case study: my sap implementation at the associated press
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Case Study: My SAP Implementation at the Associated Press. Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press. Company Overview. - PowerPoint PPT PresentationTRANSCRIPT
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Case Study: My SAP Implementation at the Associated Press
Fernando FerreDirector of Finance & OperationsNewspaper & New Media MarketsThe Associated Press
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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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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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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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New Media Market (AP Digital) CRM Implementation
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Landscape Pre-CRMSystems:
• 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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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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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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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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Business Process
Lead Generation, Opportunity and Customer Management
Third party (e.g. D&B)
Research Website Phone call
0%
25%
75 % or >
Qualified Lead
Lead generation
Lead Qualification Opportunity Mgmt
Marketing
Customer, Contract and
Service Management
Sales Sales
Customer Support Finance
Order Fulfillment Customer Maint. Billing
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Functionality Implemented
Campaign Management
Customer Interaction Center
Order Processing
Product Management
Opportunity Management
Service Contract Management
Business Warehouse
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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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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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Call Lists in CIC
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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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Customer Interaction Center
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Business Activities
Used for Order Processing
• Trial Order Notifications
• Service Order Notifications
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Activity Screen
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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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Activity Monitor
The output can be sorted by any column
Layout can be customized for each user
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BW:Order Fulfillment Report
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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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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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Opportunity Management
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BW:- Sales Pipeline report
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BW: Lost Opportunities Report
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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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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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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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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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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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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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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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Newspaper Market CRM Implementation
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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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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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Knight RidderInc.
Knight Ridder DigitalKnight Ridder Newspapers
Dailies
Non-Dailies
Other Subsidiaries
- Knight Ridder Washington Bureau- Knight Ridder/Tribune Information Services- Knight Ridder Shared Services
RealCitiesNetwork
InternetProperties ofKnight Ridder
SpecialInterest Sites
Career Builder Network
- CareerBuilder.com
Classified Ventures Network
- Cars.com- Apartments.com- Homescape.com
Customer Hierarchy
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CRM Functionality
Order processing
Opportunity management
CRM Pricing
Contract management
Workflow functionality
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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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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