective subscription solutions. In that, SAP BRIM focuses more on automation and streamlining the core financial management functions such as Accounts Receivable, and Accounts Payable. SAP Subscription Billing fuels your growth with its highly configurable recurring billing and tiered charging models.