Fast Company: Accelerating Product-to- Market and Configure-to-Quote with CLM. Timothy Baynes, EVP Global Marketing and Product Strategy

Transcription

1 Fast Company: Accelerating Product-to- Market and Configure-to-Quote with CLM Timothy Baynes, EVP Global Marketing and Product Strategy

2 My Background Focused exclusively on product configuration since 1996 Over 150 product configurator / CPQ selections and implementations Gartner CPQ research director prior to joining Configit Industries: automotive, industrial, high-tech, medical devices, telecom, services Especially challenging projects: Cellular networks (e.g. Kuwait) Automated material handling systems as at FedEx Building HVAC and automation systems such as at One WTC Diesel engines High-performance media server solutions such as used by Disney Studios and Ferrari

3 A Brief History of Product Configuration Gen 0: (80 s) DEC XCON Gen 1: (90 s) Trilogy Gen 2: (1995+) Graphical modeling environments Client/server (mostly) Gen 3: (2005+) Modern CPQ: SaaS over Cloud Shift of modeling or rule authoring to an administration function What s changed? What hasn t changed?

4 Changes in the market from 1908 to now Mass customization Global markets Digital controls Systems Services User buying experience Customer satisfaction demands Multiple sales channels Multiples sourcing plants buildable combinations, 160+ markets Page 4

5 A complex product ASML -- EUVL (production extreme ultraviolet lithography system) Page 5

6 result is an N-dimensional matrix Page 6

7 Speed.

8 Speed of innovation matters. Page 8

9 Speed and Configuration Lifecycle Management Product Release New products Product updates Operations Sales Fulfillment Service

10 What is CLM? CLM wiki graphic here

11 CLM Software Products At a minimum CLM System should have: A core data structure for representing product configuration models A rule execution engine An API to extract views of configuration feature strings Helpful out-of-box applications: Authoring environment CPQ (Configure-price-quote) Integrations to master data sources: PLM (product) ERP (products, customers) CRM (customer, opportunity) Page 11

12 Configit CLM is a partial implementation of the CLM vision No one has yet fully implemented CLM across all business functions and common enterprise software systems. Most companies phase in CLM Typical starting points: Authoring, CPQ Priorities for Configit include: Cloud platform Install base Service contracts

13 Fully Realized CLM Authoring Sales CLM is --- Fully integrated Controls variants in all respects Maintained in one place Benefits --- Speed, Agility Lower costs Increased $$$ Better quality Better CX

14 CLM Sales: Configure-Price-Quote (CPQ) CPQ Requirements Product types Sales Channels Integrations User types Configuration modes Product items Rules Page 14

15 Complex products Page 15

16 The problem with selling Orders are like: Availability: Product Services Capacity Orders: Production Delivery Service Configuring the offer as important as the the product. It must be competitive, and sharpened in every possible way. Page 16

17 Feature strings are the configuration DNA in CLM Feature string = a configuration Page 17

18 Demanding CPQ requirements imply... Engineering & homologation rules Market rules Manufacturing rules Valid combinations CPQ for resellers CPQ for internal sales Package, shipping, svc rules Sales rules E-commerce portal Offline CPQ a powerful engine and an equally powerful rule authoring environment. Page 18

19 Product Development V-model Application Requirements Design Basis Development Physical Item Hierarchy Detailed Design / Processes Source code Material Spec Components Binary Code Raw Material Modules System Installed System Operations

20 CLM V-model System Objectives Requirements Service contract terms, as-used configuration Packaging, shipping, documentation Fulfillment ops Service Execution ops Model/feature taxonomy Master item data CPQ ops ERP / MES ops Orders Quotes mboms and routings Rule authoring Views Rules Config UI VT files Runtime execution Page 20

21 Enable, then Execute Configuration lifecycle management Operations ERP / MES ops Service Execution ops Fulfillment ops Opportunity Quote Deal Optimization Revenue Management Master item data Rules & views Development Typical CPQ Not just once, but over and over.

22 Some dirty secrets of CPQ 1. The systems often take longer to implement than expected. Project failures aren t uncommon. 2. Defining, designing, building, and testing the rules can actually be quite hard. Knowledge-based systems Multiple sources of knowledge: engineering, manufacturing, sales, feedback from field (installation, service, operation) 3. Maintaining the system can be just as difficult as building it in the first place. Most vendors (and CPQ implementers) do not have a process or system features for properly managing product change 4. Many vendors don t actually know what it means to be complex. (The no brainer rule ) (In fairness: there aren t really any standards like >5000 options or 5000 rules is medium complexity.) 5. High product complexity can be a show-stopper for the compiler and the runtime engine. 6. Many CPQ systems are not properly integrated with either PLM and/or ERP. Page 22

23 CLM Authoring We consider authoring to be the centerpiece of CLM, not an afterthought. So important to us, we have three different authoring products. Page 23

24 CLM Authoring Market applicability management Effectivity management Global feature dictionary for consistency across products and product families Integrated work pages supporting team authoring, model branch/merge, versioning Page 24

25 CLM Authoring at Jaguar Land Rover JLR FaCT Project: Enterprise-wide Perspective on Configuration FaCT: Feature and Configuration Toolset A single-source-of-truth with respect to configuration Authored by different user groups and consumed widely in the extended enterprise New vehicle platform setup: From 9 months to 3 weeks using Configit Ace!

26 Single source of truth whose? Small-scale Authoring Enterprise Authoring Engineering Marketing Repository Global Configuration Mgmt Manufacturing Fulfillment Service Large enterprises require a Doctor of CLM Page 26

27 CLM isn t only technology People Have the vision and skill to execute Process Implements the vision across the entire enterprise Technology Enables the process

28 Summary Complexity Increasingly demanding market and business landscape is driving increasingly complex products. Competition Demands speed to market, higher frequency of release and demands quote competitiveness (faster, sharper) Customer satisfaction, KPIs demand more accuracy. Speed CLM Authoring can drive ongoing speed to the market CLM Sales can drive speed in the market. CLM Jointly addresses product and offer complexity. Requires a powerful authoring environment and rule technology (engine), integrated across the enterprise. Page 28

29 Space Coast, Florida clmsummit.com $200 discount for IPE Symposium guests

30 Legal notes. This presentation is Copyright Configit A/S and may not be distributed without permission from Configit. This presentation is strictly confidential and only intended for those receiving it directly from Configit. Configit, the Configit logo, Virtual Tabulation, Configit Product Modeler, Configit Runtime, Configit Quote for SAP, Configit Ace, Configit Model and other Configit product names are trademarks or registered trademarks of Configit A/S. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies.