Case Study: My SAP Implementation at the Associated Press

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Case Study: My SAP Implementation at the Associated Press

Fernando FerreDirector of Finance & OperationsNewspaper & New Media MarketsThe Associated Press

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Company Overview

Founded in 1848, The Associated Press is

the oldest and largest news organization

in the world, serving as a source of

news, photos, graphics, audio and video

to the media market and corporations.

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About The AP

1,700 U.S. newspapers

5,000 U.S. radio/TV outlets

8,500 international media customers

500 new media and corporate customers

121 countries served by AP

Total 242 bureaus worldwide

3,700 employees worldwide

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SAP CRM Initiatives at AP

Live Sept. 2002 for AP Digital, new media

division of AP.

• Enhancements to AP Digital implementation in 2003

Project organized for Newspaper implementation

beginning of 2004.

• Go live November 2004

By then, CRM will support substantial revenue

base for AP.

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New Media Market (AP Digital) CRM Implementation

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Landscape Pre-CRMSystems:

• Excel – prospect, sales activity and contract management

• Filemaker – order processing, trials and customer

database

• SMART – service management and billing

• PA Billing – invoicing

Manual entry, redundant data between systems

No integration of systems

No standardized reporting from a central system

• No reporting flexibility for analysis

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CRM Objectives

Centralize account, contact, order, opportunity, and contract management

Support customer interaction cycle – from customer acquisition, order fulfillment to billing and support

Provide a single customer view

Deploy reporting tools for business analysis

Align systems with corporate direction

End Goal: Better customer and business management

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Software Selection Process

SAP HR implemented

SAP CRM had the required functionality

SAP provided a platform:

• phase in functionality as we were ready

• ride SAP’s product development curve

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SAP Production Versions

SAP R/3 Release 4.6C: Live with SAP HR

Master data, Org Data & Benefits, Payroll

CRM Release 3.0, Upgraded to 4.0

Business Warehouse 3.0B

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Business Process

Lead Generation, Opportunity and Customer Management

Third party (e.g. D&B)

Research Website Phone call

0%

25%

75 % or >

Qualified Lead

Lead generation

Lead Qualification Opportunity Mgmt

Marketing

Customer, Contract and

Service Management

Sales Sales

Customer Support Finance

Order Fulfillment Customer Maint. Billing

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Functionality Implemented

Campaign Management

Customer Interaction Center

Order Processing

Product Management

Opportunity Management

Service Contract Management

Business Warehouse

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Implementation Timeline

Total implementation time – 5 Months

Project Started on April 2002

Live on September 2002

Staffing

Internal : 3

External: 4

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Campaign Management

Two types of Campaigns

• E-mail and phone campaigns

Target Groups are created based on:

• CRM Master Data (Marketing Attributes, SIC

Codes, Est.Rev, # of employees, Address

information etc)

• Information from BW

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Call Lists in CIC

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Used to track customer interaction history

Used to create/modify all the transactions

e.g.:

• Activities, Opportunities, Service Contracts,

Business Partners, etc from a single screen.

Configuration Flexibility based on user

requirements

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Business Activities

Used for Order Processing

• Trial Order Notifications

• Service Order Notifications

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Activity Screen

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Activity Monitor

The Activity Monitor is

used to call up lists of

all the activities that

have been created in

the system,

according to various

criteria such as date

and completion

status

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Activity Monitor

The output can be sorted by any column

Layout can be customized for each user

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BW:Order Fulfillment Report

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Product Management

Product hierarchies Flexibility of reassigning product categories Product pricing

• Customer & Product• Product

Billing frequencies• Monthly • Quarterly • Yearly • One Time Fees

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Logs sales prospects, requested

products, sales prospect’s budget,

potential sales size , estimated sales

probability and expected closing date

Information is used in sales pipeline

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BW:- Sales Pipeline report

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BW: Lost Opportunities Report

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Service Contract Management

Represents relationships with customers.

Contains detailed information about contract

with customer:

• Contract Start Date, End Date, Renewal Date

• Terms, Services, Delivery methods

• Billing Frequency, Billing Plan for Services, Royalty Information

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BW Reports: Service Contracts

Contracts signed in the current year

Contracts terminated in the current year

Contracts renewed in the current year

Contract to be renewed for a given period

List of contracts based on sales reps, royalty

information, territories & other criteria

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Business Warehouse

Used for reporting & data analysis

Used for creating target groups for

campaign management based on complex

queries

Generate ad hoc reports for managerial

decisions

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CRM Billing

Billing through CRM application, which is

integrated with current non-SAP invoicing

and financial application

Contracts have billing documents

• Billing Due Lists

• Processing of incorrect billing due lists

• Cancellation of Billing Documents

• Credit Memos/Debit Memos

• Much work went into mid-period billing rate

changes

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CRM 4.0 Upgrade

Territory management

Alerts for contracts

Customer hierarchies

External list management

Workflow functionality

Web client – not yet implemented

Royalties and sales commissions – not yet

implemented

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Benefits of SAP CRM

“Orders don’t get lost”

Interaction History for future reference, with

ability to store customer, product, transaction

information

No Redundant data entry – resources redeployed

• Eliminated costs of - $130K

Standardized reporting from a Central System

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Benefits - CRM Data Sharing

Campaign Management


Trial Contracts

Service Contract

Billing

Marketing

Sales

Client Relations

Customer Support / Management / Entitlements

Billing

Enhanced coordination of the various functions

Better information about our customers and business

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Newspaper Market CRM Implementation

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CRM Objectives in Newspapers

Improve customers’ experience with the AP

Produce efficiencies in ordering and

fulfillment processes

Provide analytic tools to assess customer

relationships and behavior

Improve Sales

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Customer-facing AP Activities

Back-office Execution

•NNMM Customer Hierarchy

•NNMM Product Hierarchy

•Marketing Collateral

Market/ Advertise

Corporate Marketing

(external visit report application and sales

support site will be

available)

Promote/ Campaign

Account Specific

Marketing

•Contact Management

•Sales pipeline reporting

Sell

Sales Support

•Workflows to route trials and orders to actors and approvers

•Workflows to alert sales & support of pending trial and contract terminations

Entitle

Contract Mgmt

•PA Billing integration for APDigital

Provide

Order Fulfillment,

Billing

•NNMM view of customers

Up-sell/ Cross-sell

Customer Support

Capture Customer Interaction History

Robust business analytics and reporting

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Knight RidderInc.

Knight Ridder DigitalKnight Ridder Newspapers

Dailies

Non-Dailies

Other Subsidiaries

- Knight Ridder Washington Bureau- Knight Ridder/Tribune Information Services- Knight Ridder Shared Services

RealCitiesNetwork

InternetProperties ofKnight Ridder

SpecialInterest Sites

Career Builder Network

- CareerBuilder.com

Classified Ventures Network

- Cars.com- Apartments.com- Homescape.com

Customer Hierarchy

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CRM Functionality

Order processing

Opportunity management

CRM Pricing

Contract management

Workflow functionality

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Get Organized

Right team with clear accountability

Project management and tools

Communication and teamwork

Have a good grasp of the big picture, but

no detail is too small

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Lessons Learned

Set realistic expectations

Don’t underestimate data migration

Involve users from start – requirements,

testing, data migration, training

Phase in CRM – with sight on the future, new

modules, other business units (scalability)

If you encounter errors, check the SAP

notes, then create a OSS message