harald reitz, sap, cpq best practices: how to configure, price, and quote in b2b e-commerce
TRANSCRIPT
CPQ Best Practices: How To Configure, Price,
and Quote in B2B E-Commerce
Harald Reitz, Solution Owner, SAP Configure, Price, and Quote (SAP CPQ)
November 2014
© 2013 SAP AG. All rights reserved. 2
Agenda
How Product Complexity Drives Profit and Growth for B2B Manufacturers
Best Practices – CPQ in B2B E-Commerce
Demo – SAP CPQ on hybris 5.3
© 2013 SAP AG. All rights reserved. 3
of the Fortune 500 companies
have dropped from the index
since between 1955 and 201187%
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Product Complexity drives Profit and
Growth for Companies and Economies
Source: “Product Complexity and Economic Development”, Levy Economics Institute, 2010
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Product Complexity
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Configure, Price, and Quote in B2B E-Commerce
Key Elements
Product configuration – options, rules
Guided selling, cross-/up-selling – guide
user to product that fulfils his needs
Solution configuration – configure solution
bundles bottom-up: HW, SW, services,
service contracts, pay-per-use, financials
Assemble-to-order, configure-to-order,
engineer-to-order with easy transition
Configure
Interactive pricing during configuration
Quote management - costing, pricing,
availability, approvals and workflow
Quote proposal document generation
Quote-to-order
Sales configuration analytics
Price, Quote and Order
External channels B2B E-Commerce –
customer portals, dealer/distributor portals
Internal channels – sales front office,
interaction center, sales back office
End customer to distributor to sales front
office to sales back office
Channels
On premise
Hosted
Cloud
Mobile
Deployment
© 2013 SAP AG. All rights reserved. 7
Configure, Price, and Quote in B2B E-Commerce
Business Value and ROI
Additional sales channels: Portal
for customers, channel partners
More quotes in less time from
internal sales, without support
from engineering
Faster, more accurate quotes –
better win rate
Uplift on
Revenue
Move from lower margin standard products
to higher margin configurable products
Become a solution provider – high margin
solution bundles with products, services,
service contracts, pay-per-use models
Improved Margin –
Product Mix
Higher share of self-service by
customers, channel partners
More efficient quote processing
Less support from engineering
to offer complex products
Reduced Sales
Costs
© 2013 SAP AG. All rights reserved. 8
Configure, Price, and Quote in B2B E-Commerce
Ease-of-Use is a Key Success Factor
Easy navigation through configuration,
visual – static, dynamic pics, 2D/3D
Easy-to-use, visual CPQ
will strongly drive acceptance with
end customers, distributors, and also
sales front office
CPQ on mobile devices
Sales and marketing prefer to use the same
tools to enrich data and user experience for
the product catalog and for configurations
Easy-to adapt CPQ data, experience
Configuration
Model from
Backend
Data Enrichment
by Sales &
Marketing
Model
used in
CPQ
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Configure, Price, and Quote in B2B E-Commerce Key Capabilities to successfully enable Self-Service for Customers & Distributors
Key to enable self service B2B E-
Commerce for customers, distributors
Interactive Pricing for
Options, Products
Guide user to the right products, suggest cross
& up-sell items, predictive recommendations for
the entered configuration
Guided Selling, Cross & Up-Selling,
Predictive Recommendations
Brochure-like quote documents,
easy-to-enhance through sales,
based on different templates
Professional Proposal
Document Generation
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Enable End-to-End Processes to make CPQ Successful
Customer self service to configure your
products, create orders or request quotes
Tools to pick up abandoned carts and
configurations – create leads, follow-up by
distributor or internal sales rep
Enable distributors to quote and sell your
configurable products to the end customer
Trigger internal CPQ process through
customer or distributor, if required
Easy process from sales front office to back
office, if required – costing, pricing, ETO
special requests, availability
Quote-to-order submitting valid configuration
to trigger shop floor immediately
End Customer to Distributor to
Sales Front Office to Back Office
One consistent approach to model configurable
products – manufacturing model, sales model,
guided selling/sizing model, solution model
Consider integration costs and ongoing
maintenance, and order incompatibility, when
using multiple tools and vendors for modeling
Leverage existing configuration models for
customers, distributors and internal sales
Enable sales and marketing to influence certain
aspects of the model, without breaking model
integrity, to avoid order grief
Model Once,
Configure Anywhere
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System Architecture – Solution for Sales and CPQ
CPQ runs tightly integrated on the E-
Commerce platform, independent from
backend, responsive user experience
CPQ pre-integrated with E-Commerce, SFA,
order management, analytics by one vendor
One toolset, approach and technology to
enrich and tailor E-commerce catalog and
experience, and CPQ data and experience
Pre-Integrated Solution
Overall process consists of various
functional products by different vendors
Integration through customer project with
various parties involved
Different technologies and tools to tailor
E-Commerce catalog and experience,
and CPQ data and experience
Various Functional Products
E-
Commerce
CPQ Order
Mgmt
Analytics
Catalog
SFA
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Demo: SAP CPQ with hybris 5.3
+ Proof-of-Concept Demos
POC: CPQ with SAP Cloud for
Customer for Internal Sales Reps
POC: Proposal Generation – SAP
Document Presentment by OpenText
POC: Visual Configuration,
Visual Service Parts Selling
CPQ in hybris B2B Commerce Configuration Analytics with HANA
POC: CPQ on
Smartphones
Details at hybris &
OpenText Demo Booth
Thank You!
Contact information:
Harald Reitz
Solution Manager – SAP for Industrial Machinery & Components
95 Morton Street, New York, NY 10014, USA
+1-215-253-7973