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www.simon-kucher.com
Introducing CPQ software in your organization
Configure-Price-Quote software solutions
Amsterdam offi...
CPQ_Slideshare_Simon-Kucher & Partners
Source: Simon-Kucher & Partners
What can CPQ do for you?
… enables corporate
harmon...
Source: Simon-Kucher & Partners
8 reasons to consider a CPQ software solution
Increasing
competitive
pressure
Too little t...
Source: Simon-Kucher & Partners
Steps for introducing CPQ software in your organization
Understand if CPQ
software fits in...
Source: Simon-Kucher & Partners; Demand Metric
Generic overview of different CPQ software solution
package options
Basic S...
Source: Simon-Kucher & Partners
Critical elements for successful CPQ integration
1. Know how first: Understand, market, bu...
Source: Simon-Kucher & Partners
Simon-Kucher & Partners at a glance
Strategy
> 400
Sales
> 500
Marketing
> 500
Pricing
> 1...
Source: Simon-Kucher & Partners
Contact details
CPQ_Slideshare_Simon-Kucher & Partners
Pieter Fourie
Manager
Pieter.Fourie...
www.simon-kucher.com
Amsterdam office
Barbara Strozzilaan 380
1083 HN Amsterdam
The Netherlands
Tel. +31 20 75312 53
Amste...
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Configure-Price-Quote (CPQ) Software Solutions

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This document is intended to give a short overview of what a CPQ software solution could mean for your organization, the steps to follow to introduce it into your organization and critical success factors for integration.

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Configure-Price-Quote (CPQ) Software Solutions

  1. 1. www.simon-kucher.com Introducing CPQ software in your organization Configure-Price-Quote software solutions Amsterdam office Barbara Strozzilaan 380 1083 HN Amsterdam The Netherlands Tel. +31 20 7531 253 Hayri.Culum@simon-kucher.com
  2. 2. CPQ_Slideshare_Simon-Kucher & Partners Source: Simon-Kucher & Partners What can CPQ do for you? … enables corporate harmonization through Process alignment Transparency User friendliness … improves process effectiveness through: Customer needs identification Product(s) selection (guided selling) Up- and cross-selling Production planning & forecasting … increases process efficiency through: Commercial risk mitigation Reduces time-to-market Reduces errors Better pricing governance A ‘Configure-Price-Quote’ Software … 2
  3. 3. Source: Simon-Kucher & Partners 8 reasons to consider a CPQ software solution Increasing competitive pressure Too little time for selling activities Unnecessary long sales cycles Complex product offering Mismatching customer needs Isolated CPQ* processes Multiple systems/tools used in CPQ process Manual transfers of error-sensitive information 1 3 2 4 5 6 7 8CPQ “Integrated software solutions to support companies commercial processes and performance” CPQ_Slideshare_Simon-Kucher & Partners 3
  4. 4. Source: Simon-Kucher & Partners Steps for introducing CPQ software in your organization Understand if CPQ software fits into your strategy Strategy definition including evaluation of company needs Quantify potential return on investment Make a business case including qualitative and quantitative criteria Prepare for implementation Ensure strategy is optimized for the solution and set up a detailed roadmap with deadlines, roles and responsibilities Implement and integrate Be pragmatic and follow a phased implementation and integration approach to ensure benefits are realized from early on Step 1 Step 2 Step 3 Step 4 Step 5 CPQ_Slideshare_Simon-Kucher & Partners Detail software requirements and vendor selection Define technical requirements and preferences to short-list vendors 4
  5. 5. Source: Simon-Kucher & Partners; Demand Metric Generic overview of different CPQ software solution package options Basic Standard Advanced Complete Configure Product configurator     Product design, modelling & catalogues   3D visualization tools   ROI/TOC calculators   Product design, modelling & catalogues   CAD, CAM & PLM integration  Price Pricing engine     Business rules & constraints     Guided selling   Value-based pricing & modelling  Benefit estimators  Quote Quoting system     Proposal management    Contract & order management    Order-to-cash functionality   Enablers Cloud-based application     CRM, SAP and/or ERP integration    Channel management    Workflow approvals & authorizations    eSignature compatibility    Sales analytics   CPQ_Slideshare_Simon-Kucher & Partners Once desired functionality and system architecture is clear a shortlist of vendors can be drafted and contacted for proof-of-concept evaluation 5
  6. 6. Source: Simon-Kucher & Partners Critical elements for successful CPQ integration 1. Know how first: Understand, market, business, product and customer requirements first, before you start 2. Strategy: Develop/have a clear business strategy which is compatible with a CPQ software solution is an essential departure point 3. Business case: Combine internal opportunity & transaction data with external market data and expert inputs to facilitate fact-based decision making 4. Change management: Changing mind-sets and the way-of-working requires a change process which starts with creating urgency, being heard and giving training 5. Anchoring: Any CPQ will play a central role within the organization and will require careful anchoring with top management to ensure successful roll-out 6. User first: Incorporate test users who will work with the CPQ to ensure applicability and relevance prior to full development and implementation 7. Interfaces: Ensure data input and output requirements from other systems is considered continuously throughout the development of the CPQ logic 8. Functionality: A smart working 70% solution is in many cases better than a sophisticated but hard working 110% vision 9. Planned roll-out: Pilot roll-out CPQ tool to provide adequate time for training, adjustments and fine-tuning prior to full go-live 10.Book early success: Phased implementation ensures early returns, creates buy-in and motivates the organization to keep on investing in the full-scale implementation CPQ_Slideshare_Simon-Kucher & Partners 6
  7. 7. Source: Simon-Kucher & Partners Simon-Kucher & Partners at a glance Strategy > 400 Sales > 500 Marketing > 500 Pricing > 1,000 Commercial excellence Growth and competitive strategies Product portfolio (re-)design Pricing excellence Customer relationship and customer value management Sales strategies and sales channel optimization Global presence 1 Simon-Kucher & Partners 2 Boston Consulting Group 3 McKinsey & Company manager magazin Marketing and sales Simon-Kucher & Partners Boston Consulting Group McKinsey & Company brand eins Thema Marketing and pricing Simon-Kucher & Partners Boston Consulting Group McKinsey & Company Sales and CRM ... ... Source: manager magazin survey of top managers in Germany, August 2007 and 2011/IMB Source: brand eins Thema/Statista survey of 1,426 partners and project leaders from consulting firms and 1,300 C-level managers from German companies, May 2014 Best consultancy in marketing and sales >2,000 projects in the last 3 years Amsterdam Barcelona Bonn Brussels Cologne Copenhagen Frankfurt Istanbul London Luxembourg Madrid Milan Munich Paris Warsaw Vienna Zurich Toronto Boston New YorkSan Francisco São Paulo Santiago Dubai Beijing Tokyo Singapore Sydney Atlanta World leader in giving advice to companies on how to price their products Pricing strategy specialists The world’s leading pricing consultancy In pricing you offer something nobody else does BusinessWeek The Economist Professor Peter DruckerThe Wall Street Journal World leader in pricing CPQ_Slideshare_Simon-Kucher & Partners TopLine Power® 7
  8. 8. Source: Simon-Kucher & Partners Contact details CPQ_Slideshare_Simon-Kucher & Partners Pieter Fourie Manager Pieter.Fourie@Simon-Kucher.com Hayri Culum Senior Director Hayri.Culum@Simon-Kucher.com Mar Muñoz Catalina Consultant Mar.MunozCatalina@Simon-Kucher.com 8
  9. 9. www.simon-kucher.com Amsterdam office Barbara Strozzilaan 380 1083 HN Amsterdam The Netherlands Tel. +31 20 75312 53 Amsterdam ◊ Atlanta ◊ Barcelona ◊ Beijing ◊ Bonn ◊ Boston ◊ Brussels ◊ Cologne ◊ Copenhagen ◊ Dubai Frankfurt ◊ Istanbul ◊ London ◊ Luxembourg ◊ Madrid ◊ Milan ◊ Munich ◊ New York ◊ Paris ◊ San Francisco Santiago de Chile ◊ São Paulo ◊ Singapore ◊ Sydney ◊ Tokyo ◊ Toronto ◊ Vienna ◊ Warsaw ◊ Zurich

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