Understanding Revenue Operations

SAP RAR is a solution that helps companies recognize revenue correctly and in compliance with accounting standards like IFRS 15 and ASC 606. In plain words: RAR tells your system when and how much revenue to officially record in your books — not just when an order is placed or an invoice is sent. It separates: 1️⃣ Order / Contract 2️⃣ Delivery of goods/services 3️⃣ Revenue recognition All these steps don’t necessarily happen at the same time — and that’s where RAR comes in. 🤔 Why do we need SAP RAR? Imagine you’re Netflix, selling subscriptions: ↳ A user pays ₹1200 for a 1-year plan upfront in January. ↳ You shouldn’t recognize the full ₹1200 in January. ↳ You should recognize ₹100 per month over 12 months. SAP RAR automates and tracks that process. 💡 Key Concepts in RAR ↳ Performance Obligations (POB) — What the company promises to deliver (e.g. a service, a license). ↳ Revenue Contracts — Grouping of related items (multiple sales orders, deliveries, etc.). ↳ Revenue Recognition Rules — When to recognize revenue (on delivery, over time, etc.). 📦 Example 1: Product Sale with Delivery Scenario: Customer orders a laptop on Jan 1 for ₹50,000. Laptop is delivered on Jan 5. Invoice raised on Jan 10. Without RAR: Revenue might be booked on Jan 10 when the invoice is posted. With RAR: Revenue is posted on Jan 5 — the day the obligation was fulfilled (delivery). This matches accounting rules better. 📶 Example 2: Subscription Service Scenario: A telecom company sells a 12-month data plan for ₹12,000 (₹1,000/month). Customer pays full amount upfront in April. Without RAR: All ₹12,000 might be posted in April — inaccurate. With RAR: SAP RAR spreads the revenue — ₹1,000 each month from April to March. 🎯 Benefits of SAP RAR Ensures compliance with global revenue standards (IFRS/ASC). Separates billing from revenue. Handles complex revenue scenarios (bundled products, deferred revenue). Automation reduces manual errors and audits. 🚀 Where is RAR Used? RAR is mostly used in: 1️⃣ Telecom 2️⃣ High-tech 3️⃣ Software companies (licenses, subscriptions) 4️⃣ Media 5️⃣ Utilities ************ Please follow me on Medium to get access to more detailed tech articles : https://lnkd.in/gd47gXhN

A.I. is a Survival Kit for Telcos Telecom operators are in survival mode. That’s the hard truth. Over the last decade, their financials have deteriorated despite massive investments in network infrastructure. Revenues are stagnating. Margins are shrinking. Costs are rising. The math doesn’t add up. Most telcos today are running below their cost of capital, making them unattractive investments. The numbers tell a brutal story. Global telecom revenue growth has been stuck at low single digits, barely keeping up with inflation. The industry spends over $300 billion annually on CAPEX by laying fiber, expanding 5G, and modernizing networks, yet monetization remains a challenge. Meanwhile, OPEX is eating up 65-70% of total revenue, with network operations alone projected to consume 50% of total OPEX by 2027. Energy costs have surged, with telecom networks consuming 2-3% of global electricity and growing. The cost of serving customers has skyrocketed, as call centers, support teams, and maintenance operations strain under the weight of increasing complexity. It is an economic equation that no longer works. Investors have noticed. Since 2018, telcos’ market capitalization has only grown by 7%, while digital platforms have surged by 230% and the S&P 500 by 172%. Debt levels are climbing, return on investment is shrinking, and competition from "Techno" players has further eroded traditional revenue streams. Customers are paying less, expecting more, and are more willing than ever to switch providers for better deals. The industry is stuck in a loop: spending more every year just to maintain the same level of service while profitability continues to decline. The harsh reality is that no amount of cost-cutting, restructuring, or incremental efficiency gains will fix this. The only viable survival strategy is AI. This is not an AI initiative. Not AI in pockets of the business. But AI as a platform. AI should be embedded into every layer of the telco value chain: from sales and marketing to customer support, from network operations to predictive maintenance, from fraud detection to revenue assurance. AI is not an enhancement. This is the way forward. The impact is not just theory. AI-driven automation is already proving it can reduce network operations costs by up to 30% by enabling self-optimizing networks, predictive maintenance, and real-time anomaly detection. AI-powered customer interactions are slashing workload by as much as 50%, resolving inquiries without human intervention. AI-led marketing and recommendation engines are increasing conversion rates by 25%, driving upsell opportunities and reducing churn. AI-driven fraud detection is saving telcos billions annually by identifying and stopping threats in real time. Survival depends on scale. AI must be adopted across every process, every function, every department. The transformation required is radical, but so is the alternative...irrelevance.

One of the least-discussed challenges in AI adoption today is pricing. Everyone talks about model performance, benchmarks, or features. But for enterprises, the real sticking point often shows up when the bill discussion starts. The problem: current pricing models don’t align with how enterprises budget and buy. Usage-based pricing makes perfect sense for vendors, but it feels like a blank cheque for buyers. If adoption succeeds, the bill grows in unpredictable ways. No CFO wants to be surprised by a doubling in costs because usage spiked. Flat subscriptions feel safer for buyers, but they put vendors at risk. The underlying compute costs fluctuate, and a heavy customer can easily push margins underwater. Hybrid models try to balance the two, to put in predictability for buyers’ forecast, and vendors try to to defend and improve profitability. This mismatch slows progress. Solution: a new generation of pricing models. Simple enough to understand, predictable enough to budget for, but still sustainable for vendors. It could also mean having periodic reviews instead of fixed term pricing for multi year deals. That could mean outcome-based contracts, tiered usage bands with hard caps, or bundled services that absorb variability in spikes. Until AI economics are solved, adoption will remain slower than the technology itself.

#RevenueAssurance is a critical function in the telecom industry, ensuring accurate revenue recognition and minimizing leakage. However, with the evolving landscape of telecom operations, revenue assurance must adapt to #stayfutureready. Traditionally, revenue assurance relied on manual processes, sampling, and rule-based approaches. However, these methods are inadequate for the complexities of modern telecom operations. The industry is witnessing a significant shift towards data-driven and #AIpowered revenue assurance solutions. The key drivers of this evolution are: - Real-time data analytics - Machine learning algorithms - Automation and AI-powered solutions - Integrated revenue management systems These advancements enable telecom operators to: - Detect anomalies and fraud in real-time - Optimize revenue recognition and forecasting - Streamline processes and reduce costs To stay #futureready, revenue assurance must embrace emerging technologies like #blockchain, #5G, and #IoT. By leveraging these innovations, operators can ensure: - Enhanced security and transparency - Improved revenue recognition and forecasting - Increased efficiency and reduced costs In conclusion, #revenueassurance is evolving to meet the demands of a rapidly changing telecom landscape. By adopting data-driven and AI-powered solutions, operators can ensure accurate revenue recognition, minimize leakage, and stay ahead of the competition. #RevenueAssurance #Telecom #DigitalTransformation #DataAnalytics #AI #MachineLearning #Automation #Blockchain #5G #IoT #FutureReady #TelecomIndustry #RevenueManagement #RiskManagement #Compliance

When the Music Stopped: What Telecom Operators Can Learn from the Music Industry’s Reinvention There was a time when buying music meant owning something physical. For decades, this model was a cash machine for record labels and artists. Then, overnight, the digital revolution broke the system. When peer-to-peer downloading (remember Napster and LimeWire?) exploded, music sales collapsed. Consumers no longer wanted to pay for individual albums when songs could be shared instantly—and for free. Revenues fell by more than half. The industry faced an existential crisis. The Turning Point Rather than fighting consumer behavior forever, the industry eventually reinvented its business model: * Streaming platforms like Spotify, Apple Music, and YouTube made access more valuable than ownership. * Video content and live performances became powerful monetization engines. * User-generated personalization—playlists, remixes, TikTok trends—turned listeners into active participants. Today, music revenues are growing again, powered not by selling CDs but by recurring subscriptions, ad-supported streams, and engagement-driven experiences. Lessons for Telecom Operators Telecom operators now face their own version of this disruption. Traditional voice and data services—once the backbone of profitability—are under pressure from OTT (over-the-top) players, price wars, and shifting consumer expectations. Just as the music industry had to stop clinging to CDs, telecoms must rethink their role in a connected world. My 3 key takeaways: 1️⃣ Shift from Product to Experience
 Music moved from ownership (CDs) to access (streaming). Telecoms must move from selling minutes and gigabytes to delivering value and experiences—bundling content (video, gaming, music), offering smart home services, or enabling immersive AR/VR. 2️⃣ Monetize Engagement, Not Just Access
Music platforms thrive on engagement—playlists, recommendations, social sharing. Telecoms can create similar ecosystems by leveraging data, personalization, and loyalty programs to keep customers involved and reduce churn. 3️⃣ Open the Platform
Spotify didn’t win by staying closed; it thrived by partnering with artists, podcasters, and creators. Telecoms can learn from this by opening APIs, collaborating with developers, and enabling new services on their networks (IoT, fintech, AI-driven solutions). Big Picture The music industry proved reinvention isn’t about fighting technology—it’s about riding it. Telecom operators that embrace partnerships, personalization, and platform thinking can turn the “pipes” they own into powerful stages for innovation. The CD era didn’t end because people stopped loving music.
It ended because people wanted more—more convenience, more choice, more connection. Telecom customers want the same. The question is: will operators learn to stream their own future?

Your business can grow and still be broke. In the solar industry, while you're busy building systems that power the future, your finances can fall apart. → Customers push for long payment terms. → Suppliers demand upfront payments. → And scaling too quickly can drain resources faster than you'd expect. We've faced it firsthand.  There were moments when I couldn’t sleep because of our financial dashboards. Here's what helped us to turn it around We restructured our payment plans We realised that flexibility doesn't mean sacrificing cash flow.  So, we implemented early payment incentives to motivate faster settlements and upfront deposits to reduce capital strain. Streamlined our inventory management. Solar components are expensive, and overstocking ties up cash unnecessarily.  We built partnerships with suppliers who understand our business model. Balanced growth with sustainability Growth is exciting, but unchecked expansion can lead to financial instability.  We use a more measured approach by prioritising projects with balanced profitability and payment schedules. We go selective with opportunities and say "no" to projects that could overextend our resources. The solutions weren't revolutionary.  They were boring, basic business principles that nobody likes to talk about because it doesn't make for exciting LinkedIn posts. Cash flow isn't just about having money, it's about having it at the right time. #business #growth #solarindustry

📢 Contracts for Difference (CfDs) in the Energy Transition: Balancing Market Efficiency and Risk Mitigation This Oxford Institute for Energy Studies paper examines the role of Contracts for Difference (CfDs) in promoting renewable energy investments while addressing market distortions they can introduce. It focuses on two proposed models: Yardstick Locational CfD and Benchmark-based Financial CfD (b-FCfD). Key Takeaways: 1️⃣ CfDs are vital for attracting investments in renewable energy by providing revenue stability and mitigating risk for generators, contributing significantly to the growth of renewables. 2️⃣ Traditional two-sided CfDs, while effective, can lead to market distortions, primarily incentivizing a 'produce-and-forget' mentality where generators prioritize maximizing production without considering market signals. 3️⃣ Conventional CfDs can disincentivize generators from responding to price signals, leading to suboptimal dispatch decisions, over-generation, and inefficiencies, especially during periods of low or negative prices. 4️⃣ Proposed reforms like Yardstick Locational CfD and b-FCfD aim to enhance market integration and address distortions, but introduce basis risk due to the decoupling of payouts from real-time generation. 5️⃣ There is an inherent trade-off between incentivizing efficient behavior through risk exposure and ensuring revenue stability for renewable energy projects, making the design of CfDs a complex balancing act. Opportunities: 1️⃣ Improved Market Integration: Modified CfDs can enhance market integration by incentivizing generators to respond to price signals, supporting grid stability as renewable penetration increases. 2️⃣ Promoting Cost-Effective Dispatch: Yardstick Locational CfD encourages efficient dispatch by rewarding generators for producing when and where electricity is most valuable, optimizing system performance. 3️⃣ Strategic Deployment of Renewables: The locational element in Yardstick Locational CfD can be used to strategically encourage renewable energy development in areas with higher grid needs or lower correlation with overall system production patterns. 4️⃣ Encouraging Technological Advancements: The potential for retaining extra gains in b-FCfD can incentivize generators to invest in and optimize technologies for greater profitability, fostering innovation. 5️⃣ Tailored CfD Designs: The flexibility in designing CfD mechanisms allows for tailoring them to specific regional contexts and energy markets, addressing unique challenges and opportunities. Overall, this paper emphasizes that while CfDs are crucial for supporting renewable energy deployment, their design requires careful consideration to balance market efficiency with risk mitigation. #CFD #Decarbonization #EnergyTransition #EnergyMarkets #Renewables #Risks #MarketEfficiency

𝗕𝗔𝗧𝗧𝗘𝗥𝗜𝗘𝗦 𝗧𝗢 𝗧𝗛𝗘 𝗥𝗘𝗦𝗖𝗨𝗘: 𝗧𝗔𝗖𝗞𝗟𝗜𝗡𝗚 𝗦𝗢𝗟𝗔𝗥’𝗦 𝗖𝗔𝗣𝗧𝗨𝗥𝗘 𝗣𝗥𝗜𝗖𝗘 𝗘𝗥𝗢𝗦𝗜𝗢𝗡 Europe added a record-breaking 60 GW of solar PV capacity last year, building on strong growth over the past few years. This remarkable progress is a clear win for the energy transition. But there’s a challenge: as renewable capacity grows and electricity demand stalls—or even declines—wholesale prices are being pushed down. The impact is especially visible during solar hours, where capture price erosion is reshaping the market. For example, in the Netherlands, negative electricity pricing occurred during 20% of daylight hours last July (2023). Similar trends are emerging across Europe, including key markets like Germany. The result? A more difficult landscape for standalone projects due to market saturation. The solution? Battery Energy Storage Systems (BESS) and hybridization. Here’s how BESS is transforming solar PV: 1️⃣ Stabilizing Revenues: Batteries store excess energy during low-price hours and dispatch it when prices peak, countering price volatility. 2️⃣ Future-Proofing Assets: With PPAs harder to price and merchant risks growing, integrating BESS ensures long-term profitability for solar projects. 3️⃣ Unlocking Flexibility: Batteries enable hybridization with wind and other renewables, maximizing output and creating diversified energy portfolios. Solar power is the cornerstone of Europe’s clean energy future. Batteries ensure it remains sustainable, resilient, and profitable. How do you see BESS shaping the next phase of solar growth? Let’s discuss in the comments! ⬇️

Maintenance: The Difference Between Growth and Decline Assets don’t just appreciate or depreciate—they are managed into growth or decline. Whether it’s real estate, machinery, solar power plants, or businesses, consistent maintenance is what determines long-term value. 🏗 Real Estate: A well-maintained building appreciates, while neglect leads to falling market value. 🚗 Vehicles & Equipment: Regular servicing extends lifespan; poor upkeep turns assets into liabilities. ☀️ Solar Power Plants: Without proper operations & maintenance (O&M), efficiency drops, output declines, and financial returns shrink. A well-maintained plant, however, delivers stable, long-term revenue. This is why I’m focusing all my efforts on developing the best O&M software for solar power plants. Ensuring optimal performance isn’t just about maintenance—it’s about maximizing asset value and ensuring long-term success. Ignoring maintenance isn’t just costly—it’s the difference between growth and loss.

How Solar Companies Are Doubling Appointments with One Simple SMS Strategy If you’re in the solar business, you’re probably paying £150 per lead on average. That’s £75,000 for 500 leads a month. --- Here’s the problem: If you’re converting 10% of leads to appointments, that’s only 50 appointments. And if only 3% convert to sales, you’re left with just 15 sales. Even at an £8,000 sale price, that’s £120,000 in revenue. It might sound okay—until you realize your cost per sale is £5,000. --- It’s not the leads—it’s how you’re managing them. ❌ Your sales team is dialing leads to death when most customers prefer the simplicity of a text message. ❌ Leads aren’t contacted fast enough, missing the critical window when they’re most likely to convert. ❌ Leads go cold, and valuable opportunities slip through the cracks. The solution isn’t more leads—it’s converting the ones you already have. --- Our AI Sales Android fixes this problem by doubling your appointments with SMS follow-ups—and pre-qualifying your leads before they even reach your team. 🤖 What It Does: ✅ Re-engages cold leads with personalized, timely messages. ✅ Pre-qualifies leads by asking key questions like their budget, timeline, or project size. ✅ Answers FAQs like “What’s the warranty?” or “How soon can I install?” ✅ Books appointments automatically—ensuring only the best leads reach your team. By the time your sales team gets the lead, they’re engaged, qualified, and ready to convert. --- Why SMS Works 📲 98% of texts get read (vs. 20-30% of emails). 📲 SMS feels personal and engaging—not spammy. 📲 Leads are more likely to act quickly when contacted via text. --- The Results With automated SMS follow-ups, most solar companies see: 📈 Double the appointments booked 📈 Lower cost per sale 📈 More revenue—without spending more on lead generation --- If you convert 30-35% of leads to appointments, that’s 150-175 appointments. And if 6-15% of those leads convert to sales, you’ll close 30-75 deals. At an £8,000 sale price, that’s £240,000 to £600,000 in revenue—all from the same £75,000 investment. Your cost per sale drops to as low as £1,000, and your revenue skyrockets. --- Ask Yourself This... ❓ How many leads are sitting in your database right now? ❓ What’s your current cost per appointment? ❓ How much revenue are you losing because of poor follow-ups and unqualified leads? If you’re ready to double your appointments, pre-qualify your leads, and turn wasted leads into revenue, let’s chat. ⬇️ DM me to book a demo today and see how our AI Android works for solar companies. ⬇️ #SolarLeads #SMSMarketing #AI #SalesAutomation #Leadgeneration