Upload
ngodan
View
228
Download
6
Embed Size (px)
Citation preview
SAP MANUFACTURING INDUSTRIES FORUM 2015 RUN SIMPLE: INTELLIGENTLY CONNECT EVERYWHERE
SAP Manufacturing Industries Forum – The Westin Lombard
Lombard, IL | June 23-25, 2015
Mohan Pillai VP-CRM, SAP SBU
Best practices for deploying configure-to-order and SAP CPQ with SAP ECC and the hybris Omni-Channel Commerce suite
© KPIT Technologies Limited
In this Session
• Opportunities for CPQ Scenarios to today’s world
• Best Practices of setting up CPQ scenarios with SAP® ERP and hybris®
Commerce Suite
• Seamless integration of Product Configuration data especially with SAP
ERP
• Increased Product Personalization capability
• SAP Solution Sales Configurator (SSC) functionality and how it can solve
complex sales bundles
• Establish some use-cases for Dealer/Distributor/Customer Portals
• You can’t manage if you can’t measure: CPQ Analytics with SAP HANA®
to the rescue
2 7/1/2015
© KPIT Technologies Limited
What we’ll Cover
• Demands of a modern day Customer/Dealers when it comes to
Configurable products
• Is this your CPQ state of affairs?
• Best Practice CPQ scenario
• SAP Hybris CPQ at the center of the solution
• End to End Scenario with CPQ and Back End Integration
• Use Cases of a CPQ Scenario
• Wrap-up
3 7/1/2015
© KPIT Technologies Limited
Demands of a modern day Customer/Dealer When it comes to Configurable Products
• Diverse callers with different “Needs”
– Customers/Prospects
– Partners/Dealers
– Employees
– Mobile Users
• World of diverse personalization preferences
— more than ever before
– Configuration on demand
• Guided Selling
• Visualization
– Up to date Pricing
– Quoting
– Flexible Bundling / Solution Packages required
• And of course the newer “Social Media” that makes meeting demands very dynamic
4 7/1/2015
Typical Customer and Dealers–
Quite simply require ability to
Configure, Price, Quote and Buy
Different channels
pose technical and
process challenges
Any time, any channel
© KPIT Technologies Limited
Opportunities for Dealer/Distributor Commerce Portals
5 7/1/2015
Most Commerce
websites lack
functionality
B2B websites lack
B2C experience
Inflexible ways to
buy and personalize
Products
Offline dealer
applications cause
problems, data
redundancies and
manual processes
Customers lack
access to latest
product/360 deg
information
Online product
interest not leveraged
in marketing
© KPIT Technologies Limited
Is this Your Situation ?
6 7/1/2015
Front End
CRM
Configuration
Bolt-On
Dealer Portal
Solution
ERP
- Duplicated Configuration Rules
- Different Front End Tools for various use cases
- Pricing / Orders Errors
- Master Data Challenges
- Huge Manual Effort
- Lack of Manufacturing Integration
© KPIT Technologies Limited
Multiple Integration Points to Consider
7 7/1/2015
CPQ
CRM
E-Commerce
ERP
If you throw in PLM/Visualization and other channels,
the scenario gets really complex…
BI
© KPIT Technologies Limited
Challenges toward a coherent Dealer CPQ Solution
• Lack of end-to-end integration
– Multi-vendor landscape – ERP, CRM, E-Commerce, Sales Configuration Rules, Visualization,
PLM, Content Management etc.
– Several variants possible due to hardware and software deployment involved
– Insufficient certified solutions
– Rules keeps changing
– No single version of truth
• It is not pure business application
– It involves data, process and business logic integration
– Flexibility to change rules on the fly required and quite difficult
• Involves various elements of an organization – Sales Teams, Business, Operations, Compliance, IT
, Marketing, Product Development and Manufacturing – a classic case of change resistance
• Lack of strategy to define KPIs that supplement the Business case
8 7/1/2015
© KPIT Technologies Limited
Best Practice CPQ Functionality/Tools
9 7/1/2015
Configuration Rules Engine, Leverage Back End ERP
Product Content Management – Structured and Unstructured
Visualization, Manufacturing, PLM Integration
Personalization
Reporting and Analytics
Pricing Rules
Guided Selling
Flexible User Interface
and Best in class CRM/ERP Integration
End to End Quote Life Cycle – Quotes, Contracts, Renewals
© KPIT Technologies Limited
SAP Product and Solution Configuration
SAP CPQ, SAP Variant Configuration, SAP HANA
10 7/1/2015
Solutions of many
products, services
Systems of many
products
Guided Selling,
Product Selection
Sales Channels
SAP Configure, Price and Quote (CPQ) • SSC configuration runtime, modern user experience on hybris
• Product Configuration
• Solution Sales Configuration (SSC) - most advanced version of IPC technology
• Guided Selling
• Interactive Pricing during Configuration
• Pricing, Costing, Quote Management, Approvals
• Quote Proposal Generation
• All manufacturing models ATO/CTO/ETO with easy transition
• All channels – B2B/B2C commerce (customer, partner portals),
internal sales (front office, interaction center, back office),
• Flexible deployment – on premise, hosted, cloud, mobile
Back Office
Products
Front Office Multi-
Channel
SAP VC Variant Configuration
• Product Development, Modeling
• Fulfillment: Order Management &
Orchestration, Order Engineering,
Planning, MRP, Manufacturing/QM,
Projects, Procurement, Service
SAP HANA MRP with VC in
ERP on SAP HANA
Configuration Analytics
with SAP HANA
Co
mp
lex
ity o
f o
fferi
ng
© KPIT Technologies Limited
SAP’s Vision and Strategy for CPQ
11 7/1/2015
SAP CPQ
SAP Configuration Runtime engine (SSC) and
modern HTML5 UI on hybris - direct engine-UI
communication, fast response times
Product Configuration, Guided Selling,
Solution Configuration
Standalone Configuration via SAP SSC
Interactive pricing during configuration
Modular user experience, embedded to Web
Content Mgmt (WCMS) – easy-to-use, adapt
Flexibly enrich options and values in SAP hybris
Flexible integration to SAP ERP, for pricing and
order management
Future Direction Focus Areas
Integration to CRM, Cloud for Customer
Improved Guided Selling
Better Modeling for Sales & Marketing
Predictive Proposals, Embedded Analytics
3D Visualization
Mobile Configuration
Collaborative solution configuration in
business networks
© KPIT Technologies Limited
SAP CPQ Solution Stack – Complete solution stack
12 7/1/2015
Configure, Price and
Quote (CPQ)
• Enable sales teams, customers, and channel partners to configure,
price, quote, and order products accurately and efficiently
• Easily enter configurations that fit customer needs
Solution Sales
Configuration
• Increased margins by moving from product to solutions business
• Ability to win more deals if quotes for complex solutions are timely,
to the point and well priced
hybris B2B/B2C
Commerce
• Sell more service parts, standard products, configurable products,
and solutions directly to end customers and through distributors
• Easy-to use customer and dealer portals
Collaborative Sales
Force Automation
• Improve sales team productivity and collaboration
• Efficiently manage opportunities and analyze the pipeline
• Faster quote to order cycle times by integrated processes
Solution Sales and
Billing
• Sell solutions including complex usage based business models
• Creation of collective solution invoices across sales and service
orders, contracts and projects, in single- or multisystem landscapes
Configuration
Analytics with HANA
• Analyze sold options with other sales data to transform information
into business decisions for profitable growth
• Streamline product option offering, improve pricing and forecasting
© KPIT Technologies Limited
SAP Hybris CPQ Solution
13
7/1/2015
Source: SAP
Latest Spring technology
Easy customization and integration
Lightweight, high-performing
architecture
Scalable and flexible
Configure, Price, Quote (CPQ) Account Management & Workflows
Advanced Search, Browse
Pricing
Cart and Checkout
Quote/Order Management
Communicate & Interact
Segmentation & Personalization
“Anytime, Anywhere”
Publish to Multiple Sites/Channels
Product & Catalog data
Structured & Unstructured content
User-generated Content
Rich media, documents
Integration with Best of Breed
CPQ solutions from FPX etc.
© KPIT Technologies Limited
Seamless CPQ Solution with SAP
14 7/1/2015
Product Modeling
with Rules
“Right” information to the “Right” audience using “Right” delivery mode
Hybris Storefront
Product Master Link to Manufacturing
BOM
Create Sales
Bundles
Enrich Product
Master
Pricing Rules
Product Catalog /
Storefront Manage Configurable
Products
Manage
Quotes/Orders
SAP ECC
Hybris CPQ
Collaborative SFA Call Center Information Users
SAP VE
© KPIT Technologies Limited
SAP CPQ Data Flow
15 7/1/2015
hybris Server
hybris Commerce Suite
SAP CFG @ hybris
Extensions
CPQ Configuration
Runtime (SSC)
SSC Jars
Config
API
Pricing
API
SCE SPE
DB layer Data
Loader
hybris DB
schema
SAP ERP
ERP DB
Configuration
Modelling in
Variant
Configuration (VC)
Asynchronous Master
Data Replication
based on Data Loader
SSC DB
schema
© KPIT Technologies Limited
Two Approaches for SAP CPQ Modelling
16 7/1/2015
XML Legacy Rules Conversion
SAP
Modeling
Environment
SAP VC
Model (KB)
SAP SSC
Runtime on
SAP CPQ
SAP Hybris
Hybris Storefront
1
2 Standalone
SAP VC Based
© KPIT Technologies Limited
Several Integration Scenarios with SAP CPQ and ERP
17 7/1/2015
Loosely Coupled
Flexible Scenario
Tightly Coupled
Loosely Coupled
Flexible Scenario
Tightly Coupled
asynchronous communication
customer interaction happens only through and within
hybris
hybris stays completely independent from SAP back-
end, with persistency and business processes
synchronous communication
customer interaction happens through hybris
Persistency and business processes reside in SAP
back-end
asynchronous and synchronous communication
customer interaction happens through hybris with
synchronous calls to SAP back-end
hybris stays largely independent from SAP back-end
© KPIT Technologies Limited
Differentiation of SAP CPQ vis-à-vis Other Solutions
18 7/1/2015
SAP CPQ Solution Benefits SAP CPQ Solution with 3rd Party CPQ
•CPQ tightly integrated to end-to-end processes
for sales, product development, manufacturing,
service, analytics, cross company/system
•Deep end-to-end process support out of
the box, with a community of thousands
of other customers
•Different tools and configurators in SFA,
E-Commerce, sales, manufacturing – costly
custom integration
•ATO, CTO, ETO, easy transition Differentiate – CTO to ETO if required •No/limited support for ETO
•CPQ can use existing product models
(SAP VC / SAP IPC)
Save previous investment - one integrated
model across channels and processes
•High ongoing effort to synchronize sales
models with backend models
•CPQ based on SAP Solution Sales Configuration
– most power configurator
•Build guided selling/product finders and
solution models
•No/limited support for guided selling and
solution configuration
•SSC engine and UI on hybris •Fast configurator designed for very large
models, fast user response times
•Slow - calls between different layers,
not designed for very large models
•Easy-to-use, easy-to-enhance modular user
experience embedded to hybris WCMS
•Easy to adjust configuration UI, same
tools/resources as used for web shop UI
•Configurator is black box with different UI
technology than underlying applications
•SAP configuration model embedded to hybris
platform, leveraging concept of hybris PCM
•Sales can easily enrich the configuration
data, same tools as for product data
•Configurator is a black box, different
technology, skills, toolsets to maintain
data
•Flexible deployment – on premise, hosted, cloud,
mobile, leveraging existing sales tools
•Leverage latest technologies and user
experience paradigms
•Limited flexibility, technological dead end
•Strong roadmap, e.g. better sales modeling,
3D visualization, mobile configuration, predictive
proposals & embedded analytics
•Get future improvements out of the box
•Leverage the power of SAP HANA for new
innovative business process
•Unclear financial situation and roadmap of
smaller CPQ vendors, high continuous
investment in project specific extensions
Sell more configurable
products & solutions
Easy to do
business with
Efficiency – error free
orders, integrated CPQ
Reduced sales
costs
Efficiently integrate customers,
dealers, sales, manufacturing
© KPIT Technologies Limited
Hybris Enables CPQ Storefront with Hybris Omni Channel
19 7/1/2015
© KPIT Technologies Limited
CPQ Prototype for Product Configuration
20 7/1/2015
© KPIT Technologies Limited
CPQ Guided Selling Example
21 7/1/2015
© KPIT Technologies Limited
CPQ with SAP Cloud for Customer, Mobile and
Visual Configuration with SAP Visual Enterprise
22 7/1/2015
Visual Configuration,
Visual Service Parts Selling
© KPIT Technologies Limited
FPX CPQ Solution Integration with SAP
23 7/1/2015 Sample Footer
© KPIT Technologies Limited
Use Case for CPQ: Dealer Commerce
24 7/1/2015
Experience Management
Promotions
Cart Driven
Product
Driven
Product Quote
Request Quote
based on
Configured
Product
Product
Configuration
Use of SAP
CPQ
& hybris
Product Pricing
Multiple
Concurrent Price
Levels
Tiered Pricing
Reward
Customers for
increased
purchases
Gives the
Customer
options
Upsell/Cross
Sell Opps.
Drive Decision
Making
Guided Selling
Multi-Level
Configuration
Flexible Nav
Integrated
with hybris
Suite
Purchasing
Products
Search, Facets,
Quick Order, &
Searchandizing
B2C
Experience
w/B2B
Functionality
Easy to Order
Filter Results
Negotiate
Pricing
Minimize Time
Spent Ordering
Accept/Reject
Quote
© KPIT Technologies Limited
Comprehensive Dealer Portal – Sales, Service, Marketing
25 7/1/2015
Product & Web Content
Management, Print
Catalogs
Service Parts
Management
Sales of Configurable
Products and
Solutions
Efficiently manage brands across
multiple channels
Boost your service parts sales –
leverage the full solution life-cycle
Enhance customer value -
tailor products & solutions
Best of breed, integrated product
information management
Intuitive web content
management
Efficient, automated publishing of
web & print catalogs as well as
brochures
Directly integrate product
information updates from
suppliers
Drive partner channel business -
distributors can add their own
products to OEM catalog
Boost your service parts business and
expand your MRO/consumables sales
Customers & distributors can easily find
& order service parts, MRO, &
consumables in the web or mobile
shops
3D visual service parts selection
Service parts sale initiated by equipment
with machine-to-machine integration
Extend market reach for service parts –
link hybris to thousands of buyers on
the Ariba Network
Become a solution provider to
boost profits
Offer customers & distributors
an intuitive way to tailor
products & solution bundles in
the web shop
Integrated process across
multiple touch points - from
customer to distributor to call
center, sales front office & back
office
© KPIT Technologies Limited
What you can expect to measure with SAP CPQ?
Few KPIs and Metrics you can
expect to measure and report with
SAP CPQ solution:
– Most Popular Configurations
– Least Popular Configurations
– Characteristics never used
– Deal Size
– X-Sell / Up-Sell Revenue
– Cost to Serve per Quote
– Quote Conversion Cycles
– Quote Completeness Rates
– Reduced Production Order
Errors
26 7/1/2015
Real-Time Analytics with BI, SAP Smart Business Cockpits & SAP HANA Live
© KPIT Technologies Limited
Wrap Up
• We reviewed the opportunity for a best in class CPQ solution
• We looked at ideal and best practice CPQ solution
• How SAP CPQ solution sets apart from the rest in terms of
offering a complete CPQ solution?
• Detailed understanding of SAP CPQ solution, Integration
Scenarios, Use Cases and some examples
• Few Metrics and KPIs to leverage from a CPQ solution
27 7/1/2015
© KPIT Technologies Limited
.
.
.
Value Harvesting Approach to CPQ360 Transformation from KPIT
7/1/2015 28
Assessment
Identify Opportunities
Identify Optimum
Solution
Define Roadmap
aligned to Priorities
Define Change Impacts
Define tools to
measure business
benefits
Challenges of
Transformation
KPIT Value
Harvesting
Business Benefits & ROI
Solution Change Management in
live system
Impacts on Interfaces & Historical
Reporting
Organizational Alignments
Disparate Systems
Adoption Challenges
Best Practices
Cloud / On-Prem solution
Technology with scalability
and performance
Solution Demos / POCs
Leverage Existing Knowledge
Rules
Overall Holistic View with
Sales, Manufacturing and
Engineering
30 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Join us back in the
Grand Ballroom for the
Door Prize Raffle & Closing Comments