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  • 1. Marcus Kirchler, Dirk Manhart, Jörg Unger Service with SAP CRM ® Bonn � Boston206_Book.indb 3 2/3/09 9:29:08 AM
  • 2. Contents at a Glance 1 Introduction to CRM  . .................................................. 19 2 Service with SAP CRM – Overview of Functions  ......... 65 3 Service with SAP CRM – Processes and Customizing  .. 121 4 Critical Success Factors for CRM Projects  ................... 277 5 Example from the Automotive Industry  ...................... 329 6 Summary  ...................................................................... 357 A Operating a CRM System with ITIL  ............................. 363 B References  .................................................................... 371 C Authors  . ....................................................................... 373206_Book.indb 5 2/3/09 9:29:09 AM
  • 3. Contents Introduction................................................................................... 13 1 Introduction to CRM  .................................................... 19 1.1 Key Concepts and Control Mechanisms in Customer Relationship Management  ............................................. 19 1.1.1 Customer Focus  . ................................................. 20 1.1.2 Customer Satisfaction  .......................................... 21 1.1.3 Customer Retention  ............................................ 21 1.1.4 Customer Lifecycle  .............................................. 22 1.1.5 Control Mechanisms in CRM  ............................... 24 1.2 Service Management as Part of CRM  ............................. 25 1.2.1 Service and Service Management  ........................ 27 1.2.2 Service Portfolio as a Differentiation Factor  ......... 28 1.2.3 Challenges in Service Management  . .................... 29 1.3 Software Support for CRM  ............................................. 31 1.3.1 The Future Significance of CRM Solutions  . .......... 32 1.3.2 Benefits to Companies of Integrated CRM Systems  ............................................................... 32 1.4 Customer Relationship Management with SAP CRM  ...... 35 1.4.1 SAP CRM Roadmap  ............................................. 35 1.4.2 Overview of SAP CRM  . ....................................... 37 1.5 Service Management with SAP CRM  . ............................ 42 1.5.1 Service Sales and Marketing  ................................ 44 1.5.2 Service Contract Management  ............................. 45 1.5.3 Installed Base Management  . ............................... 47 1.5.4 Customer Service and Support  . ........................... 48 1.5.5 Field Service Management  . ................................. 49 1.5.6 Depot Repair  . ..................................................... 50 1.5.7 Warranty and Claim Management  ....................... 51 1.5.8 Service Parts Management  .................................. 52 1.6 Service with SAP CRM or SAP ERP CS – a Comparison  ... 53 1.6.1 Service Operations  .............................................. 54 1.6.2 Service Sales  . ...................................................... 57 1.6.3 Other Functions and Processes  ............................ 57 7206_Book.indb 7 2/3/09 9:29:09 AM
  • 4. Contents 1.6.4 Conclusion  .......................................................... 61 1.7 Architecture of SAP CRM Systems  . ................................ 61 1.8 Summary  ....................................................................... 64 2 Service with SAP CRM – Overview of Functions  . ........ 65 2.1 User Interface  ................................................................ 65 2.1.1 UI Configuration Tool  .......................................... 65 2.1.2 Component Enhancement  ................................... 66 2.2 Master Data and Basic Functions  ................................... 66 2.2.1 Master Data  ........................................................ 67 2.2.2 Basic Functions  . .................................................. 67 2.3 Service Order Management  ........................................... 69 2.3.1 Process Flow  ....................................................... 70 2.3.2 Service Quotations  .............................................. 71 2.3.3 Service Orders  ..................................................... 72 2.4 Warranty Processing  ...................................................... 78 2.5 Complaint Processing  .................................................... 80 2.5.1 Process Flow  ....................................................... 81 2.5.2 Special Functions  . ............................................... 83 2.5.3 Follow-Up Functions  ........................................... 84 2.5.4 Supported Scenarios  . .......................................... 86 2.5.5 Communication Channels  .................................... 87 2.6 Product Service Letters and Recalls  ................................ 88 2.6.1 Product Updates  ................................................. 89 2.6.2 Recalls  . ............................................................... 90 2.7 Service Contracts  ........................................................... 92 2.7.1 Process Flow  ....................................................... 93 2.7.2 Functions in SAP CRM  . ....................................... 94 2.7.3 Functions Available Through Integration With Other SAP Components  ...................................... 96 2.8 Service Resource Planning  ............................................. 97 2.8.1 Process Flow  ....................................................... 98 2.8.2 Functions  ............................................................ 99 2.9 Mobile Service  . ............................................................. 104 2.9.1 Organizational Support  . ...................................... 105 2.9.2 Service Order Processing  ..................................... 106 2.9.3 Service Support Functions  ................................... 108 8206_Book.indb 8 2/3/09 9:29:09 AM
  • 5. Contents 2.10 SAP Business Communication Management  . ................. 109 2.10.1 Overview and Functionality  . ............................. 109 2.10.2 Interaction Center  ............................................. 111 2.10.3 Softphone  ......................................................... 112 2.10.4 User Administration  .......................................... 115 2.10.5 Routing Management  . ...................................... 116 2.10.6 Organizational Tools  . ........................................ 116 2.10.7 System Administration  ...................................... 117 2.10.8 Monitoring and Analysis  . .................................. 118 2.11 Summary  ....................................................................... 120 3 Service with SAP CRM – Processes and Customizing  ... 121 3.1 Basis Customizing  .......................................................... 121 3.1.1 Organizational Plan  ........................................... 121 3.1.2 User Role  .......................................................... 127 3.1.3 Customer  .......................................................... 135 3.1.4 Product  ............................................................. 139 3.2 Service Order Management  ........................................... 147 3.2.1 Process Display  ................................................. 147 3.2.2 Customizing in the System  ................................ 151 3.3 Service and Repairs Processing (In-House)  ..................... 183 3.3.1 Process Display  ................................................. 183 3.3.2 Customizing in the System  ................................ 188 3.4 Service and Repairs Processing (Field Service)  ................ 190 3.4.1 Process Display  ................................................. 190 3.4.2 Customizing in the System  ................................ 194 3.5 Reactive Complaints Management  ................................. 195 3.5.1 Process Display  ................................................. 196 3.5.2 Customizing in the System  ................................ 199 3.5.3 Intelligent Solution Database  ............................ 218 3.6 Proactive Complaints Management  . .............................. 221 3.6.1 Process Display  ................................................. 221 3.6.2 Customizing in the System  ................................ 223 3.7 Service Case Management  ............................................. 226 3.7.1 Process Display  ................................................. 226 3.7.2 Customizing in the System  ................................ 228 9206_Book.indb 9 2/3/09 9:29:09 AM
  • 6. Contents 3.8 Service Resource Planning  ............................................. 235 3.8.1 Process Display  . .................................................. 236 3.8.2 Customizing in the System  . ................................. 238 3.9 Service Contract Management  ....................................... 247 3.9.1 Process Display  . .................................................. 248 3.9.2 Customizing in the System  . ................................. 250 3.10 Warranty Management  .................................................. 258 3.10.1 Process Display  . .................................................. 259 3.10.2 Customizing in the System  . ................................. 261 3.11 Summary  ....................................................................... 276 4 Critical Success Factors for CRM Projects  ................... 277 4.1 General Success Factors  ................................................. 278 4.2 Critical Success Factor – Procedure Model  ..................... 279 4.3 Critical Success Factor – Change Management  ............... 284 4.3.1 Introduction to Change Management  .................. 285 4.3.2 Reasons for Change Management  . ...................... 289 4.3.3 Ideal Change Management Procedure Model  ...... 292 4.4 Critical Success Factor – Data Quality  . ........................... 299 4.4.1 Duplicate Handling in the Standard SAP System  . .. 303 4.4.2 Integrating Address Management Software into SAP Systems  . ............................................... 305 4.4.3 Data Quality Activities in the CRM Project  .......... 313 4.5 Critical Success Factor – Test Strategy  . ........................... 320 4.5.1 Test Model  .......................................................... 321 4.5.2 Test Phases  .......................................................... 323 4.5.3 Test Preparation  .................................................. 324 4.5.4 Test Implementation  . .......................................... 325 4.6 Summary  ....................................................................... 327 5 Example from the Automotive Industry  . ..................... 329 5.1 Fundamentals of the Automotive Industry  ..................... 329 5.2 Customer Interaction Center  .......................................... 332 5.2.1 Overview  ............................................................ 332 5.2.2 Functional Areas  . ................................................ 332 10206_Book.indb 10 2/3/09 9:29:09 AM
  • 7. Contents 5.3 Complaints Management  ............................................... 336 5.3.1 Customer Case/Task in Complaints Management  . ..................................................... 336 5.3.2 Creating a Case/Task  ........................................... 337 5.3.3 Processing a Case/Task  ........................................ 343 5.3.4 Closing a Case/Task  ............................................. 344 5.3.5 Proactive Complaints Management  ..................... 347 5.4 Recall Management  ....................................................... 348 5.4.1 Preparing for a Recall  .......................................... 350 5.4.2 Conducting a Recall  . ........................................... 351 5.4.3 Recall Reports  ..................................................... 355 5.5 Summary  ....................................................................... 356 6 Summary  ....................................................................... 357 Appendices  ......................................................................... 361 A Operating a CRM System with ITIL  . ........................................ 363 B References  .............................................................................. 371 C Authors  . ................................................................................. 373 Index.............................................................................................. 375 11206_Book.indb 11 2/3/09 9:29:09 AM
  • 8. This chapter explains the basic business concepts underpinning CRM in the service area and provides initial insight into the func- tions of SAP CRM. 1 Introduction to CRM This chapter begins by providing a general introduction to the concepts and control mechanisms of customer relationship management. It then focuses specifically on the role of service management as part of cus- tomer relationship management (CRM). After familiarizing you with these basic business principles, this chapter turns its attention to the ways in which CRM is supported by software solutions and, in particular, by SAP CRM 2007. The range of options available is illustrated by a brief introduction to the functions of this software and a comparison with the Customer Service (CS) component in SAP ERP. Chapter 1 closes by taking a look at the system architecture of SAP CRM. 1.1 Key Concepts and Control Mechanisms in Customer Relationship Management To help you understand the CRM approach, we will begin by explain- Key concepts and ing the objectives behind CRM and a number of concepts that are fre- control mechanisms in quently discussed in relation to this concept. These include customer CRM focus, customer satisfaction, and customer retention. We will then provide an overview of the customer lifecycle, which plays a particularly impor- tant role in relation to a company’s service processes. In this section, we also explain the basic mechanisms that a company can use to control and improve customer relationship management within the individual functional areas of the CRM approach, namely operational, strategic, and analytical CRM. 19206_Book.indb 19 2/3/09 9:29:09 AM
  • 9. 1    Introduction to CRM 1.1.1 Customer Focus A paradigm shift in The implementation of CRM leads to a significant paradigm shift in a companies company’s focus. The transition from a sellers’ market to a buyers’ mar- ket described in the introduction underlines the necessity of this para- digm shift, which moves a company’s focus from the product to the cus- tomer and to the customer’s current and potential future needs (Holland 2004). A customer focus at all employee levels is often accompanied by a transformation of the corporate philosophy. In the automotive indus- try, for example, presumed customer requirements were only taken into account when designing vehicles in the past. Now, however, a new focus on customer-related activities goes above and beyond product features, to include, for example, customer-focused services. The strategic level As part of strategic decision-making processes, the analytical function of the company’s IT solutions are used to provide decision makers with the information they need to make decisions based on the data stored in the system. This data includes, in particular, information that is avail- able in a data warehouse and can be evaluated using data mining analysis techniques. The operational The operational level of CRM encompasses both the supporting function level of CRM information technology and the customer focus of the organiza- tional processes and structural organization (Raab, Werner 2008). A com- pany that places its customers center-stage must also strive to enhance the expertise of its customer-facing employees so that these can fulfill their tasks to the best of their abilities. One way to do this is to give these employees greater decision-making powers. In this way, process efficiency is no longer based on procedures for dealing with and reaching agreement with levels that are higher up in the hierarchy. Instead, it is ensured by giving individual employees the ability to make customer-focused decisions at their own level (Link 2001). In addition to this decision-making authority, it is also essen- tial to provide these employees with all of the information required to reach their decisions. Employees can access this information by looking through a complete history of interaction with a customer or using an analytical CRM system. 20206_Book.indb 20 2/3/09 9:29:10 AM
  • 10. Key Concepts and Control Mechanisms in Customer Relationship Management    1.1 1.1.2 Customer Satisfaction A high level of customer satisfaction, which means a high level of cus- tomer loyalty, brings strategic benefits by raising the barriers to market entry for any potential competitors. Customer satisfaction is the direct result of customers’ subjective perceptions of the shortfall between their expectations and the degree to which these expectations are met by the company’s provision of services. A company must therefore strive to ensure that their customers’ experience of the company’s ser- vices exceeds their expectations and leaves the customer with a positive impression. If we apply the CRM approach to this concept, the objectives in relation to customer satisfaction become, first, to pinpoint customer expectations and the underlying level of customer requirements, and, second, to determine the level of customer satisfaction in relation to the services provided. 1.1.3 Customer Retention We can distinguish between two fundamental types of customer reten- tion, namely, customer attachment and customer binding. In this context, attachment refers to a voluntary attachment of customers to a brand or company that is not bound by practical constraints. Binding, meanwhile, means that circumstances “bind” the customer to a company in a way that is no longer voluntary. Customer binding may be based on contrac- tual, economic, or technical or functional constraints. Examples include long-term cooperation agreements, contractually agreed sales quantities, or a current lack of alternatives. In the case of customer attachment, the connection is predominantly a psychological one, and is based on cus- tomer satisfaction, personal relationships, habits, or even tradition. The benefits of customer retention are largely economic, and are par- Three key benefits ticularly evident in long-term customer relationships. We can identify three key benefits to a company of a high level of customer retention (Homburg, Krohner 2003): EE Sales-related benefits These result from a potential increase in the volume of sales to a customer. Companies who maintain long-term relationships with 21206_Book.indb 21 2/3/09 9:29:10 AM
  • 11. 1    Introduction to CRM their customers can become ever better at meeting customer-specific requirements and, in this way, reduce the likelihood of customer defection, as well as make their own range of services more attractive than the competition. In addition to acquiring knowledge of the cus- tomer as part of the customer relationship, long-term business rela- tionships also allow companies to achieve greater success in terms of cross-selling. EE Cost-related benefits These result from a reduction in transaction costs and coordination costs as the customer relationship develops. The alternative costs of acquiring new customers are also reduced. EE Stability-related benefits These benefits are achieved if negative market influences on the com- pany can be offset by long-term customer relationships. 1.1.4 Customer Lifecycle One focal point for the CRM approach is a holistic view of the customer lifecycle. This enables a clear vision of the phases during which a com- pany must apply certain CRM instruments to their relationship with a customer (see Figure 1.1). The customer lifecycle also demonstrates the economic potential that can be achieved through long-term customer retention (Müller 2004). Customer retention starts in the initiation phase with the first contact between the company and the customer. The objec- tive of using a CRM system must be to support the relationship with the customer through information analysis and control to enable long-term, profitable customer retention. Overcoming Throughout the customer lifecycle, the relationship with the customer periods of risk progresses through various phases in terms of the intensity of the cus- tomer’s loyalty. Each of these risk phases involves a threat to the company of losing the customer. However, the overall benefit to the company of customer retention increases the longer the customer can be retained. Within this lifecycle, CRM therefore plays a decisive role in helping companies overcome these periods of risk and prevent a potential loss of the customer’s loyalty. 22206_Book.indb 22 2/3/09 9:29:10 AM
  • 12. Key Concepts and Control Mechanisms in Customer Relationship Management    1.1 Intensity of Relationship (e.g. Customer Value) Potential Existing Former Customer Customer Customer Degeneration Phase Revitali- zation- Phase Initiation Sociali- Risk Growth Risk Maturity Risk Cancell- Abstinence Time Phase zation Phase Phase Phase Phase Phase ation Phase Phase Phase Develop Customer Utilize Customer Potentials Potentials Regaining Customers, Customer Customer Retention: Termination of Acquisition Retention and Penetration Customer Relationships Figure 1.1  Customer Lifecycle Management (from Stadelmann et al. 2003, S. 35) It also provides a basis for the efforts of a company to retain customer Extending the loyalty at a late stage in a relationship with a customer. This is particu- customer relationship larly useful because, when we weigh up the costs and benefits, maintain- ing an ongoing relationship with the customer is much more efficient than trying to win the customer back at a later stage or trying to acquire new customers to maintain business volumes. An extension of the cus- tomer relationship, which is often very beneficial for companies, is only possible if the effective benefits of a continued business relationship can be clearly demonstrated to the customer even at a late stage in the rela- tionship. The services a company can offer its customers therefore take on a special significance. Service is a key factor that enables companies to effectively extend the Service as a key customer lifecycle and to increase the profitability of their customer rela- factor tionships. Therefore, customer relationship management must also seek to enable a quality of service that delivers added value to the customer based on the continued business relationship. Within a company’s CRM 23206_Book.indb 23 2/3/09 9:29:10 AM
  • 13. 1    Introduction to CRM process, it is of key importance to the service area that the CRM IT solu- tions allow the company to achieve the desired level of service quality. 1.1.5 Control Mechanisms in CRM The overall CRM process in a company can be divided into various func- tional areas, listed below: 1. Analytical CRM 2. Strategic CRM 3. Operational CRM The complex relationships between these functional areas and their con- trol mechanisms in customer relationship management are shown in Figure 1.2. Analytical CRM: Reporting and Analysis Methods: Helps to enter customer data and Support the transparency and analy- to integrate the data into a 360- Data sis of customer relationships degree view of the customer Knowledge ge led Actions ow Kn Relationship Optimization Relationship Planning: in operational CRM: Supports the coordination of ac- Knowledge gained from analy- Goals tions and leads employees to focus ses can help to initiate personal- on universal goals ized actions Figure 1.2  Functional Areas and Control Mechanisms in CRM 1 Based on the current situation, the details of which can be deduced from the existing data by means of analysis (analytical CRM). 2 Knowl- edge can be gained that can be used for the strategic planning (strategic CRM) of goals. These goals, together with the findings of the analysis, produce 3 specific actions and measures, for example, for optimizing cus- 24206_Book.indb 24 2/3/09 9:29:11 AM
  • 14. Service Management as Part of CRM    1.2 tomer relationships (operational CRM). The effects of these actions have an impact on the data basis, which, if the company takes a 360-degree view of the customer, will ideally result in renewed optimization of the corporate strategy in relation to customer relationships. In this way, these control mechanisms enable ongoing improvement of customer relationship management in a company. To ensure that these complex interactions of information and control mechanisms can be implemented in companies in practice, a compre- hensive and flexible system is essential to provide support for CRM pro- cesses. This system must provide a sufficiently broad view of all cus- tomer-relevant information, enable strategic and timely implementation of measures, and allow the effects of these measures to be monitored directly. 1.2 Service Management as Part of CRM Customer satisfaction is considered to be a decisive factor in determin- ing customer loyalty to a company. An active influence is exerted on customer satisfaction during each phase of contact. An analysis of the customer lifecycle clearly shows that various measures allow a company to come into direct contact with a customer in the after-sales phase. In this context, the sales area is particularly effective in exercising a positive influence on customer satisfaction. Up to this point, we have looked at the management of customer rela- tionships from a generic perspective. Taking a 360-degree view of a customer and taking account of the entire customer lifecycle are two approaches that are particularly effective ways for companies to create a sound basis for embedding the service area within customer relationship management (see Figure 1.3). The services and service management offered must always be economi- cally efficient and must not be at odds with the profitability criteria for the provision of services. 25206_Book.indb 25 2/3/09 9:29:11 AM
  • 15. 1    Introduction to CRM Internal Fields of Competence Affected by CRM External System in an Enterprise System Stake- Compe- holders Vision/Mission tition Strategic Goals Strategic Planning Marketing Sales After-Sales/ Service Structural Organization Process Organization Technology Figure 1.3  Service as Part of Customer Relationship Management Target criteria for At this point, it should be pointed out once again that a service does not the “service” area represent an end in itself. Rather, it must help the company achieve the following goals: EE Quantitative goals EE Revenue target EE Profitability target EE Qualitative goals EE Increased customer satisfaction EE Increased customer loyalty These generally applicable goal criteria overlap with some of the goal cri- teria for customer relationship management as a whole. In many phases of a customer relationship where sales transactions are placed center- stage, the term service can be applied to additional services relating to the 26206_Book.indb 26 2/3/09 9:29:11 AM
  • 16. Service Management as Part of CRM    1.2 product itself. Here, however, the focus is on the services that become relevant after the product is sold, that is, at the after-sales stage, even if services that go above and beyond the mere provision of a product may also be offered at the pre-sales and sales stages (see Figure 1.4). Focus on Service Pre-Sales Sales After-Sales Service Service Offerings Figure 1.4  Focus on After-Sales Service Examples of the services that a company may offer its customers before Services before, or during the sale of a product include sending information material during, and after the sale of a and flyers, product samples, and a hotline to handle customer inquiries. product Services offered after the sale of a product relate in particular to the fol- lowing areas: EE Complaint handling EE Maintenance and installation EE Provision of product add-ons EE User helpdesks EE Service centers EE Field service employees 1.2.1 Service and Service Management The concept of “service” was a hot topic at the end of the 1980s and the start of the 1990s in the context of the “service wave.” Back then, initial considerations regarding the introduction of service concepts provided an important starting point for recognizing the necessity of providing customers with services. Services were already being identified as an important distinguishing feature of companies, and nothing has changed 27206_Book.indb 27 2/3/09 9:29:11 AM
  • 17. 1    Introduction to CRM in this regard since then. For example, Samuel J. Palmisano, CEO of IBM, described the service area as the most important area in his company in 2003. In 2006, services earned companies in the mechanical engineering indus- try approximately 43.3 billion euros. More than one-third of all services relate to after-sales service offerings. The most profitable after-sales areas in this context are service parts, which account for about 18% of com- panies’ EBIT (earnings before interest and taxes), consulting and value- added services (around 16%), and repair and maintenance (about 12%) (Mercer Management Consulting 2006). 1.2.2 Service Portfolio as a Differentiation Factor The services provided by a company have various benefits, both for cus- tomers and for the company itself. The benefits to the customer are based on the following factors: EE Breadth and depth of services offered compared with customer ex­ ec­ ations p t EE Accessibility of services EE Service prices EE Degree of performance of services EE Short waiting times EE Completeness The service portfolio can be divided into three areas, namely, Must have, Need to have, and Nice to have (see Figure 1.5). It is impossible to make generalizations about which specific services will fall into which of these areas at any given time because this depends on various developments: EE Technological developments EE Standardization developments EE Consolidation of services in the market due to the adaptation of all competitors EE Consumer habits 28206_Book.indb 28 2/3/09 9:29:12 AM
  • 18. Service Management as Part of CRM    1.2 Customer Satisfaction Differentiation Range Service Offerings Must have: rudimentary services Need to have: services geared toward competition Nice to have: services differentiating from the competition Figure 1.5  Differentiation Range of Customer Satisfaction The Must have area includes service offerings that customers expect at Must have all events and therefore must be offered. These include legally binding warranties or the availability of replacement parts for repair. The Need to have area includes all services that are offered by competitors Need to have and can therefore be regarded as a necessity. Customers often assume that the same services will be offered by direct competitors, and the only factor that impacts on their satisfaction in many cases is the non- existence of these expected services. The Nice to have area is of particular significance in relation to differentia- Nice to have tion. Companies can exercise a positive effect on customer satisfaction by offering services in this area. If they succeed, they will create a unique selling point that will set them apart from the competition. 1.2.3 Challenges in Service Management Up to this point, we have described how services can increase customer Competition in the satisfaction and improve customer retention by serving as a differentia- service area tion factor that gives companies a competitive edge. However, in this role as a key differentiation factor, both the services themselves and how they are perceived by customers are particularly sensitive to mar- ket dynamics and increasing customer requirements. Competitors will 29206_Book.indb 29 2/3/09 9:29:12 AM
  • 19. 1    Introduction to CRM also take advantage of any opportunities to gain an edge in the market through the provision of services. This means that companies are con- stantly competing for customers by continuously improving the scope and quality of their services. If a company is to survive in the market and hold on to its customers, it must continually improve its services and adapt to market conditions. As shown in Figure 1.6, the opportunities for differentiation decrease over time as competitors adapt to the higher service level and customer expectations continue to rise. Decreasing opportunities for differentiation Diminution of - Cause: old differentiation range a) Adaption of service offerings by the new in terms of time competition Customer Satisfaction b) Increasing customer expectations Challenges derived - Identify new differentiation features - Optimize existing differentiation features (quality, responsiveness) - Instruments: a) Technology b) Process Optimization Service Offerings c) … Figure 1.6  Market Dynamics – Decreasing Opportunities for Differentiation A company must be able to respond to this change by identifying new differentiation features and incorporating these into their service portfo- lio, or by improving the quality of their existing differentiation features to gain a fresh competitive edge. Three main instruments can be used for this purpose: EE Technology and systems EE Service processes EE Service employees Interplay between However, none of these can be examined in isolation. To establish a cer- the three tain level of quality in terms of service processes and to improve this on instruments an ongoing basis, you first require technologies and systems that enable a very high level of process quality. In addition, service employees not only require adequate education, training, and motivation to carry out 30206_Book.indb 30 2/3/09 9:29:12 AM
  • 20. Software Support for CRM    1.3 their duties, but also rely on process quality and on optimized technolo- gies and system design. In this context, the choice of supporting technology and systems is criti- Critical role of cal to the company because it has a direct effect on the other instruments technology and systems of processes and employees. One thing a company must be able to do to withstand the competition for customers in the service area is to select the right technology and systems that can create the conditions neces- sary for establishing an excellent quality of services compared with the competition and retaining this leading edge. In the following sections, we demonstrate how CRM systems and their service functions can help a company to do just that. 1.3 Software Support for CRM In the market for systems that support business processes, the develop- Dynamic ment of CRM solutions has become very dynamic only recently, com- development pared with generic enterprise resource planning (ERP) or supply chain man- agement (SCM). Systems referred to as sales force automation (SFA) systems or, in Europe, as computer aided selling (CAS) systems, became established in the early days as a primary support for sales. These were primarily intended to help sales employees complete the following key tasks: EE Manage customer contacts EE Organize sales activities EE Classify sales opportunities EE Analyze developments in sales EE Collect information about customers and products However, as part of this dynamic development, customer requirements arose that could not be met by these early systems, for example, the need to access all previous outcomes of contact with a customer any time that communication with this customer is required. More complex, integrated systems were needed to enable the newer CRM strategies. To practice successful and far-reaching customer relationship manage- ment, systems are now required that enable a process-oriented view of the customer. This can only be realized if large volumes of data can be 31206_Book.indb 31 2/3/09 9:29:12 AM
  • 21. 1    Introduction to CRM structured and processed and if the systems can be tightly integrated with the systems used in other areas of the company, such as logistics and finance. 1.3.1 The Future Significance of CRM Solutions In many cases, the level of development that allows processes to be sys- tematically mapped in integrated IT systems, which is already complete, or at least at an advanced stage in the area of ERP and SCM solutions, is yet to come for customer relationship management. Many companies have, by now, acknowledged the importance of CRM to their future survival and, taking a medium-term view, are aware of the necessary investment in IT solutions that will fulfill the company’s requirements in terms of implementing and supporting CRM processes. In many cases, one of the key tasks for IT in a company is to offer business departments a modern, highly integrated IT solution for CRM. This trend is well documented, for example, by a study by the Economist Intelligence Unit (2005). This revealed that customer relationships and customer service was by far the number 1 business area (62%) where IT is to play a decisive role in the medium term. This was followed by sales and marketing (34%) and new product and service development (31%). 1.3.2 Benefits to Companies of Integrated CRM Systems Customer relationship management is a complex, holistic approach that strives to enhance a company’s profitability by improving its relation- ships with its customers. Individual, preliminary objectives and methods can be identified, which together allow this overall goal to be achieved. The implementation of an integrated CRM solution requires an invest- ment by a company that must yield a range of additional benefits that go above and beyond the company’s basic requirements in terms of a CRM strategy and CRM processes. In this way, companies can benefit from the overall added value of a modern CRM system, in addition to its basic operational functions. 360-degree view of Customer data provides a starting point for any CRM activity. If a signifi- the customer cant improvement is to be made in customer relationship management, 32206_Book.indb 32 2/3/09 9:29:12 AM
  • 22. Software Support for CRM    1.3 it is not sufficient to manage only some of this customer data. Rather, a complete, holistic view of all available customer data and the rela- tionships between this data, in other words, a 360-degree customer view, serves as an essential starting point. This can incorporate the following features: EE Transparency of all customers and customer requirements EE A unified picture of complex customer and object structures in a cen- tral, universal model (and therefore system) EE A complete history of interactions with the customer across all busi- ness departments EE Documentation and retention of important customer knowledge from customer-facing processes (for example, price agreements or call reports) EE Assessment of the success of customer care measures (for example, acquisition, campaigns, contact intensities, lead times for customer complaints) EE A feedback system, whereby knowledge about a customer gleaned from past interactions with that customer is fed into current or future interactions (for example, reasons for rejecting past offers are taken into account when determining future interaction) The complexity reflected by this type of 360-degree view of the customer can only be mapped by IT using the latest CRM software solutions. The design of the solutions is therefore of particular importance in determin- ing whether a company is in a position to use this type of holistic view of its customers to achieve its CRM objectives. Increasing customer loyalty is another goal for CRM. Customer loyalty is Increasing another important factor in the overall profitability of the lifecycle of a customer loyalty customer relationship (see Section 1.1.4 Customer Lifecycle). The follow- ing tools are particularly effective in enhancing customer loyalty: EE Personalized contact and personalized services based on a complete interaction and information basis EE Unified, strategic communication (one face to the customer) across all departments 33206_Book.indb 33 2/3/09 9:29:13 AM
  • 23. 1    Introduction to CRM EE A constant presence and constant availability (24/7) to customers using all communication channels Importance of an In relation to these measures for increasing customer loyalty, it also integrated CRM becomes clear that these can only achieve a corresponding process qual- system ity if an integrated CRM system allows the company to integrate all rel- evant information, technologies and functional areas so that information is exchanged and all subprocesses are linked in virtual real-time. Additional This type of system support for processes also allows companies to lever- potential for age additional potential to increase sales or reduce costs: increased sales EE Faster, more streamlined customer-facing processes thanks to greater efficiency, for example, by establishing customer self-service processes EE Performance differentiation (prices, discounts, advertising mate- rial, and so on) or a cost-efficient enhancement of customer care (for example, call centers) EE Increased sales through cross- or up-selling EE Reduced costs through the use of new contact channels EE Reduced costs through the transfer of functions from the company itself to customers, partners, or vendors EE Reduced costs in outbound campaigns thanks to suitable target groups EE Reduced costs in the supply chain due to a clearer focus of investment in the most profitable customers EE Strategic analysis and development of potential by linking customer and market data (lead management and opportunity management) EE Increased customer lifetime values thanks to greater customer loyalty EE Integration of partners into the process chain, for example, as part of sales promotions campaigns (channel integration) In addition to the benefits for the company itself, account must also be taken of the fact that customers should benefit from the company’s use of a CRM solution. This is essential to the establishment of sustainable, stable, and mutually beneficial business relationships. 34206_Book.indb 34 2/3/09 9:29:13 AM
  • 24. Customer Relationship Management with SAP CRM    1.4 1.4 Customer Relationship Management with SAP CRM Section 1.4.2 Overview of SAP CRM, provides an overview of the func- tions provided by an SAP CRM system. First, however, we provide a short introduction to SAP’s CRM Roadmap to briefly explain the recent development of the various releases. 1.4.1 SAP CRM Roadmap Figure 1.7 shows the current situation with regard to the individual releases of the SAP CRM system. The SAP CRM 2005 system was released in 2005. SAP CRM 2005, together with its predecessor, SAP CRM 4.0, currently represents by far the greatest number of SAP CRM live installations. SAP CRM Product Release Roadmap 2005 2006 2007 2008 2009 SAP CRM 2005 RAMP-UP UNRESTRICTED SHIPMENT SAP CRM SAP CRM SAP CRM 2006s/1 2006s/2 2007 PHASED RAMP-UP RAMP-UP UNRESTRICTED SHIPMENT INTRODUCTION SAP CRM 7.0 UNRESTRICTED RAMP-UP SHIPMENT Figure 1.7  SAP CRM Roadmap The subsequently developed 2006s/1 and 2006s/2 systems were pre- paratory releases, which a limited number of customers used to jointly develop Release 2007 with SAP. Starting in early 2008, SAP CRM 2007 was available to a broad range of customers as part of a ramp-up phase. 35206_Book.indb 35 2/3/09 9:29:13 AM
  • 25. 1 Introduction to CRM Since the middle of 2008, customers have been able to use this release without any restrictions, and the introduction of release 7.0 is planned for 2008/2009. Developmental Overall, the development from Release 2005 to Release 2007 can be leap regarded as the greatest progress made in the recent history of SAP CRM systems. The most obvious change is undoubtedly the new user interface (UI), which is based on web standards and is easily personalized by the user and more user-friendly than any previous SAP CRM system. With this new UI, it is very easy to integrate external Web services, such as news feeds, and so on. Many functions are integrated into the interface as web client popups. With the new-look interface (see Figure 1.8) and the high level of usability, SAP has made a decisive leap forward in the area of CRM systems. Back in the days of Release 2005, the main argument in favor of using SAP CRM was its high level of integration with the SAP ERP system. With Release 2007, however, the SAP CRM system can now also hold its own in the market in terms of both usability and functional scope. Meanwhile, this integration has also been enhanced. (For more details, refer to Section 1.7 Architecture of SAP CRM Systems.) As a result, the need for users from the marketing and sales areas to weigh integration against usability will soon be a thing of the past because the new CRM release offers both. Figure 1.8 The New Look of SAP CRM 2007 36206_Book.indb 36 2/3/09 9:29:14 AM
  • 26. Customer Relationship Management with SAP CRM    1.4 1.4.2 Overview of SAP CRM The SAP Customer Relationship Management (CRM) solution offers an end- to-end range of functions to cover the entire lifecycle of customer rela- tionship management, as well as instruments for analysis and planning. Customer relationship management can be roughly divided into the fol- Phases of CRM lowing phases: 1. Engagement This phase involves identifying possible customers and acquiring them for an initial sale. 2. Transaction This phase involves establishing business agreements and processing sales. 3. Fulfillment This phase involves delivering the promised services to customers and billing for services rendered. 4. Service This phase involves offering and delivering additional, product-based after-sales services. Various functions are also available across all four phases, which allow the phases to be planned (analysis and planning) and help the business departments and management make decisions affecting customer rela- tionship management. This book focuses on the service area, which we introduce in Section 1.5 Service Management with SAP CRM, and discuss in more detail in subsequent sections. First, however, we will briefly introduce the first three CRM phases and the more important functions assigned to these in the SAP CRM system. This introduction is by no means exhaustive, and we will limit ourselves to just some of the functions provided as part of the very extensive functional scope. We will then move on with a more detailed and comprehensive discussion of the topic of this book, that is, service. 37206_Book.indb 37 2/3/09 9:29:14 AM
  • 27. 1    Introduction to CRM Engagement The engagement area largely covers the following functions: marketing, lead management, customer segmentation, quantity assignment, product proposals, and communication. Marketing The Marketing Planner is a particularly useful tool for marketing. This maps and hierarchically structures a company’s marketing activities in the form of corresponding plans, organized, for example, by customer categories, countries, or products. It supports the exchange of data both within the CRM system and between the CRM system and external appli- cations such as Microsoft Outlook or Project. Marketing campaigns can also be planned in SAP NetWeaver Business Intelligence (BI), if it is used, which means that corresponding key figures are generated there also. Lead management Lead management allows you to identify and classify sales opportunities with a view to tracking down market opportunities and sales oppor- tunities. The SAP CRM system allows you to manage all relevant data, manage the development of the sales opportunity into a customer, and transform a lead into a customer in the system directly, together with all of the assigned information. Segment Builder Another key function in this area is the Segment Builder, which supports customer segmentation. This allows activities and campaigns to be aimed directly at customers that are likely to respond positively to these, based on specific characteristics, such as product preferences in the past. As a result, campaigns can be designed in a more strategic and cost-effective manner. Quantity Quantity assignment allows for the distribution of a possibly limited prod- assignment uct capacity among various customers. For example, a company can allocate the largest available quantities of a product that is to be newly launched in the market to the customer that generated the greatest rev- enue in the past because this customer is also more likely than others to want to buy large quantities of this product. Product proposals An extensive product proposals function is also provided, which uses product association rules to generate product proposals from the data stored about a customer’s past transaction behavior. These proposals are particularly likely to lead to a sale to the customer in question. This sup- 38206_Book.indb 38 2/3/09 9:29:14 AM
  • 28. Customer Relationship Management with SAP CRM    1.4 ports the conventional tools used to boost revenue with customer cross- selling and up- and down-selling. Finally, the functions provided for communication are also worthy of a Communication mention. In the past, a major shift took place in marketing from generic mass communication to increasingly individual and personalized com- munication with customers. This personalization or individualization of customer communication would be impossible without a CRM sys- tem that can offer the relevant capabilities, because these processes fre- quently require a high degree of automation, a large data volume, and a correspondingly high level of data quality if the time and effort involved are to be kept within reasonable limits. SAP CRM provides the user with support in relation to all relevant communication channels. Transaction In this area of customer relationship management, tools are provided to support the organization of sales, for example, tools to manage sales territories or sales activities. In addition, this CRM phase maps the sales activity cycle, which includes the planning and management of business partners and sales opportunities, order acquisition, and the analysis of sales key figures. The organizational elements of this functionality (territory management and Territory and activity management) support the modeling of organizational structures activity management and corresponding functions, such as reporting, and the management of specific sales activities, such as the scheduling of sales negotiations and the allocation of sales resources. For example, all customer-specific activities, such as on-site sales negotiations and telephone inquiries, are recorded. As a result, the latest status of interaction in a customer rela- tionship is transparent to all sales employees. This makes it easier for a sales employee to work temporarily on a customer account that is nor- mally the responsibility of another sales employee, for example. If used in conjunction with SAP NetWeaver Business Intelligence, these sales activities can also be analytically evaluated. This creates transpar- ency regarding which sales activities were particularly efficient and which did not succeed in meeting the target set. This allows the company to 39206_Book.indb 39 2/3/09 9:29:14 AM
  • 29. 1    Introduction to CRM optimize its sales activities over time and to develop greater efficiency of sales. Business partner Business Partner and Opportunity Management enables the management and opportunity of information about business partners and about sales opportunities. management Whereas the business partner cockpit provides a comprehensive view of business partners and all data relating to them, Opportunity Management records sales opportunities and helps sales employees convert these opportunities into real sales. For example, it allows sales opportunities to be compared on the basis of their expected likelihood of success or their expected volume, which allows sales efforts to be focused on the most promising and profitable sales opportunities. Order acquisition Order Acquisition represents the next phase, in which a sales opportunity has been turned into an actual sale, and sales documents such as requests for quotation, quotations, and orders are created, which can be managed as part the order acquisition process. Functions that may be familiar to you from the Sales and Distribution (SD) SAP ERP model are also inte- grated into order acquisition to enable efficient order processing. These include the preparation of organizational data, partner determination in the relevant partner roles, product determination and selection, pricing, availability check, and date management. In the order document flow, the individual sales documents can be con- verted into other sales documents in accordance with the predefined sequence (for example, a quotation is converted into an order) to reduce unnecessary additional effort, such as duplicate entry of document data. Extensive copy functions are available for this purpose if similar sales transactions are to be initiated. The transaction area also includes functions for managing contracts and business agreements, which define specific pricing and conditions between two business partners, and which can then be copied into the relevant orders between the partners. Fulfillment Once the sales transaction is confirmed and the order created, this order must be fulfilled by the provision of the corresponding service. SAP CRM helps companies do this with functions for checking availability, billing 40206_Book.indb 40 2/3/09 9:29:14 AM
  • 30. Customer Relationship Management with SAP CRM    1.4 (including credit management and payment processing), and shipping and transportation. First, an Availability Check (also known as the Available-to-Promise [ATP] Availability check check) allows you to schedule the order quantity based on the defined dates and planned capacities. This function can also be used as a simu- lation, for example, to agree on delivery dates with the customer in advance. If the desired delivery date cannot be met with backward scheduling, forward scheduling is used to give alternative target dates. The aspects of shipping and transportation can be integrated into the date calculation, and can take account of other customer preferences, such as partial or full deliveries. For Billing and Payment Management, SAP CRM supports a very wide Billing and range of payment methods, from conventional billing to billing based payment management on agreed payment terms, and electronic payment forms, which are pri- marily used in business-to-customer (B2C) scenarios involving a large number of mostly unknown business partners. Payment processing also includes credit management, which allows customers to be granted cer- tain lines of credit or customer classification to be used to influence the sales transaction so that, if customers exceed defined credit lines, warn- ings are displayed (depending on the customer classification) or sales documents (such as orders or deliveries) are locked and can only be released by employees with sufficient authorization. All processes through which a product passes from finishing to goods Shipping issue are mapped in shipping. These include the creation of deliveries with the corresponding delivery documents (delivery notes and so on) and, where relevant, the necessary foreign trade documents, as well as picking, packing, and goods issue. If an SAP CRM system is also used, these functions are enhanced with an extensively automated shipping process, which also enables deadline monitoring and the integration of storage capacities, for example. When the goods issue is posted at the end of the shipping process, the product leaves the company. At this point, the necessary stock postings, including all value changes, are made in the company’s accounting system. An extensive range of functions is provided in relation to transportation. Transportation These allow you to group the various deliveries together in shipments, 41206_Book.indb 41 2/3/09 9:29:14 AM
  • 31. 1    Introduction to CRM select the best transportation service provider and routes, and create the necessary shipment documents. Also included are functions to calculate the transportation and shipment costs, taking account of the product and packing information in the delivery documents (for example, weight and size). Global functions: The next phase of customer relationship management, namely, service, analysis and is discussed in Section 1.5 Service Management with SAP CRM, in more planning detail than the previous phases described here. First, however, we take a look at the global aspects of customer relationship management, that is, Analysis and Planning. To monitor order processing and services, and to provide starting points for possible improvements, SAP CRM includes a range of reports and analyses that can indicate process quality and efficiency in this area. In this context, a range of key figures can be generated (for example, for delivery reliability or the occurrence of returns). Thanks to the consider- able flexibility of these potential reports, each company can define its own key figures for its own analyses and reports. 1.5 Service Management with SAP CRM As illustrated in the SAP CRM Roadmap in Section 1.4.1 SAP CRM Road- map, the enhanced functions in SAP CRM Release 2007 make it perfectly equipped to cover the service area. We examine these functions in detail with specific reference to the system in Chapter 2, Service with SAP CRM – Overview of Functions, before explaining the options these provide in terms of process design in Chapter 3, Service with SAP CRM – Processes and Customizing. In the next section, we start by providing an initial overview of the service areas in a company that are supported in terms of the structuring and fulfillment of tasks in SAP CRM Release 2007. Putting service Figure 1.9 provides an overview of how the topic of service fits into the into an overall overall context of customer relationship management. Here, service is CRM context shown on the same level as the other two major process categories in CRM. Like sales and marketing, service is connected to the customer through various communication channels, such as the Internet or call centers. 42206_Book.indb 42 2/3/09 9:29:14 AM
  • 32. Service Management with SAP CRM    1.5 As shown in Figure 1.10, the functional service areas in a company can be divided into the following three categories, which make up a service management cycle: EE Collaborate EE Analyze EE Optimize These three categories, in turn, are composed of a total of eight different service segments, which are described in detail in the sections below. We also describe how these service areas are implemented in SAP CRM 2007. Customer Partner Mobile Channel Internet Call Center MARKETING SERVICE Sales ANALYTICS End-to-end, Industry-specific Processes Powered by SAP NetWeaver ® Figure 1.9  Service as Part of the Portfolio of the SAP CRM Solution The following sections provide an initial overview of the business requirements for service in the various areas of the service management cycle, and explain how these requirements are addressed in SAP CRM Release 2007. 43206_Book.indb 43 2/3/09 9:29:15 AM
  • 33. 1    Introduction to CRM Collaborate Service Service Parts Sales & Management Marketing Warranty Service & Claim Contract Management Management CUSTOMER Depot Installed Repair Base Management e Field Customer yz O Service Service & al pt Management Support An im iz e Figure 1.10  Service Management Cycle 1.5.1 Service Sales and Marketing Services also need to be advertised in the market using marketing and turned into revenue through sales. SAP CRM 2007 supports these busi- ness functions for service management in a similar way as the higher- level areas of sales and marketing. The following aspects are mapped as part of the sales and marketing of a company’s services: EE Service marketing and campaign management EE Service lead and opportunity management EE Service quotation management EE Service solution sales: order, contract, and bundling of products and services We can essentially distinguish between three different types of service based on their characteristics and objectives. Each of these three ser- vice types have different goals and use different tools supported by SAP CRM. 44206_Book.indb 44 2/3/09 9:29:15 AM
  • 34. Service Management with SAP CRM    1.5 Reactive services represent the company’s reactions to customer expec- Reactive service tations, for example, the provision of information about a product in response to a customer inquiry. The objectives of reactive services are to maintain and enhance customer satisfaction (see Section 1.1.2 Customer Satisfaction). SAP CRM provides relevant tools in the form of account and contact management, a customer database, and the integration of customer-related service processes. Active services address the quality of the customer relationship, and serve Active service to sustain this relationship, improve customer loyalty, and enhance the customer relationship in terms of profitability and lifecycle (see Section 1.1.4 Customer Lifecycle). As part of these proactive services, the cus- tomer is offered additional services, such as maintenance offers, dis- counts on additional products, and so on. These requirements are cov- ered by SAP CRM with relationship marketing, campaign management, and process integration. Selective services seek to enhance the profitability of a customer. Relevant Selective service analyses are used to determine the customer segment for which it can be assumed that the company can increase its profits by implementing selective services. SAP CRM supports selective services with customer value analysis, advanced analysis tools, and optimization of the service portfolio. 1.5.2 Service Contract Management It may prove beneficial to both a company and its customers to establish service contracts because a long-term service relationship offers advan- tages to both. Service contracts usually specify the following service properties, among others: EE Response times for the service EE Availability times of a product or service EE Availability and costs of service parts EE Service and maintenance intervals 45206_Book.indb 45 2/3/09 9:29:15 AM
  • 35. 1    Introduction to CRM Benefits for The advantages of these kinds of service agreements for companies companies incude: EE The establishment of a service business with its own sustainable busi- ness model as an independent profit center within the company EE Increased customer loyalty based on long-term service contracts EE Enabling individual approaches to meeting customer requirements in terms of service EE Precise tailoring of services to suit customers (in the sense of service packages) EE Definition of conditions for warranty to improve risk management EE Optimized contract profitability Benefits for Benefits to the customer can also be identified, in particular, in the case customers of products that require a high level of maintenance: EE Stable, uninterrupted use of the product thanks to regular maintenance EE Maximized product availability thanks to minimized maintenance and repair phases EE High level of service availability due to guaranteed response times in a service case EE Forecasted service costs SAP CRM SAP CRM 2007 supports service contract management with the follow- functionality ing functions: EE Creation of service agreements EE Creation of service contract quotations EE Management of service contract lifecycles EE Service level management EE Management of quantity and value contracts EE Definition of the form of the contract based on level of usage EE Management of “proactive” maintenance measures 46206_Book.indb 46 2/3/09 9:29:15 AM
  • 36. Service Management with SAP CRM    1.5 1.5.3 Installed Base Management In SAP CRM 2007, installed base management not only refers to the Product management of data that is directly related to the customer, but also configuration lifecycle incorporates the management of the products currently used by the cus- tomer, including all service-related information about these products. Transparency regarding the product configuration currently used by a customer is essential, in particular in the case of technology-intensive products that are shipped in several different configurations or with dif- ferent components over the course of their lifecycle. Past service mea- sures involving a change to the configuration or the replacement of com- ponents can also be mapped. Figure 1.11 shows the typical lifecycle of a product configuration as part of an installed base. Starting with order management, the agreement defines which product the customer purchases in which configuration, and possibly also how this product is installed at the customer site. The agreement also speci- fies whether the customer purchases the product or whether it is to be made available to the customer for a limited period only (rental/lease contracting and so on). Quotation & Configuration Order Management Procurement or Production On-Site Installation Installed Base Scrapping/ Re-Sell Contract Inhouse On-Site Management Repair Repair Figure 1.11  Lifecycle of the Installed Base of a Customer 47206_Book.indb 47 2/3/09 9:29:16 AM
  • 37. 1    Introduction to CRM The conditions governing service and maintenance and rental conditions (where relevant) are agreed later as part of contract management. Provision can be made for on-site repairs or repairs in the service depart- ment as part of the repair cycle. In both cases, the system provides the relevant configuration data for the customer product. In addition, agreements can also be put in place specifying that resale or disposal of the product is supported by the vendor, who can similarly select the relevant product information and therefore also the resale con- ditions and disposal measures in this case. SAP CRM SAP CRM 2007 supports all of the following business requirements: functionality EE Precise and up-to-date installed base and product configuration data EE Management of product status information (for example, counter readings) EE Tracking of the product configuration across the entire maintenance lifecycle (for example, the use of replacement parts) EE Management of changed or updated safety regulations and instruc- tions for use EE Identification of up-sell sales opportunities in the customer context EE Management of the entire lifecycle and product history (for example, in relation to the serial numbers of components) EE Support for remote monitoring of product statuses and service cases 1.5.4 Customer Service and Support Customer service and customer support cover the following business requirements: EE Receipt of service requests from the customer: Planning, process- ing, and monitoring of the relevant activities performed by service employees EE Access to all relevant customer information, such as customer master data, customer product data, contracts, and warranties (360-degree view of the customer) 48206_Book.indb 48 2/3/09 9:29:16 AM
  • 38. Service Management with SAP CRM    1.5 EE Triggering and monitoring of any necessary follow-up actions: Which follow-up actions are required and when must they be completed? EE Availability of technical information to complete service tasks and, where relevant, information specifying how the configuration of the customer product has been changed by the service tasks EE Management of a status description of the product that is serviced EE Documentation of service activities SAP CRM offers both operational and analytical functions to help com- SAP CRM panies meet these requirements in the customer service area: functionality EE Operational functions EE Tools for customer self-service (online help, product information) EE Service request management EE Complaints management EE Management of service activities EE Complaints and returns management EE Service quotation and order management EE Escalation management EE Solution database EE Analytical functions EE Measurement of interaction times EE Analysis of the proportion of problems solved at each support level EE Monitoring of missed deadlines EE Identification of problematic customer situations or accounts 1.5.5 Field Service Management Field service is an area that is constantly increasing in volume in service- oriented business environments. Customers value the provision of an on-site service, and companies are increasingly discovering this form of direct customer contact to be an effective differentiation factor to set them apart from their competition. 49206_Book.indb 49 2/3/09 9:29:16 AM
  • 39. 1    Introduction to CRM Against this backdrop, a CRM solution must also be able to support a range of requirements relating to field services. Typical requirements in this context are as follows: EE Analysis of service performance in the field service compared with objectives and customer commitments EE Analysis of the effectiveness of field service personnel EE Identification of typical problem scenarios to improve quality EE Comparison of the company’s service costs with profits from the cor- responding customer contracts EE Analysis of the service parts used in order to optimize the equipment available to field service personnel SAP CRM SAP CRM supports these requirements with the following functions: functionality EE Management of preventative and corrective maintenance measures EE Service order management EE Resource planning for field service employees EE Management of service order confirmations EE Management and re-ordering of service parts EE Mobile access to relevant system information 1.5.6 Depot Repair Depot repair refers to a scenario where repair or servicing does not take place at the customer site. Instead, the product that requires mainte- nance is returned to the company, where the repair is then carried out. Due to the differences in terms of logistics, capacities, and the mainte- nance situation, a different set of service process requirements arise in this case than in the case of field service maintenance: EE Utilization planning Transparency of the repairs to be expected, requirements forecast for service parts, and monitoring of service commitments EE Management of the repairs cycle Checking of the service case against the contractually guaranteed ser- vices, escalation management, emergency release of service parts, 50206_Book.indb 50 2/3/09 9:29:16 AM
  • 40. Service Management with SAP CRM    1.5 installation of upgrades and product changes and, if necessary, grant- ing of discounts or credit EE Execution of repairs Checks to determine that the repair is justified, management of check lists and solution databases, management of maintenance history, development of best practices EE Completion of repairs Documentation of the relevant measures and possibly also withdrawal and disposal of the product if the repair is not practically possible or economically viable These processes are implemented in the following functions in the SAP SAP CRM CRM system: functionality EE Returns management EE Repair quotation and order management EE Monitoring of the repairs process EE Management of repair confirmations EE Integration of services from other providers EE Management of payment conditions such as discounts or credit Analytical functions are also provided in addition to the purely opera- tional functions to support repairs processing: EE Optimization capacity utilization based on forecast functions EE Identification of typical repair scenarios to improve quality EE Documentation of potential improvements to repair processes EE Monitoring of the company’s own on-time delivery performance and the customer’s payment history EE Repair costs analysis as a basis for making decisions to upgrade or withdraw products 1.5.7 Warranty and Claim Management Like the general increase in service level, the granting of warranties or guarantees has increasingly become a factor that differentiates compa- 51206_Book.indb 51 2/3/09 9:29:16 AM
  • 41. 1    Introduction to CRM nies from competitors in recent years. It is also becoming clear that the general legal requirements in most markets tend to demand that compa- nies provide increasingly comprehensive warranties. Due to the growing market significance of the subject of warranty, the following developments must be taken into account in this area: EE Warranties are being increasingly used for marketing and sales purposes. EE Stricter legal conditions give rise to increased requirements. EE A higher volume of warranties justifies the use of more extensive checking to determine who is liable for repairs under the terms of the warranty. EE Service and warranty are being increasingly viewed as profit centers, which need to be able to predict service costs with greater accuracy. EE Complex products involve many suppliers, all of whom need to be included in the warranty. SAP CRM These developments are acknowledged in SAP CRM 2007, which pro- functionality vides the following functions to support the service area of companies: EE Management of warranty agreements for both the customer and the vendor EE Management of product registrations: multi-channel, web-based c ­ ustomer self-service, advertising of service contracts, customer data entry EE Support for checking of warranty claims EE Control of warranty claim processing 1.5.8 Service Parts Management Unlike production of the actual product, service parts management makes high demands of companies, which need to be incorporated into the company’s corresponding processes. The essential differences between service parts management and the manufacture of finished products are listed below: 52206_Book.indb 52 2/3/09 9:29:16 AM
  • 42. Service with SAP CRM or SAP ERP CS – a Comparison    1.6 EE The demand for service parts is very fluid, and the quality of forecasts is poor due to unforeseen service and repair requirements. EE Demand must be controlled at the component level because there is no fixed relationship between the components to be provided, as is the case in production (using bills of material [BOMs], for example). EE Many vendors are involved, and all of these experience the same dif- ficulties with the forecasting of demand in the service parts market. EE Service parts may be interchangeable; various specifications of a ser- vice part may be suitable replacements for the original part. SAP CRM 2007 includes extensive service part management functions to SAP CRM meet the challenges, in particular, when used in conjunction with SAP functionality SCM. These include the following: EE Supply Chain Management for service parts EE Supply Chain Collaboration with vendors and customers EE Functions for sales and distribution, requirements planning, repeat orders, pricing, and storage of service parts 1.6 Service with SAP CRM or SAP ERP CS – a Comparison Customers can choose between two alternatives when it comes to service processes in an SAP system, namely Customer Service (CS) functions, which are already available in the SAP ERP system, or the service area of the CRM solution. This section compares both variants due to the very wide range of potential requirements companies may have in terms of an IT solution in the service area. Therefore, we will list and briefly describe various functions and processes and explain whether and to what degree these areas are covered by either SAP ERP CS or SAP CRM Service. The analysis is conducted at a general level and represents a global evalu- ation. Since it is impossible to take individual process steps into account in this case, deviations may arise in the analysis of company-specific detailed processes. 53206_Book.indb 53 2/3/09 9:29:16 AM
  • 43. 1    Introduction to CRM 1.6.1 Service Operations Service operations represents a key functional area of the solutions com- pared here. It is concerned with all aspects of the planning and imple- mentation of service activities. These functions are offered by both SAP ERP CS and SAP CRM. We will therefore focus on the different ways in which these support this area. Maintenance Planning Maintenance planning means the fulfillment of contractually agreed obli- gations to carry out preventive maintenance measures. This includes effi- cient scheduling of service activities to avoid interruptions to customer processes. The timely availability of the necessary resources (personnel, material) is essential here. The objective is to achieve a high level of customer satisfaction through contract fulfillment and a low error rate. In addition, the effectiveness of the preventive maintenance measures is increased through the optimization of resource planning and time scheduling. Both SAP ERP CS and SAP CRM Service offer maintenance plans with and without a contract reference for this purpose. However, these are not automatically generated from service items in the case of SAP ERP CS. In the SAP CRM system, all required data is defined in the con- tract (object, product, release list, and service plan data). Both variants offer flexible control options and planning delivery schedules that can be automated. Tickets for Unplanned Services Tickets for unplanned services are intended to ensure efficient and correct processing of incoming service requests from customers. This requires fast identification of the customer, location, and defective equipment to guarantee fast processing of the service requests, leading to increased customer satisfaction. Data gaps in the IT system are also closed. Yet another benefit is the fact that leads can be identified and forwarded to the service sales team. 54206_Book.indb 54 2/3/09 9:29:16 AM
  • 44. Service with SAP CRM or SAP ERP CS – a Comparison    1.6 With SAP ERP CS, message-based and order-based entry options are available, whereas SAP CRM Service supports order-based only. Both alternatives allow for fast identification of customers, objects, contracts, and warranties. With SAP ERP CS, however, restrictions apply in the areas of ticket routing, lead generation, and text entry. SAP CRM Service provides enhanced maintenance functions such as a knowledge database and escalation. Explanation of Unplanned Services The subsequent service steps are maintenance, diagnosis, and, possi- bly, a direct solution of the problem. In other cases, the information gathered is used to dispatch a suitable technician or the required mate- rial, for example. Possible sales leads are forwarded directly. This can increase profitability and efficiency through direct problem resolution. In addition, unnecessary journeys and wait times are minimized, which produces a cost saving. Shorter response times and increased first call resolution also improve customer satisfaction. Whereas SAP ERP CS only provides restricted options in this area based on assisted help resources, SAP CRM Services offers advanced functions based on the use of question catalogs and guides. In addition, the docu- mentation area includes extensive options (such as error classification based on service catalogs). Direct lead generation for sales is only pos- sible with SAP CRM Service. Sales Installation Order In many cases, the installation of systems is anchored in the sales order as an independent item. The purpose of this is to trigger a service order for the installation directly. As a result, the installation of sales objects is automatically added to the pool of service orders. This means that it is taken into account in overall planning. The advantage of this is that the sales department has a clearer overview of order progress in the imple- mentation phase. This is a standard scenario in SAP ERP CS, which is globally implemented using service products as installation items in the sales order. SD service items can be used to configure services for the installation. SAP CRM 55206_Book.indb 55 2/3/09 9:29:16 AM
  • 45. 1    Introduction to CRM Service does not support this function directly, although it can be imple- mented using customer enhancements. Service Planning The goal of service planning is to create the groundwork for an efficient and effective implementation of services. This requires the assignment of suitable personnel and the necessary materials and tools. This can signifi- cantly improve the efficiency of planning in terms of both personnel and material resources. In addition, an awareness of priorities and of open issues and work already begun helps increase customer satisfaction. This optimizes the response to new service requests. Tracking of transactions can also be improved, and confirmations made more effective. Some limitations apply to this function in SAP ERP CS (planning of per- sonnel resources, taking account of qualifications, integration of exter- nal resources). However, these gaps can be closed if the Multi Resource Scheduling (MRS) component is used. SAP CRM Service, on the other hand, offers enhanced planning options (for example, the inclusion of external resources and graphical planning tools). Neither variant allows for cross-plant planning. Execution of Services and Reports The Service and report execution function is intended to make service activities more efficient. Relevant data is confirmed for settlement and, in some cases, updates of the technical object. Meanwhile, the return of parts not required is initiated without delay. The result is an effective, customer-based execution, which has a positive impact on customer sat- isfaction. Fast and correct confirmations also speed up the settlement and billing processes. Moreover, forwarded sales leads generate addi- tional results in the service area. All requirements are covered by both SAP ERP CS and SAP CRM Services. Service Billing Service billing checks and posts the service report. Sales leads and oppor- tunities entered in the report are recorded and forwarded. This results in correct updating and cost assignment based on the service agreement or 56206_Book.indb 56 2/3/09 9:29:16 AM
  • 46. Service with SAP CRM or SAP ERP CS – a Comparison    1.6 warranty cover. Additional results are also generated by sales leads. In addition, the information recorded about the customer and equipment enables strategic improvement and retrofitting measures. Here, too, all requirements are covered by both SAP ERP CS and SAP CRM Service. Evaluations Completed service activities, product performance, and root cause analy- ses are evaluated. Cause analyses are forwarded to product development, and can help improve products and enhance maintainability. The analy- sis of service activities can be drawn upon when providing customers with quotations for similar services. Bottlenecks are also identified and kept to a minimum. Both SAP ERP CS and SAP CRM Service offer only limited evaluations as standard. These can only be enhanced by using SAP NetWeaver BI. 1.6.2 Service Sales Companies for which service represents a strategic business area take a proactive approach to the sale of services. Various channels are used to identify business opportunities (for example, sales campaigns and installed bases). These opportunities are qualified and converted into quotations in a standardized process flow, which may lead to the closing of sales contracts. Once a contract has been successfully concluded, ser- vice begins with the transfer of documents from sales to service. Service sales therefore represent an upstream process step for the actual service. All requirements in this area are covered by SAP CRM Service. SAP ERP CS also offers many relevant functions. However, it has some weak points in relation to lead generation, acquisition, and contract negotiation. 1.6.3 Other Functions and Processes Outside of the core functions of the two solutions that we have exam- ined so far, additional functions or processes are also provided to sup- port users in the service area. Below, we provide a brief discussion of these additional features of the CS component and of SAP CRM. 57206_Book.indb 57 2/3/09 9:29:16 AM
  • 47. 1    Introduction to CRM Technical Objects and Installations Technical information about products is mapped in the system in the form of objects. These objects are of central importance because the qual- ity of the object information determines the cost-effectiveness and the capabilities of service processing. Relevant information (for example, equipment, object structure, or BOMs) needs to be accessible at all times. SAP ERP and SAP CRM use different structures to represent the objects. Both systems also use specific information content. If the two systems are connected, it is therefore usually necessary to store the technical assets in both applications. This necessitates the use of bidirectional replication. In SAP ERP CS, technical objects are converted into combinations of equipment and functional locations, which enables the mapping of com- plex structures and the incorporation of material and object BOMs. Clas- sification characteristics are used for flexible mapping of customer-spe- cific characteristics. A range of options is available for the mapping of technical objects. In the SAP CRM system, these are represented as installations. The struc- tural elements in this case are products, individual objects, texts, and installations. Product BOMs can also be used. Customer-specific charac- teristics can be implemented using set definitions. If an SAP ERP system is connected, it is important to ensure consistency between the object data in the two systems. As of SAP CRM Release 5.0, a bidirectional equipment download function is provided as standard to do just that. Service Contracts Service contracts represent fixed agreements with the customer. In addition to conditions and validity periods, these contain details of the services that are to be provided, service level agreements (SLAs), and warranties. Part of service processing involves checking whether a contractual relationship is in place and which requirements are to be met. Long-term agreements ensure that the service business has plan- nable results. 58206_Book.indb 58 2/3/09 9:29:16 AM
  • 48. Service with SAP CRM or SAP ERP CS – a Comparison    1.6 Both SAP ERP CS and SAP CRM Service offer a wide range of options relating to service contracts. However, SAP CRM Service offers enhanced functions when it comes to setting the parameters of SLAs and contract changes, as well as the option of creating usage-dependent contracts. SLA Monitoring and Escalation Contractually agreed SLAs guarantee the availability of customer objects. Adherence to SLAs is observed and monitored during the entire opera- tion. If these are violated, the case is escalated in accordance with defined rules. Compliance with SLAs results in the avoidance of contractual pen- alties, plus a simultaneous increase in customer satisfaction. Whereas SAP ERP CS includes some basic options for mapping SLAs, its weaknesses become evident in relation to the assignment of SLA condi- tions to process steps, the handling of parallel conditions, and escalation mechanisms. SAP CRM Service, meanwhile, scores high points with the functions it offers in this area. Mobile Service Processing Mobile devices provide support for service processing by service tech- nicians, allowing them to organize their work. Information about cus- tomers is directly available, as is information about installations and assets or service contracts. Mobile devices are also used for working time recording. Efficiency is ensured by a well-directed service perfor- mance, fast processes and confirmations, and a correct dataset. At the same time, administrative time-wasting is avoided, and the quality of service is improved. Whereas SAP ERP CS only allows service technicians to connect to the system using laptops, SAP CRM Service also supports mobile hand-held devices. E-Service Web access allows customers and employees to use a range of func- tions, such as service requests, transaction tracking, checking of warranty 59206_Book.indb 59 2/3/09 9:29:17 AM
  • 49. 1    Introduction to CRM claims, and product registration. An immediate and personalized service has a positive impact on customer satisfaction. In addition, customer behavior can be recorded more effectively, and a reduced volume of tele- phone calls ensures a reduction in costs. Both alternatives support e-services. However, SAP ERP CS offers only limited options for the provision of customer-specific activities. Complaints Processing The correct processing of complaints is of key importance to a customer relationship. The individual process steps consist of the recording, analy- sis, processing, and evaluations of complaints. The benefits are a struc- tured complaints process, improved customer satisfaction through return material authorization (RMA) processes and precise feedback. Automated process flows also have the potential to save costs. In SAP ERP CS, complaints processing is not a complete standard sce- nario with integrated functions. The necessary follow-up processes have to be triggered individually. SAP CRM Service, however, supports a range of functions (such as contracts checks, including warranty and SLA/escalation, availability check, invoice correction, release process, and so on). Case Management Case management enables the processing, management, and consolida- tion of information relating to a specific problem. Various objects (prod- ucts, transactions, business partners) are incorporated into the case for this purpose. Service orders can then be assigned to a case or generated from a case. This produces a global exchange of information, which, above all, simplifies the decision-making process in complex cases. Moreover, case management provides a business-oriented overview of each case. An efficient allocation of processing resources can also help reduce costs. Case management is not available in the SAP ERP system. SAP CRM Service, on the other hand, offers a large functional scope. A range of 60206_Book.indb 60 2/3/09 9:29:17 AM
  • 50. Architecture of SAP CRM Systems    1.7 standard cases is predefined in the system (for complex products, for example), for which services can be provided. 1.6.4 Conclusion In the comparison drawn here, the SAP CRM Service functions offer clear benefits over those provided in the SAP ERP CS component. SAP ERP CS offers most standard processes and functions are provided. How- ever, SAP CRM offers many additional options and is the more complete alternative overall. This system enables a 360-degree view of the cus- tomer, and optimizes the link between sales and service. SAP CRM 2007 offers additional functions and an intuitive, user-friendly interface. When deciding whether to use SAP CRM Service or SAP ERP CS, the two most important factors to consider are, first, the company’s service orientation and, second, the question of whether SAP ERP CS is already in use or whether the company is venturing into the service business area for the first time. It generally only makes sense to change over to SAP CRM Service if ser- vice already is or is to become a strategic business area for the company or if the non-service functions in marketing and sales are also to be used. In this case, the costs of a changeover would be justified by the strengths of SAP CRM described above. If the company is entering this area for the first time, on the other hand, there is barely any justification to choose SAP ERP CS over SAP CRM Service. 1.7 Architecture of SAP CRM Systems Now that we have provided an overview of the functions of the SAP CRM system, we will turn briefly to the SAP CRM system architecture. As already mention in Section 1.4.1 SAP CRM Roadmap the market for SAP CRM solutions has experienced many innovations in recent times, and these are reflected in the architecture of the SAP CRM systems. To begin, Figure 1.12 shows the familiar architecture from Release 2005. 61206_Book.indb 61 2/3/09 9:29:17 AM
  • 51. 1    Introduction to CRM Figure 1.12  Architecture of SAP CRM 2005 The CRM Core has a 1:1 connection with the SAP ERP system, and is integrated with SAP NetWeaver technology. Functions such as on-demand and on-promise are already integrated at this point. A choice of interface is available, namely, the PCUI interface or the conventional SAP GUI from SAP R/3. Several changes have been made in the current release, Release 2007, as shown in Figure 1.13. 62206_Book.indb 62 2/3/09 9:29:17 AM
  • 52. Architecture of SAP CRM Systems    1.7 Figure 1.13  Architecture of SAP CRM 2007 Now, for the first time, an SAP CRM system can be integrated with more than one SAP ERP system. The CRM Core is largely preserved in the familiar functions such as the Business Objects but has also been enhanced with new design options. Customer-specific business logic can now also be implemented as part of the Enhanced Workbook. In addition, a number of SAP core components have been enhanced. The most obvious change, however, is the new interface. The new UI is based on web technology 63206_Book.indb 63 2/3/09 9:29:17 AM
  • 53. 1    Introduction to CRM and can also be personalized to a high degree with the new UI Configura- tion Tool. External content such as web applets and RSS feeds can also be integrated. Finally, the whole look and feel of the user interface can be customized to tie in with the company’s corporate design. 1.8 Summary This chapter has explained the basic business aspects of working with CRM, and provided an initial insight into the functions of SAP CRM 2007. You are now familiar with the central concepts and control mecha- nisms of customer relationship management and understand the role of service management within CRM. In addition, a detailed comparison of SAP CRM Service functions and the Customer Service component in SAP ERP (CS) has also illustrated the range of options provided by these SAP solutions. To close, we provided a brief introduction to the system architecture of SAP CRM. The next chapter provides a detailed overview of the functions of SAP CRM 2007 in the service area. 64206_Book.indb 64 2/3/09 9:29:17 AM
  • 54. Service Order Management 3.2 group. Figure 3.31 illustrates the example of a Service Resource service product. Figure 3.31 Service Product – Service Resource 3.2 Service Order Management Service order management is arguably the most central service process in a company deploying SAP CRM 2007. Similar to the role that the sales order in the Sales and Distribution component (SD) of SAP ERP plays when selling products, the service order in the CRM system maps any service conducted in the service area within a company. The service order, which is a system process, can be created in reference to numer- ous other relevant service processes and forms the basis for invoicing customers for services performed. 3.2.1 Process Display Figure 3.32 provides an overview of the service order management pro- cess, which is divided into five steps as follows: 1. Create a quotation. 2. Create a service order. 3. Confirm the service order. 4. Conduct the service. 5. Create an invoice. The sections below explain other service processes that use SAP CRM 2007. Here, service order management is used repeatedly as an integral part of advanced processes. 147206_Book.indb 147 2/3/09 9:30:16 AM
  • 55. 3 Service with SAP CRM – Processes and Customizing Process Create Create Confirm Conduct Create Step Quotation Service Order Service Order Service Invoice Role Service Employee Service Manager Service Technician Service Employee 1. Customer requests Once the customer Service order Service is conducted Invoice creation is quotation has accepted the is confirmed and confirmed initiated 2. Quotation is quotation, the quotation created is converted into 3. Quotation is sent a service order. to customer Figure 3.32 Processes and Roles in Service Order Management Step 1: Creating a A service quotation is frequently created before a service order, even if quotation this is unnecessary. The service quotation is generally created in response to a customer inquiry (see Figure 3.33). However, it can also be used as a proactive marketing technique. A service quotation already contains all of the information that a customer requires, for example, the product that will be affected by the service, the price for providing the service, and a possible schedule for conducting the service. Once the service employee creates the quotation, the customer is informed. Figure 3.33 Creating a Service Order Quotation 148206_Book.indb 148 2/3/09 9:30:17 AM
  • 56. Service Order Management 3.2 Once the customer has accepted a service quotation, the service employee Step 2: Creating a creates a service order that references the relevant service quotation (see service order Figure 3.34). Consequently, the system copies all of the important infor- mation contained in the quotation to the service order. Here, users also have the option to categorize the service order using a predefined cat- egory catalog, which can also be supplemented and customized. When you enter items in a service order, you can use several item catego- ries such as service items, service parts items, sales items, or costs asso- ciated with expenses. In the case of service parts or sales items, an ATP check (available to promise, ATP) is performed if SAP ERP has been inte- grated accordingly. Similar to the sales order, a credit limit check can also be activated for a service order. Furthermore, when you create a service order, the system determines whether service contracts or warranty agree- ments exist for this customer and the corresponding product. If so, the conditions attached to the order automatically take them into account. Figure 3.34 Creating a Service Order Depending on the required process characteristics, the role of service Step 3: Confirming manager can also be used as a supervisory role for service employees. the service order If implemented in this way, this control instance must first confirm the service orders before the actual order content can be processed and the necessary resources made available. 149206_Book.indb 149 2/3/09 9:30:18 AM
  • 57. 3 Service with SAP CRM – Processes and Customizing Step 4: Conducting If the service order is released, the service technician can conduct the the service services contained in the order for the customer. This may mean that the service employee repairs a product that the customer has returned to the company, or he repairs the product on-site at the customer location. The sections devoted to service and repairs processing describe in greater detail the differences between a service conducted within the service department of a company and a service conducted on-site at the cus- tomer location (see Section 3.3 Service and Repairs Processing (In-House) and Section 3.4 Service and Repairs Processing (Field Service)). Once the service technician has conducted the service, he confirms the service order and documents the fact that the service has been conducted by creating a service confirmation in the system (see Figure 3.35) and completing a questionnaire (see Figure 3.36). Figure 3.35 Creating a Service Confirmation Step 5: Creating an Once the service order has been confirmed, the service employee initi- invoice ates the process of issuing an invoice to the customer. Here, the system also takes account of the possible diverseness of services, depending on the item in the service order (for example, services covered by warranty agreements are conducted at no extra cost to the customer). 150206_Book.indb 150 2/3/09 9:30:18 AM
  • 58. Service Order Management 3.2 Figure 3.36 Service Confirmation – Questionnaire 3.2.2 Customizing in the System The following sections describe Customizing for the service order process in the CRM system. Customer-Specific Customizing All of the functions and entries below whose names begin with Z are al- ways copies of SAP standard functions that have been adjusted to include customer-specific changes. Here, the underlying SAP standard functions are described as an introduction. The abbreviation IMC within the Customizing names denotes specific Cus- tomizing for a fictitious company called IMC, for which we are implementing the CRM system. Transaction Types When you follow the IMG path Customer Relationship Management • Transactions • Basic Settings • Define Transaction Types, you access the maintenance screen for transaction types (see Figure 3.37). 151206_Book.indb 151 2/3/09 9:30:19 AM
  • 59. 3 Service with SAP CRM – Processes and Customizing Figure 3.37 Maintaining Transaction Types A transaction type defines characteristics and features of a business trans- action (for example, a service order or service order quotation) and spec- ifies the control attributes (for example, text determination procedure, partner determination procedure, status profile, and organizational data profile). These transaction types, in turn, control how these business transactions are processed. A transaction type is assigned to one or more business transaction cat- egories (for example, Service or Sales). The business transaction category determines the business context in which a transaction type can be used (for example, Service or Sales). Consequently, one business transaction category is the leading business transaction category. This does not rep- resent a hierarchical relationship with other business transaction catego- ries, but rather a preference. The business transaction category influences the various Customizing settings that you have to make at the header level. For example, you define settings such as the goal of the activity or the subject profile for 152206_Book.indb 152 2/3/09 9:30:20 AM
  • 60. Service Order Management    3.2 the business transaction category Activity, the document pricing pro- cedure or the payment plan type for the business transaction category Sales, the subject profile for the business transaction category Service, and the budget posting transaction type for the business transaction cat- egory CRM Budget Posting. The transaction type settings are configured in five steps (see Figure Configuring the 3.37): transaction types 1. Define transaction types (Definition of Transaction Types). 2. Assign business transaction categories (Assignment of Business Trans- action Categories). 3. Customizing at the header level (Customizing header). 4. Assign blocking reasons (Assign Blocking Reasons). 5. Permit channels for transaction types (Channel). You can then create a new transaction type or copy a transaction type that has already been defined. However, when you copy a transac- tion type, you must ensure that you adjust the transaction type accordingly. Service Order Quotation – SAP Standard Used The transaction type used in this example (ZSAA) is a copy of the SAP stan- dard transaction type SRVQ. The customized partner determination procedure shown (ZIMC006) is a copy of the SAP standard 00000042, and the customized organizational data pro- file ZSVR00000001 is a copy of the SAP standard 000000000008. As the first step, you must define details such as a description of the Step 1: Defining transaction type and the relevance of contract determination for the transaction types transaction type ZSAA (see Figure 3.38). The leading business transac- tion category must be defined as a service process. 153206_Book.indb 153 2/3/09 9:30:20 AM
  • 61. 3 Service with SAP CRM – Processes and Customizing Figure 3.38 Creating and Configuring Transaction Type ZSAA – Service Order Quotation IMC Step 2: Assigning Now that you have defined the transaction type ZSAA, you must assign business the associated business transaction categories. These are influenced by transaction the business context in which a transaction type or item category can categories be used (for example, Service, Sales, or Activity). Figure 3.39 shows the business transaction categories defined for the transaction type ZSAA. Figure 3.39 Assigning Business Transaction Categories to Transaction Type ZSAA 154206_Book.indb 154 2/3/09 9:30:21 AM
  • 62. Service Order Management 3.2 You must now define Customizing header data for every business trans- Step 3: action category that you have defined. This header data includes, for Customizing at header level example, the Sales business transaction category, in which a link to the relevant pricing is established, among other things (see Figure 3.40). Figure 3.40 Transaction Type ZSAA (Sales – Customizing at Header Level) In the Customizing header for the service area (see Figure 3.41), you can maintain the relevant subject profile for the service and possibly the existing transaction type for the confirmation. Figure 3.41 Transaction Type ZSAA (Service – Customizing at Header Level) The last business transaction category to be defined for the transaction type ZSAA is the business transaction category Activity. Even though this business transaction category is known as Business Activity in the list of 155206_Book.indb 155 2/3/09 9:30:22 AM
  • 63. 3 Service with SAP CRM – Processes and Customizing business transaction categories (see Figure 3.39), detailed information for the activity area is entered here (see Figure 3.42). Figure 3.42 Transaction Type ZSAA (Business Activity – Customizing at Header Level) Defining categories On the Details screen, you can define various categories, among other things. These categories define the functions available for each activity type. Service Order – SAP Standard Used The transaction type used in this example (ZSVO) is a copy of the SAP stan- dard transaction type SRVO. The status profile shown (ZSRV_ST1) is a copy of the SAP standard status profile SRV_ST01, and the action profile ZIMC_SERVICEORDER_HEADER is a copy of the SAP standard action profile SERVICE_ORDER. In terms of Customizing, the transaction types ZSVO and ZSAA (from the previous section) differ only in terms of the entries shown in Table 3.3. Field Value Status profile ZSRV_ST1 Date profile SRV_HEADER Action profile ZIMC_SERVICEORDER_HEADER Table 3.3 Differences Between Transaction Types ZSAA and ZSVO The business transaction categories assigned are almost identical to those for transaction type ZSAA (see Figure 3.39). They differ only in Custom- 156206_Book.indb 156 2/3/09 9:30:22 AM
  • 64. Service Order Management    3.2 izing at the header level for the Service and Activity areas (see Tables 3.4 and Table 3.5, respectively). Field Value Transaction Type ZSVC Confirmation Table 3.4  Differences Between Transaction Types ZSAA and ZSVO in the ”Service” Area – Customizing at Header Level Field Value Category 202 Telephone call Priority 1 Very high Subject Profile Act000001 Activity reason Table 3.5  Differences Between Transaction Types ZSAA and ZSVO in the “Activity” Area – Customizing at Header Level Service Confirmation – SAP Standard Used The transaction type used in this example (ZSVC) is a copy of the SAP stan- dard transaction type SRVC. Table 3.6 highlights the differences between transaction types ZSVC and ZSAA. Field Value Leading Transaction Category BUS2000117 – Service Confirmation Status Object Type COH Contract Determination No entry Agreement Determination No entry Partner Determination 00000024 – SAP Confirmation Header Procedure Organizational Data Profile 000000000021 – SAP Org. Data Profile for Confirmations Date Profile SRV_RM_ITEM1 Action Profile SERVICE_CONFIRMATION Table 3.6  Differences Between Transaction Types ZSAA and ZSVC 157206_Book.indb 157 2/3/09 9:30:22 AM
  • 65. 3 Service with SAP CRM – Processes and Customizing The business transaction categories assigned are almost identical to those for transaction type ZSAA (see Figure 3.39). Partner Determination Procedures When you follow the IMG path Customer Relationship Management • Basic Functions • Partner Processing • Define Partner Determina- tion Procedure, you access the maintenance screen for partner deter- mination procedures (see Figure 3.43). Figure 3.43 Maintaining Partner Determination Procedures In this activity, you define partner determination procedures, and the system automatically assigns partners to the business transactions. Fur- thermore, the partner functions and access sequences are combined here. 158206_Book.indb 158 2/3/09 9:30:23 AM
  • 66. Service Order Management    3.2 Caution: Copy the SAP Standard We recommend that you either use the Customizing Wizard to create a new partner determination procedure or that you copy an existing procedure and then change the copy accordingly. You can therefore access the SAP standard as a template at all times. Avoid changing SAP standard procedures that al- ready exist. Otherwise, you risk losing templates that have been perfected. If you define a new procedure, assign it to a transaction category or an item object type and specify mandatory partner functions. The system searches for these partner functions in transactions. If you later assign the procedure to a transaction type or item category, the settings that you make here apply to transactions of this type or for items of this category. Using the Wizard to Create Partner Determination Procedures In SAP CRM 2007, you can use a wizard to create partner determination procedures. You can access this wizard by following the IMG path Customer Relationship Management • Basic Functions • Partner Processing • Define Partner Determination Procedure and select Create Partner Determination Procedure. Once you have created a new procedure (either using the wizard or manually), check it for errors. To do this, select Check Partner Determi- nation Procedure. Once you have defined the partner determination procedure, you must maintain the following areas: EE List of procedure users EE Definition of partner functions in the procedure EE Description of the interface settings “Service Process Header” Partner Determination Procedure – SAP Standard Used The partner determination procedure used in this example (ZIMC006) is a copy of the SAP standard partner determination procedure 00000042. 159206_Book.indb 159 2/3/09 9:30:23 AM
  • 67. 3 Service with SAP CRM – Processes and Customizing In the partner determination procedure definition, assign this procedure to one or more transaction categories or item object types (see Figure 3.44). Figure 3.44 Procedure Users for Partner Determination Procedure ZIMC006 You then add or change the partner functions contained in this pro- cedure. Some settings need to be made for each partner function, for example, minimum and maximum number of partners for each transac- tion, the type of new partner determination, which access sequence the system uses for the partner determination, and whether manual entries are permitted (see Figure 3.45). Figure 3.45 Partner Functions in the Procedure ZIMC006 To complete the partner determination procedure definition, enter details about the interface settings (see Figure 3.46). Here, you can influence the partner functions to be displayed in the individual partner fields (for 160206_Book.indb 160 2/3/09 9:30:24 AM
  • 68. Service Order Management 3.2 example, contact person). Depending on the customer-specific require- ments, an entry may be required here. Figure 3.46 Interface Settings in the Procedure ZIMC006 “Service Process Item” Partner Determination Procedure – SAP Standard Used The partner determination procedure used in this example (ZIMC007) is a copy of the SAP standard partner determination procedure 00000043. In contrast to the procedure users listed in Figure 3.44 for the partner determination procedure ZIMC006, the procedure users listed in Table 3.7 are defined in the partner determination procedure ZIMC007. Procedure Users BUS2000117 Service Confirmation BUS2000140 ServiceProductItemCRM BUS2000142 ServMatConfirmItem BUS2000146 ServMaterialItemCRM Table 3.7 Differences Between Partner Determination Procedure ZIMC007 and Partner Determination Procedure ZIMC006 161206_Book.indb 161 2/3/09 9:30:25 AM
  • 69. 3 Service with SAP CRM – Processes and Customizing The partner functions entered for the partner determination procedure ZIMC007 are almost identical to those for the partner determination procedure ZIMC006 (see Figure 3.45). Date Profile When you follow the IMG path Customer Relationship Management • Basic Functions • Date Management • Define Date Profile, you access the area in which you define and maintain dates (see Figure 3.47). Figure 3.47 List of Previously Configured Date Profiles Date management enables you to process any number of dates in a trans- action. It is used, for example, in contracts (for example, cancellation date, term) and quotations (valid-to date). In this work step, you define durations (duration types), date types, and date rules. The system uses all of the above, which are grouped into a specific date profile, to display and automatically determine dates in a transaction. Using the date profile, the system controls the date types, durations, reference objects, and date rules that can be used in a specific transaction type or item category. Depending on the date profile, you also define (in this activity) the prop- erties of the date types and durations (for example, the time unit, refer- ence object, duration, and date rule). 162206_Book.indb 162 2/3/09 9:30:25 AM
  • 70. Service Order Management 3.2 “SLA Data in Position” Date Profile – SAP Standard Used The date profile used in this example (ZSV_SLA_ITEM: SLA Data in Position IMC) is a copy of the SAP standard date profile SRV_SLA_ITEM. In the first step of this example, you assign one or more reference objects Step 1: Assigning to the date profile (see Figure 3.48). You use the reference object to con- reference objects trol the relevant time zone for the transaction dates. The reference objects determine, among other things, the factory calendar, which is important for determining dates (for example, taking account of public holidays). Figure 3.48 Reference Objects for Date Profile ZSV_SLA_ITEM You then configure one or more date rules for this date profile (see Figure Step 2: Configuring 3.49). Date rules have version management to ensure that date rules used date rules in unfinished transactions can remain unchanged. You can use these date rules to create a new version that is valid as of its creation date and time. Only the current version is used in new transactions. The word Standard always identifies the current version in the list of date rule versions. Figure 3.49 Date Rules for the Date Profile ZSV_SLA_ITEM 163206_Book.indb 163 2/3/09 9:30:26 AM
  • 71. 3 Service with SAP CRM – Processes and Customizing Step 3: In the third step, you create one or more date types for the date profile Determining (see Figure 3.50). Date types refer to specific times such as First Response date types By, Notification Receipt, or Billing Document Created On. Figure 3.50 Date Types for the Date Profile ZSV_SLA_ITEM Step 4: Specifying To complete the date profile definition, you can specify the required the required duration, if necessary. This can be, for example, a contract term, a pro- duration cessing time, or a warranty term. Action Profiles You define action profiles by following the IMG path Customer Relationship Management • Basic Functions • Actions • Actions in 164206_Book.indb 164 2/3/09 9:30:27 AM
  • 72. Service Order Management 3.2 Transaction • Change Actions and Conditions • Define Action Pro- files and Actions (see Figure 3.51). The maximum number of actions permitted for a transaction type is determined in an action profile. Here, you also determine general condi- tions for the actions contained in the action profile. Examples include the time when the system starts the action (for example, saving the docu- ment) or the way in which the system performs the action (for example, workflow, method call, or Smart Forms). Figure 3.51 List of Previously Configured Action Profiles In this activity, create an action profile and templates for actions. Using the Wizard to Create Action Profiles In SAP CRM 2007, you can use a wizard to create action profiles. You can call this wizard by following the IMG path Customer Relationship Management • Basic Functions • Actions • Actions in Transaction • Use Wizard to Create Actions (see Figure 3.52). 165206_Book.indb 165 2/3/09 9:30:28 AM
  • 73. 3 Service with SAP CRM – Processes and Customizing Figure 3.52 Action Profile Wizard – Using a Wizard to Create Actions “Control SLA Dates” Action Profile – SAP Standard Used The action profile used in this example (Z_SERVICE_ORDER_ITEM_SLA_IMC: Control SLA Dates IMC) is a copy of the SAP standard action profile SER- VICE_ORDER_ITEM_SLA. Action profiles are configured in the same way as date profiles, using several steps as follows: 1. Definition of the action profile 2. Description of the action definitions 3. Processing types for the action definitions Step 1: Defining In the first step, you must describe and define the action profile (see Fig- the action profile ure 3.53). At the same time, you must link the action profile to the date profile described above. 166206_Book.indb 166 2/3/09 9:30:28 AM
  • 74. Service Order Management 3.2 Figure 3.53 Details for the Action Profile Z_SERVICE_ORDER_ITEM_SLA_IMC After that, specify one or more associated action definitions for each action profile (see Figure 3.54). Figure 3.54 List of Action Definitions for Z_SERVICE_ORDER_ITEM_SLA_IMC Here, you can specify additional details (see Figure 3.55). Below are some Step 2: Describing sample options that can be defined on the Details screen. For Processing the action definitions Time, you can determine, for example, whether immediate processing is necessary. The action is then started as soon as the start condition is fulfilled. Another option is to start the action immediately after you save the transaction. 167206_Book.indb 167 2/3/09 9:30:29 AM
  • 75. 3 Service with SAP CRM – Processes and Customizing Figure 3.55 Details for the Action Definition Z_COMPLETE_PSL_ITEM If you select the Partner-Dependent checkbox, you can define a part- ner function or partner function category that will apply to the action. This may be relevant, for example, if reminder emails are to be sent to all partners involved in the process or if an email is to be sent to the employee responsible. If you select the Changeable in Dialog checkbox, the user can change the action’s condition and processing parameters in the document. If you select the Executable in Dialog checkbox, the user can manually trigger the action in the transaction. Finally, if you select the Display in 168206_Book.indb 168 2/3/09 9:30:30 AM
  • 76. Service Order Management 3.2 Toolbox checkbox, the action is displayed as an icon in the transaction toolbar, and the user can schedule the action from there. Under Action Merging, select Max. 1 Action for Each Action Definition if you want to execute the action once only. Select Max. 1 Unprocessed Action for Each Action Definition if you want to be able to execute the action several times. To complete the action profile definition, you describe one or more Step 3: Processing processing types for each action definition (see Figure 3.56). Here, you types for the action definitions can choose from the method call, workflow, or Smart Form processing types. Figure 3.56 Overview and Details for the Processing Types for the Action Definition Z_COMPLETE_PSL_ITEM We do not discuss the action definitions Z_SERVICE_ORDER_ITEM_ SLA_START and Z_SERVICE_ORDER_ITEM_SLA_END in further detail 169206_Book.indb 169 2/3/09 9:30:31 AM
  • 77. 3 Service with SAP CRM – Processes and Customizing because they are created in the same way as the action definition Z_ COMPLETE_PSL_ITEM and differ only in terms of the time of process- ing (1 Processing using Selection Report instead of 4 Processing When Saving Document) and the partner function (New: ZIMC002 – Person Responsible). Unlike the processing type Method Call for the action definition Z_COM- PLETE_PSL_ITEM, the processing types for the action definitions Z_SER- VICE_ORDER_ITEM_SLA_START and Z_SERVICE_ORDER_ITEM_SLA_ END are both Smart Forms Mails (see Figure 3.57). Figure 3.57 Overview and Details for the Processing Types for the Action Definition Z_SERVICE_ORDER_ITEM_SLA_START In turn, the action definitions Z_SERVICE_ORDER_ITEM_SLA_START and Z_SERVICE_ORDER_ITEM_SLA_END differ only in terms of the dif- ferent forms (see Table 3.8). 170206_Book.indb 170 2/3/09 9:30:32 AM
  • 78. Service Order Management    3.2 Action Definition Form Name Z_SERVICE_ORDER_ITEM_SLA_START CRM_SERVICE_SLA_MAIL_RF Z_SERVICE_ORDER_ITEM_SLA_END CRM_SERVICE_SLA_MAIL_RR Table 3.8  Differences Between Z_SERVICE_ORDER_ITEM_SLA_START and Z_ SERVICE_ORDER_ITEM_SLA_END “Service Order Header” Action Profile – SAP Standard Used The action profile used in this example (ZIMC_SERVICORDER_HEADER: Ser- vice Order IMC Header) is a copy of the SAP standard action profile SER- VICE_ORDER. Tables 3.9 to 3.11 highlight the differences in relation to the action pro- file Z_SERVICE_ORDER_ITEM_SLA_IMC (described above). Action Profile ZIMC_SERVICORDER_HEADER Object Type Name BUS2000116 Date Profile No entry Context Class CL_DOC_CONTEXT_CRM_ORDER Table 3.9  Details for the Action Profile ZIMC_SERVICORDER_HEADER Action Profile ZIMC_SERVICORDER_HEADER Action Definition ZIMC_ADHOC_REMINDER1 Table 3.10  Details for the Action Definitions for the Action Profile ZIMC_SERVICORDER_HEADER Action Definition ZIMC_ADHOC_REMINDER1 Processing Type Smart Forms Mail Table 3.11  Details for the Processing Type for the Action Definition ZIMC_ADHOC_REMINDER1 Conditions When you follow the IMG path Customer Relationship Management • Basic Functions • Actions • Actions in Transaction • Change Actions 171206_Book.indb 171 2/3/09 9:30:32 AM
  • 79. 3 Service with SAP CRM – Processes and Customizing and Conditions • Define Conditions, you access the area in which you define and maintain conditions (see Figure 3.58). Figure 3.58 List of All Actions and Details for the Conditions Here, conditions include (a) the exact definition of the schedule condition and (b) the start condition for each action definition (using transportable conditions). You can also specify whether the action is automatically scheduled when the schedule conditions take effect. One example of a possible start condition is “four weeks before the contract end date.” 172206_Book.indb 172 2/3/09 9:30:33 AM
  • 80. Service Order Management 3.2 “Control SLA Dates” Start Condition – SAP Standard Used The start condition used in this example (Z_SERVICE_ORDER_ITEM_SLA_ IMC: Control SLA Dates IMC) is a copy of the SAP standard action profile SERVICE_ORDER_ITEM_SLA. If you double-click the action Z_SERVICE_ORDER_ITEM_SLA_IMC, the system displays the list of defined action definitions on the upper-right half of the screen and the details for the corresponding action definitions on the lower half of the screen (see Figure 3.59). Figure 3.59 Detailed Overview of the Action Definitions for the Action Z_SERVICE_ ORDER_ITEM_SLA_IMC The Start Condition tab page on this detailed overview screen contains an overview of the start conditions for each action definition selected (see Figure 3.60). Here, you can create conditions for each action definition. You can select Edit Condition to access the screen for editing parameters. Here, you must assign the relevant date profile for the condition. 173206_Book.indb 173 2/3/09 9:30:34 AM
  • 81. 3 Service with SAP CRM – Processes and Customizing Figure 3.60 Summary of the Start Condition for the Action Definition Z_COMPLETE_PSL_ITEM If you double-click the Condition Definition field, the system opens the wizard for creating each condition (see Figure 3.61). You can select the values in the Expression 1 column from the complete list shown. You can also choose from other operators shown. You can also select Expression 2 from the list provided, or you can enter Expression 2 as a constant. You can then link the conditions in a logical manner. Figure 3.61 Editing Start Conditions for Z_COMPLETE_ITEM 174206_Book.indb 174 2/3/09 9:30:35 AM
  • 82. Service Order Management 3.2 The following applies to the start conditions for the action defi- nition Z_SERVICE_ORDER_ITEM_SLA_START for the action Z_SERVICE_ORDER_ITEM_SLA_IMC: &CRM Service Product Item.System Status& I1005 and &To Do By& < &Current Date& In addition, the following applies to the start conditions for the action definition Z_SERVICE_ORDER_ITEM_SLA_END for the action Z_SERVICE_ORDER_ITEM_SLA_IMC: &CRM Service Product Item.System Status& = I1002 and &First Response By& < &Current Date& “Service Order Header” Start Condition – SAP Standard Used The start condition used in this example (ZIMC_SERVICORDER_HEADER: Service Order IMC Header) is a copy of the SAP standard action profile SER- VICE_ORDER. No start conditions are defined for the action ZIMC_SERVICORDER_ HEADER. Item Category When you follow the IMG path Customer Relationship Management • Transactions • Basic Settings • Define Item Categories, you access the area in which you define and maintain item categories (see Figure 3.62). Figure 3.62 List of Previously Configured Item Categories 175206_Book.indb 175 2/3/09 9:30:35 AM
  • 83. 3 Service with SAP CRM – Processes and Customizing An item category defines characteristics and features of a transaction item and therefore controls item processing. First, the item category is assigned to an item object type. The item object type determines the business context in which an item category is used. Similar to the trans- action type, the item category is assigned to one or more business trans- action categories. “Service Item” Item Category – SAP Standard Used The item category used in this example (ZSVP: Service Item IMC) is a copy of the SAP standard item category SRTP. Configuring the Item categories are configured in several steps as follows: item categories 1. Definition of the item category 2. Description of the business transaction categories 3. Customizing the item Step 1: Defining In the first step, you must describe and define the item category (see the item categories Figure 3.63). In addition to assigning a name to the item category, this is where you also define important control attributes such as the item object type, the text determination procedure, the partner determina- tion procedure, the status profile, the organizational data profile, and the number range assignment. Depending on its status, the status profile can be used, for example, to transfer the transactions to the ERP system. Figure 3.63 Defining the Item Category ZVSP Step 2: Describing The business transaction categories belonging to the item category ZVSP business are defined in the next step (see Figure 3.64). transaction categories 176206_Book.indb 176 2/3/09 9:30:36 AM
  • 84. Service Order Management 3.2 Figure 3.64 Overview of the Business Transaction Categories Assigned to the Item ZSVP To complete the item category definition, you must adjust the business Step 3: transaction categories (see Figure 3.65). Customizing the item Figure 3.65 “Service” Business Transaction Category – Customizing the Item In the Service business transaction category, you can use the Resource Plng Relevance checkbox to determine whether the item is relevant to resource planning. If an item is relevant to resource planning, a resource requirement will be generated for the item. Furthermore, you can use the Relevance to Costs checkbox to control whether confirmed infor- mation such as times and material are to be distributed to backend systems. 177206_Book.indb 177 2/3/09 9:30:37 AM
  • 85. 3 Service with SAP CRM – Processes and Customizing In the Sales business transaction category, you can use the Pricing-rel. checkbox (see Figure 3.66) to determine the extent to which an item is pricing-relevant (Pricing Data section) and the extent to which the item is transferred to follow-up documents (Quotation Data section, Subsequ. processing checkbox). Figure 3.66 “Sales” Business Transaction Category – Customizing the Item Item Category Determination When you follow the IMG path Customer Relationship Management • Transactions • Basic Settings • Define Item Category Determination, you access the area in which you define and maintain the item category determination (see Figure 3.67). 178206_Book.indb 178 2/3/09 9:30:37 AM
  • 86. Service Order Management 3.2 Figure 3.67 List of Previously Configured Item Category Determinations In this work step, you can determine the item categories that the system proposes during transaction processing for each transaction type and item category group. At the same time, you can determine which item categories you can manually enter as alternatives to the system propos- als. A maximum of three alternative item categories is possible. “Order Quotation” Item Category Determination SAP Standard Used The item category determination used in this example (ZSAA: Order Quota- tion IMC) is a copy of the SAP standard item category determination SRVQ. 179206_Book.indb 179 2/3/09 9:30:39 AM
  • 87. 3 Service with SAP CRM – Processes and Customizing As part of Customizing, you must configure separate item category deter- minations for all previously used transaction types. As described at the outset, several item category groups or item categories can be assigned to each transaction type. This results in a matrix of setting options that cannot be described in detail here. Instead, we show you the exam- ple below (see Figure 3.68), which is representative of all item category determinations, and for which the SAP standard was adjusted. During item category determination, in particular, you assign the relevant trans- action type and item category. The other item category determinations are similar to the SAP standard transaction type SRVQ. Figure 3.68 Example of Item Category Determination for Transaction Type ZSAA “Order” and “Confirmation” Item Category Determination – SAP Standard Used The item category determination ZSVO (Service Order IMC) is a copy of the SAP standard item category determination SRVO, and the item category de- termination ZSVC (Service Order IMC) is a copy of the SAP standard item category determination SRVC. For both item category determinations, we refer to the example provided in Figure 3.69. 180206_Book.indb 180 2/3/09 9:30:39 AM
  • 88. Service Order Management 3.2 Copying Control When you follow the IMG path Customer Relationship Management • Transactions • Basic Settings • Copying Control for Transactions • Copying Control for Transaction Types, you access the area in which you define and maintain the copying control (see Figure 3.69). Figure 3.69 List of Previously Configured Copying Control Definitions for Transaction Types In this area, you determine the copying control for transaction types and item categories. For this purpose, you create a source transaction and item type and a target transaction and item type and determine the corresponding conditions for these combinations. In each case, you then create a source item category and a target item category and determine the corresponding conditions. “Service Order Quotation” Copying Control SAP Standard Used The copying control used in this example (Service Order Quotations IMC), which references transaction type ZSAA, is a copy of the SAP standard copying control, which references transaction type SRVQ. Similar to the copying control settings for the SAP standard item cat- egory determination SRVQ, the source and target transaction type com- bination changes from the SAP standard SRVQ – SRVO to the customer- specific pair ZSAA – ZSVO. 181206_Book.indb 181 2/3/09 9:30:40 AM
  • 89. 3    Service with SAP CRM – Processes and Customizing “Service Order” Copying Control – SAP Standard Used The copying control used in this example (Service Order Quotations IMC), which references transaction type ZSVO, is a copy of the SAP standard copying control, which references transaction type SRVO. Similar to the service order quotation, it is necessary to determine the copying control settings for the transaction type ZSVO. This also depends on the SAP standard transaction type SRVO (see Table 3.12). Source Transaction Type Target Transaction Type ZSVO CLMA ZSVO CRMC ZSVO CRMR ZSVO ZRVC ZSVO ZSVO ZSVO SRVT Table 3.12  Overview of the Copying Control Setting for Transaction Type ZSVO “Confirmation” Copying Control – SAP Standard Used The copying control used in this example (Service Order Quotations IMC), which references transaction type ZSVC, is a copy of the SAP standard copy- ing control, which references transaction type SRVC. It is then necessary to determine the copying control settings for trans- action type ZSVC. Because none of the entries listed is a relevant target transaction type for this example, we do not discuss this in further detail here (see Table 3.13). Source Transaction Type Target Transaction Type ZSVC CRMC ZSVC SRMR ZSVC FANF Table 3.13  Overview of the Copying Control Setting for Transaction Type ZSVC 182206_Book.indb 182 2/3/09 9:30:40 AM
  • 90. Index 360-degree view, 25, 33, 61, 118 Automotive industry, 329 Availability check, 41, 149 A B Abstract prototype, 283 Acceptance procedure, 327 Basic data, 135 Acceptance test, 323 Basis configuration, 121 Account Billing, 69, 188 create, 136 Billing and payment management, 41 detail maintenance, 137 Billing error, 87 search, 138 Bill of material, 139, 143 Account overview, 68 Business address services, 305, 313 Action definition Business object, 63 describe, 167 Business partner processing types, 169 create, 124, 126 Action profile, 164, 189, 194, 206, 268 Business partner and opportunity define, 166 management, 40 wizard, 166 Business partner data, 301, 302 Active service, 45 Business transaction categories Activity describe, 210 planned, 84 Business transaction category, 152 Address format standardization, 307 assign, 154 Address list, 351 describe, 176, 273 Address management software, 302, sales, 178 305, 306, 310 service, 177 After-sales, 27 Business transactions, 324 After-sales activity, 329 Business transaction type After-sales service, 27, 28 complaint, 211 Analysis and planning, 42 Buyers’ market, 20 Application Management, 283, 363 Approval process, 85 Assembly, 139 C ATP check, 149 Attribute Call center, 34 customer-specific, 142 Campaign Attribute assignment, 123 concluded, 355 Authorization, 244 trigger, 353 Authorization object Campaign management, 349 CRM_CONFIG, 66 Case attribute, 230 SCMG_LVL, 233 Case closing profile, 234 S_SCMG_CAS, 233 Case management, 60 Authorization profile, 244, 245 Case/Task, 334 375206_Book.indb 375 2/3/09 9:32:18 AM
  • 91. Index Case type, 228 Contact Event Manager (CEM), 110 Catalog, 213 Contact person, 137 Change charter, 294, 295 create, 137 Change management, 279, 284, 290, Contact routing, 109 294, 364, 366 Contract management, 48 instruments, 286 Controlling, 69 procedure model, 292 Control mechanisms, 19, 24 Change plan, 295 Copying control, 181, 190, 195, 212, Change process, 287 258, 275 Change programs, 295 Corporate account, 143 Closing a case/task, 345 Corporate philosophy, 20 Code and code group, 213 Credit limit check, 75, 149 Code group profile, 214 CRM, 19, 329 Communication, 39 analytical, 24 Communication channel, 87 operational, 24 Interaction Web Client, 87 strategic, 24 Internet-based Customer Self-Service, CRM phases 87 engagement, 37, 38 SAP Mobile Service, 87 fulfillment, 37, 40 Complaint service, 37 close, 198 transaction, 37, 39 create, 197 CRM strategy, 279 evaluate, 199 CRM vision, 279 process, 198 Cross-selling, 34 Complaint process, 82 Customer, 135 Complaint processing, 80 Customer dissatisfaction, 347 process flow, 81 Customer-facing organization, 135 Complaint scenarios Customer Factsheet, 334 identify, 222 Customer feedback, 346 Complaints management, 336 Customer focus, 20 closing a case/task, 344 Customer Interaction Center, 111, 332 creating a case/task, 337 functional areas, 332 customer case/task, 336 user interfaces, 332 facts, 342 Customer lifecycle, 22, 23 fast entry, 337 risk phases, 22 proactive, 221, 347 Customer loyalty, 21, 33 processing a case/task, 343 Customer retention, 21 reactive, 195 cost-related benefits, 22 Complaints mangement customer attachment, 21 transaction data, 341 customer binding, 21 Complaints processing, 60 sales-related benefits, 21 Component enhancement, 66 stability-related benefits, 22 Computer aided selling (CAS), 31 Customer satisfaction, 21, 348 Concentration efforts, 329 Customer Self-Service Condition, 171, 189, 195 Internet-based, 88 Configuration management, 364, 367 Customer service, 48 376206_Book.indb 376 2/3/09 9:32:19 AM
  • 92. Index Customer support, 48 E Customizing, 151, 188, 194, 199, 223, 228, 238, 250, 261 Enhanced Workbook, 63 header level, 155 Escalation model, 340 E-service, 59 External list management (ELM), 313 D Data F classifying, 300 cleanse, 305, 313 Field service, 49, 183 Data errors, 300 Field Service, 190 Data mining, 20 Follow-up phase, 297 Data quality, 279, 299, 300, 313 Forwarded, 335 project phase, 314 Framework enhancement, 66 standard, 318 Fuzzy search, 307, 310, 311 Data warehouse, 20 Date profile, 162, 189, 194, 204, 267 Date rules G configure, 163 Date type, 240 Goal criteria determine, 164 qualitative, 26 Debit memo quantitative, 26 send, 261 Goodwill, 346 Delivery of a different product, 87 Goodwill costs, 342 Depot repair, 50 Gradual implementation, 279 Design, 316 Detailed data, 137 Development and implementation phase, 296 H Development test, 322 Heuristic rules, 308 Differentiation factor, 28 Hierarchy creation, 68 competition, 29 Differentiation range, 29 Direct link, 133 Dropdown list, 135 I Duplicate pairs, 303 ID, 137 Duplicate record, 304 Implementation Duplicates gradual, 279 check, 312 methodical, 281 identification of, 311 Incident management, 364, 365 potential, 302, 309 Infotype Duration Business Role, 129 specify, 164 In-house, 183 Initial priority, 340 Input help, 135 377206_Book.indb 377 2/3/09 9:32:19 AM
  • 93. Index Installation, 58 M Installed base, 47, 67, 139 Installed base management, 47 Maintenance planning, 54 Integration of measuring devices, 76 Marketing, 38 Integration test, 322 Market stagnation, 330 Intelligent Solution Database, 218 Mass manufacturer, 330 Interaction Web Client, 87 Mass processing, 115 Internet-based Customer Self-Service Master data, 67 Center, 88 Material flow, 81 Invoice Mentoring strategy, 291 create, 150, 188, 194, 250 Methodical implementation, 281 send, 261 Microsoft Outlook, 105 Invoice correction, 85 Mobile service, 104 Item Mobile service order management Customizing, 177, 211, 273 process flow, 106 Item category, 175, 176, 189, 195, 209, Mobile service processing, 59 272 Mobilization phase, 295 define, 176, 210, 272 Must have, 28, 29 Item category determination, 178, 189, My Group, 335 195, 211, 256, 274 My Tickets, 335 Item level, 67 ITIL, 363 IT Infrastructure Management, 363 N Namespace, 128 K Navigation bar profile, 132 Need to have, 28, 29 Key performance indicator (KPI), 78 Nice to have, 28, 29 Notes, 69 Number range, 137 L Lead management, 38 O Lemon Law, 222 Letter campaign, 351 Object description Level enhanced, 129 operational, 20 Object list, 95 strategic, 20 Objects, 241 Link Online integration interface (OII), 110 for work center, 133 Operational level, 20 group of direct, 133 Order acquisition, 40 logical, 133 Ordering of an incorrect product, 87 Location, 242 Order management, 47 Logical link, 133 Organizational model, 121 Logistical integration, 75 Organizational model maintenance, 129 Lotus Notes, 106 Organizational node, 126 378206_Book.indb 378 2/3/09 9:32:19 AM
  • 94. Index Organizational plan, 121 mobile service order management, 106 Organizational structure, 121, 123 product update, 90 sales, 123 product update with product service service, 123 letters, 90 Organizational unit, 121 service and repairs processing (field Original Equipment Manufacturer, 330 service), 191 Over-delivery, 87 service and repairs processing (in- house), 183 service case management, 226 P service contract management, 248 service contracts, 93 Parameters for the interaction history, service order management, 70, 148 351 service resource planning, 98, 236 Parsing, 308 warranty management, 259 Partner determination, 67 warranty processing, 78, 79 Partner determination procedures, 158, Process and documentation flow, 325 188, 194, 203, 253, 263 Processing type Partner function category, 241 method call, 170 Partner functions, 159 Product Personal Task, 335 register, 248 PFCG, 127 return, 187 Planned activity, 84 Product configuration management, 47 Planning to Implement Service Product proposal, 68 Management, 363 Product proposals, 38 Position, 122 Product service letter (PSL), 88 Postal directory, 305 process flow, 90 Pre-sales, 27 Product update, 89 Price accumulation, 68 process flow, 90 Price error, 87 Progress monitoring, 326 Pricing, 68 Project definition, 315 Priority, 339 Project plan, 314 Problem Project risk management, 291 log, 184, 196, 237 Prototype Problem and solution type, 218 detailed, 283 Problem management, 364, 366 horizontal, 284 Problem subtype vertical, 283 define, 219 Problem type define, 219 Q Procedure model, 279 defined, 281 Qualification management, 243 Process Qualification scale, 243 complaint processing, 81 Qualifications catalog, 244 complaints management, proactive, Quality gate, 284 222 Quantity assignment, 38 complaints management, reactive, Quantity check, 83 196 Quantity confirmation, 83 379206_Book.indb 379 2/3/09 9:32:19 AM
  • 95. Index Quantity determination, 83 Sales stage Quotation after-sales, 27 create, 148 pre-sales, 27 sales, 27 SAP Business Communication Center, R 109 SAP Business Communication Rapid prototyping, 283 Management (BCM), 109 Reactive service, 45 integration with, 114 Recall, 90, 91 integration with SAP CRM, 110 prepare, 350 softphone, 112, 113 Recall Cockpit, 350 SAP CRM, 35, 53 Recall management, 348 architeture, 61 Recall report, 355 SAP CRM 2005, 35, 62 Reference documents, 83 SAP CRM 2006s/1, 35 Reference object, 67 SAP CRM 2006s/2, 35 assign, 163 SAP CRM 2007, 35, 63, 147 Release management, 364, 366 SAP CRM Roadmap, 35 Repair cycle, 48 SAP CRM Service, 42, 43 Repair request SAP CRM system, 349 accept, 191 SAP ERP, 31, 147 Repairs processing, 150, 183 integration with, 96 Requirements analysis and definition, SAP ERP CS, 53 315 SAP ERP Financials, 188 Return authorization, 84 SAP Mobile Service, 88 Role SAP NetWeaver Business Intelligence bill-to party, 137 (BI), 57, 69, 96 employee, 130 integration with, 96 payer, 137 SAP SCM, 31 service manager, 149 SAP standard function, 188, 194 ship-to party, 137 Satisfaction survey, 297 sold-to party, 137 SD, 147 Role configuration key, 131 Search, 335 Rollout Search criteria, 138 parallel, 314 Search function, 139 Routing management, 116 Security Management, 363 RSS feed, 64 Segment Builder, 38 Runtime Repository, 66 Selection time range, 240 Selective service, 45 Sellers’ market, 20 Seller warranty, 68 S Service, 329 Sales, 27 conduct, 150, 186, 193, 250, 259 Sales force automation (SFA), 31 Service and report Sales installation order, 55 execution, 56 Sales order, 147 Service billing, 56 380206_Book.indb 380 2/3/09 9:32:19 AM
  • 96. Index Service case Service quotation, 71 analyze and classify, 227 expiration analysis, 72 close, 227 pipeline analysis, 72 evaluate, 228 success analysis, 72 open, 227 Service quotation and service order process, 227 create, 185, 192 Service confirmation, 187 Service resource Service contract, 45, 58, 92, 93, 149 implement, 238 create, 248 plan, 237 determine, 237 Service resource planning, 97, 122 process flow, 93 analysis of qualifications, 103 release, 250 analysis of service orders, 104 Service contract determination, 74 process flow, 98 Service contract management, 45, 94 resource-based analysis, 103 Service Delivery, 363 Service sales, 44, 57 Service desk, 364 Service Support, 363 Service employee, 185, 191 Service technician, 150, 250 Service level Service type, 44 defined, 95 active service, 45 Service management, 25 reactive service, 45 Service management cycle selective service, 45 analyze, 43 Set type collaborate, 43 customer-specific, 142 optimize, 43 Shipping, 41 Service marketing, 44 SLA, 58 Service operations, 54 escalation, 59 Service order, 72, 147 monitoring, 59 confirm, 149 Solution Database, 218 create, 149, 237 intelligent, 218 Service order management, 69 Solution subtype process flow, 70 define, 220 Service order processing Solution type analysis of service processes, 78 define, 220 resource-oriented analysis, 77 Sources of error, 299 Service parts management, 52 Spare part, 139 Service plan, 73 Stakeholder analysis, 289, 291 Service planning, 56 Standard interface, 303 Service portfolio, 28 Start condition, 173 Must have, 28, 29 Status, 339 Need to have, 28, 29 Status management, 69 Nice to have, 28, 29 Strategic level, 20 Service process, 121 Strategy for growth, 330 Service processing, 150 Subject, 215 mobile, 59 Success factors Service product, 144 critical, 277 Service profile, 239 general, 278 Service quality, 78 381206_Book.indb 381 2/3/09 9:32:19 AM
  • 97. Index T Up-selling, 34 User Technical objects, 58 create, 124, 125 Technical support, 327 User assignment, 245 Templates, 68 User role, 121, 127 Territory and activity management, 39 Test cases, 325 Test concept, 323 V Test environment, 323, 324 Test implementation, 324, 325 Validation Test management, 324 postal, 307, 311, 312 Test model, 321 Vehicle, 334 Test phase, 323 Views Test preparation, 324 adjust, 130 Test scripts, 325 VIN, 350 Test strategy, 279, 320 V-Model, 322 Text determination procedures, 216 Training aids, 296 Training materials, 296 W Transaction BP, 125 Warranty BSP_WD_CMPWB, 66, 130, 135 confirm, 261 COMM_ATTRSET, 142 create, 260 COMM_HIERARCHY, 139 register, 248 CRMM_UIU_PROD_CONFIG, 142 send, 261 EEWB, 135 Warranty agreement, 149, 188 PFCG, 128 Warranty and claim management, 51 PPOCA_CRM, 122 Warranty case, 342 PPOMA_CRM, 122, 126, 129 Warranty processing, 78 PPOMA_CRM or PPOCA_CRM, 122 process flow, 79 SU01, 125, 128 Warranty product, 144 Transaction type, 151, 152, 188, 194, Warranty service, 74 200, 250, 261 Web applet, 64 define, 153 WebClient, 332 Transportation, 41 Web GUI, 135, 246 Wildcard search, 303 WinClient, 332 U Wizard, 159 Work center, 133 UI, 36, 63, 65 Worklist, 335, 343 UI configuration, 142 UI Configuration Tool, 64, 65 Under-delivery, 86 X Unique selling point, 331 Unplanned service XIF interface, 76 explanation, 55 ticket, 54 382206_Book.indb 382 2/3/09 9:32:19 AM