Driving growth with SAP subscription based business models

1. June 2023 Driving growth with SAP subscription based business models

2. Introduction • SAP Subscription Billing is a comprehensive solution provided by SAP that enables organizations to manage and monetize their subscription-based business models. It offers a set of tools and functionalities designed to support the end-to-end subscription billing process, from product and pricing management to billing and revenue recognition. • By leveraging SAP Subscription Billing, organizations can effectively manage their subscription-based business models, streamline billing processes, improve revenue management, and enhance customer satisfaction. It helps organizations monetize their offerings, adapt to changing market demands, and drive sustainable growth in the subscription economy.

3. Some key features and benefits of SAP Subscription Billing • Subscription Management • SAP Subscription Billing allows organizations to define and manage various subscription plans, including pricing tiers, billing cycles, discounts, and promotions. It enables organizations to create flexible subscription offerings tailored to their customers' needs. • Pricing and Revenue Management • The solution supports complex pricing scenarios, including usage-based charges, one-time fees, recurring charges, and discounts. It provides capabilities to manage pricing catalogs, handle pricing changes, and optimize revenue recognition processes. • Billing and Invoicing • SAP Subscription Billing automates billing and invoicing processes based on subscription plans and usage data. It generates accurate invoices, manages billing cycles, and handles different payment methods, such as credit cards, direct debits, or electronic funds transfer. • Revenue Recognition • The solution helps organizations comply with revenue recognition standards, such as ASC 606 and IFRS 15. It provides capabilities to allocate revenue recognition based on contract terms, usage patterns, and performance obligations. This ensures accurate revenue reporting and financial compliance.

4. Some reasons why organizations choose SAP Subscription Billing Flexibility Customer Satisfaction RevenuePredictability Subscription billing offers flexibility in pricing and payment models. It allows organizations to offer their products or services on a subscription basis, enabling customers to pay on a recurring basis, such as monthly or annually, instead of making a large upfront payment. This flexibility can attract more customers and increase revenue streams. Subscription billing aligns with evolving customer preferences. Many customers prefer the convenience of paying for products or services over time rather than making a significant one-time investment. By offering subscription options, organizations can enhance customer satisfaction and improve customer retention rates. Subscription billing provides more predictable and recurring revenue streams compared to traditional one-time sales. With a subscription-based model, organizations can forecast their revenue more accurately and plan their resources, investments, and growth strategies accordingly.

5. Some reasons why organizations choose SAP Subscription Billing Enhanced Customer Relationships Improved Cash Flow Agility and Scalability Subscription billing typically involves regular, recurring payments. This consistent cash flow can improve an organization's financial stability and cash flow management. It can also help organizations better manage their working capital, invest in growth initiatives, and meet financial obligations. Subscription billing fosters ongoing relationships with customers. With recurring interactions through subscription renewals and regular billing cycles, organizations can continually engage with customers, gather feedback, and provide personalized experiences. This strengthens customer relationships and can lead to long-term loyalty. Subscription billing platforms, such as SAP Subscription Billing, are designed to handle the complexities of managing subscriptions at scale. They offer automated processes for billing, invoicing, payment collection, and subscription management. This enables organizations to scale their subscription business efficiently and adapt to changing market dynamics.

6. Why Choose Acuiti Labs for SAP Subscription Billing? • Acuiti Labs is a UK-based organization and an SAP Silver partner offering a wide range of SAP solutions to its clients from around the Globe. Among these solutions is the SAP subscription billing solution, which is designed to help businesses streamline their billing processes and improve customer satisfaction. By leveraging this solution, businesses can automate their billing processes, reduce errors, and gain greater visibility into their revenue streams.  • Acuiti Labs is committed to helping businesses achieve their goals by providing them with the latest SAP solutions and exceptional service.

7. Thank you • AcuitiLabs1 Giltspur Street,London EC1A 9DD, UK • info@acuitilabs.com • +44 (0)20 7101 9405 • www.acuitilabs.com