Think of SAP Subscription Order Management (SOM) as a central engine that provides power to membership-based businesses using SAP billing and revenue innovation management (BRIM). This has since handled everything when a customer signs up for a service, when they are for the bills and revenue. SAP SOM is particularly useful in industries such as telecommunications, utilities, and media, where memberships are ideal. This helps these businesses to smooth their membership management, correct their billing, and take maximum advantage of their earnings through smart pricing and discounts.
Significant Features of SAP Subscription Order Management (SOM)
SAP Subscription Order Management (SOM) serves as a complete toolkit to effectively manage the entire visit of your membership-based services. As a major part of the SAP billing and revenue innovation management (BRIM), it offers a series of important capabilities that simplify how you handle membership, ensure that your billing is correct, and eventually help you promote your revenue. Here is a look at some critical characteristics of SAP SOM:
1. Product Bundling
With product bundling in SAP SOM, businesses can easily make and see packages combining various products and services. This ability lets you meet various offerings in a single deal together, and you can also fit these bundles that individual customers want.
Major aspects include:
- Component joint: Adding products in the form of components in the bundle.
- Alternative Products: Offering alternative products within a bundle.
- Optional Products: To allow customers to select or disable alternative products.
- Validity period: Maintaining the validity period for each component.
- Pricing and Rules: Define pricing and professional rules for bundles.
2. Order orchestration
Order orchestration in SAP SOM ensures that the order is processed efficiently, ranging from time to time. This feature helps manage the entire order lifestyle, including:
- Order Submission: Handling the initial presentation of the order.
- Process adaptation: Adaptation of order procedures to avoid silent decisions.
- Fulfillment execution: facility of execution of supply requests.
- Event Publication: Publishing events for order status updates.
3. Subscription Management
SAP SOM membership provides strong equipment for management of orders, including:
- Life cycle management: The membership handles the entire process of orders, from the moment they are recognized to billing and revenue.
- Contract change: Along with contracts, it is related to renewal and amendments in extensions.
- Revenue adaptation: Effective pricing helps to maximize earnings through strategies, discount management, and proper revenue recognition.
4. Billing and Revenue Management
This facility ensures accurate billing and revenue recognition for membership services. This includes:
- Billing accuracy: improve billing accuracy through automatic processes.
- Revenue recognition: supporting revenue recognition through effective pricing and discount management.
- Multi-level Revenue Model: Empower development through a clear and equitable revenue-sharing structure.
5. Customer Experience
Increasing customer experience is an important aspect of SAP SOM. This includes:
- Real-time monitoring: monitoring customer accounts in real time.
- Customer Control: Giving customers control over their expenses.
- Innovative pricing: bringing innovative pricing rapidly to the market.
Functions and Benefits of SAP Subscription Order Management (SOM):
The SAP Subscription Order Management (SOM) is about running the entire subscription process like a well-oiled machine, which cuts busy work. This ensures that billing and revenue management are spot-on, can handle various pricing approaches (such as upfronts, later, or payment of mixture), and tons of transactions, which you have a lot of customers. In addition, it plays well with other SAP tools and even the systems that you can already use, making everything smooth and more efficient overall.
Here is a closer look at what it does:
- Membership journey, managed by master form: Think SAP SOM through a full life cycle of a membership order as your expert guide. From that initial spark of interest to final billing and revenue recognition, it carefully oversees every detail. This ensures a spontaneous transition between each stage, providing a smooth and reliable experience for both your team and your customers.
- Billing that creates a trust (and your lower line): Billing errors and disputes say goodbye. SAP SOM supercharges your billing accuracy through intelligent pricing and discount management. By automating the entire process, it reduces mistakes and generates an accurate challan – an important factor when you are targeting for high amounts of transactions and customer satisfaction.
- Unlocking your revenue capacity: Want to maximize your earnings? SAP SOM equips you with advanced pricing options and innovative revenue recognition capabilities. This helps you implement effective pricing strategies and manage strategically discounts, ensuring that you are not leaving money on the table, while also guarantee that revenue is accurately and on time.
- Navigating the complex revenue landscape: Whether you are working directly with customers (B2C), partnering with other businesses (B2B), or working through middlemen (B2B2C), SAP SOM has covered you. This specialist handles the complex revenue-sharing model and supports a diverse business setup, which provides a consistent structure for pricing and management of settlements in all your channels.
- Built for fast lane: High-volume power: In today’s digital world, speed and scalability are important. SAP SOM is easily engineered to process a large number of transactions, which is ideal for online businesses and sometimes expanding Internet of Things (IOT). This automatically automatically makes the important billing functions, ensuring that your system can keep pace with rapid growth and maintain extreme performance.
- The pricing that bends, does not break down: a size rarely fits all. SAP SOM provides agility of flexible pricing models, including prepaid, postpaid and creative combinations. This adaptability allows your business to fully align with diverse customer preferences and develop market dynamics.
- Crafting competent membership experience: With SAP SOM, it becomes comfortable to design and manage your membership offerings. You can easily create attractive packages that bundle various services, define specific details of each offering, set clear pricing rules, and install consistent billing processes. This gives you the right to build a diverse and attractive portfolio of membership products.
Ready to see how SAP SOM can transform your subscription business? Find your answer here: SAP Subscription Order Management | Mobolutions
Maximizing Efficiency and Revenue with SAP Subscription Order Management (SOM):
To truly unlock the power of SAP Subscription Order Management (SOM) and see a real impact on both your efficiency and bottom line, think of it as orchestrating the entire customer subscription experience with finesse. SAP SOM empowers you to handle every stage of this journey seamlessly, from initial sign-up to ongoing management. By ensuring billing accuracy and offering the flexibility of diverse pricing strategies, you build trust and cater to varied customer needs. Plus, its robust architecture effortlessly handles high volumes of transactions, allowing you to scale without operational hiccups. The beauty lies in its ability to integrate smoothly with your existing SAP ecosystem and other vital business systems. This interconnectedness streamlines your workflows, freeing up valuable time from administrative burdens and allowing your team to focus on what truly matters: driving growth and revenue.
Here’s a breakdown of how it helps:
- Efficient Subscription Management: SAP SOM assists businesses in managing the complete lifecycle of subscriptions, from when they start to when they end. This includes dealing with subscription orders, changes to contracts, renewals, and extensions. By automating these tasks, SAP SOM lowers administrative costs and ensures smooth processes.
- Precise Billing & Crystal-Clear Revenue: Tired of billing headaches and murky revenue tracking? SAP SOM acts like a meticulous accountant, ensuring billing is not just accurate but also transparent for your customers. By automating those repetitive billing cycles, it virtually eliminates manual errors, building trust and guaranteeing you have a clear, real-time view of your financial health.
- Pricing That Adapts to Your Customers (and Your Strategy): Forget one-size-fits-all pricing. SAP SOM empowers you with the flexibility to craft diverse pricing models – whether it’s the upfront simplicity of prepaid, the usage-based approach of postpaid, or a clever hybrid. Plus, its support for dynamic pricing means you can adapt to evolving customer needs and market trends, giving you a significant competitive advantage and happier subscribers.
- Built to Grow with You, Not Hold You Back: Imagine your subscriber base exploding – exciting, right? SAP SOM is engineered to handle that growth seamlessly. It’s built for high transaction volumes and scales effortlessly alongside your business. No need for disruptive overhauls as you expand; the system simply adapts, ensuring you maintain efficient management every step of the way.
- Plays Well with Others: Seamless Integration: Say goodbye to data silos and operational bottlenecks. SAP SOM is designed to integrate smoothly with your existing SAP landscape and other crucial external systems. This effortless connectivity streamlines your operations, boosts overall efficiency, and ensures your data flows consistently across all platforms. It’s about creating a unified ecosystem where real-time insights drive smarter business decisions.
Positioning SAP SOM in the BRIM Flow:
SAP SOM is a crucial part of the SAP Billing and Revenue Innovation Management (BRIM) suite, which includes:
- SAP Convergent Charging: Manages pricing and charging.
- SAP Convergent Invoicing: Handles invoicing and accounts receivable.
- SAP Contract Accounts Receivable and Payable: Manages financial transactions.
[Subscription Order Management] –> [Convergent Charging] –> [Convergent Invoicing] –> [Contract Accounts Receivable and Payable]
SAP SOM vs Salesforce CPQ (Configure, Price, Quote):
| SAP SOM | Salesforce CPQ |
| SAP SOM excels in managing the entire lifecycle of subscription orders, from creation to billing and revenue recognition. | Salesforce CPQ focuses more on the sales process and less on post-sales subscription management. |
| SAP SOM integrates seamlessly with SAP S/4HANA for comprehensive financial management. | Salesforce CPQ integrates primarily with Salesforce CRM. |
| SAP SOM supports complex revenue-sharing models and various business scenarios like B2B, B2C, and B2B2. | Salesforce CPQ is more focused on straightforward sales transactions. |
Conclusion:
Ultimately, adopting the SAP BRIM SOM is not about every minute part of the management of membership. This is about making something big: Design a really excellent experience for customers. At the forefront of privatization, reliability, and priority to communication, you are not just processing transactions; You are making real connections that promote permanent loyalty and pave the way for stable development. This is a deliberate step towards keeping its customers first, recognizing that each membership is a chance to deepen those relationships and achieve long-term success simultaneously.
Ready to transform your subscription management with SAP SOM? Contact us at info@mobolutions.com today to explore how our expert services can help you implement and optimize this powerful solution.
