Differentiate.Simplify.Perform
1Copyright 2011, eLogic Group LLC, all rights reserved
eLogicGroup.com
The Power of ChoiceLeveraging Configuration Technology to Differentiate, Simplify, Perform
and Win
Michael ShieldsCEO, eLogic Group
Differentiate.Simplify.Perform
2Copyright 2011, eLogic Group LLC, all rights reserved
eLogicGroup.com
Learning Points
1. Understand the growing trends toward product differentiation; and the value of choice.
2. Grasp the key Demand Drivers and the “Next Practices” that support high performance differentiation
3. Learn how to leverage configuration technology for Innovation and Process Entrepreneurship – to WIN vs. competition.
Differentiate.Simplify.Perform
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“Let’s Paint Everything Blue”
Industrial Manufacturer, VP OperationsCirca 1992
(A War Story)
Learning Point 1 – Trends in Differentiation
Differentiate.Simplify.Perform
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Trends in Differentiation
Business Markets – The RIGHT Solution for YOU Every Time
“meet MY needs AND make it easy to do business with you”
Differentiate.Simplify.Perform
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WHY “Thin-Slicing” & “Long-Tail” Marketing?
“Listen to ME and respond… …so it’s easy (and even fun) to buy from you”
“We will celebrate your order tonight with liquid refreshments”
Trends in Differentiation
Differentiate.Simplify.Perform
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“Everything should be made as simple as
possible…
Albert Einstein
…but not more so”
Learning Point 2 – Demand Drivers/NEXT Practices
Differentiate.Simplify.Perform
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Mixed Mode Demand – The Model For Differentiation
• Four Distinct Types of Demand – dependent upon product differentiation AND commerce complexity • For EACH, Recognize Key: - Business Practices - Technology Enablers - Knowledge/Info Assets
• Identify the best fit for your products/markets and position for the NEXT PRACTICES to dominate the competition.
C
P
roce
ss C
ompl
exity
Highly Collaborative
Product Diferentiation
LOW
Highly Specialized
Differentiate.Simplify.Perform
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Mixed Mode Demand – Type 1Make to Standard (MTS)“Sell what you make”
• Fully Pre-Designed • Fixed Product/Service Content• Established Commerce Reqt’s• Pricing, Lead-time, T’s & C’s, etc.
NEXT PRACTICES GUIDELINES:• Guided Selling• Role-Centered/Context Aware Content Delivery• “Lights-Out” Process Flow• Integrated Systems/Data (QTC)
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Differentiate.Simplify.Perform
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Mixed Mode Demand – Type 2
Assemble to Order (ATO)“Offer Pre-Designed Variability”
• All Components Pre-Designed• 100% Configuration Rules Defined• Flexible Commerce per Demand• Pricing, Lead-time, T’s & C’s
NEXT PRACTICES GUIDELINES:• Guided Selling • Sales Configuration – 100%• Order Configuration – 100%• Dynamic Documentation• Role-Centered/Context Aware Content Delivery• Lights-Out Process Flow• Integrated Systems/Data (QTC)
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Differentiate.Simplify.Perform
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Mixed Mode Demand – Type 3
Design to Order (DTO)“Adapt What you Make to Meet Special Demand(s)”
• Base Design PLUS• Special Features per demand:
• Configurable/Automated (and/or)• Engineered
• Flexible Commerce Requirements• Dynamic Work-Flow & Doc. Needs
NEXT PRACTICES GUIDELINES:• Guided Selling• Role-Centered/Context Aware• Sales Configuration: Mid - 100 %• Order Configuration: Mid - 100 %• Dynamic Customer Dwg’s/Docs• Dynamic Work-Flow/Resources• Integrated Systems/Data (QTC)
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Differentiate.Simplify.Perform
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Mixed Mode Demand – Type 4
Engineer to Order (ETO)“Make What You Sell”
• Customer-Driven Solution Design• Engineering Value Add (QTC)• Collaborative Commerce Process• Pricing, Lead-time, T’s & C’s
• Long/Complex Commercial Cycle• High Quote/Order Change Rate
NEXT PRACTICES GUIDELINES:• Guided Selling• Role-Centered/Context Aware• Sales Configuration: Lo/Hi%• Order Configuration: Lo/Hi %• Complex Proposal/Version Ctl.• Project & Contract Management• Dynamic Customer Dwg’s/Docs• Dynamic Work-Flow/Resources• Integrated Systems/Data (QTC)
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Differentiate.Simplify.Perform
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eLogicGroup.com
“Just because it’s difficult for you doesn’t
make it valuable to me…
V.P. Procurement;Foster Wheeler
Learning Point 3 – Leveraging Technology to Win
Differentiate.Simplify.Perform
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Best & NEXT Practices
Considering NEXT Practices for your Order Mix:
– Standard Products – Configured Products – Engineered Products
Where and How to Apply Configuration Technology for highest leverage – and where NOT to go.
Differentiate.Simplify.Perform
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Best & NEXT Practices – Configuration Technology Four KEY Types – each with capabilities/limitations 1. Guided Selling – Constraint-based knowledge
deployment… ‘smart selling engines’. Feedback driven and dynamic presentation of best choices.
2. Sales Configuration – Fully captures & defines all technical and commercial constraints to ensure a clean quote & order for complete execution.
3. Order Configuration – Translates customer demand (quote-level) into clean, clear fulfillment plan (order, BOM, routing, special handling, etc.)
4. Engineering Configuration – Automation of variable design elements and docs (smart/parametric models).
Differentiate.Simplify.Perform
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Best & NEXT Practices – Where to Apply: 1. Guided Selling 2. Sales Configuration 3. Order Configuration 4. Engineering Config.
Inquiry to Quote Process – Create DemandChannel
Management
• Portal• Leads• Opportunities
Guided Selling
• Search• Size• Select
Quotation
• Configure• Price• Quote• Review
Proposal
• Generate• Maintain
Quote Management
• Closeout• Reports• Analytics
Order Capture
• Conversion• Review• Reconciliation
Order Entry
• Commercial• Technical• Order Design• Cost
Supporting Materials
• Documents• Drawings• Schedule
Customer Service
• Manage Order
• Changes• Status
Order Lifecycle
• Closeout• Reports• Service• Warranty
Order to Shipment Process – Satisfy Demand
Find the “RIGHT” Product
Fit
1.
Order it “RIGHT”
QTC
3.
Quote the Product“RIGHT”
2.
Design it“RIGHT”
4.
Differentiate.Simplify.Perform
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Return on Investment Is it worth it? Where are the benefits?
Selling Effectiveness – Higher Revenues (win more often)
Price Management – Higher Margins from Same Mix
Productivity – Lower Overhead/Admin Costs
Cycle Time Improvement – Higher Yield from Same Ops
Quality – Lower Error Rates/Higher Gross Margin
Differentiate.Simplify.Perform
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eLogicGroup.com
“We used to shovel manure into hay
wagons…… But now we shovel it into limousines”
(Unattributed Source)After a major ERP implementation that did not enable needed
capabilities
Best & NEXT Practices – What NOT to Do…
Differentiate.Simplify.Perform
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Key Learnings - Recap
Trends in Differentiation – Thin-Slicing & ‘Long-Tail’ Marketing
Types of Demand and their impact on technology application
Configuration Technology as a Game-Changer
Understand the Journey to NEXT Practices (vs. Best Practices)
Differentiate.Simplify.Perform
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DIFFERENTIATEor
DIE
Key Learnings - Recap
& WIN!!
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