SAP BRIM (Billing and Revenue Innovation Management)
The Billing Platform for Digital Business Models
SAP BRIM - The Billing Platform for Digital Business Models
Offering products and services by subscription offers many advantages for providers and their customers. However, billing for such subscription models is a challenge given the complexity of the processes and the high volumes involved. SAP BRIM (Billing and Revenue Innovation Management) provides a powerful solution that enables the rapid development, customized pricing, and secure billing and invoicing of subscription-based business models.
The digitization of the economy is paving the way for new, innovative business models. One example is subscriptions to products and services in a wide variety of forms. Such subscriptions are particularly familiar from the publishing industry for newspapers and magazines and from the entertainment sector, for example, from Spotify, Netflix and Audible. Today, however, the term subscription generally refers to products and services that are purchased over specific periods of time and at specific intervals. The advantages for providers are obvious: the revenues are recurring and can therefore be reliably planned. In addition, subscription models increase customer loyalty and retention.
Digital Business Models
Such digital business models require powerful, automated billing processes that are able to map the complexity and flexibility of the offerings. Here are a few examples:
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Media and Entertainment
Billing for subscriptions such as
Print and digital media such as newspapers, magazines, e-papers and e-books
Streaming offers to consumers including distribution of copyright fees to licensors
Online advertising
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E-Mobility
Billing for time-based rental of, for example
- E-cars, bikes, and scooters
- Charging stations
- Parking services
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Utilities
Billing of
- Connection fees and purchased electricity, gas and water for both private and corporate customers
- Remuneration for feeding electricity generated via photovoltaics into the public grid
- Charging stations in public areas
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Logistics
Settlement of
- Customs fees
- Tolls according to kilometers driven
- Fuel cards
- Creation of collective invoices for regular customers as well as in multimodal logistics (e.g. national transport by truck and rail, combined with the costs of the "last mile")
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Retail
Billing of
- Product subscriptions
- Subscription boxes in food and non-food areas in subscriptions of different durations and volumes
- Bonus apps, loyalty cards
- Vouchers and discounts
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Manufacturing
Billing models for time-based or output-based use of equipment or machines as well as consumables and spare parts ordered via subscriptions or - in the Internet of Things - by the machines themselves.
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Other Digital Business Models
Automotive Industry
Billing of
- Vehicle subscriptions as well as services and content for use in the vehicle
- Car Sharing
- Services provided by partners, such as insurance, rental of e-scooters, and fuel cards
Software And Cloud Solutions
Billing for the use of software
- via various subscriptions with monthly or annual billing
- via usage-based billing according to users, storage capacity and/or contract duration
Telecommunications
Usage-based billing of
Banks
Settlement of
- Fees for account management and securities trading
- Annual fees for account and credit cards
- Factoring services and other fee-based banking services
Insurance
Traditional or usage-based premium billing (pay as you drive) including the calculation of incentives based on customer behavior (accident frequency, health care). Billing of on-demand insurances such as travel cancellation or health insurance. Commission billing with partner agencies.
Public Transport
Billing of
- Monthly and annual tickets, also in tariff associations and in multimodal public transport, vis-à-vis consumers and partners
Municipalities
Accounting of
- (City) tolls
- Parking services and offers such as resident parking
- E-mobility services
Wide Variety of Pricing Models
In this so-called subscription economy, various pricing models have been developed for charging for products and/or services. Key options are:
Subscription with limited use: under this model, a fixed quantity of products or a defined scope of services is billed over a certain period of time at a fixed price per month or year.
Subscription with unlimited usage: Here, too, a fixed price is specified for a certain time interval, but the quantity or scope of products or services is not limited.
Usage-based fees (pay as you use): Billing is usage-based, either on a time or output basis. The scope of use must be recorded and clearly and comprehensibly presented in the invoices.
Payment plans: Usually based on a freemium model, various usage-based contract levels are offered that are billed monthly or annually.
Variations of these forms further increase the complexity - these can be volume scales, discounts for higher usage, included optional services, and much more.
SAP BRIM Enables Innovative Billing Models
In principle, SAP BRIM is recommended for all companies that want to implement high-volume, digital business models with periodic billing in various forms. SAP BRIM ensures the highest possible efficiency and transparency throughout the entire billing chain. The system covers the complete order to cash process (O2C) - from product modeling, contract management, invoicing, tax and open item management to collections and revenue management.
The Advantages of SAP BRIM at a Glance
The Four Components Of SAP BRIM
SAP BRIM consists of four components that can be configured individually. Together, these modules support business model design and management, order management, usage data collection, receivables management, and invoicing and optional commission management.
Subscription Order Management
Subscription Order Management was developed by SAP specifically for billing fees for periodic usage of licenses, products and services. It is based on SAP CRM. Key functions include quotation management, order entry, contract management, and customer support.
SAP Convergent Charging
This tool ensures billing with customers. In the process, rates and prices are assigned to the contract partners. Charges relate to a billable event such as the monthly use of products or services, which can be billed on a time or output basis. Price changes can be made easily and flexibly.
SAP Convergent Invoicing
This module is used to manage the consumption data records provided by SAP Convergent Charging. On this basis, SAP Convergent Invoicing handles the invoicing to customers. Different pricing models can be combined on one invoice.
Vertragskontokorrent (FI-CA)
This component is used for payment processing and collection management. The dunning procedure and the planning of installment payments are also handled here.
These benefits can be realized thanks to the added value provided by SAP BRIM:
Increased agility: Flexible subscription models can be set up and changed quickly in SAP BRIM following a structured process.
Increased efficiency: The complete order-to-cash process is mapped in one system. Flexibly definable rules and workflows simplify the processes. Duplicate entries and manual reconciliation of data are eliminated.
Fewer errors, higher quality: The entire quotation and billing process is completely transparent. Invoices are traceable in terms of billing content in the context of the underlying contract. This eliminates sources of error.
Reduced complexity: The number of systems involved is minimized, thus reducing the effort required for adjustments and interfaces. This significantly reduces the TCO.
About Arvato Systems
Global IT specialist Arvato Systems supports major companies in Digital Transformation. About 3,100 staff in over 25 locations stand for in-depth technology expertise, industry knowledge, and focus on customer requirements. Working as a team, we develop innovative IT solutions, transition our clients into the Cloud, integrate digital processes, and take on IT systems operation and support.
We offer:
Comprehensive IT solutions for industries such as retail, media, manufacturing, healthcare, public sector, and utilities
Many years of experience in Digital Transformation
Expertise in topics such as Artificial Intelligence, Cloud Computing, IT Security, Customer Experience, E-Commerce, and Business Process Management
Expertise in many strong technologies and a strong ecosystem with partners such as Amazon Web Services, Google, Microsoft, and SAP
A wide range of infrastructure services, such as Managed Services as well as Application Management based on them
As a part of the Bertelsmann-owned Arvato network, we have the unique capability to work across the entire value chain. Through our strong strategic partner network with global top players such as AWS, Google, Microsoft, and SAP, we continuously strengthen our know-how and leverage the most advanced technology.
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