CW701 701 Presentation

CPQ Best Practices: How To Configure, Price, and Quote

in B2B E-Commerce and for Internal Sales –

SAP CPQ on hybris

Harald Reitz, Steve Lenz, SAP

May 2015

© 2013 SAP AG. All rights reserved. 2Public

Agenda: SAP Configure, Price, and Quote (SAP CPQ)

Solution Overview and Strategy

SAP CPQ with hybris 5.3, 5.4, 5.5

SAP CPQ for Solution Sales Configuration 2.0

Overview CPQ related SAPPHIRE and ASUG presentations


Intelligent Customer

Engagement - Embedded

& Predictive Analytics

Customer Service

Excellence – Perfect

Order Execution

Business Model Innovation –

Servitization, from Product

Vendor to Solution Provider

Increased Product

Personalization

Lot Size of 1

Configure, Price, and Quote (CPQ)

Industry Priorities and Trends Impacting SAP’s Strategy

Mobility/Cloud

Consumerization of IT

Social Everywhere

Omni-Channel Commerce

Order Any -

Time/Where/Device

© 2013 SAP AG. All rights reserved. 4

Variant

Configuration

Management

Configurable Product Model

Sales Back Office

Manufacturing and Service

Engineering

Integration

Integrated Product Development

Modularization

Engineering BOM to Manufacturing BOM

Solution Configuration

Fulfillment Orchestration

Flexible Solution Billing

Solution

Selling

Configure,

Price, and

Quote

Customer Portals

Dealer/Distributor Portals

Sales Front Office

SAP Point of View: Configuration Maturity Model


SAP Configure, Price, and Quote (SAP CPQ)Configure, price, quote, and order products and solutions more efficiently

Configure, price, and quote (CPQ) offers a significantly

improved sales configuration solution that enables sales

teams, customers, and channel partners to configure,

price, quote, and order products and solutions

accurately and efficiently. Leveraging the hybris

platform, sales and marketing can manage the content

for rich and proper display of options and values, with

high flexibility to customize and extend the user

experience.

*) future capability

BackSAP Configure, Price and Quote (CPQ) Info Day

Capabilities Key benefits

• User-friendly CPQ solution for sales, customers, and

channel partners

• Product configuration

• Solution configuration, guided selling

• Modular user experience, easy-to-use, easy-to-adapt

• Flexibly enrich configuration options and values in hybris

• Integration to hybris B2B Commerce and ERP order mgmt

• Integration to CRM and Cloud for Customer/Mobile*

• Increase sales efficiency by enabling sales to enter

configurations easily to fit customer needs

• Sell more configurable products and solutions by

offering user-friendly self-service in a customer and

dealer portal

• Reduce quote to order cycle times by integrating

customers, channel partners, and internal sales

Demo: SAP CPQ with hybris

http://scn.sap.com/community/industrial-machinery-and-components/blog/2014/02/24/egister-today-for-sap-configure-price-and-quote-cpq-info-day--april-17-in-chicago

http://scn.sap.com/community/industrial-machinery-and-components/blog/2014/02/24/egister-today-for-sap-configure-price-and-quote-cpq-info-day--april-17-in-chicago

https://jam4.sapjam.com/wiki/show/lOdvs7BaAlHsXmvlIVhTBC



Multi-Channel CPQ in hybris: E-Commerce to Internal Sales / Channel Partner

Role: End Customer in E-Commerce Portal (Desktop, Mobile)

Configure Product

Option Pricing

Guided Selling,

Configure SolutionCatalog & Search

Cross/Up-Selling

Recommendations

Visualize 3D

Checkout

Request Quote

Create Order


Multi-Channel CPQ in hybris: E-Commerce to Internal Sales / Channel Partner

Role: Internal Sales Rep or Channel Partner (Desktop, Mobile)

Opportunity

RFQ from

Customer Fuzzy Search Dealer/OEM

Configured Inventory

Approval

WorkflowGenerate

Proposal

Quote, Pricing,

Costs & Margins

Release Quote

to CustomerSales & Configuration

Analytics

Create Order,

Order Status

Configure, Price,

Visualize


SAP CPQ on the hybris platform – Leverage the user

experience flexibility of hybris for SAP Configuration

hybris enables unique user experience

The hybris platform allows customers to

easily build a unique user experience for the

web shop storefront and product catalog

• hybris product content management (PCM)

• hybris Web Content Management (WCMS)

Unique user experience for configuration

With SAP CPQ on the hybris platform, the

modular configuration user experience can be

adapted very flexibly, resulting in an easy-to-

use and fast CPQ process tailored to the needs

of external users and internal sales users

hybris platform

Modular Configuration UI

Floorplan in SAP CPQ

Custom tailored UI for different

markets, channels, user groups

Model KB from

Backend

Data Enrichment

by Sales & Mkt

Model Data

used in CPQ


SAP CPQ on the hybris platform:

Strongly improved performance and user response times

CPQ Configuration Runtime (SSC)

offers optimized load times,

performance and memory usage

• Faster complex solution configuration,

large multi-level solution configurations

and guided selling models containing

many configurable products

• Knowledge base orchestration, so that

only the configurable product KB used in

the configuration is loaded

SAP CPQ based on CPQ Configuration

Runtime (SSC) on the hybris platform offers

very fast user response

• SSC configuration runtime, configuration UI,

configuration model interactive pricing data,

and catalog all on the hybris server

• Direct engine-UI communication independently

of SAP backend for very fast response times

hybris platform

CPQ Config

Runtime

(SSC)

Model KB +

Pricing DataProduct Catalog Data

hybris user interface

Browse

CatalogGuided

SellingConfigure


Cloud for Customer or CRM

Sales

Planning

Account, Lead,

Opportunity &

Pipeline Mgmt

ERP

SAP Solutions for Sales and Configure, Price, and Quote (CPQ)

Multi-Channel CPQ across Customers, Partners, Internal Sales

SAP

HANA

Sales &

Operations

Planning

hybris

Marketing

MRP on

HANA

with VC

Sales &

Configuration

Analytics

Fuzzy Search for

Configured Inventory

Channel Partner / OEM

Sales Back Office & Fulfillment

Order Management

Order Fulfillment

Billing

Variant Configuration

hybris – E-Commerce & CPQ

E-Commerce

Partner

Channel

Internal

Sales CPQ Runtime (SSC)

Configure, Price,

and QuoteProducts and Solutions

Order

Capture

Catalog,

Search

Cross &

Up-Selling

3DProposal

OpenText

Core Optional

Model

EclipseSolution Modeling








hybris-SAP Integration Methods – Overview

Loosely Coupled

Flexible Scenario

Tightly Coupled

asynchronous communication

customer interaction happens only through and within

hybris

hybris stays completely independent from SAP back-

end, with persistency and business processes

synchronous communication

customer interaction happens through hybris

Persistency and business processes reside in SAP

back-end

asynchronous and synchronous communication

customer interaction happens through hybris with

synchronous calls to SAP back-end

hybris stays largely independent from SAP back-end


hybris-SAP Integration, CPQ SAP CPQ – Overview

Agile, wave based approach

CPQ for Product

Configuration (continued)

Flexible Scenario:

Synchronous Credit Check,

Available-to-Sell

hybris 5.4 – Q4/2014

hybris 5.5 – Q1/2015 Transfer of Products, Prices,

Inventory, Customers, Orders,

between hybris & SAP using

hybris Data Hub

Order integration scenarios:• Asynchronous B2C

• Asynchronous B2B

• Synchronous B2B

• Flexible Scenario – asynchronous

order integration with synchronous

pricing API to ERP

CPQ for Product Configuration

hybris Marketing (Customer

Engagement Intelligence-HANA)

Marketing segmentation

Product recommendations

hybris runs on HANA DB

Ariba PunchOut scenario

hybris on SAP HANA

Enterprise Cloud (HEC):

Pilot Customers

H1/2014 hybris 5.3 – Q3/2014

Guided Selling, Solution

Configuration in hybris

Extended configuration

syntax and modeling

CPQ for Solution Sales

Configuration 2.0 Q1/2015


Configure, Price, and Quote (CPQ)

Key Capabilities

Based on SAP CPQ Configuration Runtime (SSC), deployed on hybris server

CPQ for product configuration (as supported with IPC), using configurable products modeled with SAP

Variant Configuration (VC) – hybris 5.3, 5.4, 5.5

CPQ for solution sales configuration – supporting Solution Configuration and Guided Selling in addition –

released February 2015

Configuration User Experience in storefront via hybris-Add-On

Single level and multi-level configuration

Flexible navigation – tabs, accordion (+/-), specification structure

Interactive pricing during configuration, delta pricing for option values

Flexibly enrich options and values in hybris – replicate from ERP, adjust in hybris

Maintain extended long text for options and values in hybris

Replicate material variants to hybris, integrated to faceted search

In synch with the Order Management Scenarios to ensure end to end process

integration

Focused on the needs of B2B in general and Industrial Machinery and Components

(IM&C) / High Tech in specific


Configure, Price, and Quote (CPQ) on the hybris platform

User Experience Approach


Easy-to-adjust Configuration User Experience using

hybris Web Content Mgmt (WCMS)

© 2014 SAP AG. All rights reserved.

image

tab navigation / configuration flow

product description

content area

configuration options

summary

help &

support

specification

overview of

configuration


Demo: SAP Configure, Price, and Quote (SAP CPQ)

in hybris B2B Commerce

Demo: hybris Robot Configuration

https://www.sapdemostore.com/scenario/10039



Easy to adjust Configuration user experience in hybris –

tabs, accordion (+/-), specification structure navigation


SAP Configure, Price, and Quote (SAP CPQ) in hybris

User Experience on Mobile Devices


Internal Sales or Channel Partner – hybris E-Commerce

End Customer – hybris E-Commerce Portal

CPQ Showcase Demo: End Customer Portal to Internal Saleshybris CPQ and E-Commerce Platform: Easy-to-Use, Easy-to-Extend

Catalog, Search,

Cross & Up-Sell

Request Quote

Create OrderConfigure, 3D

Option Pricing

Generate

Proposal

Approval WF,

Release Quote

Configuration

Analytics

Create Order,

Order Status

Guided Selling,

Configure Solution

Search

InventoryQuote, Pricing,

Cost & Margin

RFQ from

Customer

Opportunity

Configure,

Price, 3D

01_cpq_hybris_robot_3D_RFQ_end_customer_SAPPHIRE.mp4

01_cpq_hybris_robot_3D_RFQ_end_customer_SAPPHIRE.mp4

iPad_robot_configuration.mp4

iPad_robot_configuration.mp4

iphone_robot_configuration_proof_of_concept.mp4

iphone_robot_configuration_proof_of_concept.mp4

DP_Live_hybris_B2B_Configurable_products_and_Quotation_generation.mp4

DP_Live_hybris_B2B_Configurable_products_and_Quotation_generation.mp4

TopTenAnalysisWithPricing.mp4

TopTenAnalysisWithPricing.mp4

03_cpq_hybris_robot_3D_quote_to_order_end_customer_SAPPHIRE.mp4

03_cpq_hybris_robot_3D_quote_to_order_end_customer_SAPPHIRE.mp4

search_similar_configurations_dealer_stock_OEM_inventory.mp4

search_similar_configurations_dealer_stock_OEM_inventory.mp4

02_cpq_hybris_robot_3D_quote_internal_sales_rep_SAPPHIRE.mp4

02_cpq_hybris_robot_3D_quote_internal_sales_rep_SAPPHIRE.mp4


CPQ Showcase Demo hybris CPQ–Cloud for Customer–ERP

MEGAMACHINES: End Customer to Dealer to Manufacturer

hybris Customer Portal – Find and Configure Product, send Quote Request to Dealer

Dealer using Cloud for Customer: View Lead,

Convert to Opportunity, Launch hybris Quote

hybris Dealer App/Portal: Review & Complete Quote,

Generate Proposal for Customer, Create ERP Order

Demo: CPQ Showcase

megamachines.mp4

megamachines.mp4




SAP CPQ Showcase Demos

POC: CPQ with SAP Cloud for

Customer for Internal Sales Reps

POC: Proposal Generation – SAP

Document Presentment by OpenText

POC: Visual Configuration,

Visual Service Parts Selling

POC: CPQ on

Smartphones

POC: Seach for Similar Configurations in

Dealer/Manufacturer Inventory and Production

Proof-of-Concept Demos




Proposal Generation – SAP Document Presentment by

OpenText with SAP CPQ and hybris (Showcase Demo)


SAP CPQ on Smartphones (iPhone, Android)

Showcase Demo


SAP CPQ with SAP 3D Visual Enterprise:

Showase Demo


Proof of Concept Demo: Visual Service Parts Selling

in hybris 2D/3D, leveraging SAP 3D Visual Enterprise

Demo: hybris Service Parts Selling 2D/3D




SAP CPQ with SAP Cloud for Customer (Desktop/iPad)Internal Sales Scenario - Proof of Concept Demo


Search for similar Configurations in OEM/dealer inventory or

production: Proof-of-Concept Demo (CPQ in hybris, HANA)

1. Configure with CPQ in hybris

2. Launch inventory search

2. Set must-have values for configuration


Search for similar Configurations in OEM/dealer inventory or

production: Proof-of-Concept Demo (CPQ in hybris, HANA)

3. Review Dealer Inventory and Production –

match%, price, availability, distance & location4. Compare selected configurations side-by-side


SAP Configure, Price, and Quote (CPQ) with hybris

Business Value and ROI

Additional sales channels: Portal

for customers, channel partners

More quotes in less time from

internal sales, without support

from engineering

Faster, more accurate quotes –

better win rate

Uplift on

Revenue

Move from lower margin standard products

to higher margin configurable products

Become a solution provider – high margin

solution bundles with products, services,

service contracts, pay-per-use models

Improved Margin –

Product Mix

Higher share of self-service by

customers, channel partners

More efficient quote processing

Less support from engineering

to offer complex products

Reduced Sales

Costs


SAP CPQ with hybris

Enable End-to-End Processes to make CPQ Successful

Customer self service to configure your

products, create orders or request quotes

Tools to pick up abandoned carts and

configurations – create leads, follow-up by

distributor or internal sales rep

Enable distributors to quote and sell your

configurable products to the end customer

Trigger internal CPQ process through

customer or distributor, if required

Easy process from sales front office to back

office, if required – costing, pricing, ETO

special requests, availability

Quote-to-order submitting valid configuration

to trigger shop floor immediately

End Customer to Distributor to

Sales Front Office to Back Office

One consistent approach to model configurable

products – manufacturing model, sales model,

guided selling/sizing model, solution model

Consider integration costs ongoing

maintenance, and order incompatibility

problems, when using multiple tools and

vendors for modeling

Leverage existing configuration models for

customers, distributors and internal sales

Enable sales and marketing to influence certain

aspects of the model, without breaking model

integrity, to avoid order grief

Model Once,

Configure Anywhere


SAP CPQ with hybris

System Architecture – Solution for Sales and CPQ

CPQ runs tightly integrated on the E-

Commerce platform, independent from

backend, responsive user experience

CPQ pre-integrated with E-Commerce, SFA,

order management, analytics by one vendor

One toolset, approach and technology to

enrich and tailor E-commerce catalog and

experience, and CPQ data and experience

Pre-Integrated Solution

Overall process consists of various

functional products by different vendors

Integration through customer project with

various parties involved

Different technologies and tools to tailor

E-Commerce catalog and experience,

and CPQ data and experience

Various Functional Products

E-

Commerce

CPQ Order

Mgmt

Analytics

Catalog

SFA


Summary: SAP Configure, Price, and Quote (CPQ)

Significantly improved sales configuration solution

SAP CPQ with hybris

SAP Configuration Runtime engine (SSC) and

modern HTML5 UI on hybris - direct engine-UI

communication, fast response times

Product Configuration, Guided Selling,

Solution Configuration

Interactive pricing during configuration

Modular user experience, embedded to hybris

Web Content Mgmt (WCMS) – easy-to-use, adapt

Flexibly enrich options and values in hybris

Flexible integration to ERP: VC models pricing and

order management

Future Direction Focus Areas

Integration to CRM, Cloud for Customer

Improved Guided Selling

Better Modeling for Sales & Marketing

Predictive Proposals, Embedded Analytics

3D Visualization

Mobile Configuration

Collaborative solution configuration in

business networks


Differentiators of SAP CPQ on hybrisMulti-Channel CPQ across Customers, Partners, Internal Sales

Easy-to-use, easy-to-

adapt, visual selling

Standard out-the-box

integration, end-to-end

processes, multi-channel

One vendor, one platform,

one toolset/skillset to adapt

Powered by big data:

Configuration analytics,

fuzzy inventory search,

cross-/up-selling

One pricing logic in

frontend and backend

Powerful quote management:

Pricing, costing, approvals,

proposal documents

Flexible deployment – on

premise, hosted/cloud, mobile

Largest CPQ customer base

and ecosystem, continued

investment, strong roadmap

State-of-the art CPQ platform:

Products configuration, guided

selling, solution configuration

Model once, configure

anywhere: protect existing

investment in VC, IPC, SSC

All models ATO, CTO, ETO,

with easy transition

Sales and marketing can

easily enrich backend models

in hybris

Sell more configurable

products & solutions

Easy to do

business with

Efficiency:

Fast quotes,

error free orders

Reduced sales

costs -

Efficiently integrate

customers, dealers,

sales, manufacturing








Business Model TransformationMoving from Selling Products to Selling Solutions

TRADITIONAL BUSINESS MODELProducts, Parts and Services are sold by

independent companies or operating lines of

business

Revenue Streams

$¥€ ? ? ? ?

PRODUCTS SERVICE PARTSMAINTENANCESERVICE FINANCING

PRODUCTS PARTS SERVICES

SOLUTION BUSINESS MODEL• Deliver Turn-key solutions

• Single point of contact

• Leverage ecosystem transparent to customer


Solution Business Process

Customer

A Solution is an answer to a business problem that “produces a measurable

value for the buyer.”

Our OfferHardware DX710 $251

Software Easy Sync $ 67

Installation Service $ 48

7x24h Full Service $ 34

Your fixed Price: $ 400

Or Rent

Monthly rate $33

Validity period 36months

Sales Order

Fulfillment

Service

Contract

Usage-based

Service Contract

Service

Order

Sales Order

Fulfillment

Solution

Quote

SSC Engine


SAP CPQ for Solution Sales Configuration Top-Down vs. Bottom-up Configuration

Configurable System

Mix / Composition of configurable and

non configurable (Hardware) products

Configurable Solution

Mix / Composition of configurable Product

or System with configurable or non configurable

Software, Services, Financials, etc...

Configurable Product

Configuration of an individual (Hardware) products

Top-Down: CPQ for Product Configuration

Bottom-Up: CPQ for Solution Sales Configuration


Product Configuration and Solution Sales Configuration

hybris Integration - Overview

CPQ for Product Configuration

CPQ Configuration runtime (SSC) on

hybris supporting product configuration

Modeling in ERP-VC, generate IPC

knowledge base (KB), replicate KB to

hybris

Modern, modular configuration user

experience, easy to adjust & enhance

using hybris web content management

system

Integration from hybris to SAP backend

Shipped with hybris 5.3, 5.4, 5.5

CPQ for Solution Sales Configuration

CPQ Configuration runtime (SSC) on hybris

supporting product configuration, guided

selling, solution configuration

On top of product configuration in hybris

Specifically enhanced hybris user experience

to cover guided selling and complex solution

configuration

Integration of solution configuration from

hybris to SAP backend

Shipped as Focused Business Solution


hybris

SAP ERP

Configuration

Model (KB)

Configuration

Model (KB)

Product

Browse

Catalog

Configure

Product

CPQ Configuration Runtime (SSC)

Add to

Shopping Cart

Create

Order

Quote/

Order API

Order +

Product

Configuration

Product Modeling

Variant Configuration

SAP CPQ for Product Configuration

Product

Configuration

Capabilities

Replicate

Config. Model

Guided

Selling

Configure

Solution

Configuration

Model (KB)

Solution

Solution Modeling

Environment (Eclipse)

Order +

Solution

ConfigurationConfiguration

Model (KB)

Model Solutions,

Guided Selling

Configuration

Model (KB)

Solution

Replicate

Config. Model

SAP CPQ for Solution Sales

Configuration

Solution

Configuration

Capabilities

ATPComplex

Pricing

Credit

Check

Optional

synchronous APISynchronous API or

asynchronous

SAP CPQ with hybris –

Integration and Process Flow


SAP CPQ for solution sales configuration Solution Configuration in hybris – Flexible access to product sources / catalogs

Products

available

Product import button


SAP CPQ for solution sales configuration 2.0 Solution Configuration in hybris – Seamless integration into SAP ERP SD


SAP CPQ for solution sales configuration 2.0Additional enhancements, supported with hybris, CRM, ERP deployment

Integration Scenarios

ERP - Lite ETO: Allow the creation of Sales Order BOM from a solution configuration

ERP - Promotion of Solution Sub-item: Intelligent product selector in the quotation process

SSC Engine and Solution Modeling Environment (SME) Enhancements

Advanced syntax and engine capabilities: Class specific domain restrictions, Ctics Groups,

“not specified”, “not in”, Sticky Defaults

Externalized Variant Tables & Object Descriptions

Increased user experience for expert modeling tasks: Multiple KB generation, Multiple

KB/Model graphical overview

Model distribution infrastructure: Pfucntions and Pricing Userexits distribution mechanism

New Naming

“SAP CPQ for solution sales configuration” replaces “SAP Solution Sales Configuration”


SAP CPQ for Solution Sales Configuration

Summary

Solution Configuration Engine

Robust and scalable Configuration Engine optimized

for Solution composition in a Bottom-Up approach.

Knowledgebase Orchestration allowing easier model

maintenance and better engine performance

Solution Modeling Environment

Eclipse Plug-In for high productivity and collaboration

based model maintenance

Sales and Service Process Integration

Seamless integration in SAP Sales and Service

processes - SAP CRM, SAP ERP SD, hybris

Analytics

Solution configuration data extractor allowing solution

data sales analytics

Business Benefits

Increased margins by moving from product towards

system/solutions business

Fast front office initiated sales processes, even for

complex systems and solutions

Order

Integration

Solution

Modeling

Environment

Solution

Configuration

Engine

Interactive

Pricing

Solution

Analytics

Quotation /

Order Mgmt:

• SAP CRM

• SAP ERP

• hybrisSolution

Configuration

UI








SAP CPQ for Product and Solution Sales ConfigurationOverview CPQ related presentations at SAPPHIRE / ASUG

ASUG

CPQ Best Practices: How To Configure, Price and Quote in E-Commerce and for Internal Sales

Harald Reitz (SAP), Steve Lenz (SAP)

CW701 – Lecture presentation - S331D, Wednesday May 6th, 2015 12:30pm – 01:30pm

Lessons learned from SSC implementations – EMC, IBM, Lexmark and Ericsson

By Nishan Pillay (IBM GBS) and Steve Lenz (SAP)

CW1200 – Lecture presentation - S331D, Wednesday May 6th, 2015 04:15pm – 05:15pm

SAPPHIRE

Demo Theatre: Streamline Configure, Price, and Quote in E-Commerce and Internal Sales - IN20743

Harald Reitz, SAP

Industries Demo Theater IN101 - Wednesday May 6th, 2015 4:00pm – 4:20pm

Industries Demo Theater IN101 - Thursday May 7th, 2015 4:00pm – 4:20pm

Microforum: Sell More Complex Products & Service Parts Through E-Commerce & CPQ - IN20748

Harald Reitz, SAP

Industries Microforum IN106, Thursday May 7, 2015 2:00pm to 2:45pm

Thank You!

Contact information:

Harald Reitz

Solution Manager – SAP for Industrial Machinery & Components

95 Morton Street, New York, NY 10014, USA

+1-215-253-7973

[email protected]

Date post:	31-Jan-2016
Category:	Documents
Upload:	karthik-ve
View:	36 times
Download:	3 times

CW701 701 Presentation

Documents