Selling chain management

Business ProcessUnit VChapter 7

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Selling-Chain Management Transforming Customer Contact into Revenue

G Roy Antony ArnoldLecturer

Panimalar Engineering CollegeChennai, Tamilnadu, India

First generation e-commerce sites failed to deliver on customer-interactive promise of Web

Islands of disjointed information providing little or no buying Failed to gather more complete customer profile info beyond basic

demographics and buying pattern data

Main achievement till date: online delivery of targeted product and service content

by using niche apps or by building customized apps on top of the static sites

Resulting technological environments: complex, loosely integrated sales systems

Difficult to maintain, customize and extend Online sales channel isolated from rest of enterprise

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Introduction

G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India

To support real-time, one-to-one, or self-service sales, companies must decide which new business practices to implement

Companies must also determine what new apps are needed to support the Sales Process

The business challenge: Improving the link from marketing to sales

Activity management Opportunity management Orders and contracts Campaign management

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Introduction


SeCM an app framework that helps sell better and more effectively across all channels

establishes linkages between previously disconnected sales functions within a company and sales processes

Can enable new revenue channels while simultaneously improving effectiveness of a company’s existing channels

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Basics of SeCM


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Basics of SeCM

CorporationWith

MultipleSales

Channels

Customer

Distributor

Self Service

OEM Reseller

Sales Force

Selling Chain


Complete order life cycle

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Defining SeCM

Cross-Functional Processes Breaking Down Departmental Walls

Inquiry/Prospect

Customize

Integrated Selling Chain Application

{Order

Sales Lead Configurator ContractPricing

Complete Integrated Solutions

Partial Functional Solutions

Customer Lifecycle

Commit

OrderEntry

ProductCatalog

Available toPromise

Proposal & Quote

Commission


Goals of Selling Chain Management business strategy Engage your prospects, and turn them into customers Make ordering process easy for the customer Add value for the customer Make it easy to order customized products Increase sales force effectiveness Coordinate team selling

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Defining SeCM


The rise of the self-service order The excessive cost of presales technical support The increasing cost of order errors The proliferation of channels The increasing complexity of products

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Business Forces Driving SeCM


The selling-chain application continuum Problems with existing SFA

First Generation SFA tools allowed contact management and lead management

Examples include ACT, Goldmine Limited process -- order taking and management --

functionality Limited sales effectiveness

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Technology Forces Driving SeCM


Order acquisition process more complex and difficult to manage

Need for customized products and services New distribution channels Multiple pricing options

Selling complex products requires dealing with two kinds of complexity

Product complexity Needs complexity

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Universal Business Problem: Managing the Order Acquisition Process


Order acquisition process needs assessment option selection order configuration order quote and proposal,

complete with drawings, schematics, and performance metrics

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Universal Business Problem: Managing the Order Acquisition Process

Understand Customer Needs

Prepare Order

Identify Potential Customer

Validate Needs with Customer

Develop Alternative Scenarios

Translate into Production Terms

Determine configuration, cost and price

Determine terms, availability and delivery

Present Bid/Proposal to Customer

Evaluate and Revise Bid


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Elements of Selling Chain Architecture

Lead, Proposal & Quote Generation

Commission & Contract Mgmt.

Order Entry & Mgmt.

Sales Configurator

Pricing

Prospect or

Customer

Fax

Email

Telephone

VRU

Web

Enterpris

e Archite

cture


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Cisco and SeCM

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Marketplace Today• Order Status• Pricing Information• Configuration Assistance• Order all Products

Targets• Customer Profile Agent• Custom Order Scheduling

“Old Way”

Information Center

Internetworking Product Center

Custom Fulfillment

Relationship Management


Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation successShoe industry’s greatest challenge

Provide value to customer in the form of quality, selection, and convenience at right price

Minimize inventory-holding costsCustom Foot aimed to solve these problems by implementing a SeCM solution

3-D scanner, kiosk, Trilogy sales configurator Customers could get custom shoes in 3 weeks Prices starting at less than $100

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Custom Foot: Transforming Shoe Sales with Technology


The hope was that the system would enable zero inventory or associated stocking costs

Goal: eliminate 30-50% of warehousing and distribution costs associated with retailing

Predicted as an overnight success by analysts and expertsBut the company went bankrupt

Encountered several issues in reengineering core process and implementing the new business model conflict between shoe size and shoe-fit calculations some people like shoes to fit snugly, others prefer looser fit many people’s right and left feet are different sizes

Problem with forecasting demand for various kinds of leather frequently missed the 3-week delivery guarantee

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Custom Foot: Transforming Shoe Sales with Technology


Selling chain management

Business

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