Transformational Manufacturing Strategy

Traction on Demand – Oct 4th, 2016

Rohan Verma – General Manager, Traction Toronto• Traction Subject Matter Expert for Salesforce manufacturing solutions• 9+ years as Salesforce consultant and founder of BigKite Consulting

• 9 years experience implementing/developing the Salesforce platform

• #6 Rated in the World (76 - 5 Stars AppExchange ratings)

• One of first 100 certified on Salesforce.com

• 900+ customers & 3,000+ projects completed

• HQ in Vancouver, Canada; Offices in Toronto & Montreal

• People on the ground throughout the US: CA, OR, TX, OH, GA

• 230+ Employees - All full time employees

• No outsourcing, no offshoring, no contractors

• Fixed fees whenever possible

• Certified B Corporation

Rohan Verma Managing Director, Toronto• 9+ years as Salesforce consultant and

founder of Forge & BigKite Consulting

1. Replacing analog product and services information into full digital versions available to anyone

Major Forces in the Manufacturing Industry

1. Shrinking of a new technological world that eliminates economic and geographical divisions and opens new markets

1. Enforcement of governmental rules, organizational policies and industry standards related environment, health, safety and trade

1. Efficiently tailoring products and services to accommodate regional or personal preferences

1. Integrating your products through software or hardware to provide additional value to your customers

1. Products evolving to integrated “bundles” of services that provide value through the entire customer experience lifecycle Servitization

Connectivity

Personalization

Regulation

Globalization

Digitization

Value to your customers

Run by data

1. Shift from Product-centric to Customer-centric organizations

2. Keeping up with Evolving Customer Expectations

Perceived as outsider selling inNarrow understanding of value propTransactionalTop down design

Working as an insiderBroad understanding of value propLife-Cycle InteractionsDesigned on the front lines

Product-Centric

# of Customers Served

% of Customer

NeedsSatisfied

Cust

omer

-Cen

tric

Market Share

WalletShare

10 year Investment ReturnsCustomer Centric Leaders: +43%Customer Centric Laggards: -33%

Shift your Thinking Customer

Through Increased Competition Customers Control Buying Process

The way you engage with customers must change

1. Personalized2. Easy3. Efficient

Buying Process has Changed

Systems ofRecord

Manufacturers Invested in Systems of Record• Digitizes operations, not engagement

LogisticsEDW MESERP Demand Planning HR

rely on spreadsheets to track client

data

61%

Source: 2016 Connected Manufacturing Service Report

Systems ofRecord

Manufacturers Need a System of Engagement

LogisticsEDW MESERP Demand Planning HR

want to reimagine service with digital

engagement

87%

Systems ofEngagement MobileCloud Social Data

ScienceInternet of

Things

TRACTION

“They clearly demonstrated expertise in the manufacturing industry as we overcame common CRM

manufacturing hurdles with their pre-built solution in the first meeting. Like many manufacturing organizations experiencing growing pains, our legacy systems had become a hindrance to growth. This solution modernized sales processes by streamlining and organizing the multiple teams in the inquire-to-

order process and reducing pricing errors. Now we’re working on the next phase.” - Elliot Bender, VP Sales & Marketing

Project 1: Quoting Non-existing quoting and custom discounting approval

process

Custom pricing for each customer (>3000 pricebooks)

Significant pricing errors and time & money to resolve

Project 2: Pricing Management Tiered Pricebooks is new process, no way to manage

changes and finding products is difficult

Pricelist generation process is manual, slow and never in time for pricing changes annually

No mobile access to product and prices

Project 3: Customer Service No real-time access to required information to service

customers (where is my product, backlog, credit info, allocations, etc.)

No consolidated knowledge on servicing clients –

difficult onboard/standardize customer experience

Project 1: Quoting Tiered pricebook structure (<300)

Integration for Products and Pricebooks from ERP

SF Quotes, process tailored to construction and Account

Specific Pricing

Approval Process for discounting and special pricing

Project 2: Pricing Management Integrated Pricing Tier Approvals

Conga Merge for beautiful yet complex pricelists for various

situations

Custom SF1 Mobile App for Account Pricing Lookups

Project 3: Customer Service Web Service Integration to ERP for real-time production data,

customer allocations and inventory checks

Enhanced batch integration to provide more details on Orders

Service Console with custom components to tie it all together

Decreased pricing errors by 3 to 5%

Visibility into discounting behaviors and

patterns, standardization/opportunity cost

Standardized process

resulting in a significant increase in sales

efficiency

Customer Success Story

SOLUTIONVALUE

CHALLENGE

LOCATION Brampton, ON

COMPANY SIZE 250+

INDUSTRY Manufacturing

COMPETITOR Microsoft

SOLUTION(S)Sales Cloud, Service Cloud, Knowledge, Integration with ERP

• Senior Sales Rep for Mega Drones covering Southern Ontario

• Trying to meet with one of his customers YNIT – a large distributor

• Difficult to get data• Time consuming and cumbersome to find, extract and summarize

customer data – not mobile

• Difficult to have value add conversations • Without summarized data that clearly shows buying habits and trends

Top Current Day Pains

Lost Up-sell and Cross-sell

Limited Wallet Share Growth

Learning

Meet Bob

End Customer Profiles

• Seldom have a direct relationship with the end customers of your products

• Consolidated end customer profile doesn’t exist • Data to connect the dots difficult to access or doesn’t exist

No Accountability/Relationship

Channel Partner Performance

Difficult to Innovate

Partner Engagement & Success

Low Channel SalesPoor ROI on Channel

Incentives

Successful partners need

• Training + resources / collateral • Joint planning / aligned goals

• Engaged manufacturer / vested in success of partner

• Access to pertinent information• Easy to do business with

Training Resources

Sales Resources

Deal Registration

Lead Distribution

Business Planning MDF’s

Co-ops Rebates Events

VS Management

Summary

• Transformed ERP data into meaningful, digestible and actionable data points for your sales team

• Empowered reps to have value added discussions with both end customers and channel partners

• Built an End User profile that facilitates truly being a customer -centric company through accountability and a relationship

• Deeply engaged channel partners through a personalized, easy and efficient Partner Community

Questions?Rohan Verma – rverma@tractionondemand.com

Appendix

Solution – Unlock ‘CRM’ for Mfg

• Unlock ERP Data:

• Experience with many ERP’s and many middleware's

• Account & Product Dashboards provide context sensitive and actionable information

• Complex Relationship Management

• Customers, Channel Partners, End Users, Competitors

• Context Sensitive Dashboards using relationship data

• SF1 Friendly (soon - lightning friendly)

Solution – Sales Planning

• Customer Based Forecasting

• Accurately manage and predict your customers in SF but measure against your ERP data

• Customer White Spacing

• Measure wallet share across product families

• Create a customer plan that’s simple to visualize and improve sales manager coaching

Solution – Complex Pricing & Quoting

SteelBrick: Moderate to Heavy Complexity

• Certified SteelBrick Partner

Forge: Simple to Moderate Complexity

• Customer/Tiered Pricing

• Enforce pricing rules and customer based pricing – reduce pricing errors and speed quoting

• Access pricing for any customer through SF1 product and price finder – no more pricelists to carry

• Quoting

• Recommend upsell and cross -sell products when selecting products during the quoting stage

Solution – Channel Management

• Lead Registration / Lead Distribution

• Expose ERP Data (Orders, Invoices, Product & Pricing, etc.)

• Channel Program Management

• Reimbursement & Rebates (Claims) Management

Community Experts:

• Presenting on stage at DF Dev Zone

• Beautiful community templates exclusively by Traction

Mfg. Channel Management Community:

Stage I

Process & tools lack maturity. The sales environment is not predictable.

Random

Defined

Reportable

Managed

Predictable

Stage II

Most sales processes have been developed and documented. Support tools are available but processes have not been adopted across the organization

Stage III

Sales processes have been thoroughly adopted by the sales team. Formalized aspects of the sales process have been comprehensively implemented.

Stage IV

Sales management relies primarily on quantitative internal data to manage the sales team. Development and publication of leading indicators of sales success.

Stage V

Sales management can sufficiently predict sales performance and understand causality. Sales metrics of success are captured and benchmarked against external sources.

Typical Manufacturers

Sales Process Maturity Framework

Traction’s Customer Community

Traction’s Customer Community

Data as the Lynch Pin

• We are a white label service provider for Data.com

• Preferred implementer of complex data projects for Data.com

• GTM Data Products (Hierarchies app, Data Assessment Tool app)

Experts at implementing data-driven solutions

Marketing CloudWe design & execute compelling data-driven marketing strategies

Sales CloudWe define effective processes to align

Marketing & SalesData Cloud

We know how to leverage data & tech and turn dreams into reality

Service CloudWe use marketing automation to

enable service teams to effectively engage customers

Force.com PlatformWe develop custom solutions

to enhance and tailor our customer’s experience

Community CloudWe create portals to enhance your customer, partner, and

employee engagement

Data – Our Bread and Butter• 4 sessions on Data Governance and Stewardship

at DreamForce ’15• Traction’s Data Practice:

• Integrations/Migrations• Data Governance• MDM• BI/Analytics

Revenue GeneratingValue Add Item

Incr

ease

Sa

les /

Re

peat

Sale

s / P

enet

ratio

n

Addi

tiona

l Ti

me

to S

ell

Effe

ctiv

e Sa

les

Cove

rage

Incr

ease

d De

al S

ize

Incr

ease

dW

in R

ate

Incr

ease

d M

argi

n

Incr

ease

d Re

tent

ion

Time savings – reduced time to gather, prepare and present data

Appropriate sales coverage by market opportunity

Cross Sell/Up Sell

Proactive and prescriptive sales

Proactive & context sensitive service. Better experience Increase visibility to management means faster decision making and guidance

Increased collaborative sales & coaching

Forecasting allows for better demand planning

Predictable sales

Additional marketing data points proactive decision making Lead generation and management creates nurtured and qualified prospects for sales

Value Based on ROI

Cost Reduction / AvoidanceValue Add Item

Prod

uctiv

ity/

Tim

e Sa

ving

s

Redu

ced

Pric

ing

Cost

s

Redu

ced

Cost

s fo

r Sca

ling

/ Ab

ility

to S

cale

Redu

ce T

ime

to V

alue

Productivity: Information as you need it- Reduced time to gather, consolidate and prepare data- Collaboration - Proactive and quick decision making

Error Reduction:- Reduction in pricing and quoting errors- Validation of discounts

Risk Reduction:- Less dependencies on human processes and personally kept info- Visibility into account, product and sales performance

Consistent process (everyone knows what's expected and how to do it)

Easier to deploy new processes and process changes

Easier to onboard new employees

Value based on ROIValue Based on ROI

Typical Challenges Facing Manufacturers

• Legacy Technologies• Legacy systems designed in the 90’s are the backbone of these

customers• Painful and risky to replace• Multiple, unconnected quoting and fulfillment systems (ERP’s)

• Global & More Nimble Competition • Digital disruption and the intro of new nimble competitors

unconstrained by legacy costs and assets• Differentiating product and maintaining brand loyalty

• Digital Disruption & Evolving Customer Expectations• Daily consumer experiences are setting the customer expectations

• Enforcement of Compliance• Government regulations and socially conscious buyers driving

compliance around energy, environment & safety

Process / System Specific Challenges

• Missing Mobile & Connected Data• Missing 360 degree customer and product views

• Inability to Plan & Measure• Margins are impacted by volumes and accurate volume forecasting

and cost estimating• Weak key account management – not evaluating white space to plan

• Complex and Inefficient Pricing & Quoting• Complicated pricing models and contractual agreements• Complex and changing CPQ needs to compete (legacy can’t handle)

• Customer Service Using Obsolete Systems• Using disconnected environments for all they do• Huge time lost just finding the right info

• Minimal Channel Visibility & Engagement• Slow and manual lead sharing/deal registration• No pipe/forecast visibility or collaboration• Under-utilized and unsuccessful channel programs

Summary

• Fast and Easy to Sell• Experienced Manufacturing Expertise – Existing Manufacturing

Customer Base• App level value – but SF benefits from entire license revenue• Packaged offering means reusable collateral, pricing and timelines

• Win-Win• Win for SF: easier and faster to sell – blow your numbers away• Win for Traction: Expand in core industry space

• Source Revenue Strategy• Penetrate existing manufacturing customers• Social selling Business Development• Manufacturing CRM Website • Manufacturing Blog Series • Co-Marketing - Industry focused events – TractionForce 2016

• What is ForgeCRM: • Combination of:

• Integration services to unlock backend ERP data • A package of functionality that replaces manual processes and

mashes up Sales & Service data for high value context sensitive actionable data in SFDC

• We open up Salesforce as an option to manufacturers by plugging the holes it (and all CRM’s) have in their out of box processes

• What ForgeCRM is NOT:• Cloud Based ERP (Root Stock, Kenandy, etc.)• Only an integration to push data – whether ERP specific or not

(Mulesoft, Informatica, Inforce, etc.)•

The ForgeCRM Fit

TRACTION

Salesforce

The ForgeCRM Fit

ERP

Salesforce

Salesforce Out of the Box + AppExchange AppsForgeCRM Functionality

ForgeCRM Data Integration