CPQ as a Strategic Enabler - Oracle | Integrated .CPQ as a Strategic Enabler ... Rick Westra Principal

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  • 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.

  • Introductions

    Srini VaranasiDirector

    Deloitte Consulting LLP

    Chirag JariwalaManager

    Deloitte Consulting LLP

    Rick WestraPrincipal

    Deloitte Digital

    Rubin MohanPrincipal

    Deloitte Consulting LLP

    Randy West

    Senior Manager

    Deloitte Digital

    Carmine CutonePractice Leader

    Deloitte Digital

  • Our story.

  • Bring us your challenges,

    well reimagine your future.

    Deloitte Digital is creating a new model for a new agewere 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.

  • Were transforming todays 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

  • ResearchPath to Purchase Shop Buy / Order Pickup / Deliver Service

    Buy / Order online

    Check delivery

    status

    Follow-on

    purchaseChat

    Write review

    Like / tweet

    Pickup / Delivery

    Product related

    call

    Receive email offer

    Browse reviews

    Check with friends

    Inspect product

    Call for accessory

    information

    SearchWeb

    Mobile

    Tablet

    Social

    Store

    Phone

    There is no more B2C or B2Bits B2E: Business to Everyone

    Customers are engaging, everywhere, all the

    time

  • CPQ as a Sales Enabler

  • Analysts view CPQ as mission critical

    Source: GartnerGartner - Balance Customer Experience With Sales productivity in Sales Automation Initiatives

  • Customer engagement with Lead-to-Cash

    Logistics Finance Manufacturing

    Lead Management Configure, Price, Quote (CPQ) Order Capture Manage and Service Order

    Orchestrate Order Enterprise Order Dashboard Data Transformation Distributed Inventory

    LEAD-TO-ORDER ORCHESTRATION ORDER-TO-CASH

    Mu

    lti-Ch

    an

    ne

    l

    Customer Engagement

    Forresters perfect order definition

    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

    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

    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

  • What constitutes a good CPQ solution?

    E-Catalog

    Price

    Cloud Based

    Contract

    Management

    Configure-

    to-Quote

    Quote

    Creation

    Integration with

    ERP

    Advanced

    Search

    E-Commerce

    Scalability

    Electronic catalog to find

    products and services

    Ability to calculate and validate

    price based on business rules

    and/or pricing logic

    Dynamically offer products that are

    configured to specification

    Ability to structure deals and

    manage approvals

    Interact and share data bi-

    directionally with other

    critical applications. Has

    routing logic to fulfill order

    and provision services on

    Cloud platforms

    Generate contracts

    containing configuration and

    pricing information to bill and

    recognize

    Ability for tool to scale in

    terms of business model,

    sales channel and users

    Provide usable configuration

    capabilities available on

    handheld devices

    Available anytime, anywhere

    without software footprint.

    No-touch order; enable customers

    and extended sales channels to

    configure products

    Deliver intuitive search capability to

    browse the salesforce.com product

    portfolio

    Ability to generate output

    documents

    Discount

    Mobile

    Access

  • Lead-to-Order KPIs

    Select Configure Price Discount Approve Output Convert

    Lead Opportunity Quote Order/ Fulfilment

    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

    Quote turnaround time

    Quote labor

    Errors per proposal

    Re-work time Lead-to-Quote time Automated orders

    Increase in Effectiveness Reduction in Time & Cost

    Profitability

    Compressing sales cycle

    Reducing delays

    Workflow speed

  • A streamlined CPQ function

    Improved quoting accuracy

    up by 90%

    Sale closure rate increases

    by 30% average

    33% avg. increase in cross-

    sells

    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

    Profitability Cost Avoidance

    Impact Improvement Contribution

    $$$MARGIN

    Increased Shareholder Value

    Revenue Generation

    Source: Fortune Jan 27, 2014

  • Thank you.Rick Westra

    Deloitte Digital

    rwestra@deloitte.com

    TBD

    Deloitte Digital

    tbd@deloitte.com

  • As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about 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.