SAP Billing for Public Transport & Passenger Rail

SAP BRIM for Public Transport & Passenger Rail
Enabling Smart Ticketing
Isabelle ROUSSIN

© 2013 SAP AG. All rights reserved. 2
© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or
warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Market Drivers Solution Overview Scenarios Benefits
What are the Main
Challenges Influencing
Your Business?

Challenges
Environment
al regulations
Intense
Competition
Complex
Ecosystem
Informed
Customers
Ubiquity of
Channels
Cost
Pressure

250%
Increase of fuel prices between
2009 and 2013
Very Diverse Economic & Political Environment
“”Franchised passenger miles in
2010/11 were over 40 per cent
higher than in 2000/01 and over
60 per cent higher than in
1990/91
Rail Trends , UK 2011/2011
 NORAM passenger rail in midst
of renaissance
 City’s taking lead in public transit
 Public transit: central strategy in
addressing national priorities
• Health care
• Energy efficiency
• Traffic congestion relief
 EU 4th Railway Package (2013)
• A 4th alignment since beginning of 2000’s
• International passenger rail transport already
liberalized
• Next step to liberalize thedomestic passenger
transport
 APJ, LATAM, Africa focus on
• Good governance
• User empowerment
• Community engagement
• Service innovation
• Urban resilience

Multimodal Environment
PT
Cities
Parking
Rent a Bike
Car-sharing
Retailors
Banks
Service Providers
Multimodality
City Services
PT
Long distance
PT
Region
Interoperability
Cinemas
Itinerary
Swimming
pool
Library
PT: Public Transport
Based on:VDV-Kernapplikations GmbH & CO. KG
Interoperability
Sports
Others ….
City Services
Interoperability
Multimodality
Service providers

Challenges
Partner
Settlement
Bundles
Streamline IT
process
Segment of
One
Pricing
Innovation
Needs
Environment
al regulations
Intense
Competition
Complex
Ecosystem
Informed
Customers
Ubiquity of
Channels
Cost
Pressure

Frecciarossa – Your journey made to measure -
High Speed Train travelling between Turin and Salerno
 Innovative packaging based on different segments
 X minutes of free internet access and pay extra x€ for additional 3G access
 Content-led services from on-board media servers
 Film footage, music, video games and information services such as travel and weather
info, timetables and station info
 Online ticketing with different payment options
 PostoClick to book and purchase ticket online, and pay with many different options: with a
cash point card of the Unitcredit group, at SISAL shops, at self service retailers, via Poste
Mobile etc ..
Innovating on fare policies
 Flat rate, internet access, retail services
 Different subscription based per segments
 Usage based: distance, peak hours, period, options, bundles with
partners
Innovate in Your Business Model

“”Create a single payment
system for a better customer
experience and savings on
personnel and administrative
costs with automation of
tickets sales and control
Openbaar Vervoer
ChipKaart NL
The One Stop Shop for New Services
5%
Revenue increase for London
Oyster card

Partner Settlement

Defining a common back office with interoperability as key
Bus lane fines
Road Charging
Parking
Work Place Parking
Public Transport
Concessionary
“Wave & Pay”
Charging
Event & Usage Bundling
Collection / Reimbursement
€
Chargeable & Concessionary Events
Pricing & Charging
Finance
Voice
E-mail
White
Mail
Self Service
SMS
Mobile Phones
Contactless
Card
Vending
machines
80%+
Of cost for maintaining
status quo
£400 million a year spent
on revenue collection at
TFL
Matthew Hudson, TFL
Business Development
Chief
“”

Simplify Business Interactions & Meet Real Time Expectations
Real Time Insight
for True customer
360° view
Real Time Interactions
for quoting & 1:1
customer engagement
Real Time Execution
for context sensitive
offerings
« We have upgraded on-train
telephone services and offered
‘always online’ options to cater
to the work and entertainment
needs of our travellers and
broaden the range of services
available on board
Frecciarossa trains”
Mauro Moretti
CEO of Ferrovie dello Stato
“”
US$10, 15 M
Of hotspot revenue could be
generated annually from 100
000 passengers/day for a
single carrier

Challenges
Intense
Competition
Complex
Ecosystem
Informed
Customers
Ubiquity of
Channels
Cost
Pressure
Maximize
Profitability
Customer at
the Center
Reduce
Opex
Reduce Time
To Market
ResultsBRIM
Environmental
regulations

Closed Loop between
Business Need and IT
Constraints

Process Flow with BRIM for Ticketing
Cash desk
Web portal
Mobile App
E-Kiosk
POS
Time
Table
Orchestration
Layer
CRM
Marketing
Analytics
Pricing &
Charging
Billing
Payments
Collections
Financial Care
Customers
Partner
Products
Contracts
Points
Customers
Invoices
Interactions
Customers
Interactions
1 Check Available Seat
1
Available Seats & Prices3
3
2 Price Request / Response
2
4
Payment Status4
Customer & Payment Data5
5
Customers
Info
6 Ticket Accounting
6
Seat,
Beds …
DB
1
5

Awarded
DigitalRoute is the 2011
Stratecast Global CSP Billing
Mediation Competitive
Strategy Innovation Award
Winner
SAP Convergent Mediation
Integrate new and old systems more simpler
 Collection of multiple data streams
 Merge asynchronous data together
Ensure data quality
 Error detection, with de-duplication
 Alarm and monitoring management
Transform raw data in usable information
 Data enrichment in real time
 Aggregation and counting
Standardize Data format across platforms
 Translate protocols and formats to create new unified data format

“”The flexibility and speed at
which we could create and
modify price plans was
second to none. It is so user
friendly that now even non-
technical financial managers
are able to introduce new
tariffs.
Raphaël Bichon, Project
Manager SFR
SAP Convergent Charging
Easy to Use
 Visual design of charging models with
discounts, surcharges, apportionment
 Service-agnostic, proven
 Rapid time to market
 Support for multi-sided partner-centric
models
 Support prepaid, postpaid and hybrid
charging
High Performance
 Calculate prices and charges for
hundreds of thousands of transactions
per second for hundreds of millions of
customers

Multi-Sided Partner Settlement
28%
decrease in IT expenditures
as a percentage of revenue
with a consolidated single
solution and platform
landscape
Source: SAP Performance
Benchmarking
Handle flexible partner contract terms
 Use the same pricing engine to define these contracts
Interlink customer pricing with partner
revenue share
 Better manage the profitability of your business models
Tailor your offers to partners
 Allow special incentives to most valuable partners

Consolidate multiple upstream
systems for a single view of the
customer’s account
 Flexible invoice aggregation & presentation
 Configurable invoice discounting
 Integrate seamlessly with accounts receivable
and payable for interest calculation,
adjustments, etc.
 Handle both customer invoicing and production
of payment statements for partners in a single
solution
 Transactional journey by journey financial view
Scalable Solution
 High volume capabilities
32%
decrease in errors when
A/R and billing are
integrated so open items
are generated at the
same time as the bill
Source: SAP
Performance
Benchmarking
SAP Convergent Invoicing

74%
Decrease in billing and
collections cost as
percentage of revenue
with optimized collections
and dispute handling
Source: SAP Performance
Benchmarking
SAP Customer Financial Management
Automation & Optimization
 Automate routine tasks
 Optimize efficient cash collection
through segmented strategies
Transparency On Revenue
 Monitor an up-to-date picture of
customer payment behavior
 Comply to accounting standards
Customer Satisfaction
 Immediate access to customer
contracts & payment instruments &
accounts

SAP Convergent Charging and Invoicing scale massively
A series of benchmark tests were run in Q4 2011 in IBM Labs in Montpellier,
France, to measure the massive scalability of SAP Convergent Charging & SAP
Convergent Invoicing on IBM hardware.
773,000
2.8 B
events / sec
events / hour
subscribers
200 M
Market Leading Results
SAP Convergent Charging
100,000
1175
billable items
invoices/secsubscribers
50 M
SAP Convergent Invoicing

Rapid Deployment Solution for Billing with Best Practices
* Reduction assumes
100% fit to baseline
content scope.
Leveraging Pre-
configured
Baseline
Up to a possible 40% time
and effort reduction
compared to a traditional
project with same scope*
Blueprint - up to 50%, Savings
• Best Practice processes modeled
and described
Realization - up to 50%, Savings
• Best Practices processes already
configured and documented
• Delta implementation built on-top of
existing best practices
Testing- up to 30%, Savings
• Test Case Template supplied
0 10 20 30 40 50 60 70 80 90 100
Standard Prep Business Blueprint Realization Testing Go-live
Start Deploy Run

Efficient Revenue Management: increase customer
satisfaction and improve financial performance with a converged
view of customer accounts, receivables, payables and disputes.
Deployment Flexibility: deploy a complete, integrated
customer care and next gen billing system, or choose to deploy
in smaller implementable steps for targeted incremental value.
Don’t reinvent the Billing Wheel!
Business Agility: launch new pricing, charging and billing
models more flexible and faster: open up new revenue stream,
personalize your B2B offerings and get to know your customers
1
2
3
Summary

Explore Different
Scenarios

Belgian Railways – Optimization for Distribution Process
Needs
 B2B & B2C complex pricing (season tickets, one-off tickets)
 Complex discounts, surcharges, commissions
 Apportionment & reconciliation of journeys
 Consolidation of data from 3rd party systems
 Pre-integration in general ledger
 Revenue recognition across a period
 Self-service billing, payments for travelers and 3rd parties
 Granular vie of customer account journeys
SAP Solution
 Improve TTM and increase business flexibility for launching
mobility & European travel offers with SAP CC
 High performance real-time pricing & quotations
 Minimize customer developments and manual processing
with configurable & pre-integrated components
3500 km
Of network
NMBS/SNCB– Autonmous government
company split in 3 parts in 2005:
• Infrabel, Infrastructure
• NMBS/SNCB public railways managing
freight and passengers
• Holding, for supervision
207 million passengers
In 2008

Beating the
Competition

BRIM Performance
KPI Industry Benchmark Improvement Potential
Time to implement new
pricing offers
Price/performance for
rating (TPS per CPU core)
Days sales outstanding
(DSO)
launch in hours
not weeks
150%
20%
1 day 90 days
30
days
470 5 400
2 140
0 90 days
54
days

© 2013 SAP AG. All rights reserved. 28Internal
… unlocking new growth opportunities
and gaining market leadership by
inventing new business models and
opening new revenue streams
… increasing customer satisfaction by
reacting more quickly to customer
demand with immediate insight to action
… improving top-line effectiveness by
reducing cost of operations while
simplifying and speeding core business
process
imagine
Let’s Work on Your Future Together

Thank you
Isabelle ROUSSIN
VP Solution Management Next Gen Billing
Transportation, Logistics, Postal, Utilities
Mail: isabelle.roussin@sap.com

© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or
warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

SAP Billing for Public Transport & Passenger Rail

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SAP Billing for Public Transport & Passenger Rail