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CPQ as a Strategic Enabler Helping Create a Sustainable Market Advantage and Provide Better
Customer Experiences
Presented by Deloitte Digital
April 1, 2015
This presentation should not be interpreted as a representation about or endorsement of any third party products, including Oracle
software.
Introductions
Srini VaranasiDirector
Deloitte Consulting LLP
Chirag JariwalaManager
Deloitte Consulting LLP
Rick WestraPrincipal
Deloitte Digital
Rubin MohanPrincipal
Deloitte Consulting LLP
Randy West
Senior Manager
Deloitte Digital
Carmine CutonePractice Leader
Deloitte Digital
Our story.
Bring us your challenges,
we’ll reimagine your future.
Deloitte Digital is creating a new model for a new age—we’re an agency and a consultancy.
We combine leading digital and creative capabilities with the deep industry knowledge and
experience Deloitte is known for. That means clients can bring us their biggest challenges,
knowing we have what it takes to bring a new business vision to life.
We’re transforming today’s digital journey.
Execute
Campaigns
Scale
Direct
Marketing
Innovate
Via Digital
Enable
Customer
Engagement
Understand
& Predict
Customers
Elevate
Brand
& Drive
Growth
Transform
Organization
& Process
Channel Execution Technology Advisory
ResearchPath to Purchase Shop Buy / Order Pickup / Deliver Service
Buy / Order online
Check delivery
status
Follow-on
purchaseChat
Write review
Like / tweet
Pickup / Delivery
Product related
call
Receive email offer
Browse reviews
Check with friends
Inspect product
Call for accessory
information
SearchWeb
Mobile
Tablet
Social
Store
Phone
There is no more B2C or B2B—it’s B2E: Business to Everyone
Customers are engaging, everywhere, all the
time
CPQ as a Sales Enabler
Analysts view “CPQ” as mission critical
Source: GartnerGartner - Balance Customer Experience With Sales productivity in Sales Automation Initiatives
Customer engagement with Lead-to-Cash
• Logistics
• Finance
• Manufacturing
• Lead Management
• Configure, Price, Quote (CPQ)
• Order Capture
• Manage and Service Order
• Orchestrate Order
• Enterprise Order Dashboard
• Data Transformation
• Distributed Inventory
LEAD-TO-ORDER ORCHESTRATION ORDER-TO-CASH
Mu
lti-Ch
an
ne
l
Customer Engagement
Forrester’s perfect order definition
Through any channel at any time multiple
types of stakeholders can engage in a
consistent brand experience by selecting the
right product or service with the correct
quantity and configuration that meets the
acceptable levels of quality for the
stakeholder's entitled pricing policy
Supplied from the agreed upon
sources delivered to or installed
with the right customer within an
agreed upon period of time to the
correct locations
The most appropriate packaging that
includes the right documentation over
the right frequency with an accurate
invoice that can be collected and
efficiently settled or returned via any
channel for warranty claims against
defects or scheduled for repair onsite
based on agreed upon service contracts
CPQ is a core enabler for L2C and helps create strategies that can enable revenue and margin growth
and a consistent customer experience across channels
What constitutes a good CPQ solution?
E-Catalog
Price
Cloud Based
Contract
Management
Configure-
to-Quote
Quote
Creation
Integration with
ERP
Advanced
Search
E-Commerce
Scalability
Electronic catalog to find
products and services
Ability to calculate and validate
price based on business rules
and/or pricing logic
‘Dynamically’ offer products that are
configured to specification
Ability to structure deals and
manage approvals
Interact and share data bi-
directionally with other
critical applications. Has
routing logic to fulfill order
and provision services on
Cloud platforms
Generate contracts
containing configuration and
pricing information to bill and
recognize
Ability for tool to scale in
terms of business model,
sales channel and users
Provide usable configuration
capabilities available on
handheld devices
Available anytime, anywhere
without software footprint.
No-touch order; enable customers
and extended sales channels to
configure products
Deliver intuitive search capability to
browse the salesforce.com product
portfolio
Ability to generate output
documents
Discount
Mobile
Access
Lead-to-Order KPIs
Select Configure Price Discount Approve Output Convert
Lead Opportunity Quote Order/ Fulfilment
• Product Mix • Approved
configurations
• Up-sell/Cross-sell
presentation
• Pricing accuracy
• Increased Margins
• Dynamic pricing
• Ease of building
price
• Pricing
optimization
• Approved
discounts
• Speed of approval
• Number of
approvals
• Speed of
escalation
• Clean and correct
orders
• Average order
value
• Win ratio
• Quote turnaround time
• Quote labor
• Errors per proposal
• Re-work time• Lead-to-Quote time • Automated orders
Increase in Effectiveness Reduction in Time & Cost
• Profitability
• Compressing sales cycle
• Reducing delays
• Workflow speed
A streamlined CPQ function
• Improved quoting accuracy
up by 90%
• Sale closure rate increases
by 30% average
• 33% avg. increase in cross-
sells
• Increase in customer face
time 25-50%
• Streamlined Special Pricing
yield 100%+ improvement in
margin
• Sales productivity up by 25%
• 30 – 60% reduction in cost per
lead
• 65% reduction in Order Cycle
Times
• 2x Avg. increase in inventory
turns
• 60% reduction in Days Sales
Outstanding
• 30% reduction in Accounts
Receivables
Profitability Cost Avoidance
Impact Improvement Contribution
$$$MARGIN
Increased Shareholder Value
Revenue Generation
Source: Fortune Jan 27, 2014
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