Introduction

Mariano Maldonado – Business Architect

November 2023

INTERNAL
•

• SAP Convergent Mediation Intro

• Who’s Using It?

• New Features

• Demo

• Takeaways, Contacts & Further Readings

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 SAP Convergent Mediation by DigitalRoute
• A solution purpose-built to track and orchestrate data that will be used for billing and by other
business systems.
• 2-min video

SAP Convergent Mediation by DigitalRoute

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 "In over 75% of Q2C projects that
experiences material delays,
No or limited usage billing
budget overruns and/or failure
the lack of data quality is one of
the key root causes"

MGI Research*
* MGI Mediation 2.0 Data Challenges in Quote to Cash

“From the 2022 IDC's

SaaSPath Survey of 125
subscription billing customers,
38% of companies plan to
offer consumption pricing in
the next two years ...”
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The case for Convergent Mediation

Convergent Mediation,
cloud edition

Custom
Integrations

New Business Processes

Live Data Increase Volumes

Add Error Handling & Retry

Data Validation

Automation & Audit

New Data Sources

Typical Project Timeline

Start / MVP Phase 1 Phase 2 Phase 3 Phase ..

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• What is Mediation and why is it needed?

• Intro

• Who’s Using It?

• New Features

• Demo

• Takeaways, Contacts & Further Readings

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 6

 Fulfilment of Physical Goods Project Planning
Offering Quotation Order Project Engagement &
Service Activation Usage collection,
Converged Billing & Revenue Share, Entitlements Customer Care, Credit
Modeling Management Management Contract Management Pricing & Charging Analytics
Settlement management, & Payments & Collections

Accounting, Controlling &

Revenue Accounting
S/4HANA Cloud, Public Edition
Cash Application GL, CO,
Product Config Product & Service Order , Service Contract, Project Engagement Billing Products , Services & Projects Digital Payment
Rev.Rec

SAP S/4HANA Cloud for

CPQ SAP Subscription Billing
SB Contract Accounting and Invoicing (CI, FI-CA)

SAP Convergent
Mediation by SAP Cash Application, for Contract
SAP Entitlement Mgmt.
CLM by DigitalRoute CE Accounting
Icertis

S/4HANA Cloud, Private Edition

Cash Application GL, CO,
Product Config Product & Service Order , Service Contract, Project Engagement Billing Products , Services & Projects Digital Payment
Rev.Rec

SAP SAP Customer Financial Management on S/4HANA

SAP S/4HANA
CPQ Convergent
CC Subscription Order Management Charging (CI, FI-CA)

SAP Convergent
CLM by SAP Cash Application, for Contract
SAP Entitlement Mgmt. Mediation
Accounting
Icertis by DigitalRoute

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BRIM & CPQ Public Cloud Private Cloud S/4HANA Public Cloud Private Cloud
 – Public Cloud

1. Connect to data
SAP CPQ SAP Subscription Billing SAP S/4HANA Cloud sources / re-mediate
2. Activate / Update /
Sales Fetch subscriptions

Sales 3. Summarize unrated /

rated usage for
monetization
SAP Consumption
Business Subscription Subscription Subscription
Commerce Billing & Finance 4. SB business triggers
Model Design Capture Management Monetization
Invoicing
Business Commerce
5. Trigger sales/service
Customers
SAP BTP
orders in S4HC
SAP Convergent Mediation cloud edition
2 6. Send usage for
3 entitlement
Usage Data & Event Mesh
measurements
Priced transactions 4
5 7. EMS business triggers
1 SAP Entitlements on thresholds breached
Management
6
Usage Usage Usage
8. Updates to external
Consumers
8 Integration Aggregation Guiding 7 Entitlements systems, e.g., create
External opportunity in SFDC
Systems

Non-SAP
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 • Introducing new business models with usage components
• E.g. Pay-per-use, Outcome-based, Subscription allowance / overage

• Rigid data sources (“you get what you get”)

• Revenue leakage (e.g. duplicates, missing events, not validated records)

• Customer data needed in billing systems (e.g. contract, subscription, entitlements)

• Enrich source data with customer information
• Automate provisioning: create/update rate plans/subscriptions via Subscription Billing API

• Transient errors in data enrichment (e.g. subscriptions not yet provisioned)

• Correcting and reprocess data manually not feasible due to volumes

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• What is Mediation and why is it needed?

• SAP Convergent Mediation Intro

• New Features

• Demo

• Takeaways, Contacts & Further Readings

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 10

Sample Use Cases across Industries

scanning-as-a-service. SaaS with Pay-per-use model. Usage insights

.
X-ray, Connected dental chair, Blood Test, Machine-as-a-service

Track power, charging type duration location

Track Print pages

Usage based billing including automated renewal / replenishments

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 Customer Example – Trading Transactions

New Service
Delivery Real-
Platform Time Query accounts,
Usage Engine clients and buckets
Legacy Future
Cloud Edition Cloud
Service Lots &
Delivery Trades Billing
Validate Manage Errors Audit
Platform AWS S3 Insert daily account
Bucketize Summarize
bucket summaries

• Upper mid-market (300MUSD per year)
• Pay-per-use SaaS
• Granular records to process end of month (3
Billion+ events/day)
• SaaS fintech company that provides automated investment
accounting, performance, compliance, and risk reporting for insurance
companies, asset managers, corporations, banks, governments, and
other institutions
 Business Case
• Resell telecom services from network
owners (telcos) to consumers as MVNO
Rating / Usage API Subscription API Mediation Use Case
• High volume, enrichment, guiding,
metering for retail rating/billing
• Usage types: internet, mobile, VoIP,
telephony, energy

Internet VoIP Tele- Mobile Energy

Usage Usage phony Postpaid Usage

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 SAP S/4C SAP S/4 Cloud
Subscription Billing for Monetization
SAP Subscription Billing
• Flexibly sell and modify subscriptions
• Plug into existing invoice environment

Solution Order
Entitlement Management for Rights
Business Subscription Subscription Subscription Invoicing &
Model Design Capture Management Monetization A/R • Full tracking of the subscribed asset
SAP
Commerce
• Consumption/Time based event trigger
Resellers
Equipment & Service
Event Mesh for Notification
SAP Event Mesh
• Provides a “voice” to Subscription Billing
Notifications
SAP Entitlements Management • Notifications for subscription lifecycle events
Consumable Replenishment Publish & Subscribe Bus
Replenishment
Tracking
SAP Convergent Mediation
Asset System of Record by DigitalRoute Cloud Edition Convergent Meditation for Consumption
• Process consumption for multiple uses
Legacy reporting systems
Subscribers, Usage Data • On-the-fly application of business logic
Processes, Hours
© INTERNAL | SAP SE OR AN SAP AFFILIATE COMPANY. ALL RIGHTS RESERVED .
14
 • Aircraft type 0
Individually rated items in SB
• Noise class
• Tonnes

Usage Simulator 2
Passengers
Usage
SAP

Rate items
• Local Passengers Convergent
• Transfer Passengers 3 4
• Baggages
Mediation
by DigitalRoute E2E-Usage
Cloud Edition
• Data Acquisition
Golden Record
• Data Quality
• Tonnes (adjusted)
• Audit Trail SAP Subscription
• Correlation • Tonnes
• Parking Period
Billing with Price
1 • External Enrichment
• Golden Record • Delay Period Calculation
Landing / • GPS Period Service
Usage
Take-Off • Hangar Period (Calculate Price)
• Local in Schengen
• Aircraft Type • Transfer in Schengen
• Airport Destination • Local by Schengen
• Arrival Time • Transfer Schengen
• Departure Time • Boarding Passengers
• Delay Time • Departing Passengers
• GPS Time • Baggages© INTERNAL | SAP SE OR AN SAP AFFILIATE COMPANY. ALL RIGHTS RESERVED .
15
• What is Mediation and why is it needed?

• SAP Convergent Mediation Intro

• Who’s Using It?

• Demo

• Takeaways, Contacts & Further Readings

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 16

 Features

DATA AGGREGATION
• Most important (and unique) usage
data pattern: accumulate usage over
longer periods, apply aggregation
formulas and flush on time or data
USAGE INSIGHTS condition.
• Visual indicators of how usage is flowing – and therefore how business is doing. • Used to be reliant on scripting: now
• Dashboards and data exposure (APIs) declarative (no code)
• First: audit data. Next: aggregation data, then metering (monetize) • Data visibility for operations, with built
• Target groups: Operations and business users in data inspector

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© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 18
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 19
 SAP API Hub CM Cloud –Subscription Billing Forwarding Function
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 Visualization of data point anomaly scores

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 21

• What is Mediation and why is it needed?

• SAP Convergent Mediation Intro

• Who’s Using It?

• New Features

• Takeaways, Contacts & Further Readings

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 22

• Why Mediation?

• SAP Convergent Mediation Intro

• Who’s Using It?

• New Features

• Demo

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 23

To summarize, SAP Convergent Mediation CE is...

❖ A revenue management solution customers use to enable and reduce

❖ Converts into objects required by billing

❖ Critical for , helping companies to transition into

(Postal, MaaS, Utilities..)

❖ for SAP Public Cloud solutions – sold with SAP Subscription Billing and
S/4HANA Cloud for Contract accounting & Invoicing

❖ against failing Order-to-Cash projects, protecting back-office systems from the

complexity of the messy real world

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 24

 ▪ heidi.zhao@sap.com Solution Mgmt oCFO
▪ detlef.uthmann@sap.com BRIM Product Management
martin.jankhe@sap.com SOLEX manager
Contacts: ▪ jesper.hok@digitalroute.com SAP Solutions Topics
1 ▪ sarah.brauckhoff@digitalroute.com SAP GTM/Sales
▪ mariano.maldonado@digitalroute.com Business Architecture

▪ Product home page on sap.com and 2 min product video

▪ Product Documentation, sw notes, SAP help.com
2 Assets: ▪ White Paper, High Volume Mediation-Invoicing
▪ Public Cloud Demo EV Charging

▪ Microsoft SAPPHIRE webinar

▪ Jio Reliance webinar
Customer ▪ VMware webinar
3 LiveRef Calls ▪ Dutch Railways webinar
▪ SAP IT public video and SAP O2C Storyboard

▪ SOLEX Jam Page for SAP CM, WTDs Sales Enablement

4 Jam Sites ▪ PCE/HEC Wiki for CM

5 Analysts ▪ MGI Mediation 2.0 Data Challenges in Quote to Cash

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 – internal for CEE

Solution Overviews Enablement Services Environments & Releases

SAP Convergent Mediation by Digital Route, cloud edition (license material 8007689)
is a public cloud solution streaming high-volumes of data from multiple sources into
your revenue management systems. It provides native capabilities for data
enrichment, consolidation and data flow management. It allows you to simplify data
infrastructures and quickly adapt and process new data types. The solution helps
service providers to handle growing volumes of transactional data with ease, whilst
enabling rapid adaption due to constant change, and ensuring fast time to market for
new services.
AP Convergent Mediation by Digital Route, cloud edition address the following
business challenges:
• Innovate on new business models
• • Subscription Billing forwarding details
•
Accelerate time to market for new consumption-based services
Scale to process very high transaction volumes
• Automate usage data processing
• Minimize revenue leakage
The solution is sold in a soft bundle with SAP BRIM in cloud (SAP Subscription
Billing, SAP S/4HANA for contract accounting and invoicing).
Credentials and Provisioning
• The tenant includes documentations and tutorials for self training
• Reach out to DigitalRoute for instruction led trainings
Customer Onboarding
• Commercial process follows SAP standard
• Provisioning process is described in section ‘Credential and Provisioning’.
Support
• SAP standard for OnDemand-VBR partner is valid:
- 1st level with SAP Global Partner Support (“Initial Support),
- 2nd and 3rd level with DigitalRoute Support.
• Customers shall log all issues via SAP support incidents and all
correspondence shall be provided inside the incidents.
• ACRF component XX-PART-DRT
• EU and US regions are supported, with disaster recovery capabilities. More
regions can be analyzed upon request.
• One production tenant is included in the subscription fee. This tenant also
provides sandbox capabilities for quality assurance, development and tested
– isolated from production resources.
Integrations
SAP CM by DigitalRoute, cloud edition integrates with SAP Subscription Billing,
documentation links to set-up the integration:
• Guide to create a stream.
Understanding the Contract
▪ Pricing metrics: Revenue and Expense
▪ Pricing Unit: 25 Million EUR per block
▪ Dependency to Subscription Billing 8011426 or SAP S/4HANA for
Contract Accounting & Invoicing 8005822 as Licensing is measured
and audited through one of the two components

Provisioning process Upgrades Contractual Documents

• SAP Cloud Fulfillments sends a provisioning request to DigitalRoute operations
via e-mail reflecting the customer order data of the internal SAP CRM system.
• DigitalRoute operations will create the customer account and appoint the users
of the account using administrative tools and provide access credentials.
Implementation
• The subscription fee covers the license, maintenance and operations.
Implementation services however for the initial setup can be purchased
separately either from DigitalRoute delivery team or from BRIM partners
with specific knowledge in Q2C processes:
• Implementation partner certification program is not available
• Majority of customer implementation projects is expected to be done by
DigitalRoute together with SIs
• Some SIs are trained on Convergent Mediation, cloud edition:
• Example of boutique SIs: Acuti Labs, Clarity Labs
• Example of Global SIs: Deloitte, Accenture
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL
• SAP Cloud General Terms and Conditions
• Continuous upgrades are provided by DigitalRoute during SAP scheduled • Support Policy for SAP Cloud Services
downtimes for cloud services aligned with SAP Subscription Billing. •
• The current schedule is approximatily monthly upgrade.
Service Level Agreement for SAP Cloud Services
• Cloud Services Documents - SAP Data Mediation Supplement
• Customer is actively notified according to SAP cloud customer notification rules.
• Customer will then be automatically get access to the upgraded version.
Additional Resources
Managing the relationship • Usage Data Platform to convert raw data into billable items | DigitalRoute
• There is no contractual obligation to meet customer and review issue, but CEEs on • Welcome to Usage Data Platform Documentation - Usage Data Platform
DR site has this role currently. Documentation - InfoZone (digitalroute.com)
• Overview and demo of use case ‘EV charging’
• Global SAP SOLEX manager for DigitalRoute: Jennifer Heffron • SAP internal BRIM supporting resources
• Global SAP Solution manager: Heidi Zhao
• Global partner manager at DigitalRoute: Jesper Hok
• Global partner manager for GTM at DigitalRoute: Sarah Brauckhoff
• APAC regional DigitalRoute contact at DigitalRoute Jon Tan
– EMEA regional DigitalRoute contact at DigitalRoute Shubo Ghosh
• NAM regional DigitalRoute contact at DigitalRoute Bert Dempsey
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