© 2016 SAP SE or an SAP affiliate company. All rights reserved.

SAP HYBRIS BILLING Consumer Industries

AGENDA

§  Digital Transformation for Consumer Industries

§  Monetizing Digital Transformation

§  Marc’s Healthy Program

§  The Right Platform

§  Why SAP Hybris Billing in Retail?

Digital Transformation in Consumer Industries

Which Impacts on the 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

+

+

+

OPPORTUNITIES TO CHANGE THE 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.

This new data-driven value chain disrupts business models.

ENGAGE

ANALYZE REACT

Ideas for new business ventures are created through this data-driven value chain

FOCUS

prot

ect

grow

M

OTI

VATI

ON

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 for Customer Engagement and Commerce

FOCUS

prot

ect

grow

M

OTI

VATI

ON

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

M

OTI

VATI

ON

MONETIZING NEW BUSINESS MODELS

core periphery

RENOVATING MONETIZATION BUSINESS PROCESSES

Moving from Product to Services &

Outcomes Subscriptions, Usage-

based

Internet of Things & Connected Devices

Real-time, usage-based services

Digital Commerce High-volume, global payment flexibility

Platform Business Model

Multi-sided monetization,

Revenue share

Agility Fast and flexible offers

Financial flexibility

Revenue Management Renovation High-volume, automated

Monetizing Digital Transformation

is a unique Journey

Payment Facility For Your Online Commerce pr

otec

t gr

ow

core periphery

Digital Commerce

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 Scalability pr

otec

t gr

ow

core periphery

Digital Commerce

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 Monetization pr

otec

t gr

ow

core periphery

Platform Business Model

Revenue Management Renovation

+1M suppliers

-28% IT expenditures

Moving From Product To Service pr

otec

t gr

ow

core periphery

Moving from Product to Service

& Outcomes

Pricing Agility

Subscriptions with entitlements

One-Off Cross-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 Service pr

otec

t gr

ow

core periphery

Internet of Things & Connected Devices

Pricing Agility

34 years old

Living in the 19th in Paris

Entrepreneur

Start Up

Digital 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 Connected 79% of customers spend at least 50% of total shopping time researching products online.

Online Start Smartphone adoption 20% reach of global smartphone ownership in 5 years

MARC’S JOURNEY ON HUBFIT WEB SITE SUBSCRIBE FIRST!

Visit HubFit website 1

2

View products & offers

4

Subscribe to offer

3

Look at recommendations

MARC’S JOURNEY ON HUBFIT WEB SITE SUBSCRIBE FIRST!

Receive his device 5

6

Train where and when he can

Track his performance and manage his subscription 7

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

market Pricing Tool

Commission partners

Partner Revenue

Share

Gather consumption transactions

Mediation process

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 Discounts Free-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 INNOVATION IN DESIGN THINKING WORKSHOPS

WITH HYBRIS BILLING TEAMS

THANK YOU

Isabelle.roussin@sap.com

Feel free to connect with us at :

@IRoussin h4ps://wiki.hybris.com/display/ybilling/hybris+Billing

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© 2016 SAP SE or an SAP affiliate company. All rights reserved.