Companies are moving away from traditional business models to flexible, consumption-based ones that allow customers to consume and pay for products or services based on how much they use. It’s a significant transition that requires reengineering the value chain and realigning teams to the new business model. In our previous articles, we talked about the capabilitiesand technology platforms needed to support a flexible consumption model (FCM) in the as-a-service economy. We also developed the understanding that subscription billing and revenue recognition capabilities are key to FCM transformations. These capabilities, along with offer management, CPQ (configure, price, quote), contract management, entitlement management, and taxation are critical enablers of the business shift toward consumption-based models. In this article, we will talk about the differences between subscription and traditional billing and explore some of the essential tenets for adopting subscription/consumption-based models.
SAP Subscription Billing is a Cloud platform which makes generating recurring and usage-based billing data and customer relationship management easy to understand, monitor and analyse. The nature of the platform makes it one of the most scalable solutions for a subscription-based business model and can easily be integrated with other Cloud solutions such as SAP Sales Cloud.
Streamline Business Processes
- Bidirectional integration with leading ERP and accounting software like Netsuite, Microsoft Great PlainsDynamics, SAP financials, and QuickBooks.
- Full control over the capability exposed ranging from readonly views to comprehensive order, billing and payment functionality.
- Commission management based on recurring revenue for sales staff and/or affiliates.
- Integration with SAPnative entities like Contracts and Assets.
Streamlined subscription billing and revenue management must comprise several capabilities, including usage metering, billing, invoicing, revenue recognition, and reporting/analytics. A billing platform must integrate with sales, financial, support, and product platforms to deliver a seamless customer experience. Before the billing transformation can even begin, a thorough business capability assessment should be conducted, along with a technical architecture assessment. These assessments help identify business capability gaps, align architecture to future business needs, and define an actionable transformation plan.At Deloitte we understand the complexity of this challenge. We have guided numerous companies through the successful design and deployment of subscription billing and revenue management capabilities and architectures
At Synergy Global Systems, we understand the complexity of this challenge. We have guided numerous companies through the successful design and deployment of subscription billing and revenue management capabilities and architectures.