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Case Study
How a global software leader scaled billing to meet rapid growth of new business lines
This company is a global leader whose business encompasses a diverse range of sectors. Their subscription business is anchored by a suite of productivity apps, email, appointment scheduling, video meetings, chat, and enterprise-grade security with various plans tailored to different business needs.
In the gaming sector, this company is a major player with revenues from hardware, content and services, including digital transactions, video games, third-party video game royalties, and cloud services. They also own three major video game publishers.
Their media business aims to revolutionize the media and entertainment industry by streamlining content production, enhancing creativity, transforming audience insights, providing solutions for content creators and distributors, elevating the viewer experience, and maximizing the value of audience data.
Challenge
The company was experiencing rapid growth of their cloud and subscription businesses. They needed to scale billing and revenue management systems and integrate multiple front-end commerce systems into the backend SAP systems in a flexible and scalable way, but their home-grown integration to collect order transactions started to become a bottleneck.
They also needed to transition traditional enterprise agreements to subscription-based models all the while maintaining consistency across business units, and had to manage increasing complexity of transactions as the business and partnerships expanded into new areas.
In addition, they needed to ensure finance and operations teams had access to rich data for reconciliation and decision making as processes were automated, and needed to reconcile detailed transaction data from front-end systems into financial reporting in the general ledger.
Challenges in short:
Scale to meet rapid growth of new business lines
Manage increasing complexity of transactions
Reconcile detailed transaction data
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Solution
DigitalRoute was chosen to better facilitate the integration between the company's non-SAP front-end commerce systems and backend SAP system.
Acting as an integration layer to mediate interfaces between different systems, the solution helps formalize and standardize how the company integrates various front-end systems without directly connecting them to SAP.
The solution provides a consistent approach to handling integrations as complexity increases with new transactions and use cases, and allows the company to more flexibly onboard new front-end solutions without significant custom work each time.
DigitalRoute mediates data mapping and transformation between different data models of front-end and back-end systems and aims to improve integration agility, scalability and maintenance as the business landscape continues rapid expansion.
Outcome
The solution has provided the company with a strategic platform to manage its growing subscription revenues in a scalable, automated and integrated way. This allows finance teams to run processes more efficiently.
End-to-end traceability of transactions from customer purchase to finance systems enables automated reconciliation processes and rich data for finance teams. This improves operational efficiency.
The company now has the ability to onboard new subscription and cloud businesses onto a single platform to manage billing and revenue at scale.
The transition of enterprise agreements to subscription models can be handled on the same platform for consistency, and integration with other SAP systems like supply chain provides a unified view of processes.
Outcome in short:
Integration of systems for unified view of processes.
Single platform to manage billing at scale.
Automated reconciliation processes.
Reduction of manual processes.
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