Struggling with Subscriptions? Discover How SAP SOM Could Be Your Game-Changer
Today, everything seems to be moving toward subscriptions from streaming movies and music, to cloud software, to even car ownership! But behind every “Subscribe Now” button you click, there’s a lot going on in the background to make sure your subscription is properly managed, billed, upgraded, paused, or cancelled. Managing all that complexity isn’t easy, especially for businesses dealing with millions of customers. That’s where SAP SOM comes into play. Not sure what SAP or SAP SOM is all about? No worries, you’re definitely not alone.
Define: SAP, SAP BRIM, and SAP Subscription Order Management:
Regard SAP as one of the top contenders in the software industry. They develop strong solutions that enable businesses to operate more efficiently covering everything from managing finances and optimizing supply chains to overseeing personnel and daily operations behind the scenes.
SAP BRIM is one of SAP’s special solutions, which is short for Billing and Revenue Innovation Management. In simple terms, BRIM helps businesses manage complicated billing situations, like subscriptions, pay-per-use services, and promotional bundles.
Within the SAP Billing Revenue Innovation Management (BRIM) ecosystem, SAP Subscription Order Management plays an important role. It acts as the central hub that oversees and simplifies the complex subscription processes, ensuring everything runs smoothly and efficiently.
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Real life example:
Picture this: You run a giant streaming platform like Netflix or Disney+.
Millions of people are subscribing to different packages Standard, Premium, Student Discount, Family Bundle and buying add-ons like sports channels or international content. Now, think about everything that needs to happen when someone:
- Signing up for a Family Plan
- Upgrades to a Premium package
- Pauses their subscription
- Adds a new sports bundle
- Switches billing methods
- If you’re managing this business, it’s essential to:
- Capture the order
- Ensure appropriate data accessibility is provided to each user according to their authorization level
- Update the billing system
- Apply for any promotions or discounts
- Keep everything in sync across multiple departments and systems
How SAP SOM comes into Subscription Businesses
Managing a subscription-based company is frequently trickier than it seems.
When you sign up for a bundle, change your plan, or grab a special offer, a lot of systems need to work together perfectly, without errors.
That’s where SAP SOM comes in.
Think of it as the unseen hero working behind the scenes, guaranteeing that everything runs efficiently, smoothly, and accurately.
- Capturing the Customer’s Order
- Breaking Down the Order (Order Decomposition)
- Managing Changes Without Disruption
- Launching Promotions Quickly
Benefits of using SAP SOM in subscription
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- Faster Rollouts: You can create and launch new subscription plans much faster than before — up to 50%
- Better Customer Experience: Customers can change, upgrade, or cancel their subscriptions all by themselves easily on the app or website.
They don’t have to waste time calling customer service and waiting on hold. - Accurate Billing: Customers get the correct bills every time, no wrong charges, no missed discounts.
- Fewer Errors: Because many processes are automated (handled by smart systems), manual mistakes like wrong charges, missed upgrades, or forgotten discounts — drop by 60%.
- Faster Revenue: New offers go live 40% faster, which means businesses can start making money sooner.
Where SAP Subscription Order Management can be used:
It’s not just for streaming companies! SAP SOM is perfect for any industry running subscriptions:
| Industry | Use Case | Why SAP SOM? |
| Telecom | Managing mobile/data plans and device bundles | Frequent upgrades and complex service bundles |
| Streaming Services | Video, music, gaming subscriptions | On-demand upgrades and flexible offers |
| Utilities | Electricity, water, EV charging plans | Dynamic pricing and usage tracking |
| Software/SaaS | Cloud software, APIs, services | Real-time provisioning and billing |
| Manufacturing | Equipment rentals, predictive maintenance | Combining products and services into one offer |
| Healthcare | Patient monitoring subscriptions | Managing lifecycle changes with billing |
| Transportation | Car subscriptions, fleet services | Flexible plans and multi-system coordination |
| Retail | Monthly boxes, loyalty subscriptions | Online, mobile, and in-store integration |
| Public Sector & Education | Education platforms, citizen services | Scaling services with transparent billing |
An In-Depth Look at How SAP SOM Operates Within SAP BRIM
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Designing the Offer in SAP SOM
Inside SAP SOM, business teams (like marketing and sales) create and configure this offer.
They define:
- What the bundle includes (video, music, gaming)
- Different pricing options (monthly, annual, discounts for students, etc.)
- Promotion rules (first month free, loyalty rewards, etc.)
- What systems need to deliver each part (video access system, billing platform, music partner app, etc.)
Customer Places an Order
A customer finds the Premium Family Bundle on your website or mobile app.
When clicked Subscribe Now and completes her purchase. SAP SOM immediately captures the order and starts orchestrating everything that needs to happen next.
SAP SOM Sends Data to Billing Engines
Once subscribed, SAP SOM knows customers’ needs to start getting billed every month.
It sends billing instructions to the billing system — in SAP’s world, that could be SAP Convergent Charging (SAP CC) and SAP Convergent Invoicing (SAP CI), which are specialized tools for calculating charges and generating invoices. These billing engines:
- Set up billing schedule
- Apply for any discounts (like the first month-free promotion)
- Prepare to generate monthly invoices automatically
SAP SOM Sends Access Instructions to User Management Systems
Customer wants to start watching movies and listening to music once subscribed. SAP SOM devices communicate provisioning directives to the systems in charge of overseeing:
- User accounts
- Content access rights
- App and device activation
For example:
- Video platforms create family profiles.
- Music service sends a welcome email to activate.
- Gaming platform unlocks her access.
All of this happens automatically and usually in seconds, no manual work is needed!
SAP SOM Connects to External Services if Needed
Sometimes, companies work with external partners like third-party music apps, fitness apps, or smart device manufacturers. If bundle includes a music app subscription from another company, SAP SOM will automatically:
- Communicate with the external service’s system
- Send user data securely
- Activate access as well
Customer Usage Data Is Collected
After customers start using the services. All usage data (how much streamed, what add-ons bought, etc.) is collected. SAP’s Convergent mediation (SAP CM) tool gathers this usage automatically, securely, and in real time. This information plays a critical role as it establishes:
- If plan needs to be upgraded
- If any extra charges need to be added (for example, buying an extra movie)
Bills Are Calculated, Invoices Generated, and Payments Processed
When the billing period concludes (typically monthly):
- SAP Convergent Mediation (SAP CM) collects and consolidates usage data, providing a thorough insight into consumption trends.
- SAP Convergent Charging (CC) then applies rate structures to these usage metrics, ensuring accurate billing based on specific rates.
- SAP Convergent Invoicing (CI) compiles all this information into detailed, easy-to-understand bills for customers.
- SAP FI-CA (Financial Accounting) handles payment processing, late fees (if needed), and sends reminders.
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The complete sequence executes autonomously, eliminating the need for manual oversight or input.
- Customer receives a monthly invoice by email or app notification.
- Customers see exactly what has been used and what they are paying for.
- The payment is auto deducted or can be paid manually.
Final Thoughts: Can SAP SOM Be Your Subscription Superpower?
It’s about building perfect customer journeys from sign up to payment to upgrades — and doing it at massive scale. SAP Subscription Order Management (SAP SOM) is akin to the unseen force behind the scenes, the mastermind of subscription models, acting as the central hub that ensures the entire process operates with clockwork precision. It enables organizations to deploy offers faster, simplify updates and maintain reliable recurring revenue streams. If your business is serious about winning in the subscription economy, SAP SOM could be the killer app.
Ready to simplify your SAP subscription management? Contact Mobolutions today for expert guidance and support that really makes a difference Reach out to us at sales@mobolutions.com to begin your transformation journey.
