This new installment in our ongoing series on the Digital Solutions Economy (DSE) provides an expanded look and follow-up to the previous post that provided an overview on  Entitlement Management.  In this episode, we drill down for a closer examination of the types of entitlements that are offered as part of subscriptions and bundles in various industry segments, along with some insights into how entitlement management solutions that are part of the SAP BRIM portfolio and ecosystem that can be helpful to achieve success.

Entitlements can be broadly defined as "rights" that are awarded to a customer based on a contract or other agreement. Entitlements can include a wide range of offerings, such as access to a cloud service, number of user licenses, software support, hardware maintenance services, warranties, media access rights, or usage-based consumption rights.

While there are commonalities regarding entitlements across many industries, here is a quick overview of some specifics for key industries that are moving toward DSE offerings:

Software and SaaS

• Access to software applications via the cloud
• Licensing agreements for multiple users or devices
• Scalable pricing based on usage or number of users
• Customization and configuration options
• Automatic updates and maintenance
• Access to updates and new versions of the software
• Technical support and customer service
• Training resources and documentation
• Data backups and security features
• Integration with other applications and services

Telecom

• Access to voice, data, and messaging services
• Flexible pricing plans based on usage or features
• Bundled purchase options and payment plans for devices and upgrades
• International roaming and connectivity options
• Technical support and customer service
• Value-added services such as cloud storage or access to digital media content

Semiconductors

• Access to semiconductor components and technology
• Technical support and consultation
• Customization and design services such as software development kits (SDKs)
• Options for software-enabled features and updates
• Intellectual property licensing agreements
• Supply chain management and logistics support

Medical Devices and Services

• Access to medical devices or equipment
• Usage-based pricing plans
• Bundling of consumables with subscription plans
• Training and support for medical professionals
• Remote monitoring and diagnostics
• Ongoing maintenance and repair services
• Regulatory compliance and certification

Transportation

• Access to transportation services such as ride-sharing, delivery or public transit
• Subscription-based pricing, usage-based pricing or volume discounts
• Cross-integration with other mobility services, rewards plans, and multi-modal travel
• Freight management, tracking and integration with supply chain systems
• Data analytics and insights
• Safety, security, bundled insurance and other features

Autonomous or Assisted Driving and In-Vehicle Services

• Access to autonomous driving software and systems
• Integration with other vehicle components and sensors
• Bundled GIS and location-based-services information
• Regulatory compliance and certification
• Access to entertainment and information services within a vehicle
• Customization and personalization options
• Voice control and other user interfaces
• Ongoing maintenance and support

Gaming

• Access to games and gaming content
• Multiplayer and online gaming capabilities
• In-game purchases and virtual currency
• Customization and personalization options
• Technical support and customer service

Keys to Effectively Managing Entitlements

Companies in these and many other industries are rapidly discovering the value of offering entitlements as a way  to deepen customer loyalty and engagement, while simultaneously opening up a variety of new upselling and revenue enhancement opportunities. 

However, the keys to success require providing transparent, easy to understand, customer-facing systems on the frontend to handle entitlements bundling; combined with seamless meshing together of the myriad of inter-related systems on  the backend for order management, delivery & fulfillment, billing & invoicing, payments & collections, and revenue management.

As the leader in helping companies implement Digital Solutions Economy offerings and one of SAP's longest serving partners, Bramasol has deep expertise in combining all aspects of DSE business models, including integrating entitlement management within overall DSE implementations.

Within the end-to-end, quote-to-cash, DSE management model, having a robust, integrated Entitlement Management System (EMS) has become a critical success factor.  An EMS is effectively a bridge between sales and provisioning, with linkage to backend accounting and revenue compliance systems. 

For instance, the Entitlement Management functions within SAP's  Billing and Revenue Innovation Management (BRIM) portfolio provide flexibility for independently handling entitlement usage, tracking and changes on the fly between sales and provisioning, while also integrating seamlessly with other related processes. 

Integrating entitlement management within the overall SAP Ecosystem also enables seamless meshing between BRIM and other key functions such as SAP Revenue Accounting and Reporting (RAR),  SAP Event Mesh, and SAP Analytics Cloud (SAC), while also laying a solid foundation for a forward-looking Digital Transformation journey using SAP S/HANA and the SAP Business Technology Platform (BTP).

Summary

As the Digital Solutions Economy continues to drive significant disruptive changes across a widening range of industries, the use of entitlements has become a key factor for boosting customer satisfaction and increasing revenues. 

However, it is vital to recognize that customers will want their various entitlements to be transparently combined within a seamless, easy to use interface that puts them in charge and provides a single-unified customer-facing environment.  They don't want to worry about or deal with the inherent complexity required in the backend to assure provisioning, delivery and associated revenue compliance issues. 

Therefore, companies offering various types of entitlements, such as those described above, need to implement a holistic, end-to-end approach to efficiently integrate and manage all of the end-to-end processes behind the curtain that are critical for satisfying customer expectations and ensuring cost-effective scalability to achieve overall  business goals.

For more information, check out these additional resources:

• Video: BRIM Overview
• Podcast: SAP's Carla LeJeune on Optimizing Entitlement Management
• Podcast: SAP’s Pete Graham on Anything-as-a-Service and How SAP Enables XaaS
• Webinar video: Managing Entitlements in the Digital Solutions Economy
• Webinar video: Power Transition to DSE with SAP Cash and Treasury Management
• Webinar video: Automating Revenue Management for the Digital Solutions Economy
• eBook: Using DSE to Create Integrated, Scalable & Sustainable Business Models