monetizing your digital transformation in the consumer industries
TRANSCRIPT
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Monetizing Your Digital Transformation in the Consumer Industries
Digital Transformation in Consumer Industries
What Impacts Monetization?
SOCKSCRIPTION
KAESER
AIR AS A SERVICE
“If the phone is going to get integrated into the shirt, should that be a technology company making apparel or the apparel company starting to make technology? I choose the latter.”
“Brands that do not evolve and offer the consumer something more than a product will be hard-pressed to compete in 2015 and beyond”
—Kevin Plank, CEO, Under Armour
+
+
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OPPORTUNITIES TO CHANGETHE BUSINESS MODEL
WHAT CEOs THINK IS THE CAUSE OF ‘THE NEXT BIG THING’
10%Changes to costs/pricing
11%New product/
service offerings
13%Changes to
consumer demand
15%New market opportunities
22%Business
model change
Value is created in each act of engagement.
SOURCE MAKE SELL
ENGAGE
REACT
ANALYZE
This new data-driven value chain disrupts business models.
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
CREATE THE VALUE
DELIVER THE VALUE
Capture the Value
Wearable Tech
Digital Worldwide Reach
core periphery
Digital Journey for Retail Companies A Cycle of Transformational Initiatives
Market Place
Digital Payments
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
Six Use Cases for Monetization Challenges
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
MONETIZING NEW BUSINESS MODELS
core periphery
RENOVATING MONETIZATION BUSINESS PROCESSES
Moving from Product to Services &
OutcomesSubscriptions, Usage-
based
Internet of Things & Connected Devices
Real-time, usage-based services
Digital CommerceHigh-volume, global payment flexibility
Platform Business Model
Multi-sided monetization,
Revenue share
AgilityFast and flexible offers
Financial flexibility
RevenueManagement RenovationHigh-volume, automated
Monetizing Digital Transformation
is a unique Journey
Payment Facility For Your Online Commercepr
otec
tgr
ow
core periphery
DigitalCommerce
Revenue Management Renovation
Cross Payments for single purchase
One Payment type per purchase is not enough
Opportunities for Instalment Plans or Allowances create additional business
Order 10; Try 10 at Home; Return 6; Pay for 4!
-20% DSO
-80% Unmatched payments
Revenue Management With Massive Scalabilitypr
otec
tgr
ow
core periphery
DigitalCommerce
Revenue Management Renovation
20 Different Payment Types
15 countries & 7 currencies
8 000 new customers /day
70000 incoming & outgoing payments/day
+40% Conversion rate
-74% Billing & Collection costs
Multi-Sided Monetizationpr
otec
tgr
ow
core periphery
Platform Business Model
Revenue Management Renovation
+1M suppliers
-28% IT expenditures
Moving From Product To Servicepr
otec
tgr
ow
core periphery
Moving from Product to Service
& Outcomes
Pricing Agility
Subscriptions with entitlements
One-OffCross-Brand promotions
“One pitfall of shifting to subscription model is to focus only on the number of new subscribers rather than how to value and retain them”
GREG ALVO –
60% of recurring revenues in 2014
166% market cap growth in 4y
Moving From Product To Servicepr
otec
tgr
ow
core periphery
Internet of Things & Connected Devices
Pricing Agility
34 years oldLiving in the 19th in ParisEntrepreneurStart UpDigital Native
Why Commerce in the Cloud?
Marc’s Healthy Program
WHAT IS MARC LIKELY TO DO?
53% of customers abandoned an in-store purchase due to negative online sentiment
59% of customers are willing to try a new brand to get better customer service.
80% of consumer buying journeys start online
Better Informed
Socially Networked
Digitally Connected79% of customers spend at least 50% of total shopping time researching products online.
Online StartSmartphone adoption20% reach of global smartphone ownership in 5 years
MARC’S JOURNEY ON HUBFIT WEB SITESUBSCRIBE FIRST!
Visit HubFit website1
2
View products & offers
4
Subscribe to offer
3
Look at recommendations
MARC’S JOURNEY ON HUBFIT WEB SITESUBSCRIBE FIRST!
Receive his device5
6
Train where and when he can
Track his performance and manage his subscription7
The Right Platform to Monetize the Digital
Transformation in Retail
Necessary Features & Value Propositions
MAPPING FEATURES
Massive scalability to grow from small trials to multi-billion businesses with reliable automation.
Agility to embrace change with embedded intelligence in business processes.
Subscription Order
Management
Usage Metering & Transaction
Pricing
Billing, Receivables, Collections
Partner Revenue Share
Business Model Design & Pricing
Simulation
NECESSARY VALUE PROPS
SAP Hybris Billing Solution Flow
Design the offer and put it on the
marketPricing Tool
Commission partners
Partner Revenue
Share
Gather consumption transactions
Mediationprocess
Collect money, handle disputes, and receivables
Billing, Receivables,
Collections
Analyze consumption to optimize offers
Pricing Simulation
Consumers buy the services and consume them
Subscription Order Management
Price consumption and
charge the customer
Usage Metering & Transaction Pricing
Plan In Advance High Volume Growth
Build a Secure, Scalable, Reliable and Open Platform
Subscribers & Partners Enrolment
High Volume Order Management
High Volume & Low latency Rating in Real Time
High Volume Invoicing
Multiple Currencies Multiple Payment Types
Massive scalability to grow from small trials to multi-billion businesses with reliable automation.
Plan In Advance High Volume Growth
Build a Secure, Scalable, Reliable and Open Platform
Contract Management
Account Payables
Partner Care
Revenue Share, discounts…
Partner Onboarding
Multi-sided monetization to share revenues with an expanding business network of partners.
Plan In Advance High Volume Growth
Build a Secure, Scalable, Reliable and Open Platform
Quotes Cross Product DiscountsFree-to-Pay promotions
Bundles
Subscription Usage Based
Agility to embrace change with embedded intelligence in business processes.
Why SAP Hybris Billing
in Retail?
Benefit of the Right Monetization Platform for Etailers
Agility to embrace change with embedded intelligence in business processes.
Multi-sided monetization to share revenues with an expanding business network of partners.
Massive scalability to grow from small trials to multi-billion businesses with reliable automation.
Faster Business Model Innovation
40%UP
TO
Decrease in operational costs
74% 28%
Decrease in IT expenditures
BUSINESS MODEL INNOVATIONIN DESIGN THINKING WORKSHOPS
WITH HYBRIS BILLING TEAMS
THANK YOU
Feel free to connect with us at :
@IRoussin https://wiki.hybris.com/display/ybilling/hybris+Billing
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.