monetizing postal services with sap hybris billing
TRANSCRIPT
SAP Hybris BillingMonetizing Postal Services
August 2016
LEGAL DISCLAIMER
ALL INFORMATION CONTAINED IN THIS PRESENTATION IS PROVIDED UNDER NDA
The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
AGENDA
BUSINESS CHALLENGES HOW HYBRIS BILLING HELPS CUSTOMER EXAMPLES
Business Challenges
Declining Traditional Mail Volumes & Revenue Leakage
Revenue
Costs
Business Model Transformation Journey for Postal CompaniesA Cycle of Transformational Initiatives
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
Reduce Leakagecore periphery
understand your customer
Diversify with New servicesProvide New Customer Experience
Develop New Channels, Geos …
Business Model Innovation Journey for Postal CompaniesWhat They Say Around the Globe
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
core periphery
Susanne Ruoff, Swiss Post CEO
Union Postale - MARCH 2015 / N°1
“It is critical that we continue to move from our historical position,[…], to a market-focused company that responds to customer needs. And who better than our customers can teach us what these effectively are”
“For Postals to adapt and grow, they must not only adapt and innovate in the path of the traditional mail services, but also try to find other growth drivers »
Jean-Paul Bailly CEO La Poste France – UPU 2012
“Innovation and the integration of networks, products and services are key to building a seamless postal network in line with the changing global environment,”
Bishar A.Hussein, director general of the Universal Postal Union
Mapping Digital Transformation forCustomer Engagement and Commerce
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
CREATE THE VALUE
DELIVER THE VALUE
Capture the Value
Find New Revenue Streams
Streamline Costs
core periphery
Five Main Monetizing Challenges for Postal Cies
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
MONETIZING NEW BUSINESS MODELS
core periphery
RENOVATING MONETIZATION BUSINESS PROCESSES
Product & Services BundlesSubscriptions, Usage-
based
Internet of Things & Connected Devices
Real-time, usage-based services
Digital CommerceHigh-volume, global payment flexibility
Platform Business Model
Revenue share
From Order Based Billing to Event Based Billing
Agility
RevenueLeakage Reduction
Automated1
2 3 4
5
The Monetization Journey For
Postal Companies
FROM ORDER BASED BILLING...
TO ACTUAL EVENT BASED
BILLING
What Is Ordered is not necessarily What is Consumed!
To Invoice on the facts not on the Promise
1
EVENT BASED DESIGN: BENEFITS
MOVING FROM PLANNED EVENT TO ACTUAL EVENT
“Moving from planned event to actual event gave us the flexibility we needed to rate and bill properly our customers”
Actual Volume Discount
Actual Tiered Pricing
Customer accurate view
Less revenue leakage
CreditQuotaEntitlement
Event Based Billing
ConvergentCharging
Billing and Invoicing
Customer Financial
Management
Pricing and Charging
SAP Hybris BillingAcquisition
and Metering
800,000 events per second
Source: SAP Performance Benchmarking 2011
Up
to
No need to reconcile between what is ordered and what is actually sent or consumed
Volume discounts based on customer’s actual consumption, not on assumptions at contract time
Pricing provided in real-time to multiple systems
Additions or modifications of fees or surcharges applied across all product and contract variants
Prerequisites: Product and Pricing Flexibility
Class: Parcel
SAP hybris Billing1 article, n features
Basic Price $7.80
Price per Kg $1.51
Tracking required $1.00
Proof of Delivery $1.50
n billing outputs
Characteristics:• Speed• From Postcode• To Postcode• Height• Width• Length• Weight
Value add features:• Tracking notification• Parcel-pick up• Returns• Cash-on-delivery• Dangerous goods• Day of delivery• Signature required - HP Produkcija
(member of the group HP Croatian Post Inc.)
“Time-to-market was one of our top priorities”
FROM PRODUCTS AND SERVICES AGILITY...
TO MULTI SIDED MONETIZATION
3Additional Revenue Streams
Through Diversification & Eco-System of Partners!
4 5
COMBINING DIFFERENT SERVICESWith a Cross-Industry Solution
ONE LANDSCAPE TO COMBINE • TRADITIONNAL POSTAL SERVICES• And NEW INNOVATIVE REVENUE STREAM
Single Pricing platform
Single Customer view
… New Cross Product bundles
2
Commercial contract
EFFICIENT B2B QUOTE TO CASH MANAGEMENT
74% decrease in billing and collections cost as percentage of revenue with optimized collections and dispute handling
Source: SAP Performance Benchmarking
Develop personalized & complex enterprise agreements and discounts while keeping highly-replicable offerings
Introduce credit pooling across the enterprise
Provide One single Quote & One consolidated Invoice
Protect from credit-exposure risk with appropriate scoring and collections rules
customer
contract$
public rate
Public rate
2
RAISE YOUR CUSTOMER EXPERIENCE WITH E-SERVICESConnect Efficiently the Front & Back Office
3
Single View of Customers’ Journey and Value across Services
WEB MOBILE EMAIL CALLCENTER
MARKET PLACE
INTERNETOF THINGS
CONTACTCENTERPOS
MARKETING CHANNELS
DIGITALGOODS SOCIAL
Consistent Customer Experience across Channels and Touch Points
CUSTOMER JOURNEY
BILLING JOURNEY
Activate Services
Subscribe
Capture Order& Create Contract
Use Services
Rate & Charge Services
Handle Payment& Receivable
Observe Customer Data
Build Personalized Offer
Subscribe to New Offer
ServiceDisruption
Search Online
Call Care
Create & Send Billfor All Services
Post & RecognizeRevenues
Simulate New Pricing
Capture Order& Change Contract
Receive Services Tweet
Pay Bill – Different Options
Receive Bill Receive Offer
Resolve Inquiries
BUILD STRONG BUSINESS NETWORKS Multi-Sided Business Model as Service Enablers
Partners and sub contractors
PostalOrganization
Destination
Customers
contract
4
BECAUSE ADDING REVENUE IS NOT
ENOUGH...
REDUCING REVENUE LEAKAGE
5
Network
BillingFraud
Collections
SAP HYBRIS BILLING to COMBAT REVENUE LEAKAGE
OPEN END TO END PLATFORM
ACCOUNT RELATED CUSTOMER CARE
HIGH PERFORMANCE USAGE MANAGEMENT
TRANSPARENT & FLEXIBLE INVOICING
WATERTIGHT REVENUE MANAGEMENT
STRAIGHT-THROUGH PROCESS AUTOMATION
SAP HYBRIS BILLING SOLUTION BENEFITS
Faster Business Model Innovation
With greater flexibility for introducing new commercial offers
Reduction in customer support calls
With simplified, transparent invoicing
Lower DSO
When accounts receivable tracks short payments and alerts staff of recurring issues or those outside a given tolerance
Decrease in operational costs
Of billing and collections as percentage of revenue with optimized collections and dispute handling
40%Up
to 25% 27% 74%Up
to
Customer Stories
DPD GEOPOST: SIMPLIFYINGFINANCE OPERATIONS FOR PARCEL EXPRESS
Lothar Preis, Board Member, DPD GeoPost Service GmbH
0.5%Revenue increase with improved data quality
45Disparate systems consolidated into one
OBJECTIVESimplify finance and accounting operations with a single solution landscape
SOLUTIONSAP Hybris Billing for Billing, Revenue Management and Receivables
BENEFITSLess revenue leakage, cross-subsidiary reporting and business transparency
“We achieved the business transformation in finance and accounting through a reshape of our IT landscape by harmonizing data, reducing applications, and automating processes.”
PostNLSIMPLIFYING OPERATIONS FOR PARCEL AND MAIL
OBJECTIVESolve revenue leakage and bring more agility
SOLUTIONSAP Hybris Billing with Mediation, Charging, Invoicing and SAP HEC
EXPECTED BENEFITSReduce IT costs with a full cloud based solution, consolidate landscape
HP ProdukcijaAGIL MULTI-SERVICE CHARGING SYSTEM
Being a start-up, time-to-market was one of our top priorities. Choosing SAP CC enabled us to issue first bills to customers after only 3 months from project kick-off. Due to the ability to quickly change tariff plans even last minute adjustments did not postpone our go-live plans
“
OBJECTIVE Implement innovative charging of digital TV services fulfilling very
complex charging and discounting requirements
SOLUTIONSAP Hybris Billing, Charging
EXPECTED BENEFITSOne flexible convergent charging system which simplifies overall IT
architecture
Ability to implement any kind of new services which requires customer charging without the need of acquiring a new charging system
Ability to charge any kind of services (apart from Telco/Media) through one unique charging system which decreases overall total cost of ownership of IT infrastructure
”
SF ExpressDRIVE INNOVATION IN EXPRESS DELIVERY
Headquartered in Shenzhen, China, S.F. Express (Group) Co., Ltd. Provides international and domestic express delivery, shopping and e-commerce services
OBJECTIVEAutomate contractors’ commissions for on-road courier services ,
carried out manually currently
Decrease revenue leakage for calculating revenue split to different subsidiaries / gantries for each transportation route
SOLUTIONSAP CRM and Hybris Billing, & SAP ECC
EXPECTED BENEFITSConvergent Charging for real-time contractors’ settlement charges
and revenue split calculation for each transportation route
Future plans to include pricing/rating of transportation bookings using Convergent Charging
4xIncrease in compensation processing efficiency
Summary
• Deliver new products, services and bundles while stopping revenue leaks by introducing event based billing and native multi-sided revenue sharing management
• Consolidate heterogeneous billing systems to provide a real-time source of truth for pricing while delighting customers and partners with consolidated invoicing.
• Improve the customer experience and make it easier for customers to do business with you via seamless, real-time and omni-channel commerce and customer specific contract options.
• Reduce costs by consolidating systems onto a lean, standardized software stack
THANK YOU!
Feel free to connect with us at:
@SAPHybris
http://linkd.in/T7v01L
https://hybris.com/en/billing
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