Slide 1: Selling-Chain Management
Transforming Customer Contact into Revenue
Business Process Unit V Chapter 7
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
1
Slide 2: Introduction
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
static sites
by using niche apps or by building customized apps on top of the
Resulting technological environments: complex, loosely
integrated sales systems
Difficult to maintain, customize and extend Online sales channel isolated from rest of enterprise
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
2
Slide 3: Introduction
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 sales
The business challenge: Improving the link from marketing to
Activity management Opportunity management Orders and contracts Campaign management
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
3
Slide 4: Basics 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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
4
Slide 5: Basics of SeCM
Selling Chain Distributor Corporation With Multiple Sales Channels OEM Reseller Customer Sales Force Self Service
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
5
Slide 6: Defining SeCM
Complete order life cycle Customer Inquiry/ Customize Prospect Lifecycle
Partial Functional Solutions Complete Integrated Solutions
Commit Order
{
Sales Lead Configurator Product Catalog
Contract Pricing
Order Entry Commission
Available to Proposal Promise & Quote
Integrated Selling Chain Application
Cross-Functional Processes Breaking Down Departmental Walls
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
6
Slide 7: Collaborative Selling Scenarios Delivered by SAP Customers
Manufacturer/ Supplier
(Consumers/ Business Partner)
Internet Sales
B2B Mall
B2R Network
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
Distributor/ Reseller
7
Slide 8: Defining 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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
8
Slide 9: Business 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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
9
Slide 10: Technology Forces Driving SeCM
The selling-chain application continuum Problems with existing SFA
and lead management Examples include ACT, Goldmine
First Generation SFA tools allowed contact management
Limited process -- order taking and management --
functionality Limited sales effectiveness
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
10
Slide 11: Universal Business Problem: Managing 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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
11
Slide 12: Universal Business Problem: Managing the Order Acquisition Process
Identify Potential Customer Understand Customer Needs Validate Needs with Customer Develop Alternative Scenarios Translate into Production Terms Determine configuration, cost and price Determine terms, availability and delivery
Order acquisition process
needs assessment option selection order configuration order quote and proposal, complete with drawings, schematics, and performance metrics
Present Bid/Proposal to Customer Evaluate and Revise Bid Prepare Order 12
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
Slide 13: Elements of Selling Chain Architecture
Lead, Proposal & Quote Generation Pricing
ail r Em to ec er p os m Pr usto C
Web
VR U
Sales Configurator
Telephone
Commission & Contract Mgmt.
Fa
x
Order Entry & Mgmt.
E
is pr er nt
re tu c ite h rc eA
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
13
Slide 14: Cisco and SeCM
Marketplace Today
• Order Status • Pricing Information • Configuration Assistance • Order all Products Relationship Management Custom Fulfillment Internetworking Product Center Information Center “Old Way”
Targets
• Customer Profile Agent • Custom Order Scheduling
Phase 0
Phase 1
Phase 2
Phase 3
Phase 4
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
14
Slide 15: Custom Foot: Transforming 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
convenience at right price Minimize inventory-holding costs
Provide value to customer in the form of quality, selection, and
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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
15
Slide 16: Custom Foot: Transforming Shoe Sales with Technology
The hope was that the system would enable zero
inventory or associated stocking costs
associated with retailing
Goal: eliminate 30-50% of warehousing and distribution costs
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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
16
