chp07 se cm

Chapter SevenChapter SevenTransforming Customer Contact into Revenue: Selling-Chain Management

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IntroductionIntroduction

First generation e-commerce sites failed to deliver on customer-interactive promise of Web

– Islands of disjointed information providing little or no buying – Failed to gather more complete customer profile info beyond

basic demographics and buying pattern data

Main achievement till date: online delivery of targeted product and service content

– by using niche apps or by building customized apps on top of the static sites

Resulting technological environments: complex, loosely integrated sales systems

– Difficult to maintain, customize and extend– Online sales channel isolated from rest of enterprise


IntroductionIntroduction

To support real-time, one-to-one, or self-service sales, companies must decide which new business practices to implement

Companies must also determine what new apps are needed to support the Sales Process

The business challenge: Improving the link from marketing to sales

– Activity management– Opportunity management– Orders and contracts– Campaign management


Evolution of the Sales ProcessEvolution of the Sales Process


Basics of SeCMBasics of SeCM

SeCM an app framework that helps sell better and more effectively across all channels

– establishes linkages between previously disconnected sales functions within a company and sales processes

Can enable new revenue channels while simultaneously improving effectiveness of a company’s existing channels


Basics of SeCMBasics of SeCM

CorporationWith

MultipleSales

Channels

Customer

Distributor

Self Service

OEM Reseller

Sales Force

Selling Chain


Defining SeCMDefining SeCM

Complete order life cycle

Cross-Functional Processes Breaking Down Departmental Walls

Inquiry/Prospect Customize

Integrated Selling Chain Application

{Order

Sales Lead Configurator ContractPricing

Complete Integrated Solutions

Partial Functional Solutions

Customer Lifecycle Commit

OrderEntry

ProductCatalog

Available toPromise

Proposal & Quote

Commission


Multiple Sales Channels – Example from Multiple Sales Channels – Example from Siebel SystemsSiebel Systems

Siebel .COM Applications

Siebel Call Center

Siebel SalesSiebel Field Service

Siebel eChannel

Siebel Marketing

Back OfficeApplications

Source: Siebel Systems


Collaborative Selling Scenarios Delivered Collaborative Selling Scenarios Delivered by by SAPSAP

Manufacturer/Supplier

Customers(Consumers/

Business Partner)

Distributor/Reseller

Internet SalesInternet SalesB2B MallB2B MallB2R NetworkB2R NetworkSource: SAP AG


Defining SeCMDefining SeCM

Goals of Selling Chain Management business strategy

– Engage your prospects, and turn them into customers

– Make ordering process easy for the customer– Add value for the customer– Make it easy to order customized products– Increase sales force effectiveness– Coordinate team selling


Business Forces Driving SeCMBusiness Forces Driving SeCM

• The rise of the self-service order

• The excessive cost of presales technical support

• The increasing cost of order errors

• The proliferation of channels

• The increasing complexity of products

• The rise of deregulation and M&As


Technology Forces Driving SeCMTechnology Forces Driving SeCM

• The selling-chain application continuum

• Problems with existing SFA– First Generation SFA tools allowed contact

management and lead management– Examples include ACT, Goldmine

• Limited process -- order taking and management -- functionality

• Limited sales effectiveness


First Generation SFA - Lead ManagementFirst Generation SFA - Lead Management

3rd Party(e.g., D&B) Web

Sales Pipeline

Lead Qualification

Lead Gathering and Targeting

Selling, Contracting

Hot

Cold

BA

CD

Customer

Status Process

BusinessPartner

Lead

Opportunity

Warm

Sales Tele

Analyze, learn, grow customer

Qualified Lead Qualified Lead

Sales Channels

Source: SAP AG


Universal Business Problem: Universal Business Problem: Managing the Order Acquisition ProcessManaging the Order Acquisition Process

Order acquisition process more complex and difficult to manage

– Need for customized products and services– New distribution channels– Multiple pricing options

Selling complex products requires dealing with two kinds of complexity

– Product complexity– Needs complexity


Universal Business Problem: Universal Business Problem: Managing the Order Acquisition ProcessManaging the Order Acquisition Process

Order acquisition process– needs assessment– option selection– order configuration– order quote and

proposal, complete with drawings, schematics, and performance metrics

Understand Customer Needs

Prepare Order

Identify Potential Customer

Validate Needs with Customer

Develop Alternative Scenarios

Translate into Production Terms

Determine configuration, cost and price

Determine terms, availability and delivery

Present Bid/Proposal to Customer

Evaluate and Revise Bid


Elements of E-Sales Elements of E-Sales

Lead, Proposal & Quote Generation

Commission & Contract Mgmt.

Order Entry & Mgmt.

Sales Configurator

Pricing

Prospect or

Customer

Fax

Email

Telephone

VRU

Web

Enterpris

e Archite

cture

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Intermediary

TravelocityExpediaTrip.comDelta.comPriceline.com

• Buy Air• Car• Hotel

Airlines

VacationPackage

Cruise-Lines

Online TravelManagementCommunity

TravelInformation

Consolidators

Travel Agencies

Search Bots

Hotels Car Rentals

OnlineAuctions

The Digitization of Selling in the Travel The Digitization of Selling in the Travel IndustryIndustry

Business Goal (1): Automate the Look-To-Book Process

Business Goal (2): Achieve Selling Synchronization

AirCarHotelCruiseVacationsTours

2.4 Trillion $$$

Travel Agent ---> Digital Selling


Custom Foot: Custom Foot: Transforming Shoe Sales with TechnologyTransforming Shoe Sales with Technology

Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation success

Shoe industry’s greatest challenge– Provide value to customer in the form of quality, selection,

and convenience at right price– Minimize inventory-holding costs

Custom Foot aimed to solve these problems by implementing a SeCM solution

– 3-D scanner, kiosk, Trilogy sales configurator– Customers could get custom shoes in 3 weeks– Prices starting at less than $100


Custom Foot: Custom Foot: Transforming Shoe Sales with TechnologyTransforming Shoe Sales with Technology

The hope was that the system would enable zero inventory or associated stocking costs

– Goal: eliminate 30-50% of warehousing and distribution costs associated with retailing

Predicted as an overnight success by analysts and experts

But the company went bankrupt– Encountered several issues in reengineering core process

and implementing the new business model• conflict between shoe size and shoe-fit calculations• some people like shoes to fit snugly, others prefer looser

fit• many people’s right and left feet are different sizes

– Problem with forecasting demand for various kinds of leather• frequently missed the 3-week delivery guarantee


Cisco and SeCMCisco and SeCM

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Marketplace Today• Order Status• Pricing Information• Configuration Assistance• Order all Products

Targets• Customer Profile Agent

• Custom Order Scheduling

“Old Way”

Information Center

Internetworking Product Center

Custom Fulfillment

Relationship Management

E-Business E-Business Strategies, Inc.Strategies, Inc.

www.ebstrategy.comwww.ebstrategy.com

[email protected]@ebstrategy.com

678-339-1236 x201678-339-1236 x201

Fax - 678-339-9793Fax - 678-339-9793

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