Run Technical Services
with SAP S/4HANA

a Fast, Secure and Flexible SAP Cloud ERP Solution

Industry Focus for Technical Services with SAP Cloud ERP

Building the Intelligent Enterprise for Technical Services

Technical Services and the disruptive digital economy

Technical Services Companies are evolving from being with business models like solution, subscription, outcome-based, knowledge as a service, and ‘anything-as-a-service’ models.

Distincts Products and Services: Traditional model of offering

products and services, Time & Materials projects as separate

offerings.

Bundles of Products & Services: Provide customers with

configurable, adaptable, and personalized solutions.

Transition to Subscriptions: Provide range of knowledge as a

service and value-adding subscriptions for services and software based offerings, with recurring and usage-based billing

Servitization – Advanced outcome-based and ‘Anything-as-a-service’ models: Offer subscriptions combining equipment, software, all kind of services. Offer new approaches to price and deliver services based upon flexible outcomes.

SAP S/4HANA - Intellligent Enterprise - Big Picture

Scheer supports you with SAP S/4HANA reimagined set of end-to-end (E2E) business scenarios to manage the strategic priorities of working in a digital environment for your technical services

Strategies for Technical Services Companies to Run as Intelligent Enterprises

Outcome-based engagements:

Innovative business models;
Deep insights used across the entire value chain to deliver measurable outcomes;
Guided, simplified, and automated processes embedded with digitalized expertise and AI;
Increasing percentage of revenue from data-intensive services;
Personalized customer offerings;

Business Model Transformation for Technical Services

Knowledge as a service:

Increase service innovation due to blurring industry lines;
Enable high-value, digital services and products on anytime/anywhere basis, establishing long-term customer relationships;
Deliver higher value at low or no incremental cost;
Increase demand for more services and products that are bundled with your loyal customers
Seamlessly deliver the best customer experience

Technical Services End-to-End Business Functions

Strategic Priorities for Technical Services

Enable Solution Orders

The new solution order management process in the 2105 release of SAP S/4HANA Cloud now enables businesses to sell products, services and subscriptions in a single order, integrated along the order-to-cash process using the latest technology innovations.

Subscriptions and pay-per-use models are designed and managed in SAP Subscription Billing solution, a scalable and cloud-native solution on SAP Business Technology Platform (SAP BTP), natively integrated into the solution order management process.

The solution order integrates with the professional services functionality in SAP S/4HANA Cloud. This enables companies to sell bundled solutions, such as a point-of-sale solution including hardware, field services, maintenance agreements, software subscriptions and a rollout project in a single, integrated order management process.

Business Flows - explained

Lead to Cash - Focus on Customers

Source to Pay: Focus on Procurement

Design to Operate: Focus on products

Recruit-to-Retire: Focus on employees

Knowledge Center - Industry Focus

- Technical Services

- Professional Services

- Best Practice Details

Subscription Business

Offer a service based on subscription business models (B2B or B2C)
Innovate/Transform into Everything-as-a-Service provider e.g. Product-as-a-Service, Software-as-a-Service
Multiple pricing elements e.g. recurring base fee, pay-per-use charges

Challenges

Subscription lifecycle management;
Subscription product and rate plan modelling with multiple pricing elements (one-time, recurring, usage-based);
Quick time-2-market and idea-2-cash;
Usage record management for pay-per-use models;

Solution Business

Business model innovation;
Provide a holistic solution to the customer;
Bundling of different offerings;

Challenges

One order and bundling of different offering types;
Progress tracking for order items;
Convergent invoicing (single invoice);

Key Features Subscriptions

Rapid design and selling of solutions containing physical goods, services, and subscriptions:
- Combined in one order
- Support of complex pricing models
Holistic order orchestration of all solution order items
Solution Order Progress Monitor with situations handling
Fulfillment of physical goods
Integration into Field Service Management
Subscription and Service Contract lifecycle mgmt.
Rating and charging of metered usages
One Invoice for the complete solution with Sales Billing
Integrated finance for all solution order items
Event-based Revenue Recognition
Margin view on different levels of granularity

SAP S/4HANA Cloud

Order to cash
Finance
Sales
Projects

SAP Ariba
Solution

Source-to-Pay process

SAP Commerce Cloud

Omni channel commerce

SAP CPQ
Solution

Advanced Service Configuration

SAP S/4HANA Cloud PS Update

Demo Solution Orders

Solution Order Update 2108

Solution Order - Options within your business operations

Selling a Object
Installing the Object
Warranty of the Object
Digital Asset Subscription

Manage Solution Order: Develop new business models based on solution offerings to differentiate from your competitors;

Manage Subscriptions: Exploring new business models including subscription and pay-per-use offers to bill customers for them in a variety of different ways;

Solution Billing: Easily combine billing data from different sources (orders, contracts, deliveries, external data) into a single invoice

Revenue Recognition: Automate revenue recognition and margin analysis for solution orders supporting a simplified period-end-closing;
Margin Analysis: Analyze revenues and cost by solution order supporting the matching principle between revenue and cost without additional settlement in controlling;

Self-Service Bill Payment: Self-service bill payment portals lower the cost of collecting revenue.

Solution Business End-to-Ends SAP S/4HANA