1. Transforming Customer Contact into Revenue: Selling-Chain Management
Chapter Seven
Transforming Customer Contact into Revenue: Selling-Chain Management
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2. 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

3. 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

4. Evolution of the Sales Process

5. 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

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

7. { 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

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

17. 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

18. 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

19. 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

20. 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 Phase Phase Phase Phase 4

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