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Author's profile photo Kay Werner

From Product Sales to Entitlements – SAP Launches Entitlement Management in the Cloud

I am pleased to relay that on June 30 SAP launched a native SaaS solution called SAP Entitlement Management. SAP Entitlement Management streamlines and automates entitlement management processes and operations from initial modelling and full lifecycle management to reporting. It offers S/4HANA integration and comprehensive set of APIs so it can be integrated into any system landscape.

The development came about as we observed how advances in technology dramatically changed the types of solution bundles companies offered and the way customers buy, consume, and pay for them. Previously, no matter what businesses were selling, be it software, cars, cameras, or computers, once a product was in customer’s hands, the transaction was completed, leaving little need for additional customer interaction.

Today companies are introducing new experiences to the market, providing subscription offering, bundling and imbedding software and services together with products to provide a more attractive offering to their customers. The focus is no longer on the physical product but on the “usage rights” related to the bundled solution offering. The success of these new business models relies not only on the initial sale, but the ongoing relationship and satisfaction of the customer.

Managing what the customer is entitled to can be tricky. For example, let’s say you bundle a customer offering which includes a notebook, a one-time installation service and a yearly subscription to productivity software that has a trial period followed by a monthly fee. Each one of these contract items will have one or many entitlements that need to be tracked and potentially adjusted throughout their lifecycles.

As back-office operations become more complex, a solid entitlement management system is essential. SAP Entitlement Management will maximize revenue by assuring that:

  • Your sales representatives and channel partners have a clear view of what their customers are entitled to, never missing a renewal, cross or upsell opportunity.
  • Your commercialization teams can quickly deploy proposed bundles, knowing with certainty that they can track and assess market performance.
  • Your IT and license administrators have the tools to deploy, manage and report on any type of entitlement.
  • Your customer service reps know exactly what the customer is entitled to, giving them the tools to best assist the customer and engage in any upsell or cross opportunity.
  • Your customers are given transparency into their entitlements, will receive entitlement related alerts and reminders, and are restricted from unauthorized usage, which can result in revenue leakage.

New technologies provided fertile ground to create the most innovative business models and solution bundles. SAP responded by building an entitlement management solution that offers a high degree of flexibility and a great user experience, assuring that even the most creative ideas can be realized with ease.

For more information on SAP Entitlement Management contact your SAP account representative or SAP directly.

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