Non-aeronautical revenues critically determine the financial viability of an airport as they tend to generate higher profit margins than aeronautical activities, the latter frequently representing a zero sum game or producing a deficit.

1. SAP BRIM For Airport
Innovating on Business Models
Isabelle ROUSSIN

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.
© 2013 SAP AG. All rights reserved.
2

3. Market Drivers
Solution Overview
Scenarios
Benefits
What are the Main
Challenges Influencing
Your Business?
© 2013 SAP AG. All rights reserved.
3

4. Market Drivers
Solution Overview
Benefits
Scenarios
High Fixed-Cost Business Model…
30%
Escalating oil prices triggered
unprecedented airline losses in
2008, as fuel costs rose from 10%
of opex to 30%
SHRINKING
FEDERAL
BUDGETS
CONSTRAINED
LOCAL
RESOURCES
DROP IN
PASSENGER
NUMBERS
“”
“Non-aeronautical revenues are a
vital component in the economics of
airports. During the downturn the
diversification of airport revenues
cushioned the impact of lower
passenger and freight volumes and
safeguarded operating profits. Nonaeronautical revenues critically
determine the financial viability of an
airport as they tend to generate
higher profit margins than
aeronautical activities, the latter
frequently representing a zero sum
game or producing a deficit.”
Angela Gittens, World Director ACI
2013
© 2013 SAP AG. All rights reserved.
REGULATORY REFORM
DEREGULATION
≠ OPERATING PROFILES FOR
REGIONAL, LOCAL HUBS, O&D
VOLATILE FUEL PRICES
WORLDWIDE FINANCIAL CRISIS
NEW CORPORATE
GOVERNANCE REQUIREMENTS
4

5. Market Drivers
Solution Overview
Scenarios
Benefits
… Driving Needs for Non Aeronautical Income…
Check In
Boarding
Security
Advanced
operational
efficiencies such as
managed
communications
(WI-FI, video
surveillance etc ..)
Real time status of
roads, parking,
changes in flight
status …
Food courts, rental
services, foreign
exchange outlets,
advertising…
Luggage Pick Up
Moderate Retail
Standard Airport
Agile Airport
Airport as Infrastructure
Providers
Smart Airport
Airport as Virtual
Service Providers
Services Evolution
© 2013 SAP AG. All rights reserved.
5

6. Market Drivers
Solution Overview
Scenarios
Benefits
Attracting Empowered Business & Leisure Passengers
7200%
Rise in retail Business in
DDF (Dubai Duty Free) during the
three decade period , while
passenger traffic at the Dubai
airport increased by 1300%
SOCIALLY
NETWORKED
EXPECT IMMEDIATE,
PERSONALIZED RESPONSE
HYPER, DIGITALLY
CONNECTED
“”
« The success of DDF
demonstrates the power and
potential of non-aeronautical
revenues in making an airport
successful and profitable,
especially in the Middle East
region, which is projected to
handle 400 million passengers by
2020”
Generation Research, an
independent industry specialist
© 2013 SAP AG. All rights reserved.
BETTER
INFORMED
EXPECTS
COMPLIMENTARY
SERVICES
6

7. Market Drivers
Solution Overview
Scenarios
Benefits
…Driving Needs for Addressing Segment of One
Simplify Business Interactions while Meeting Real Time Expectations
Real Time
Insight for True
customer 360°
view
Real Time Execution
for context sensitive
offerings
1:1 customer
engagement
© 2013 SAP AG. All rights reserved.
7

8. Market Drivers
Solution Overview
Scenarios
Benefits
Extended Eco-system operating in a stovepipe fashion
71%
TECHNOLOGY
ENABLING
COLLABORATION
Of Sydney Airport earned on
non-aeronautical sources
“”
“ The industry is experiencing a
revenue renaissance of sorts.
Airports are mixing creativity with
good business sense…and new
financial profiles are emerging that
include revenues from cogeneration
plants, multimillion dollar retail
developments, expansive industrial
parks, and golf courses. As airports
develop these revenue sources,
airline fees can stay lower, making
the airports more competitive in
attracting air service for travelers. “
Greg Principato, President, Airports
Council International
© 2013 SAP AG. All rights reserved.
WEB 2.0
DATA
INFORMATION
FROM AIRLINES
ANCILLARY SERVICES
SINGLE, CONVERGED
IP NETWORK
8

9. Market Drivers
Solution Overview
Benefits
Scenarios
…Driving Needs for Business Collaboration Platform
 Better Knowledge Sharing
 Gain invaluable insight to passenger
preference and behavior
New
New
 Joint Marketing among members
Entertainment
Airport Services
Hotel & resort
Advertisers
Concessionaires
Accommodation
Tour Operator
Airlines
Ground Transport
© 2013 SAP AG. All rights reserved.
Attraction
9

10. Market Drivers
Solution Overview
Scenarios
Benefits
Closed Loop between
Business Need and IT
Constraints
© 2013 SAP AG. All rights reserved.
10

11. Market Drivers
Solution Overview
Scenarios
Benefits
From Business Challenges To Technical Needs
Innovative Bundles with Airlines
Commission & Revenue sharing with Partners
Manage loyalty & promotion
Cash Collection optimization
Billing Consolidation
Manage B2C & B2B
Convergent
Mediation
Pricing,
Rating &
Charging
Bill &
Invoice &
Settle
Consume to Cash
© 2013 SAP AG. All rights reserved.
Provide Multiple Payments
Invoice customization
Analyse Customer Usage
Collect
&Pay
Customer
& Partner
Financial
Care
Analytics
Analytics
11

12. Market Drivers
Solution Overview
Benefits
Scenarios
From Business Process to Features
The Order To Cash Business Process for Airport
Operational
Platform
Benefits
O2C Process
CRM
Offer &
Contract
Mgmt.
Deliver
Service
Order
Get the business
Execute efficiently
Analytics
Consume To Cash
Price,
Rate &
Charge
Bill &
Invoice &
Settle
Collect &
Manage
Receivables Manage
credits
& Payables
Invoice as
Recognize
customer requests revenue correctly
Price profitably
Customer &
Partner Financial
Care
Prevent company from
monetary leakage
Analytics
Analyze
Customer Usage
SAP BRIM
Billing & Revenue Innovation Management Solution supporting O2C Process
SAP CRM
SAP Mediation
SAP CC
SAP ERP (FI-CAx based with CRM functionalities)
RDS
RDS CUA
Features
The Corresponding Features
Order Management,
Logistic Execution,
Contact Center,
Event Mgt. /
Marketing
Mediation
© 2013 SAP AG. All rights reserved.
Convergent
Convergent
Charging
Invoicing
Receivables
Management
& Payment
Handling
Credit &
Financial Customer
Customer
Collections
Care & Dispute
Usage
Management
Management
Analytics
12

13. Industry Overview
Solution Overview
SAP Convergent Charging
RDS
Price,
Rate &
Charge
Easy to Use


Service-agnostic, proven

Rapid time to market

“”
Visual design of your pricing and charging
models, with apportionment
Support for multi-sided partner-centric
models

Support prepaid, postpaid and hybrid
charging
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.
High Performance

Raphaël Bichon, Project
Manager SFR
© 2013 SAP AG. All rights reserved.
Calculate prices and charges for hundreds of
thousands of transactions per second for
hundreds of millions of customers
13

14. Industry Overview
Solution Overview
SAP Convergent Invoicing
RDS
Bill &
Invoice
& Settle
Consolidate multiple upstream
systems for a single view of the
customer’s account
 Flexible invoice aggregation & presentation
32%
 Configurable invoice discounting
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
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
Scalable Solution

High volume capabilities
© 2013 SAP AG. All rights reserved.
14

15. Industry Overview
Solution Overview
SAP Customer Financial Management
RDS
Manage
Receivables &
Payables
Collect &
Manage credits
Customer &
Partner
Financial
Care
Automation & Optimization
 Automate routine tasks
 Optimize efficient cash collection
through segmented strategies
74%
Transparency On Revenue
Decrease in billing and
collections cost as
percentage of revenue
with optimized
collections and dispute
handling

Monitor an up-to-date picture of
customer payment behavior

Comply to accounting standards
Source: SAP
Performance
Benchmarking
Customer Satisfaction

© 2013 SAP AG. All rights reserved.
Immediate access to customer
contracts & payment instruments &
accounts
15

16. Market Drivers
Solution Overview
Scenarios
Benefits
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 platforms.
Market Leading Results
SAP Convergent Charging
200 M
subscribers
773,000
2.8 B
events / sec
events / hour
SAP Convergent Invoicing
50 M
subscribers
© 2013 SAP AG. All rights reserved.
100,000
1175
billable items
invoices/sec
16

17. Market Drivers
Solution Overview
Benefits
Scenarios
Rapid Deployment Solution for Billing with Best Practices
0
10
Prep
Standard
20
30
40
Business Blueprint
50
60
70
Realization
80
Testing
90
100
Go-live
Up to a possible 40% time
and effort reduction
compared to a traditional
project with same scope*
Leveraging Preconfigured
Baseline
Start
Deploy
Run
Blueprint - up to 50%, Savings
Realization - up to 50%, Savings
Testing- up to 30%, Savings
• Best Practice processes modeled
and described
• Best Practices processes already
configured and documented
• Delta implementation built on-top of
existing best practices
• Test Case Template supplied
* Reduction assumes
100% fit to baseline
content scope.
© 2013 SAP AG. All rights reserved.
17

18. Market Drivers
Solution Overview
Scenarios
Benefits
Summary
1
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
2
Efficient Revenue Management: increase customer
satisfaction and improve financial performance with a converged
view of customer accounts, receivables, payables and disputes.
3
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!
© 2013 SAP AG. All rights reserved.
18

19. Market Drivers
Solution Overview
Scenarios
Benefits
Explore Different
Scenarios
© 2013 SAP AG. All rights reserved.
19

20. Modular Yet Integrated: some use cases
© 2013 SAP AG. All rights reserved.
20

21. Market Drivers
Solution Overview
Scenarios
Benefits
Beating the
Competition
© 2013 SAP AG. All rights reserved.
21

22. Market Drivers
Solution Overview
Scenarios
Benefits
BRIM Performance
KPI
Industry Benchmark
Time to implement new
pricing offers
30
days
1 day
Price/performance for
rating (TPS per CPU core)
90 days
Days sales outstanding
(DSO)
© 2013 SAP AG. All rights reserved.
5 400
20%
54
days
0
launch in hours
not weeks
150%
2 140
470
Improvement Potential
90 days
22

23. Market Drivers
Solution Overview
Scenarios
Benefits
Let’s Work on Your Future Together
imagine
… 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
© 2013 SAP AG. All rights reserved.
Internal
23

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

25. © 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.
© 2013 SAP AG. All rights reserved.
25