Configure-Price-Quote (CPQ) Software Solutions
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Transcript of Configure-Price-Quote (CPQ) Software Solutions
www.simon-kucher.com
Introducing CPQ software in your organization
Configure-Price-Quote software solutions
Amsterdam office
Barbara Strozzilaan 3801083 HN AmsterdamThe NetherlandsTel. +31 20 7531 [email protected]
CPQ_Slideshare_Simon-Kucher & Partners
Source: Simon-Kucher & Partners
What can CPQ do for you?
… enables corporate harmonization
through
� Process alignment
� Transparency
� User friendliness
… improves process effectiveness
through:
� Customer needs
identification
� Product(s) selection
(guided selling)
� Up- and cross-selling
� Production planning &
forecasting
… increases process efficiency
through:
� Commercial risk mitigation
� Reduces time-to-market
� Reduces errors
� Better pricing governance
A ‘Configure-Price-Quote’
Software …
2
Source: Simon-Kucher & Partners
8 reasons to consider a CPQ software solution
Increasing competitive
pressure
Too little time for selling activities
Unnecessary long sales
cycles
Complex product offering
Mismatching customer
needs
Isolated CPQ*
processes
Multiple systems/tools used in CPQ
process
Manual transfers of
error-sensitive information
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3
2
4 5
6
7
8CPQ“Integrated software solutions to support
companies commercial processes and performance”
CPQ_Slideshare_Simon-Kucher & Partners 3
Source: Simon-Kucher & Partners
Steps for introducing CPQ software in your organization
Understand if CPQ software fits into
your strategy
Strategy definition including evaluation of company needs
Quantify potential return on investment
Make a business case including qualitative and quantitative criteria
Prepare for implementation
Ensure strategy is optimized for the solution and set up a detailed roadmap with deadlines, roles and responsibilities
Implement and integrate
Be pragmatic and follow a phased implementation and integration approach to ensure benefits are realized from early on
Step 1
Step 2
Step 3
Step 4
Step 5
CPQ_Slideshare_Simon-Kucher & Partners
Detail software requirements and vendor selection
Define technical requirements and preferences to short-list vendors
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Source: Simon-Kucher & Partners; Demand Metric
Generic overview of different CPQ software solution package options
Basic Standard Advanced Complete
Co
nfi
gu
re
Product configurator
Product design, modelling & catalogues
3D visualization tools
ROI/TOC calculators
Product design, modelling & catalogues
CAD, CAM & PLM integration
Pri
ce
Pricing engine
Business rules & constraints
Guided selling
Value-based pricing & modelling
Benefit estimators
Qu
ote
Quoting system
Proposal management
Contract & order management
Order-to-cash functionality
En
ab
lers
Cloud-based application
CRM, SAP and/or ERP integration
Channel management
Workflow approvals & authorizations
eSignature compatibility
Sales analytics
CPQ_Slideshare_Simon-Kucher & Partners
Once desired functionality and system architecture is clear a shortlist of vendors can be drafted and contacted for proof-of-concept evaluation
5
Source: Simon-Kucher & Partners
Critical elements for successful CPQ integration
1. Know how first: Understand, market, business, product and customer requirements first, before you start
2. Strategy: Develop/have a clear business strategy which is compatible with a CPQ software solution is an essential departure point
3. Business case: Combine internal opportunity & transaction data with external market data and expert inputs to facilitate fact-based decision making
4. Change management: Changing mind-sets and the way-of-working requires a change process which starts with creating urgency, being heard and giving training
5. Anchoring: Any CPQ will play a central role within the organization and will require careful anchoring with top management to ensure successful roll-out
6. User first: Incorporate test users who will work with the CPQ to ensure applicability and relevance prior to full development and implementation
7. Interfaces: Ensure data input and output requirements from other systems is considered continuously throughout the development of the CPQ logic
8. Functionality: A smart working 70% solution is in many cases better than a sophisticated but hard working 110% vision
9. Planned roll-out: Pilot roll-out CPQ tool to provide adequate time for training, adjustments and fine-tuning prior to full go-live
10.Book early success: Phased implementation ensures early returns, creates buy-in and motivates the organization to keep on investing in the full-scale implementation
CPQ_Slideshare_Simon-Kucher & Partners 6
Source: Simon-Kucher & Partners
Simon-Kucher & Partners at a glance
Strategy> 400
Sales> 500
Marketing> 500
Pricing> 1,000
� Commercial excellence
� Growth and competitive strategies
� Product portfolio (re-)design
� Pricing excellence
� Customer relationship and customer value management
� Sales strategies and sales channel optimization
Global presence
1 Simon-Kucher& Partners
2 Boston Consulting Group
3 McKinsey & Company
manager magazin
Marketing and sales
Simon-Kucher& Partners
Boston Consulting Group
McKinsey & Company
brand eins Thema
Marketing and pricing
Simon-Kucher& Partners
Boston Consulting Group
McKinsey & Company
Sales and CRM
......
Source: manager magazin survey of top managers in Germany, August 2007 and 2011/IMB
Source: brand eins Thema/Statista survey of 1,426 partners and project leaders from consulting firms and 1,300 C-level managers from German companies, May 2014
Best consultancy in marketing and sales
>2,000 projects in the last 3 years
AmsterdamBarcelona
BonnBrusselsCologne
CopenhagenFrankfurtIstanbulLondon
Luxembourg
Madrid MilanMunichParisWarsawViennaZurich
TorontoBoston
New YorkSan Francisco
São Paulo
Santiago
Dubai
Beijing
Tokyo
Singapore
Sydney
Atlanta
World leader in giving
advice to companies on how
to price their products
Pricing strategy
specialists
The world’s leading
pricing consultancy
In pricing you offer
something nobody else does
BusinessWeek The Economist
Professor Peter DruckerThe Wall Street Journal
World leader in pricing
CPQ_Slideshare_Simon-Kucher & Partners
TopLinePower®
7
Source: Simon-Kucher & Partners
Contact details
CPQ_Slideshare_Simon-Kucher & Partners
Pieter [email protected]
Hayri CulumSenior [email protected]
Mar Muñoz [email protected]
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www.simon-kucher.com
Amsterdam office
Barbara Strozzilaan 3801083 HN AmsterdamThe NetherlandsTel. +31 20 75312 53
Amsterdam ◊ Atlanta ◊ Barcelona ◊ Beijing ◊ Bonn ◊ Boston ◊ Brussels ◊ Cologne ◊ Copenhagen ◊ Dubai
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