CPQ as a Strategic Enabler

Transcription

1 CPQ as a Strategic Enabler Helping Create a Sustainable Market Advantage and Provide Better Customer Experiences Presented by Deloitte Digital April 1, 2015 This presentation should not be interpreted as a representation about or endorsement of any third party products, including Oracle software.

2 Introductions Rick Westra Principal Deloitte Digital Rubin Mohan Principal Deloitte Consulting LLP Carmine Cutone Practice Leader Deloitte Digital Srini Varanasi Director Deloitte Consulting LLP Randy West Senior Manager Deloitte Digital Chirag Jariwala Manager Deloitte Consulting LLP

3 Our story.

4 Bring us your challenges, we ll reimagine your future. Deloitte Digital is creating a new model for a new age we re an agency and a consultancy. We combine leading digital and creative capabilities with the deep industry knowledge and experience Deloitte is known for. That means clients can bring us their biggest challenges, knowing we have what it takes to bring a new business vision to life.

5 We re transforming today s digital journey. Execute Campaigns Scale Direct Marketing Innovate Via Digital Enable Customer Engagement Understand & Predict Customers Elevate Brand & Drive Growth Transform Organization & Process Channel Execution Technology Advisory

6 Customers are engaging, everywhere, all the time Path to Purchase Research Shop Buy / Order Pickup / Deliver Service Web Search Buy / Order online Follow-on purchase Chat Mobile Receive offer Check delivery status Tablet Browse reviews Write review Social Check with friends Like / tweet Store Inspect product Pickup / Delivery Phone Call for accessory information Product related call There is no more B2C or B2B it s B2E: Business to Everyone

7 CPQ as a Sales Enabler

8 Analysts view CPQ as mission critical Source: Gartner Gartner - Balance Customer Experience With Sales productivity in Sales Automation Initiatives

9 Customer engagement with Lead-to-Cash Customer Engagement LEAD-TO-ORDER ORCHESTRATION ORDER-TO-CASH Multi-Channel Lead Management Configure, Price, Quote (CPQ) Order Capture Manage and Service Order Through any channel at any time multiple types of stakeholders can engage in a consistent brand experience by selecting the right product or service with the correct quantity and configuration that meets the acceptable levels of quality for the stakeholder's entitled pricing policy Orchestrate Order Enterprise Order Dashboard Data Transformation Distributed Inventory Forrester s perfect order definition Supplied from the agreed upon sources delivered to or installed with the right customer within an agreed upon period of time to the correct locations Logistics Finance Manufacturing The most appropriate packaging that includes the right documentation over the right frequency with an accurate invoice that can be collected and efficiently settled or returned via any channel for warranty claims against defects or scheduled for repair onsite based on agreed upon service contracts CPQ is a core enabler for L2C and helps create strategies that can enable revenue and margin growth and a consistent customer experience across channels

10 What constitutes a good CPQ solution? No-touch order; enable customers and extended sales channels to configure products E-Commerce Deliver intuitive search capability to browse the salesforce.com product portfolio Advanced Search Electronic catalog to find products and services E-Catalog Configureto-Quote Dynamically offer products that are configured to specification Price Ability to calculate and validate price based on business rules and/or pricing logic Available anytime, anywhere without software footprint. Cloud Based Discount Ability to structure deals and manage approvals Provide usable configuration capabilities available on Mobile handheld devices Access Scalability Ability for tool to scale in terms of business model, sales channel and users Contract Management Generate contracts containing configuration and pricing information to bill and recognize Integration with ERP Interact and share data bidirectionally with other critical applications. Has routing logic to fulfill order and provision services on Cloud platforms Quote Ability to generate output Creation documents

11 Lead-to-Order KPIs Profitability Reducing delays Compressing sales cycle Workflow speed Lead-to-Quote time Quote turnaround time Quote labor Errors per proposal Re-work time Automated orders Lead Opportunity Quote Order/ Fulfilment Select Configure Price Discount Approve Output Convert Product Mix Approved configurations Up-sell/Cross-sell presentation Pricing accuracy Increased Margins Dynamic pricing Ease of building price Pricing optimization Approved discounts Speed of approval Number of approvals Speed of escalation Clean and correct orders Average order value Win ratio Increase in Effectiveness Reduction in Time & Cost

12 A streamlined CPQ function MARGIN Impact Improvement Contribution Revenue Generation Profitability Cost Avoidance Increased Shareholder Value $$$ Improved quoting accuracy up by 90% Sale closure rate increases by 30% average 33% avg. increase in crosssells Increase in customer face time 25-50% Streamlined Special Pricing yield 100%+ improvement in margin Sales productivity up by 25% 30 60% reduction in cost per lead 65% reduction in Order Cycle Times 2x Avg. increase in inventory turns 60% reduction in Days Sales Outstanding 30% reduction in Accounts Receivables Source: Fortune Jan 27, 2014

13 Thank you. Rick Westra Deloitte Digital TBD Deloitte Digital

14 As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2014 Deloitte Development LLC. All rights reserved.