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SAP BRIM: The Billing Platform for Digital Business Models - Visual

SAP BRIM (Billing and Revenue Innovation Management)

The Billing Platform for Digital Business Models

Digital Business Models
Price & Billing Models
Advantages
Modules
About Arvato Systems

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: 

  • 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

  • Billing for time-based rental of, for example

    • E-cars, bikes, and scooters
    • Charging stations
    • Parking services


  • 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
  • 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")
  • Billing of

  • 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.

  • 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

    • Voice and data services
    • Cloud Services
    • Product bundles
    • IoT services to consumers and partners

    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

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

Rapid development, customized pricing, and secure billing and invoicing of subscription-based business models through a unified system 
High flexibility and agility shortens time to market when introducing new business models 
Realization of models for provisioning or revenue sharing 
Automated receivables management ensures lower days sales outstanding (DSO) 
Reduction of operating costs due to lower complexity of the software environment and high degree of automation 
Clarity and transparency reduce customer support workloads 
Increased customer satisfaction through clear, concise invoicing 

The Four Components Of SAP BRIM

SAP BRIM Process Chain

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: 


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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Your Contact for SAP BRIM

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Andreas Maas
Expert for S/4HANA Transformation & Finance