Improve Customer Lifetime Value (CLV) Using SAP Billing .

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Improve Customer Lifetime Value (CLV) usingSAP Billing (Hybris Billing)Oct 25th 2018Accrete Solutions Confidential

Agenda Customer Life Time Value – CLV How can Customer Life Time Value be improved? Hybris Billing Solution Overview to support CLV Subscription Mediation Charging Invoicing Financials Customer Case Studies Customer Journey on Hybris Billing Hybris Billing Deployment Options QuestionsAccrete Solutions Confidential2

What is Customer Life Time Value – CLV Net present value of the future financial contributions from customers duringtheir entire relationship with the company Every customer will have a series of revenue events in future that will impactfinancials CLV-based segmentation model allows to predict the most profitable group ofcustomers Target Customers with a high CLV and low Wallet Share Segment CLV customers for selling additional services & products CLV can also help companies decide how much it is worth to retain an existingcustomer Increase revenue with customers by having long terms contracts and cross/upsell additional services & products Need a monetization platform that flexibly manages the recurring revenuebusiness to take advantage of the bigger opportunity: Customer lifetime value.Accrete Solutions Confidential3

Customer Life Time Value – Challenges Long leads times in new product/service offerings launch.Tracking usage for large volumes of data and providing this info to customer.Converting this usage data for actionable events like new offers, cross sell.Complex and manual file, based error prone billing processes and systems.Customer disputes due to inaccurate or large and complex invoices.Reduced cash flow due to delays in invoicingPoor Customer experience resulting in unhappy customersBundling products and services and selling them based on usage cannot behandled by traditional ERP systems.Contract termination, activation, suspension, pro-ration, etc. are difficult tomanage.Contract was activated, but the customer cannot use the product/serviceRevenue recognition issues for bundled products, pay per use, subscriptions.Partner Revenue sharing and collaboration is difficult.Accrete Solutions Confidential4

How to overcome Challenges to Customer Life TimeValue using Hybris Billing SAP Convergent Invoicing (CI) and SAP Flexible Solution Billing (FSB) solutionhelp to automate and create customer friendly invoices. Large volumes of billable items are handled using SAP CI eliminating manualwork. Improved cash flow & reduced DSO due to accurate and timely invoicing SAP Convergent Mediation(CM) can track all usage as well as serviceactivation. Bundled product/service pricing and new offers with cross & up sell using SAPCRM/CC. Online ordering of products and services using SAP Hybris Commerce. Accurate Revenue accounting using SAP FICA sub ledgers & SAP RAR for Salesbundling & subscription. Use SSB (Solution Sales Billing) without FICA. SAP Operational Process Intelligence provides a high-level overview of the SAPHybris Billing process and in-depth insight into the details using KPI’s. Dispute resolution and collections using SAP FSCM. Enables Digital Transformation to create new opportunities for monetization.Accrete Solutions Confidential5

Customer Life Time Value with Hybris Billing – Benefits Engage B2C and B2B customers with a consistent experience across all touchpoints resulting in happy customers. Acquire new customers with targeted subscription offers and boost averagerevenue per customer. Lower customer churn rate with the ability to view and make changes to existingsubscriptions quickly. Improve customer retention by making the right offers at the right time anddelightful CX Improve productivity and decrease costs by giving service agents a single view ofcustomers’ journeys to make efficient and effective service. Streamline receivables and payables processes and credit management processes Manage payments from many sources, including down payments, payment plansetc. Reduce costs and complexity by using a single service control system for all theservice delivery platforms Combine products, projects, subscriptions and usage services into a single quoteand contract, and onto a single invoice, eliminating manual effort. Allows for revenue sharing and servicefulfilment by PartnersAccrete Solutions Confidential6

SAP Hybris Billing Components1. SAP Convergent Charging (CC): Configurable,highly-performant pricing engine whichinstantiates the customer-focused pricing andsubscription models2. SAP Subscription Order Management (SOMaka CRM): Configurable user front-end forcustomer & contract entry against configuredpricing and subscription models. Uses cataloginformation from CC to enter data againstS/4HANA’s customer model3. SAP Convergent Mediation (CM): Configurable,highly-performant mediation engine whichstreamlines the collection of customerconsumption data for CC’s pricing & chargingprocesses4. SAP Convergent Invoicing (CI): Consolidatesbilling info from different lines of business in asingle, clear summaryAccrete Solutions Confidential7

Hybris Billing Solution Architecture - TypicalSAP PricingNon SAPCRM SystemExternalProductCatalogMiddlewareWeb ServicesEnterprise ServicesCC usinessPartnerBillingBulkLoaderWeb ServicesProductBillable ItemsInternal Convergent InvoicingSAP Convergent ChargingSAP ECC/S4HANAAccrete Solutions Confidential8

Case Study : IT Services and Solutions LeaderCompanyThe world's leading independent, end-toend IT services company serving nearly6,000 private and public sector clients inmany industries in 70 countriesImplementation of Hybris Billing / BRIM for 2.2B hosting services LOBScope Hybris Billing / BRIM components used: ConvergentMediation, Convergent Charging, Customer RelationshipManagementConfigured process for pre-billing quantity approvalsby customer account managers to ensure invoicescorrect first time Migrated from huge team of billing clerks doingmenial, Excel-based tasks every month to automatedprocess handling “you can’t automate this” excuseHybris Billing / BRIM Integration Points SAP ERP: SD/RRB (pre-Convergent Invoicingintegration)SAP ERP: FI-COService Delivery PlatformHybris Billing / BRIM Scope Pricing for individualized, customer B2B, Tier 1software and computing resources Each customer’s contract takes different categoriesof delivered services in a pay up-front andcalculate overage manner Pricing for complex professional services contractnot supported by SD’s OOTB Resource RelatedBilling (RRB) functionalityKPI Improvements Reduced from 100% manual process tocompletely automated process for mostcustomers Productivity improvement of 60% by reducingbilling time and correctness by ensuringappropriate quantities fed into invoicing Reduced customer invoice rejection from 8-10times per year to almost zero times per yearAccrete Solutions Confidential9

Case Study : Cloud Software CompanyCompanyThe world’s leading provider of cloud-basedintegrated travel and expense ss experience and total transparencyinto spending, helping organizations of allsizes, industries and locations run betterScopeHybris Billing / BRIM implementation for 1B LOBhandling B2B contracts, individual case-based pricingprocessing 300K high-value transactions per month Hybris Billing / BRIM components used: ConvergentMediation, Convergent Charging, Subscription OrderManagement, Convergent InvoicingStandard customer and contract integration pointsbetween MDG, FI-CA, SOM and CC Standard usage processing for 15 usage data feeds Standard use of Consumption Item (CIT) storage andrating processes with CI’s OOTB integration with CCHybris Billing/BRIM Integration Points Standard use of Billable Item (BIT) processingincluding use of OOTB aggregation functionality ontoBilling Documents and Invoicing Documents Standard use of FI / RAR integration for invoiced dataWeb-based Quote to Close systemS/4HANA: FI-CAS/4HANA: MDGS/4HANA: FIS/4HANA: RARSAP Biller DirectKPI ImprovementsHybris Billing / BRIM Scope Pricing for individualized contracts with nonstandard pricing for each B2B customer Complex integration with S/4HANA using onlystandard, OOTB functionality (no ABAP written)including CM’s use of standard Agents and APL (noJAVA written)Use of standard functionality expected toreduce DevOps by 75%Accrete Solutions Confidential10

Case Study : Education Content ions to help all students achievetheir maximum potential, serves as theleading source for personalized, flexible,and dynamic instruction.ScopeHybris Billing / BRIM components used: CC-Import ExportConnector, Convergent Charging, Customer RelationshipManagement, Convergent InvoicingHybris Billing / BRIM Integration Points Salesforce.comService Delivery PlatformSAP ERP: FICASAP ERP: FIHelp standard “pick, pack and ship” company adddigital content as part of digital transformationproject Large volume of custom pricing arrangements Integration with two SAP ERP instances for legacyand new products & service offerings Use of standard, OOTB integrations between HybrisBilling / BRIM components ensuring smooth operationImprovements Productivity improvements due to automationof digital content delivery instead of custom,manual / automated / Excel to handle digitalagreements Integration with shipping ensure customercontract start increased customer satisfactionHybris Billing / BRIM Scope Pricing for digital content bundled with physicalcontent Renewal based-upon physical content’s expectedlifespan Individual, case-based, non-standard pricing foreach agreementAccrete Solutions Confidential11

Customer Journey on Hybris BillingReceiveSearch/Call SubscribeServicesServiceUsageReceiveBillReceive New Subscribe tonew offerOfferBillPaymentCustomerJourneyProcesses todeliverCustomerexperienceCapture order& riptionmanagementConvergentMeditationSAP CRM/Hybris CommerceHandlePayment &ReceivableCreate & sendbill for allservicesCharging &InvoicingSimulate NewPricingCustomerUsage csCapture order& CreatecontractPersonalizedoffer creationPriceModellingSubscriptionmanagementSAP HybrisBillingSAP S/4 HANA/ECCAccrete Solutions Confidential12

Hybris Billing Deployment Options – ConvergentInvoicing/Financial Mgt. with SAP ECC/S4HANASAP ECC or rgentInvoicingFI-ARFSCM*FSB**OptionalAccrete Solutions Confidential13

Hybris Billing Deployment Options – ConvergentCharging/Invoicing with SAP ECC/S4HANA & OPI*OptionalSAP Convergent tInvoicingFI-ARFSCM*FSB*Accrete Solutions ConfidentialSAP Operational Process Intelligence*SAP ECC or S/4HANA14

Hybris Billing Deployment Options – ConvergentMediation/Charging/Invoicing with SAP ECC/S4HANA/OPISAP Convergent ChargingSAP Convergent oicingFI-ARFSCM*FSB*Accrete Solutions ConfidentialSAP Operational Process Intelligence*SAP ECCECC/S4HANAor S/4HANA15

Hybris Billing Deployment Options – ConvergentMediation/Charging/Invoicing with SAP ECC/CRM/OPISAP Convergent ChargingSAP Convergent oicingFI-ARFSCM*SAP CRMMasterDataContractOrderSSB*Accrete Solutions ConfidentialSAP Operational Process Intelligence*SAP ECC or S/4HANA16

Hybris Billing Deployment Options – ConvergentMediation/Charging/Invoicing with SAP ECC/CRM/HybrisCommerce/OPISAP Convergent ChargingSAP Convergent oicingFI-ARFSCM*Hybris CommerceMasterDataSAP CRMContractMasterDataContractOrderOrderSSB*Accrete Solutions ConfidentialSAP Operational Process Intelligence*SAP ECC or S/4HANA17

Hybris Billing Deployment Options – SAP RevenueCloudSubscription BillingMediationMasterDataRatingSAP HybrisMasterDataOrder(Subs &Physical)SAP Cloud Platform IntegrationSubscriptionAccrete Solutions ent InvoicingOrder18

Thank YouAshish Saxena, DirectorJed Durso, DirectorAccrete Consulting Solutions3350 Scott Blvd, Bldg 34ASanta Clara, CA 95054Accrete Solutions LLC.3350 Scott Blvd, Bldg 34ASanta Clara, CA 95054Phone: e Solutions Confidential19

How to overcome Challenges to Customer Life Time Value using Hybris Billing SAP Convergent Invoicing (CI) and SAP Flexible Solution Billing (FSB) solution help to automate and create customer friendly invoices. Large volumes of billabl

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