Today’s digital economy is fast shifting customers who no longer buy products; They subscribe to services. From software-as-a-service platforms to streaming services and connected devices, the subscription model is becoming the new normal.
The challenge? Traditional Order Management Systems (OMS) weren’t built for this level of complexity. Without the right tools, managing recurring billing, membership changes, bundled services, and real-time usage fees becomes a nightmare.
Enter SAP Subscription Order Management (SOM) – a game-changing module in SAP’s Billing and Revenue Innovation Management (BRIM) suite, purpose-built for the subscription economy.
What is SAP SOM?
SAP SOM is a specialized module within SAP BRIM that focuses on managing the entire subscription lifecycle—from order capture to billing and revenue recognition. Unlike traditional OMS, it’s designed to handle the nuances of subscription and usage-based models at scale.
It streamlines and automates processes, supports new digital business models, and integrates deeply with other SAP BRIM components to provide a holistic view of your revenue streams.
Key Capabilities of SAP SOM
- Streamlined Subscription Management
- Automates upgrades, downgrades, renewals, and cancellations.
- Handles both individual and bundled service subscriptions.
- Supports flexible activation and invoicing options.
- Enhanced Billing Accuracy
- Ensures timely and precise billing cycles.
- Supports advanced pricing and discount models.
- Enables consistent revenue recognition.
- Improved Customer Experience
- Delivers customer-specific offers and bundles.
- Simplifies subscription management for end-users.
- Supports New Business Models
- Monetizes both subscription and usage-based services in real-time.
- Enables innovation in service offerings and pricing.
- Scalability and Partner Management
- Automates high-volume billing and financial postings.
- Supports revenue sharing and transparent partner collaborations.
Comparison between SAP SOM vs Traditional OMS
| Feature / Aspect | SAP Subscription Order Management (SAP SOM) | Traditional Order Management System (OMS) |
| Product Type Support | Ideal for bundled, usage-based, and subscription products | Typically handles physical or digital products with fixed pricing |
| Integration with Billing Systems | Seamlessly integrates with SAP Billing & Revenue Innovation Management (BRIM) | Basic billing functions, or integrates with ERP billing |
| Lifecycle Management | Full subscription lifecycle: creation, changes, renewals, cancellations | Limited; focuses on order capture and fulfillment |
| Customer View | Centralized view of subscriber, usage, contract, and service history | Limited customer view, more order-centric |
| Customization & Bundling | Advanced capabilities for offer bundling and personalization | Limited or basic product bundling features |
| Change Management | Handles mid-term changes like upgrades, downgrades, pauses | Typically requires cancel/reorder process for changes |
| Real-Time Pricing & Rules Engine | Advanced pricing models, discounting, and business rules | Simple pricing and discount structures |
| Scalability | High scalability for complex business models and high-volume transactions | Depends on implementation, typically less flexible |
| Deployment Model | Cloud-based (SAP S/4HANA and SAP BRIM ecosystem) | On-premises or legacy systems, some with cloud extensions |
| Data Model | Subscriber and contract-based data model | Order and inventory-based data model |
Where Does SAP SOM Fit in the BRIM Flow?
SAP SOM acts as the central orchestrator in the BRIM ecosystem, linking product catalog, order capture, and fulfillment with downstream billing and revenue management functions.
Here’s a simplified diagram of how it fits:
- Front End: SOM receives product configurations and customer selections.
- Midstream: It routes these through charging engines and consolidates usage.
- Back End: Final invoicing and accounting are triggered automatically, ensuring end-to-end revenue visibility.
Why It Matters:
Let’s go back to the initial problem: Traditional OMS can’t handle the agility needed for today’s service-based models.
SAP SOM solves this by:
- Accelerating revenue growth with quicker go-to-market for subscription products.
- Maximizing customer lifetime value through tailored offerings and seamless experiences.
- Reducing errors and revenue leakage with automated billing and accurate revenue recognition.
- Scaling operations with built-in support for high-volume processing and real-time financial postings.
In essence, SOM empowers businesses to adapt, monetize, and scale in a subscription-first world.
Conclusion
SAP Subscription Order Management is more than just an order tool—it’s a transformation engine for businesses looking to thrive in the subscription economy. By automating complex processes, enabling innovative models, and ensuring billing precision, SAP SOM helps unlock new revenue streams while keeping customers happy.
Ready to transform your subscription business with SAP SOM?
Let’s talk—get in touch with our experts today to see how SAP BRIM can support your XaaS journey.
