Configure-Price-Quote (CPQ) Software Solutions

www.simon-kucher.com

Introducing CPQ software in your organization

Configure-Price-Quote software solutions

Amsterdam office

Barbara Strozzilaan 3801083 HN AmsterdamThe NetherlandsTel. +31 20 7531 [email protected]

CPQ_Slideshare_Simon-Kucher & Partners

Source: Simon-Kucher & Partners

What can CPQ do for you?

… enables corporate harmonization

through

� Process alignment

� Transparency

� User friendliness

… improves process effectiveness

through:

� Customer needs

identification

� Product(s) selection

(guided selling)

� Up- and cross-selling

� Production planning &

forecasting

… increases process efficiency

through:

� Commercial risk mitigation

� Reduces time-to-market

� Reduces errors

� Better pricing governance

A ‘Configure-Price-Quote’

Software …

2


8 reasons to consider a CPQ software solution

Increasing competitive

pressure

Too little time for selling activities

Unnecessary long sales

cycles

Complex product offering

Mismatching customer

needs

Isolated CPQ*

processes

Multiple systems/tools used in CPQ

process

Manual transfers of

error-sensitive information

1

3

2

4 5

6

7

8CPQ“Integrated software solutions to support

companies commercial processes and performance”

CPQ_Slideshare_Simon-Kucher & Partners 3


Steps for introducing CPQ software in your organization

Understand if CPQ software fits into

your strategy

Strategy definition including evaluation of company needs

Quantify potential return on investment

Make a business case including qualitative and quantitative criteria

Prepare for implementation

Ensure strategy is optimized for the solution and set up a detailed roadmap with deadlines, roles and responsibilities

Implement and integrate

Be pragmatic and follow a phased implementation and integration approach to ensure benefits are realized from early on

Step 1

Step 2

Step 3

Step 4

Step 5


Detail software requirements and vendor selection

Define technical requirements and preferences to short-list vendors

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Source: Simon-Kucher & Partners; Demand Metric

Generic overview of different CPQ software solution package options

Basic Standard Advanced Complete

Co

nfi

gu

re

Product configurator

Product design, modelling & catalogues

3D visualization tools

ROI/TOC calculators

Product design, modelling & catalogues

CAD, CAM & PLM integration

Pri

ce

Pricing engine

Business rules & constraints

Guided selling

Value-based pricing & modelling

Benefit estimators

Qu

ote

Quoting system

Proposal management

Contract & order management

Order-to-cash functionality

En

ab

lers

Cloud-based application

CRM, SAP and/or ERP integration

Channel management

Workflow approvals & authorizations

eSignature compatibility

Sales analytics


Once desired functionality and system architecture is clear a shortlist of vendors can be drafted and contacted for proof-of-concept evaluation

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Critical elements for successful CPQ integration

1. Know how first: Understand, market, business, product and customer requirements first, before you start

2. Strategy: Develop/have a clear business strategy which is compatible with a CPQ software solution is an essential departure point

3. Business case: Combine internal opportunity & transaction data with external market data and expert inputs to facilitate fact-based decision making

4. Change management: Changing mind-sets and the way-of-working requires a change process which starts with creating urgency, being heard and giving training

5. Anchoring: Any CPQ will play a central role within the organization and will require careful anchoring with top management to ensure successful roll-out

6. User first: Incorporate test users who will work with the CPQ to ensure applicability and relevance prior to full development and implementation

7. Interfaces: Ensure data input and output requirements from other systems is considered continuously throughout the development of the CPQ logic

8. Functionality: A smart working 70% solution is in many cases better than a sophisticated but hard working 110% vision

9. Planned roll-out: Pilot roll-out CPQ tool to provide adequate time for training, adjustments and fine-tuning prior to full go-live

10.Book early success: Phased implementation ensures early returns, creates buy-in and motivates the organization to keep on investing in the full-scale implementation

CPQ_Slideshare_Simon-Kucher & Partners 6


Simon-Kucher & Partners at a glance

Strategy> 400

Sales> 500

Marketing> 500

Pricing> 1,000

� Commercial excellence

� Growth and competitive strategies

� Product portfolio (re-)design

� Pricing excellence

� Customer relationship and customer value management

� Sales strategies and sales channel optimization

Global presence

1 Simon-Kucher& Partners

2 Boston Consulting Group

3 McKinsey & Company

manager magazin

Marketing and sales

Simon-Kucher& Partners

Boston Consulting Group

McKinsey & Company

brand eins Thema

Marketing and pricing

Simon-Kucher& Partners

Boston Consulting Group

McKinsey & Company

Sales and CRM

......

Source: manager magazin survey of top managers in Germany, August 2007 and 2011/IMB

Source: brand eins Thema/Statista survey of 1,426 partners and project leaders from consulting firms and 1,300 C-level managers from German companies, May 2014

Best consultancy in marketing and sales

>2,000 projects in the last 3 years

AmsterdamBarcelona

BonnBrusselsCologne

CopenhagenFrankfurtIstanbulLondon

Luxembourg

Madrid MilanMunichParisWarsawViennaZurich

TorontoBoston

New YorkSan Francisco

São Paulo

Santiago

Dubai

Beijing

Tokyo

Singapore

Sydney

Atlanta

World leader in giving

advice to companies on how

to price their products

Pricing strategy

specialists

The world’s leading

pricing consultancy

In pricing you offer

something nobody else does

BusinessWeek The Economist

Professor Peter DruckerThe Wall Street Journal

World leader in pricing


TopLinePower®

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Contact details


Pieter [email protected]

Hayri CulumSenior [email protected]

Mar Muñoz [email protected]

8

www.simon-kucher.com

Amsterdam office

Barbara Strozzilaan 3801083 HN AmsterdamThe NetherlandsTel. +31 20 75312 53

Amsterdam ◊ Atlanta ◊ Barcelona ◊ Beijing ◊ Bonn ◊ Boston ◊ Brussels ◊ Cologne ◊ Copenhagen ◊ Dubai

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Configure-Price-Quote (CPQ) Software Solutions

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Transcript of Configure-Price-Quote (CPQ) Software Solutions