selling chain management
DESCRIPTION
TRANSCRIPT
Business ProcessUnit VChapter 7
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Selling-Chain Management Transforming Customer Contact into Revenue
G Roy Antony ArnoldLecturer
Panimalar Engineering CollegeChennai, Tamilnadu, India
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
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Introduction
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Introduction
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Basics of SeCM
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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Basics of SeCM
CorporationWith
MultipleSales
Channels
Customer
Distributor
Self Service
OEM Reseller
Sales Force
Selling Chain
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
Complete order life cycle
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Defining SeCM
Cross-Functional Processes Breaking Down Departmental Walls
Inquiry/Prospect
Customize
Integrated Selling Chain Application
{Order
Sales Lead Configurator ContractPricing
Complete Integrated Solutions
Partial Functional Solutions
Customer Lifecycle
Commit
OrderEntry
ProductCatalog
Available toPromise
Proposal & Quote
Commission
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Defining SeCM
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Business Forces Driving SeCM
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Technology Forces Driving SeCM
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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
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Universal Business Problem: Managing the Order Acquisition Process
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
Order acquisition process needs assessment option selection order configuration order quote and proposal,
complete with drawings, schematics, and performance metrics
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Universal Business Problem: Managing the Order Acquisition Process
Understand Customer Needs
Prepare Order
Identify Potential Customer
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
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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Elements of Selling Chain Architecture
Lead, Proposal & Quote Generation
Commission & Contract Mgmt.
Order Entry & Mgmt.
Sales Configurator
Pricing
Prospect or
Customer
Fax
Telephone
VRU
Web
Enterpris
e Archite
cture
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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Cisco and SeCM
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4
Marketplace Today• Order Status• Pricing Information• Configuration Assistance• Order all Products
Targets• Customer Profile Agent• Custom Order Scheduling
“Old Way”
Information Center
Internetworking Product Center
Custom Fulfillment
Relationship Management
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
Sobering, yet excellent, illustration that addressing tech issues alone does not guarantee SeCM’s implementation successShoe industry’s greatest challenge
Provide value to customer in the form of quality, selection, and convenience at right price
Minimize inventory-holding costsCustom 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
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Custom Foot: Transforming Shoe Sales with Technology
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India
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 expertsBut 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
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Custom Foot: Transforming Shoe Sales with Technology
G Roy Antony Arnold Lecturer Panimalar Engineering College Chennai, Tamilnadu, India