Across all industries and countries companies are extending their business models by adding subscription options for their products and services. This allows customers to consume them in a completely different way. Some of the reasons for going into subscription-based business models are:
- Digital products are rising e.g. Media, Streaming, Games, Digital Marketing…
- Software is eating hardware e.g. Smartphone apps replace devices like CD player, scanner, GPS…
- Service is eating material sales e.g. Print-on-demand, Textile Management, Fleet Management…
- Ownership of hardware is less important e.g. SaaS, Carsharing, …
Unfortunately the configuration, pricing and usage measuring of subscription based services tends to be complex. We all see this with our good old newspaper subscription which offers since ages options like “daily”, “weekend-only”, “first-month-free”, etc. but suddenly also includes “full”, “limited” or “pay-per-view” online versions.
With SAP Business ByDesign and it’s built-in standard webservice interfaces you can quickly integrate any kind of solution which manages the configuration, pricing and quote process for such a subscription based business model.
In the demo below we have been connecting SAP Subscription Billing (aka Hybris Revenue Cloud) to ByDesign using SAP Cloud Platform Integration (CPI) as middleware:
The demo shows only how to support intangible products without confirmation and delivery e.g. Postage, Software, Streaming, Lettershop. But of course it can be extended to support delivery of materials and service confirmation by a service employee by using the various other interfaces (e.g.sales order) that ByDesign provides out-of-the-box.
To implement the scenario and to run it on your ByD system you have to do the following steps.
1.Setup the SAP Subscription Billing System
Main step after you have received your tenant is the configuration of the subscription and its price determination with with a rate plan. In the demo we have setup a rather simple model with setup fee, recurring charge and block pricing. You can of course setup way more complex models.
2. Creation of quotes
3. Integration using SAP CPI as middleware
The biggest effort is to build the integration flows which are orchestrating the standard webservices from SAP Subscription Billing and ByDesign. You can use SAP CPI or any other middleware for this. To do so you have to at least:
- Design integration for bi-directional account data replication
- Design integration for invoicing data
Adding more integrations e.g. for sales orders or product data replication is possible as well.
4. Trigger invoicing in ByDesign
The creation of the invoice requests in ByD is using the standard Manage Customer Invoice Requests webservice and is triggered and monitored by the middleware.
Here is a list of helpful documents which provide more details on how to use the open interfaces of SAP Business ByDesign:
- What are the most important commerce integration user stories and flows?
- How to configure Commerce and Point-of-Sales-Transaction interfaces?
- Which are the standard integration scenarios overall?
- What are the most important webservices for webshop/commerce integration?
- List of all ByDesign integration interfaces (Webservice APIs)