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Over the past years these topics have been mentioned to us (SAP) over and over again as the main pain points to companies dealing with more complex products, and even for vendors of high-end consumer products like PCs.“How can I reduce..” the number of incorrect and incomplete orders? How can I make the order clearance process more efficient? How can I ensure the customer receives what he has ordered?“How can I more profitably respond..” How can I give my customers more freedom to choose between more product options and open my products up for more variability?How can I offer my customers the best accessories and services along with the product required? How can I even answer to requests that are not covered by my standard product offering?And how to I respond to all these question in a profitable way?“How can I ensure..” This way the products are getting more and more complex, and during a life-cycle a product is changing more and more frequently. Still I have to provide correct product information to the sales force and also to our customers at any time.“How can I drive predictability..“ All sales channels need this always up-to-date product information to become more effective and predictable, in the field organization, at the call-center and at the resellers and on the Web“How can I personalize..“On the Web the customer expects even more. She/he wants personalization and guidance to find the most proper products for their needs.

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One-face to the customer across the product life cycle and the sales and usage

cycle: The option marketed is the option selected by the customer is the option

that shows up on the bill and delivery document is the option the service rep is

aware off …

Multiple views of the configuration enable each party to see what they need to

see of the configured product.

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Product configuration has o address multiple, competing goals. It needs to

enhance the customer experience by providing a consistent, channel-specific

user experience. It has to drive revenue by making sure the available options

are good cross- and upsells. And it needs to be manageable from a cost and

operations perspective.

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For a typical manufacturer product configuration happens in the quote and

order steps. During the quoting process the configuration details matching the

customers requirements need to be captured and a price that will be accepted

by the customer needs to be determined. In the order process further details

(that are typically not price-relevant) are configured, materials and fulfillment

capacity reserved.

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For a service bundle product configuration is an integral part of the overall

configuration of a contract-based offer. Product configuration is closely tied to

the contract origination or contract change process and to installed base,

technical or infrastructure requirements from the customer.

The use of the same configurator including ist user experience across sales

channels is a common best practice. It makes sure that in every one of those

channels the same rules are applied. Furthermore if the same product

configuration rules are applied in the front and in the back-office the flexibility

to make changes to the configuration as the customer changes his mind can

be guaranteed.

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The diagram shows the steps a user would typically carry out within SAP CRM

to call the external configurator. It is important to note that end users probably

would not know when a configurable product is using the IPC as normal or

calling an external configurator.

Within the UI the product will be shown as configurable and unless defaults are

set for the product, the user will be advised that the configuration is not

consistent and complete until they have chosen all the required entries.

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Sales configuration with SAP CRM is tightly integrated with SAP CRM and other SAP solutions. What are the benefits of that?SAP CRMContract Management: Customer “Peters” can only order trucks in color “green” under his contract - for a smooth execution of your business agreements with your customersCatalog Management: Customer specific catalogs feature configurable products and SKU‟s side by side - to maximize up- and cross-sell opportunitiesGuided Selling: Guided selling helps the casual customer find the right starting point for configuration or choose the right options - to ensure the customer finds the product he wants to buyDynamic Pricing: The customer can balance his requirements with his budget during interactive configuration - to engage the customer and enable the customer decisionOrder & Quote Management, Opportunity Management: From the start of the customer engagement cycle the customer requirements can be captured in an opportunity/quote/order that contains a configurable product or serviceInstalled Base Management: Leverage the installed base within your customers for service and up-sell opportunitiesBilling: One bill to the customer for a complex solution - with a clear connection to what he has ordered - for satisfied customersSAP SCM & SAP ERPDemand planning: Planning based on the options customer choose - not on the parts you build into the product - to be closer to the market/customer with your planningAvailability Management: Leverage your full supply chain and availability information at the point of sale to engage and win the customer, enables sophisticated scenarios like available to promise (availability based on parts) and capable to promise (availability based on parts and production capacity)with you - increases customer satisfaction and retention - ensure accurate orders coming in through EDI and Marketplaces.

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Master Data Management: Have one complete and concise model of your

product that covers all of aspects of it - for lower maintenance efforts and the

ability to adopt to the market quicker.

Production Planning: Drive the right materials and routings for the plant in a

flexible way

Fulfillment & Logistics: All fulfillment and logistics processes (including

company-to-company orders) are capable of dealing with configurable products

(e.g. which changes can still be made at which level of fulfillment to a car order)

Engineering Change: Production changes to the product model (replacement

parts, changed routings) do not affect the sales view of the model and do not

invalidate placed orders

Analysis and Forecasting: Within the Logistics Information System trends can

be measured and help forecast demand based on selected product options

Costing: By reaching through to the true manufacturing costs a true cost-

based pricing at the point of sale can be provided. This makes sure your

margins are not eroded through un-expected material and production costs

Project Accounting: Keep track of costs across large ETO projects while

understanding the margin on CTO and SKU elements in it.

Profitability Analysis: Analyze individual orders or per product - with the full

cost information for configurable products - to maximize your profits

Others not shown on this slide:

SAP PLM

Design and Definition of new Products in PLM seamlessly feeds into Master

Data Definition in SAP R/3 -> Faster and more successful introduction of new

products : concretely - images/descriptions of product attributes can be directly

leveraged for sales configuration

SAP SRM

Through the “One-Step-Business” scenario your customer can leverage their

sourcing applications to place orders

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SAP„s position – if you look at end-to-end processes SAP supports product

configuration in an end-to-end scenario very well. SAP is not offering a best-of-

breed standalone sales configurator. For niche requirements, to support fast

time-to-value best of breed sales configurators can complement the SAP

solution. For 90% of standard requirements SAP has an out of the box fully

integrated solution.

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