Selling chain management
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Selling chain management Presentation Transcript

  • 1.
    • Business Process
    • Unit V
    • Chapter 7
    Selling-Chain Management Transforming Customer Contact into Revenue G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 2.
    • First generation e-commerce sites failed to deliver on customer-interactive promise of Web
      • Islands of disjointed information providing little or no buying
      • Failed to gather more complete customer profile info beyond basic demographics and buying pattern data
    • Main achievement till date: online delivery of targeted product and service content
      • by using niche apps or by building customized apps on top of the static sites
    • Resulting technological environments: complex, loosely integrated sales systems
      • Difficult to maintain, customize and extend
      • Online sales channel isolated from rest of enterprise
    Introduction G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 3.
    • To support real-time, one-to-one, or self-service sales, companies must decide which new business practices to implement
    • Companies must also determine what new apps are needed to support the Sales Process
    • The business challenge : Improving the link from marketing to sales
      • Activity management
      • Opportunity management
      • Orders and contracts
      • Campaign management
    Introduction G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 4.
    • SeCM an app framework that helps sell better and more effectively across all channels
      • establishes linkages between previously disconnected sales functions within a company and sales processes
    • Can enable new revenue channels while simultaneously improving effectiveness of a company’s existing channels
    Basics of SeCM G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 5. Basics of SeCM Corporation With Multiple Sales Channels Customer Distributor Self Service OEM Reseller Sales Force Selling Chain G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 6.
    • Complete order life cycle
    Defining SeCM Cross-Functional Processes Breaking Down Departmental Walls Inquiry/ Prospect Customize Integrated Selling Chain Application { Order Sales Lead Configurator Contract Pricing Complete Integrated Solutions Partial Functional Solutions Customer Lifecycle Commit Order Entry Product Catalog Available to Promise Proposal & Quote Commission G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 7. Collaborative Selling Scenarios Delivered by SAP G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India Manufacturer/ Supplier Customers (Consumers/ Business Partner) Distributor/ Reseller Internet Sales B2B Mall B2R Network
  • 8.
    • Goals of Selling Chain Management business strategy
      • Engage your prospects, and turn them into customers
      • Make ordering process easy for the customer
      • Add value for the customer
      • Make it easy to order customized products
      • Increase sales force effectiveness
      • Coordinate team selling
    Defining SeCM G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 9.
    • The rise of the self-service order
    • The excessive cost of presales technical support
    • The increasing cost of order errors
    • The proliferation of channels
    • The increasing complexity of products
    Business Forces Driving SeCM G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 10.
    • The selling-chain application continuum
    • Problems with existing SFA
      • First Generation SFA tools allowed contact management and lead management
      • Examples include ACT, Goldmine
    • Limited process -- order taking and management -- functionality
    • Limited sales effectiveness
    Technology Forces Driving SeCM G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 11.
    • Order acquisition process more complex and difficult to manage
      • Need for customized products and services
      • New distribution channels
      • Multiple pricing options
    • Selling complex products requires dealing with two kinds of complexity
      • Product complexity
      • Needs complexity
    Universal Business Problem: Managing the Order Acquisition Process G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 12.
    • Order acquisition process
      • needs assessment
      • option selection
      • order configuration
      • order quote and proposal, complete with drawings, schematics, and performance metrics
    Universal Business Problem: Managing the Order Acquisition Process Understand Customer Needs Prepare Order Identify Potential Customer Validate Needs with Customer Develop Alternative Scenarios Translate into Production Terms Determine configuration, cost and price Determine terms, availability and delivery Present Bid/Proposal to Customer Evaluate and Revise Bid G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 13. Elements of Selling Chain Architecture Lead, Proposal & Quote Generation Commission & Contract Mgmt. Order Entry & Mgmt. Sales Configurator Pricing Prospect or Customer Fax Email Telephone VRU Web Enterprise Architecture G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 14. Cisco and SeCM Phase 0 Phase 1 Phase 2 Phase 3 Phase 4
    • Marketplace Today
    • Order Status
    • Pricing Information
    • Configuration Assistance
    • Order all Products
    • Targets
    • Customer Profile Agent
    • Custom Order Scheduling
    “ Old Way” Information Center Internetworking Product Center Custom Fulfillment Relationship Management G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 15.
    • Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation success
    • Shoe industry’s greatest challenge
      • Provide value to customer in the form of quality, selection, and convenience at right price
      • Minimize inventory-holding costs
    • Custom Foot aimed to solve these problems by implementing a SeCM solution
      • 3-D scanner, kiosk, Trilogy sales configurator
      • Customers could get custom shoes in 3 weeks
      • Prices starting at less than $100
    Custom Foot: Transforming Shoe Sales with Technology G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
  • 16.
    • The hope was that the system would enable zero inventory or associated stocking costs
      • Goal: eliminate 30-50% of warehousing and distribution costs associated with retailing
    • Predicted as an overnight success by analysts and experts
    • But the company went bankrupt
      • Encountered several issues in reengineering core process and implementing the new business model
        • conflict between shoe size and shoe-fit calculations
        • some people like shoes to fit snugly, others prefer looser fit
        • many people’s right and left feet are different sizes
      • Problem with forecasting demand for various kinds of leather
        • frequently missed the 3-week delivery guarantee
    Custom Foot: Transforming Shoe Sales with Technology G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India