00 - Pricing Management - Overview (FINAL)

8/3/2019 00 - Pricing Management - Overview (FINAL)

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Siebel 7.8 DeltaTechnical Training

Customer Order ManagementPricing Management

Module 00:Siebel 7.8 Pricing

Management Overview

SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.

Module Objectives

After completing this module you will be able to:

Describe key capabilities and enhancements in the Siebel

7.8 Pricing Management Solution Map

List Siebel 7.8 Pricing Management course sequence


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Siebel Customer Order Management

Product & CatalogProduct & Catalog

ManagementManagement

ProductSelection

ProductConfiguration

DefineOfferings

DeployCatalogs

Order Lifecycle ManagementOrder Lifecycle Management

Quotes

OrdersCustomer Assets

Contracts

PricingPricing

ManagementManagement

PriceAdministration

PricePlanning

PriceExecution

PriceEnforcement

Customer InformationCustomer Information

Account Opportunity Contact

Mobile

Call Center

Web

Partners

Retail POS

ExcelSpreadsheets

AccessDatabases

BillingSystems

ManufacturingSystems

ExternalApplications

Legacy


Pricing Management Solution Map

Price AdministrationProcess-driven PricingPrice Lists / Volume Discounts/CostListsAttribute AdjustmentsDiscount MatrixAccount & Product Hierarchy

Discounts

Price Planning

Price Analytics DashboardPrice Waterfall Analysis

Price Enforcement

Discount NegotiationAction Based PricingContract ComplianceDiscount ApprovalsCentralized Validation Rules

Price Execution

Sales BOM / Configurable ProductPricingPromotion PricingPrice Waterfall


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New -Configurable Pricing Policy Admin.(a.k.a Pricing Procedure)

Ability to implement an agile pricing policy to respond to

changing market and customer dynamics

Example of a

typical pricingprocedure

Higher profits from personalizedprices across all channels

Reduced time and cost of changesto pricing policies

Higher customer satisfaction due toaccurate and consistent pricing

Difficult to change pricinglogic in response to the

market conditions

Poor coordination of pricingacross channels

Pricing cannot bepersonalized for

customers/partners/channel

Configurable pricing process

Graphical interface-drivenpricing process definition.

Reusable pricingsub-procedures

Why Features Benefits


Enhanced Price List Administration

Enhanced price list transformation

Introduction of line-level effectivity dates

Pricing logic to reduce the time to market for new products


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New Attribute Adjustments Administration

Provides the ability to setup pricing rules based on product or

contextual attributes such as product color, account type, andso on in a table-driven UI interface Multi-purpose attribute adjustments

Multiple comparison operators against an attribute

Multiple sources of attribute domain

Non-enumerated attribute values


New Discount Matrix Administration

An administrative framework that allows customers toestablish and manage prices and discounts for products inconjunction with other customer and market factors

Tabular price adjustment definition.

Price adjustments at different levels of hierarchy.

Support for custom/legacy sources of data.


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New- Account and Product HierarchyDiscount Administration

Ability to negotiate or establish discounts at different levels of the customeraccount hierarchy

For example, a company that sells laptops offers the following discounts to the XYZ

Corporation Account Hierarchy:

Or, the same company could offer discounts at different levels of theproduct hierarchy:

$2500Price OverrideLaptopXYZ Chile

$100Discount AmountLaptopXYZ South America

5%Discount %LaptopXYZ Corporate

Adjustment ValueAdjustment TypeProductAccount

3%Discount %Laptops

$50Discount AmountPersonal Computing

5%Discount %Computer SystemsAdjustment ValueAdjustment TypeProduct Class


Customizable Product - BOM Pricing

Reduce time to market for

configurable products /

Sales BOM

Increase revenues through

the ability to create a wider

range of product offerings

Pricing Sales BOM

/configurable products is

very time-consuming

Unable to execute Sales

BOM-specific pricing

Component-based pricing

Sales BOM-specific prices

Relationship-based priceadjustments

Sales BOM-level pricing logic

Why

Features

Benefits

Price if orderedStandalone

Price in aSales BOM


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New Promotional Discount Administration

Product promotion allows users to define adjustments whichare applied when the promotion is applied to line item

The adjustment can be a default adjustment which is applied toany selected product, or it may be specified for a particularproduct, for all products in a class, or for a product line


New Price Waterfall

Siebel Pricing Management delivers a price waterfall thatprovides an insight into derivation of the final net price basedon the different types of applied adjustments and theirrespective sequence

Sales representatives can consistently and accurately communicate the

applied discounts to the customers.

Drilling down on net price

shows pricing waterfall


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Set target by selecting product line, single or multiple lineitems, or the entire document

Specify discount three different ways:New Target (e.g. Will give these to you for $100)

Discount Amount (e.g. Will take $10 off these items)Discount Percentage (e.g. Will take 15% off these items)

Highly usable, flexibleand fast capability forapplying manualdiscounts whileenforcing pricingpolicies

To address complexrequirements for applying

discounts.

Price Negotiations with AutomatedSpreading of Discounts

WhyFeatures

Benefits


New Action Based Pricing

No ChargeUpdate the service with roamingcapabilities

Modify$39.99 plan

$30 Change ofAddress fee

Move the DSL line to a newaddress

MoveDSL

$15 Suspension FeeSuspend the Cable Service for acertain period of time

SuspendHBO PrimePackage

$200 Disconnect FeeCancel Wireless ServicePrematurely

Disconnect$59.99 plan

Price ImpactDescriptionAction CodeProduct

Reduce revenue leakage by

better enforcement andtracking of customer

contracts/commitments

Increase revenues from

installed base through charges

for different services

Loss of revenue due to

early customerterminations/cancellations

Poor customer satisfaction by

charging customers for services

they already paid for

Ability to price transactions basedon Order Type or Action Code of

the line items

Ability to define the action codesthat will be used to roll up the

prices

Why Features

Benefits


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Enhanced Contract Pricing Enforcement

Increase revenue by

enforcing penalties

Decrease costs by reducing

potential litigation

Lack of ability to track

contract violations results in

revenue leakage

Litigation resulting from poor

contract compliance

Track contract terms and

conditions

Flexible penalty calculation

and enforcement

Contract renewal

Why

Features

Benefits

Contract Compliance

Accept Reject

By attempting to delete the following items:-Wireless 1000 Plan

-Wireles Web

You are violating the 1-Year Contract which began on

Janunary 1, 2004 and ends on Dec. 31, 2004

Keep yourKeep your

customerscustomers

Reduce revenueReduce revenue

leakageleakage

CustomerCustomer

Contract ManagementContract Management

CustomerCustomerServiceService

Terms &

Conditions

ContractContractComplianceCompliance

Confirm

Penalty

Orders


Consistent Pricing ThroughApprovals Routing

Route any transactional object(Agreements, ServiceRequests, etc.)

Route in sequence or parallel

Monitor approval status

Why

Features

Benefits

Revenue leakage due torogue pricing/discounting

Inconsistent discountingpolicies across the salesorganization

Reduce revenue leakage dueto rogue pricing

Reduce the Agreementnegotiation cycle time.

Use Scenario: Order needs Approvals before submission

Approval Verification

Accept Reject

Cannot submit order without approvals. Discount levelsrequire Manager's approval.


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Reduce Errors and Order Rework ThroughReal-time Validation

Centralized administration ofvalidation rules

Declarative validation ruledefinition

Custom validation errormessages

Why

Features

Benefits

Quote-to-Cash cycle isvery long because ofQuote/Order errors

Reduce Quote/Order errorrates

Reduce Quote-to-Cashcycle time

Use Scenario: Discount levels exceed the allowed levels.

Order Validation

Accept Reject

There is no Price List associated with this Order


Pricing Analytics Dashboard to DetermineImpact of Price Changes

Margin analysis

Revenue distribution

Price Elasticity

Why

Features

Benefits

Cannot determine the rightprice

Unable to quantify therevenue, profit, marketshare impact of a pricechange

Set Prices to optimizeon businessobjectives: revenue,profit, or market share


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Summary

This module showed you how to:

Describe key capabilities and enhancements in the Siebel

7.8 Pricing Management Solution Map

List Siebel 7.8 Pricing Management course sequence

00 - Pricing Management - Overview (FINAL)

Documents

Transcript of 00 - Pricing Management - Overview (FINAL)