Building & Measuring Your eCommerce Team Success | Ariba LIVE Rome

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You’ve implemented ecommerce, you’re satisfying your customers’ requests, but what is the impact to your organization? In this session you will learn how other companies have built an eCommerce team to quickly, efficiently and effectively respond to multiple and various buyer ecommerce integration requests and how they scorecard key performance indicators to document the value to your leadership.

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  • Seller and Buyer15+ years of eCommerce experience3+ software, 10 sell side, 1.5 buy side, now back to the sell side
  • Note to Janet: I got this image from their website page.
  • companies spend as much on professional information as they spend on office-supplies – sometimes even more …… but they don‘t know how much exactly and what for (newspapers, journals, books, e-books, databases, lincenses, documents, standards, …)with Schweitzer being their one and only source they know – every minutewe handle and manage all subscriptions (about 80% of the costs a reccuring)we even save them 10, 20 sometimes up to 40 % of their spending and up to 80% on process costsour business model: trading, so basically we are a bookseller or like somebody at an SAP meeting once called it: media subscription service provider ….
  • Building & Measuring Your eCommerce Team Success | Ariba LIVE Rome

    1. 1. #AribaLIVE Building and Measuring the eCommerce Teams Success Alexander Graff, Head of Product Management, Schweitzer Lorenz Straub, eSales Procurement Leader, IBM Online Commernce, DACH 10 April 2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
    2. 2. BUILDING AND MEASURING THE ECOMMERCE TEAMS SUCCESS Alexander Graff, Head of Product Management, Schweitzer © 2014 Ariba – an SAP company. All rights reserved.2
    3. 3. Speaker © 2014 Ariba – an SAP company. All rights reserved.3 Alexander Graff, Head of Product Management Schweitzer Fachinformationen Alexander’s current role is the definition and development of new Schweitzer products to meet changes in customer and user behavior. He also acts as the in house E-Procurement expert. Alex was leading Schweitzers Corporate business for 5 years (mainly e-Procurement-based) and then left to head a technology based procurement services company for 1,5 years. With the buy-side experience gained he now rejoined Schweitzer to support the evolution of the companies products to adjust to the changes in user behavior and demands. His original background is software development.
    4. 4. What We Do? 4 Provide companies with catalogue, process and content to implement the best way to buy and use all external knowledge (professional information)
    5. 5. Facts and Figures about Schweitzer • Founded in 1868 (pre e-procurement era) • Since 1972 owned by the C.H. Beck publishers • 24+ sites in Germany • 1 site in the US • Volume 184 million Euro • 600 staff 5
    6. 6. What We Deliver to Our Customers 6 Find. Get. Use. … and kill the iceberg
    7. 7. First Encounter 2002-2007: Invest • Comply with customers request • Use external experts (software firms) • E-Procurement outside + oldschool inside = bad • Small volume per customer (!) • Good: improved retention + USP in sales © 2014 Ariba – an SAP company. All rights reserved.7
    8. 8. Maturity 2007-2011: Celebrating e-Pro • We “sold” E-Procurement and partnered with e-Pro firms • Built internal team (programme, specialists/helpdesk, project managers) • Trained backoffice and sales • Improved internal processes • Still: Small volume per customer (!) • Developed e-Procurement specific services/tools © 2014 Ariba – an SAP company. All rights reserved.8
    9. 9. Programme Manager • Deep understanding of background and development of e-Procurement market Project Manager • Classic project management skills • Knowledge of e-procurement platforms, providers & e-commerce basics • Deep understanding of the process • Technical understanding of E-Document interchange, catalogue formats, PunchOut interfaces and methods, ERP order to invoice cycle Maturity 2007-2011: Celebrating e-Pro © 2014 Ariba – an SAP company. All rights reserved.9 Helpdesk/support team • Detailed knowledge about e-Procurement “technicals” Different e-document formats (xCBL, cXML, EANCOM, IDOC/XML, … Catalogue formats: CIF, BMECat Platform specifics, i.e., what to do to provide a PunchOut catalogue via CIF to ASN • Good understanding of software development “can dos” Interface to the software engineers • Experts in using/configuring our in-house eCommerce platform
    10. 10. 2011: The Hangover • Volume per customer relatively small • High maverick buying quota (sometimes in our favor) • Customers adding complexity (“expensive customer”) • Still inefficient internal processes • Projects instead of products (“so not Amazon”) • USP diminishing © 2014 Ariba – an SAP company. All rights reserved.10
    11. 11. 2011: The Hangover – How to Measure It © 2014 Ariba – an SAP company. All rights reserved.11 KPI Measured Performance Target Volume Capture Ratio anual volume/ expected volume 10% 80% Volume Margin Total profit margin (has to do with volume coverage also) below 20% Customer Cost Recurring Cost of customer specifics (logistics, manual labor). Ratio cost/volume above <10% Customer Cost Project Total cost of customer project (software development/not reusable, daily rate PM) Ratio cost/avg. annual volume (target) XX% 20%
    12. 12. 2011: The Hangover – How to Measure It © 2014 Ariba – an SAP company. All rights reserved.12 KPI Measured Performance Target Internal Cost Cost of not customer specific processes to handle the volume (order processing, basic s&h, manual labor, system maintainance, system support) XX% YY% USP “worth” % of leads won for “technical reasons” as opposed to pricing/others 80% 50%
    13. 13. © 2014 Ariba – an SAP company. All rights reserved.13
    14. 14. Volume Per Customer Relatively Small • Benchmark formula on expected consumption (simplified): Size (FTE) X consumption/FTE X industry lever X customer specific lever Industry lever tables set up based on customer research • Introduced sub category checklist • 10%-80% covered (customer interview, comparision, data mining) © 2014 Ariba – an SAP company. All rights reserved.14
    15. 15. High Maverick Buying Quota • Discuss volume targets and measure them • Capture all purchases using freetext-catalogue item facilities • Create user-checklists (department, returning recipients, users ordering vs. users seeing the content/ e-procurement users) • Other industries: advance rebates © 2014 Ariba – an SAP company. All rights reserved.15
    16. 16. Customers Adding Complexity • Got aware of their view (general) and teach them the specifics I.e., PunchOut vs. Static • Open book on numbers and processes • Introduced an industry novelty: The Service Model Define 12 key features Define three products Basic, Professional, Enterprise “attach” the features to the products (feature packages) © 2014 Ariba – an SAP company. All rights reserved.16
    17. 17. The Schweitzer Service Model © 2014 Ariba – an SAP company. All rights reserved.17
    18. 18. USP Diminishing © 2014 Ariba – an SAP company. All rights reserved.18 • Think ahead • Forget your e-Procurement enthusiasm and start with the customer, and the basics of your business • You will see: it fits! • E-Procurement does deliver: customers, faster sales and improved retention – but not right at your door with no work(out) • Use business networks to FIND customers
    19. 19. 2012+: Improvements © 2014 Ariba – an SAP company. All rights reserved.19 KPI Measured Performance Target Volume Capture Ratio annual volume/ expected volume 10%  50% 80% Volume Margin Total profit margin (has to do with volume coverage also) Almost there 20% Customer Cost Recurring Cost of customer specifics (logistics, manual labor). Ratio cost/volume Matched (Rest is/was invoiced) <10% Customer Cost Project Total cost of customer project (software development/not reusable, daily rate PM) Ratio cost/avg. annual volume (target) Work to do 20%
    20. 20. 2012+: Improvements © 2014 Ariba – an SAP company. All rights reserved.20 KPI Measured Performance Target Internal Cost Cost of not customer specific processes to handle the volume (order processing, basic s&h, manual labor, system maintainance, system support) Still too high YY% USP “worth” % of leads won for “technical reasons” as opposed to pricing/others 80%  50% 50%
    21. 21. BUILDING AND MEASURING THE ECOMMERCE TEAMS SUCCESS Lorenz Straub, eSales Procurement Leader, IBM Online Commernce, DACH © 2014 Ariba – an SAP company. All rights reserved.21
    22. 22. Lorenz Straub, eProcurement Sales Leader, DACH • Lorenz brings more than 8 years experience within eCommerce. • First as a front-line web seller, working with and consulting with some of the largest Swiss clients on enabling and improving their eprocurment strategy and capabilities. • The last few years Lorenz has held several management and operational leadership positions frist within the Swiss-Austrian team and recently within the DACH team. • In his current roles, Lorenz partly managing the B2B implementations across DACH, while at the same leading several pan-European projects. © 2014 Ariba – an SAP company. All rights reserved.22
    23. 23. IBM and eCommerce • Well established Capabilities Multiple web based workflow solutions to assist buyers in pre-ordering, P2P management and post-payment transactions Enterprise Gateway for integrated communication between direct Clients, Business Partners and IBM Over 4800 connected Clients doing electronic business with IBM © 2014 Ariba – an SAP company. All rights reserved.23
    24. 24. Online Commerce • Global organisation with local reach Local teams can work directly with Clients Good communication between teams – supported by both regional and global leaders – ensures multi-national coverage Common solutions, tools and measurements guarrantee uniform deployment and helps drive customer satisfaction © 2014 Ariba – an SAP company. All rights reserved.24
    25. 25. Roles and responsibilities • Local level Sellers/Consultants – leading the Client dialogue and aligning internal teams to support enablement Architects/solution leads – making sure the web solutions meet needs of the client and LoB • Regional/Global level Sales leaders – responsible for eCommerce funding from LoB, cross country alignment, solution industrialisation Analysts, communication experts, etc © 2014 Ariba – an SAP company. All rights reserved.25
    26. 26. Supporting the Services business through web based workflow solutions • A big part of the business is around large service contracts. Web solutions to support: Request for Services Scope of Work Application Management © 2014 Ariba – an SAP company. All rights reserved.26
    27. 27. Another area where web solutions are critical is post-order management • IBM has numerous web solutions to support Software Licence management Maintenance Ticketing and error reporting © 2014 Ariba – an SAP company. All rights reserved.27
    28. 28. Expanding the procure-to-pay capabilities • A maturing market requires increasing coverage beyond order and invoice support Basic ordering and invoicing across multiple communication channels Change/Cancel, Shipment and Delivery Notification • Integration on Services procurement is the next big thing © 2014 Ariba – an SAP company. All rights reserved.28
    29. 29. Defining targets and track points is key to success • Ensure KPIs cover the main points of the business Cover sponsors – Clients boarded, business areas covered Cover Sales Management – Revenue attainment, Clients boarded, engagement cycle time • Set up and manage SETMET program Manage Client expectations Improve individual and structural challenges © 2014 Ariba – an SAP company. All rights reserved.29
    30. 30. Tracking Client coverage • A typical sales organisation will have many entry points and contacts into the client • Focus main activities on a select number of Clients, but enable all that come forward • Build a tracking system to capture your engagements © 2014 Ariba – an SAP company. All rights reserved.30
    31. 31. Communicate your success • Use internal communication channels to show case Client stories, technical achievements and results • Gain Sponsor support from Line of Business and other key stakeholders • Communicate, communicate, communicate © 2014 Ariba – an SAP company. All rights reserved.31
    32. 32. Questions © 2014 Ariba – an SAP company. All rights reserved.32

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