Configure-Price-Quote Optimization Strategies

Transcription

1 Configure-Price-Quote Optimization Strategies Summary Results December 2015

2 Program Overview Between September and December of 2015, Gatepoint Research invited selected sales and marketing executives to participate in a survey themed Configure-Price-Quote Optimization Strategies. Candidates were invited via and 100 executives have participated to date. Management levels represented are predominantly executive-level decision makers: 8% hold the title CxO, 34% are VPs, 55% are Directors, and 3% are Managers. Survey participants represent firms from a wide variety of industries including manufacturing (primary, general, and high tech), wholesale trade, business services, retail trade, telecom services, public administration, and consumer services. Responders work for firms with a wide range of revenue levels: 47% work in Fortune 1000 companies with revenues over $1.5 billion; 18% work in Mid-Market to Large firms whose revenues are between $500 million and $1.5 billion; 29% work in Small companies with less than $250 million in revenues. 100% of responders participated voluntarily; none were engaged using telemarketing. Summary Results December 2015

3 Observations and Conclusions When asked which aspects of the configure-price-quote process presented challenges, responders ranked managing manual activities (42%) above pricing agility (35%) and quote lead times (34%). Asked to rate various usability aspects of their current configure-price-quote systems, responders Superior rating percentages were low in every category. Responders current configure-price-quote systems: - Can usually perform common tasks like order/price changes (47%) and proposal generation (42%) - Rarely support mobile quoting. (13%) - Few can deploy configurator tools via tablets (23%) or smartphones (13%) More than half of responders systems provide their partners with tools allowing access to order status and guided product selection. Few systems provide real time product visualization (19%) or role-based configuration (15%). Asked to prioritize how they plan to improve their configure-price-quote process, responders reported focusing on accelerating quoting/order entry (47%) and eliminating spec/pricing errors (45%). 34% of responders think it is likely they will invest in in improving their configure-price-quote management process within the year. Summary Results December 2015

4 Are you experiencing challenges with any of the following aspects of your configure-price-quote process? 50% 45% 40% 43% 35% 30% 35% 34% 25% 20% 15% 23% 19% 19% 10% 5% 7% 0% Manual activities Competitive pricing agility Quote-to-order lead times Pricing Errors Order errors Duplication of effort Brand differentiation When asked which aspects of the configure-price-quote process presented challenges, responders cited managing manual activities (42%) above pricing agility Summary (35%) and Results quote lead December times (34%). 2015

5 How would you rate the following aspects of your current configure-price-quote process/system? Superior Adequate Unsatisfactory 80% 70% 60% 66% 67% 64% 50% 40% 47% 40% 30% 20% 20% 19% 13% 13% 12% 16% 17% 10% 0% Ease of implementation Ease of maintaining Integration with ERP/CRMIndustry-specific functionality Asked to rate aspects of their configure-price-quote system s usability, responders Superior rating Summary percentages Results were in December the low teens 2015 across the board.

6 Does your configure-price-quote process currently enable any of the following? Order/pricing change management 47% Automated proposal generation 42% Special request accommodation 42% Automated generation of bills of materials & routing instructions Quoting by channels 32% 31% Mobile quoting Automated generation of manufacturing drawings 13% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Responders configure-price-quote systems often include the ability to perform common tasks like order/price changes (47%) and proposal generation (42%), but surprisingly only Summary 13% support Results mobile December quoting. 2015

7 What tools do you currently provide sales/channel partners/distributors? 60% 50% 54% 52% 40% 30% 20% 10% 19% 15% 0% Access to order status Guided product selection Real time product visualization Role-based configuration More than half of responders provide their partners with tools allowing access to order status and guided product selection. Few provide real time product visualization Summary (19%) Results or role-based December configuration 2015 (15%).

8 How do you currently deploy your configurator tool(s)? 70% 60% 60% 50% 51% 40% 30% 20% 23% 10% 15% 0% Web Remote desktops Tablets Smartphones Currently, relatively few of those surveyed can deploy configurator tools via Summary tablets (23%) Results or smartphones December 2015 (13%).

9 What is your highest priority for improving the configure-price-quote process? Accelerate quoting, order entry process 47% Eliminate errors in specification/pricing 45% Reduce engineering support in sales/order process 24% Offer channel sales portal 24% Eliminate distribution of product/pricing updates 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Asked to prioritize how they plan to improve their configure-price-quote process, responders reported focusing on accelerating quoting/order entry (47%) and eliminating Summary Results spec/pricing December errors (45%). 2015

10 What vendor do you currently rely on for your configure-price-quote system? ExperLogix 1% ConfigureOne 1% Epicor 1% IBM/Sterling 3% Cincom 1% Everest Infor 7% Oracle BigMachines 15% Microsoft 25% Other 46% HP Hybris CPQ In house Infor JD Edwards Marvin NexTrend Oracle Configurator Oracle EBS Pythagoras Qad Salesforce Saleslogix Sap SyteLine Vendavo Responders report relying on a wide variety of vendors for Summary their configure-price-quote Results December systems. 2015

11 How likely is your organization to invest in improving the configure-price-quote management process over the next year? 50% 45% 47% 40% 35% 30% 25% 20% 15% 10% 5% 14% 20% 19% 0% Very likely Somewhat likely Not likely Not sure 34% of responders think it likely they will invest in in improving their configure-price-quote Summary Results management December process 2015 within the year.

12 Profile of Responders: Industry Sectors Public Consumer Services Administration 1% 2% Telecom Services 4% Mfg - Primary 4% Retail Trade 5% Mfg - General 32% Business Services 8% Wholesale Trade 17% Mfg - High Tech 27% 63% of responders work in primary, general or high tech manufacturing. Summary Results December 2015

13 Profile of Responders: Revenue <$250 million 29% >$1.5billion 47% $ million 6% $500 million - $1.5 billion 18% Almost half of responders (47%) work in Fortune 1000 Summary companies Results with revenues December over 2015 $1.5 billion.

14 Profile of Responders: Job Level CxO, 8% VP, 34% Director, 55% Manager, 3% 97% of responders hold executive positions in their companies. Summary Results December 2015

15 Infor, is a leading provider of business application software serving more than 73,000 customers. The company s image-driven, easy-touse configure-price-quote management solution provides one vision from quote to delivery while cutting cost and boosting profits. Summary Results December 2015