The current economic situation has challenged companies to quickly change their business models to stay relevant in the volatile market. The major consideration during the business transformation is to embrace innovations to provide enhanced business outcomes.
Subscription-based business is the objective that could successfully lead them to an optimized business outgrowth and profitability.
How to Adjust your business strategy?
Transform
Value chains, business models, and business cultures never stay the same. Transform your business strategies, ideas, and models to build a better future.
Extend
Expand the current business processes to meet the market trends. Capture new sources of value to encompass initiatives to face modern business challenges.
Optimize
Perfect the existing business processes which are essential to achieve greater productivity and improve performance.
Transform, Extend, and Optimize with SAP S/4 HANA Cloud
SAP S/4HANA Cloud offers a public cloud platform with integrated solutions to carry out the overall quote-to-cash cycle effectively. It helps execute subscription and solution business in a simplified approach to bring in an efficient product or service delivery.
What do Solution Order Management and Subscription-Based Business integration offer?
- Bundled subscriptions, products, and services
- Management of complex orders and contracts
- Subscription Lifecycle Management
- Management of Fixed pricing and usage-based billing
- Complex Revenue Recognition
- Scalable and automated subscription business process.
SAP Solution Order Management with SAP Subscription Billing covers major parts of the QTC lifecycle. It helps transform the overall solution and subscription business at large.
QTC Subscription Lifecycle on SAP S/4 HANA Public Cloud
The solution order or quote on SAP S/4 HANA cloud is captured by SAP CPQ followed by Solution Order Management that manages the contracts, contract lifecycle, and solution order. The SAP S/4 HANA Cloud Product Fulfilment, Service management, and SAP Subscription Billing bring in the usage collection data and enables rating, charging, and billing.
The cloud edition of Convergent Mediation by Digital Route brings about the usage and contract data from multiple and complex resources. Once the billing occurs, the single invoice created from the bundled products is passed to S/4 HANA Cloud Sales, Billing (FI-AR) where the invoice is sent to the corresponding accounts to carry out settlements. The S/4 HANA Cloud GL & CO enables revenue recognition and finance control.
Key Capabilities of Solution Order Management with Subscriptions
- Design and sell physical goods, services, and subscriptions rapidly through a single and combined order.
- Support complex pricing models for products, subscriptions, and services.
- Comprehensive order strategy for all solution order items.
- Single invoice for the complete solution.
- Integration of Field Service Management
- Fulfillment of physical goods.
- Monitor order progress and situation handling for complex solutions.
- Subscription and contract lifecycle management.
- Charging metered usages.
- Integration of finance for all solution order items.
- Margin view and analysis for revenue recognition and settlements.
Business Benefits
- · Reduced time-to-market for new products and business strategies.
- · Comprehensive management of recurring and usage-based revenue.
- · Reduced DSO with accurate and timely billing.
- · An automated contract-to-cash process with financial compliance on the public cloud.
For more information and support on SAP solutions, reach out to our experts at Mobolutions.