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Hosted by Case Study: My SAP Implementation at the Associated Press Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press
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Hosted by Company Overview Founded in 1848, The Associated Press is the oldest and largest news organization in the world, serving as a source of news, photos, graphics, audio and video to the media market and corporations.
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Hosted by About The AP 1,700 U.S. newspapers 5,000 U.S. radio/TV outlets 8,500 international media customers 500 new media and corporate customers 121 countries served by AP Total 242 bureaus worldwide 3,700 employees worldwide
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Hosted by SAP CRM Initiatives at AP Live Sept. 2002 for AP Digital, new media division of AP. Enhancements to AP Digital implementation in 2003 Project organized for Newspaper implementation beginning of 2004. Go live November 2004 By then, CRM will support substantial revenue base for AP.
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Hosted by New Media Market (AP Digital) CRM Implementation
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Hosted by Landscape Pre-CRM Systems: Excel – prospect, sales activity and contract management Filemaker – order processing, trials and customer database SMART – service management and billing PA Billing – invoicing Manual entry, redundant data between systems No integration of systems No standardized reporting from a central system No reporting flexibility for analysis
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Hosted by CRM Objectives Centralize account, contact, order, opportunity, and contract management Support customer interaction cycle – from customer acquisition, order fulfillment to billing and support Provide a single customer view Deploy reporting tools for business analysis Align systems with corporate direction End Goal: Better customer and business management
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Hosted by Software Selection Process SAP HR implemented SAP CRM had the required functionality SAP provided a platform: phase in functionality as we were ready ride SAP’s product development curve
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Hosted by SAP Production Versions SAP R/3 Release 4.6C: Live with SAP HR Master data, Org Data & Benefits, Payroll CRM Release 3.0, Upgraded to 4.0 Business Warehouse 3.0B
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Hosted by Business Process
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Hosted by Functionality Implemented Campaign Management Customer Interaction Center Order Processing Product Management Opportunity Management Service Contract Management Business Warehouse
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Hosted by Implementation Timeline Total implementation time – 5 Months Project Started on April 2002 Live on September 2002 Staffing Internal : 3 External: 4
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Hosted by Campaign Management Two types of Campaigns E-mail and phone campaigns Target Groups are created based on: CRM Master Data (Marketing Attributes, SIC Codes, Est.Rev, # of employees, Address information etc) Information from BW
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Hosted by Call Lists in CIC
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Hosted by Customer Interaction Center Used to track customer interaction history Used to create/modify all the transactions e.g.: Activities, Opportunities, Service Contracts, Business Partners, etc from a single screen. Configuration Flexibility based on user requirements
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Hosted by Customer Interaction Center
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Hosted by Business Activities Used for Order Processing Trial Order Notifications Service Order Notifications
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Hosted by Activity Screen
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Hosted by Activity Monitor The Activity Monitor is used to call up lists of all the activities that have been created in the system, according to various criteria such as date and completion status
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Hosted by Activity Monitor The output can be sorted by any column Layout can be customized for each user
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Hosted by BW:Order Fulfillment Report
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Hosted by Product Management Product hierarchies Flexibility of reassigning product categories Product pricing Customer & Product Product Billing frequencies Monthly Quarterly Yearly One Time Fees
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Hosted by Opportunity Management Logs sales prospects, requested products, sales prospect’s budget, potential sales size, estimated sales probability and expected closing date Information is used in sales pipeline
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Hosted by Opportunity Management
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Hosted by BW:- Sales Pipeline report
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Hosted by BW: Lost Opportunities Report
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Hosted by Service Contract Management Represents relationships with customers. Contains detailed information about contract with customer: Contract Start Date, End Date, Renewal Date Terms, Services, Delivery methods Billing Frequency, Billing Plan for Services, Royalty Information
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Hosted by BW Reports: Service Contracts Contracts signed in the current year Contracts terminated in the current year Contracts renewed in the current year Contract to be renewed for a given period List of contracts based on sales reps, royalty information, territories & other criteria
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Hosted by Business Warehouse Used for reporting & data analysis Used for creating target groups for campaign management based on complex queries Generate ad hoc reports for managerial decisions
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Hosted by CRM Billing Billing through CRM application, which is integrated with current non-SAP invoicing and financial application Contracts have billing documents Billing Due Lists Processing of incorrect billing due lists Cancellation of Billing Documents Credit Memos/Debit Memos Much work went into mid-period billing rate changes
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Hosted by CRM 4.0 Upgrade Territory management Alerts for contracts Customer hierarchies External list management Workflow functionality Web client – not yet implemented Royalties and sales commissions – not yet implemented
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Hosted by Benefits of SAP CRM “Orders don’t get lost” Interaction History for future reference, with ability to store customer, product, transaction information No Redundant data entry – resources redeployed Eliminated costs of - $130K Standardized reporting from a Central System
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Hosted by Benefits - CRM Data Sharing Campaign Management Opportunity Management Trial Contracts Service Contract Billing Marketing Sales Client Relations Customer Support / Management / Entitlements Billing Enhanced coordination of the various functions Better information about our customers and business
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Hosted by Newspaper Market CRM Implementation
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Hosted by CRM Objectives in Newspapers Improve customers’ experience with the AP Produce efficiencies in ordering and fulfillment processes Provide analytic tools to assess customer relationships and behavior Improve Sales
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Hosted by Newspapers CRM Deployment Customer- facing AP Activities Back-office Execution NNMM Customer Hierarchy NNMM Product Hierarchy Marketing Collateral Market/ Advertise Corporate Marketing (external visit report application and sales support site will be available) Promote/ Campaign Account Specific Marketing Contact Management Sales pipeline reporting Sell Sales Support Workflows to route trials and orders to actors and approvers Workflows to alert sales & support of pending trial and contract terminations Entitle Contract Mgmt PA Billing integration for APDigital Provide Order Fulfillment, Billing NNMM view of customers Up-sell/ Cross-sell Customer Support Capture Customer Interaction History Robust business analytics and reporting
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Hosted by Customer Hierarchy
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Hosted by CRM Functionality Order processing Opportunity management CRM Pricing Contract management Workflow functionality
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Hosted by Get Organized Right team with clear accountability Project management and tools Communication and teamwork Have a good grasp of the big picture, but no detail is too small
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Hosted by Lessons Learned Set realistic expectations Don’t underestimate data migration Involve users from start – requirements, testing, data migration, training Phase in CRM – with sight on the future, new modules, other business units (scalability) If you encounter errors, check the SAP notes, then create a OSS message
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