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.
Project Based Learning (A.I).pptx detail explanation
Configure-Price-Quote (CPQ) Software Solutions
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. 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. 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. 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. 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. 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. 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
9. www.simon-kucher.com
Amsterdam office
Barbara Strozzilaan 380
1083 HN Amsterdam
The Netherlands
Tel. +31 20 75312 53
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