Digitization & role of Digital core in high-tech industry
High tech companies are going through a massive transformation. Both B2B and B2C high-tech companies are embracing digital to increase revenue, improving customer experience and becoming more efficient internally.
Let’s see how a single digital core (SAP S/4 HANA) can help high-tech organizations to deliver on core metrics (revenue, cost & customer experience) to succeed in the digital economy.
High-tech companies can ensure flexible product bundling combining subscription, usage based products along with professional services using digital core which allows customers to buy flexible dynamic bundles either through sales or digital channel. The digital core can house the product catalog with commercial rules, which can then be exposed to the front office sales channel or e-commerce digital channel.
Companies can also tailor product offering based on the customer behavior and past purchase. Looking at real time analytics, high-tech companies can analyze behavior of the customer and offer the promotion real-time. High-tech companies can also use digital channel and offer self-service portal to launch new products, offers the trials and renewals, upgrades and promotions to increase revenue per customer and reach the customers in different geographies without a dedicated/ minimal sales personnel
Having a single digital core would ensure efficient order management, pricing & billing. Traditionally, the complexity of order processing and supporting various revenue types (subscription, high tech) would demand a high number of order processing and billing process support employees. Having a digital core such as SAP S/4 HANA will support in automating number of processes. The embedded analytics in S/4 HANA would provide the real-time insights on credit, collections and DSO, to ensure efficient cash collection. The intelligence within S/4 HANA using AI will help in automating the number of receivables and payable processes and ensure intelligent operations.
A single digital core can expose the complete sales and support functions on digital channel, enabling customers to search products, discover insights, do trials, make payments, renew and get support – all through a single digital self service portal. The digital core would also support the automating the entitlement process and offers instant digital fulfillment. The ability to converge subscription, usage based products along with professional services into a single consolidated invoice is a big win from customer experience point of view. The digital core such as SAP S/4 HANA can also expose APIs to allow customers to renew, upgrade/downgrades the products using any channel.
The opportunities for high-tech companies in digital era are immense and having an intelligent digital core such as SAP S/4 HANA and Billing & Revenue Management Solutions (BRIM) would certainly help high-tech companies to succeed in Digital world.
You can find out how Thomson Reuters is using SAP S/4 HANA as a digital core through this link and support nomination for SAP Innovation Award 2019 –