Transforming Customer Contact into Revenue: Selling-Chain Management Chapter Seven Transforming Customer Contact into Revenue: Selling-Chain Management The E-Business material shall at all times remain the property of E-Business Strategies, Inc. No license under any trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure of Confidential Information hereunder. Any such permitted copies will be considered Confidential Information. Confidential Information of E-Business Strategies, Inc. may not be copied or reproduced by the Recipient without E-Business Strategies, Inc. prior written consent.

Introduction First generation e-commerce sites failed to deliver on customer-interactive promise of Web Islands of disjointed information providing little or no buying Failed to gather more complete customer profile info beyond basic demographics and buying pattern data Main achievement till date: online delivery of targeted product and service content 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 www.ebstrategy.com

Introduction To support real-time, one-to-one, or self-service sales, companies must decide which new business practices to implement Companies must also determine what new apps are needed to support the Sales Process The business challenge: Improving the link from marketing to sales Activity management Opportunity management Orders and contracts Campaign management www.ebstrategy.com

Evolution of the Sales Process www.ebstrategy.com

Basics of SeCM SeCM an app framework that helps sell better and more effectively across all channels establishes linkages between previously disconnected sales functions within a company and sales processes Can enable new revenue channels while simultaneously improving effectiveness of a company’s existing channels www.ebstrategy.com

Basics of SeCM Selling Chain Corporation With Multiple Sales Channels Distributor Customer OEM Reseller Sales Force Self Service www.ebstrategy.com

{ Defining SeCM Complete order life cycle Customer Lifecycle Inquiry/ Prospect Customize Commit Order { Sales Lead Configurator Contract Pricing Order Entry Partial Functional Solutions Product Catalog Available to Promise Proposal & Quote Commission Complete Integrated Solutions Integrated Selling Chain Application Cross-Functional Processes Breaking Down Departmental Walls www.ebstrategy.com

Multiple Sales Channels – Example from Siebel Systems Siebel .COM Applications Siebel Call Center Siebel Sales Siebel Field Service Siebel eChannel Siebel Marketing Back Office Applications Source: Siebel Systems www.ebstrategy.com

Collaborative Selling Scenarios Delivered by SAP Manufacturer/ Supplier Customers (Consumers/ Business Partner) Distributor/ Reseller Internet Sales B2B Mall B2R Network Source: SAP AG www.ebstrategy.com

Defining SeCM Goals of Selling Chain Management business strategy Engage your prospects, and turn them into customers Make ordering process easy for the customer Add value for the customer Make it easy to order customized products Increase sales force effectiveness Coordinate team selling www.ebstrategy.com

Business Forces Driving SeCM The rise of the self-service order The excessive cost of presales technical support The increasing cost of order errors The proliferation of channels The increasing complexity of products The rise of deregulation and M&As www.ebstrategy.com

Technology Forces Driving SeCM 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 www.ebstrategy.com

First Generation SFA - Lead Management 3rd Party (e.g., D&B) Sales Web Tele Sales Channels Status Process Lead Gathering and Targeting Business Partner Cold Lead Warm Lead Qualification Hot Qualified Lead Qualified Lead D C B Opportunity Sales Pipeline A Selling, Contracting Customer Analyze, learn, grow customer Source: SAP AG www.ebstrategy.com

Universal Business Problem: Managing the Order Acquisition Process Order acquisition process more complex and difficult to manage Need for customized products and services New distribution channels Multiple pricing options Selling complex products requires dealing with two kinds of complexity Product complexity Needs complexity www.ebstrategy.com

Universal Business Problem: Managing the Order Acquisition Process needs assessment option selection order configuration order quote and proposal, complete with drawings, schematics, and performance metrics Identify Potential Customer Understand Customer Needs Validate Needs with Customer Develop Alternative Scenarios Translate into Production Terms Determine configuration, cost and price Determine terms, availability and delivery Present Bid/Proposal to Customer Evaluate and Revise Bid Prepare Order www.ebstrategy.com

Elements of E-Sales Enterprise Architecture Lead, Proposal & Quote Generation Pricing Web Email Prospect or Customer VRU Fax Commission & Contract Mgmt. Telephone Sales Configurator Order Entry & Mgmt. Enterprise Architecture www.ebstrategy.com

The Digitization of Selling in the Travel Industry Cruise-Lines Buy Air Car Hotel Airlines Hotels Car Rentals Intermediary Travelocity Expedia Trip.com Delta.com Priceline.com Vacation Package Online Travel Travel Agencies Management Community Search Bots Consolidators Online Auctions Travel Information Air Car Hotel Cruise Vacations Tours Business Goal (1): Automate the Look-To-Book Process Business Goal (2): Achieve Selling Synchronization 2.4 Trillion $$$ Travel Agent ---> Digital Selling www.ebstrategy.com

Custom Foot: Transforming Shoe Sales with Technology Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation success Shoe industry’s greatest challenge 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 www.ebstrategy.com

Custom Foot: Transforming Shoe Sales with Technology 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 www.ebstrategy.com

Relationship Management Internetworking Product Center Cisco and SeCM Marketplace Today Order Status Pricing Information Configuration Assistance Order all Products Relationship Management Custom Fulfillment Internetworking Product Center Information Center “Old Way” Targets Customer Profile Agent Custom Order Scheduling Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 www.ebstrategy.com

E-Business Strategies, Inc. www.ebstrategy.com contact@ebstrategy.com 678-339-1236 x201 Fax - 678-339-9793 The E-Business material shall at all times remain the property of E-Business Strategies, Inc. No license under any trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure of Confidential Information hereunder. Any such permitted copies will be considered Confidential Information. Confidential Information of E-Business Strategies, Inc. may not be copied or reproduced by the Recipient without E-Business Strategies, Inc. prior written consent. The E-Business material may not be re-sold. It is intended to be used solely for the purpose of accompaniment of the E-Business 2.0 Roadmap for Success book in an instructional manner.