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Special Feature: mySAP Customer Relationship Management (SAPinsider Vol. 5, Iss. 1)

by SAP and Partners | SAPinsider

January 1, 2004

by SAP and Partners SAPinsider - 2004 (Volume 5), January (Issue 1)
 
Why CRM? Why Now?

John Grozier Vice President,
Global Solution Marketing,
SAP

>>INSIDE<<


Are Your Best Customers Also Getting the Best Customer Experience?


Why a Chief Customer Officer Is Key to the Success of CRM Initiatives

Information Applications: Putting CRM Data to Work for All Users

Can You Afford Not to Test the Performance of Your Customer-Facing Solutions?


Improve Your Sales & Marketing Efforts Using D&B Inside mySAP CRM and SAP BW

Most of you reading this article are users of SAP solutions — R/3, Industry Solutions, or perhaps other solutions within the mySAP Business Suite — and may be asking yourself why you should consider moving to mySAP CRM. Perhaps you have heard and read much of the hype around the CRM market in general, but are unclear on what is smoke and what is fire.

So, why consider CRM now? In a single word, value. CRM solutions like mySAP Customer Relationship Management represent many organizations’ best chance of creating a “multiplier effect” when it comes to return on investment (ROI). Why do we at SAP believe we can make such a bold claim? Our argument is built on three basic sources of value for CRM.

Level 1 Value — Operational Efficiency Yields Proven Results

You may be surprised to learn that, e-commerce applications aside, 80% of all users of CRM solutions are actually internal employees, not end customers. So the first focus of these applications is completely centered on operational efficiency. Business blueprinting and business processes focus on addressing questions like:

  • “Assuming that I have customers in my pipeline, how do I make forecasting and closing opportunities more efficient?”

  • “Once a customer calls my contact center, how can I provide customer care in the most efficient way possible?”

Indeed, many SAP customers have generated tremendous cost savings and actually paid for their software by focusing purely on better internal processes. In fact, many customers continue to see excellent cost avoidance and savings benefits as they implement CRM solutions. mySAP CRM customers have seen positive ROI as they describe the initial phases of their implementations.1 Taking this one step further, many mySAP CRM customers have also seen extended benefits from sharing information across what are traditionally considered customer-facing departments — marketing, sales, and service. Integration of data and processes from these departments plays a vital role.

Waters Corporation, a life sciences company,2 is one example of how a company can gain operational efficiencies across sales and service channels to leverage customer contacts, order histories, and transactions that drive more revenue in both their sales and service operations. They have implemented the key capabilities of sales and service from mySAP CRM to drive these cross-departmental gains to an impressive 35% IRR.3

You may be surprised to learn that 80% of all users of CRM solutions are actually internal employees, not end customers. So the first focus of these applications is completely centered on operational efficiency.

Customers can and do stop here, but companies that are departmentally efficient may not be organizationally optimized to drive the most value back to the corporation. Even greater value is possible by moving beyond operational efficiencies and into the next level.

Level 2 Value — Involving Customers Directly in CRM Creates Value Through Reach, Loyalty, and Satisfaction

It may sound obvious, but CRM is supposed to be about customers. Of course, it is possible to get value from CRM solutions simply by focusing on internal process improvements, without even really considering customers in the mix. But what does it mean to go to the next level, and directly involve your customers? Here the answer is very dependent upon the industry or industry segment that you operate in.

Customers may be defined as end-consumers, businesses, marketplaces, partners, brokers, agents, employees, constituents, citizens, doctors, channel partners — and the list goes on. Organizations are categorized as B2C, B2B, or B2B2C. In any of these cases, a meaningful discussion of how to involve customers needs to be entirely industry-specific — and sometimes these relationships can become quite complex.

Take the case of Brother International, a high-tech consumer-oriented manufacturer.4 The company sells the vast majority of its multi-function devices through office super stores and electronics stores. In this case, the “customer” is the store itself, but the person who walks into the store is another type of customer, the end-consumer. Brother typically provides technical phone support to these end-consumers.

Involving customers in CRM means knowing and understanding their preferences for how and when to be contacted, their order and billing histories, previous transactions, specific pricing, or contracts that may be in place. Integration of data, business processes, and interaction channels becomes significantly more important. mySAP CRM has played a key role here to extend the reach of direct sales forces through the addition of Interaction Centers and e-commerce applications.

Schwan’s Food Service is another mySAP CRM customer that has extended the efforts of its direct sales force by not only providing full access to customer contracts and order histories, but also offering new interaction channels to its institutional customers. The result of leveraging these customer preferences is more repeat orders and greater profitability for Schwan’s Food Service.

A meaningful discussion of how to involve customers needs to be entirely industry-specific — and sometimes these relationships can become quite complex. Once organizations have mastered internal process efficiencies, the next level of value comes from putting customer preferences and transactional information to work.

Once organizations have mastered internal process efficiencies, the next level of value comes from putting customer preferences and transactional information to work together with these efficient processes. In order to successfully do that, organizations must adapt those processes and understanding of customer preferences to actions that are specific to their industries.

Level 3 Value — CRM Paves the Way to High-Impact Customer-Focused Business Processes

Organizations that have arrived at this level are seeing the full multiplier effect of CRM. It is at this level that organizations can take some compelling business opportunity, objective, or challenge relating to customers and marry it with customer-focused business processes to drive the most value back into the corporation. Each business, large or small, has a fundamental set of business processes that drive its economic livelihood. Naturally, these vary by industry, but customers are always somewhere in the center of these processes.

Take the Consumer Product industry, where companies spend on average 17% of their overall revenue on Trade Promotions Management. Take Utilities, where profitability on contract energy pricing can make or break a company. Take a product development process for High-Tech companies, where you are looking for the features that will stimulate the most demand for a product or service. What all of these processes have in common is that they have a high impact on the success of the business, they go beyond departmental boundaries, they are very industry-specific, and a customer or customer segment is central to these processes.

At the end of the day, customer-focused business processes are about trying to change the behavior of customers in a way that drives the most impact to the business. In order to achieve this level of value, organizations need to re-think the way that they view CRM.

At the end of the day, customer-focused business processes are about trying to change the behavior of customers in a way that drives the most impact to the business. Customer behavior in some cases can be predictable, but it is not mandatory for any customer to behave in a particular manner or achieve a particular outcome. Quite simply, the laws of physics do not apply to the way you interact with your customers! So you had better use all of the tools available to your business to try to influence the way customers do act.

In order to achieve this level of value, organizations need to re-think the way that they view CRM, and in many cases this means breaking down the artificial barriers between marketing, sales, and service. This is where departmental efficiency needs to give way to organizational optimization.

What makes this particularly difficult is that organizations must realize that individuals, departments, customers, and groups are participants in a larger business process, rather than owners of individual, discrete business processes. Layering these business processes into big-picture, comprehensive processes helps organizations become more optimized. Can you imagine attempting to perform customer segment profitability or product profitability if your sales system relied on a thin integration with your fulfillment systems? How can you set a price to achieve a particular profit margin on an order if you don’t know a customer’s order history, payment history, and contract terms? These types of end-to-end business processes can be achieved — and can make an organization incredibly efficient and effective — without taking anything away from departmental efficiency.

Conclusion

mySAP CRM customers like Brother International, Waters, Schwan’s Food Service and others in 23 industries across the world are all striving to optimize their operations by leveraging all three types of value. The results are there. Companies like these are achieving significant payback from their investment in mySAP CRM, and will continue to receive new benefits from mySAP CRM in the coming years.

For more information on mySAP CRM, visit www.sap.com/crm. For additional examples of mySAP CRM implementations by SAP customers across a variety of industries, see www.sap.com/solutions/crm/customersuccesses.

1 See the case studies of SAP customers at www.sap.com/CRM.

2 See the case study on Waters Corporation’s mySAP CRM implementation at www.sap.com/solutions/crm/newsevents/index.asp?pressID=2390.

3 Internal rate of return.

4 See a synopsis of Brother International’s mySAP CRM implementation at www.sap.com/company/press/press.asp?pressID=1325.

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Are Your Best Customers Also Getting the Best Customer Experience?

 


Karin Rittenberg
Global Director,
SAP Alliance  Genesys Telecommunications Laboratories, Inc.

Smart companies know that investing in a solid customer service strategy will deliver significant return through new and repeat business. In addition to its impact on revenue potential, good customer service becomes a competitive differentiator in increasingly commoditized markets. You’ve invested in SAP; the next step in maximizing your customer service strategy is to successfully leverage customer data in real time, during every customer interaction, to provide the quality service that customers demand — whether by phone, by email, or over the Web.

To deliver this level of service, your company’s software applications, communications infrastructure, and customer information must all come together — in real time — to provide a superior customer experience. Recognizing this need for integrated systems, SAP and Genesys, a market leader in call center software, have collaborated in designing Genesys Gplus Adapters for mySAP CRM and SAP R/3 Enterprise.

Genesys Gplus Adapters are packaged integrations that provide fast and easy implementations of combined SAP/Genesys solutions, ensuring a better use of customer information for personalized service. The Genesys Gplus Adapter enables intelligent customer interaction routing in SAP application environments, improves agent efficiency with a single user interface, and delivers superior quality of service across all customer contact points. Integrating your SAP applications with your call center software will enable your company to:

  • Route calls, email, or Web interactions based on customer data. Get your most valuable customers to your best agents, and match the right customers to less expensive channels, such as self-service.

  • Instantly provide the call center agent with customer data — from any SAP or non-SAP system — at the time of inquiry. Equip your front-line employees with the tools and information they need to quickly satisfy your customers, as well as take advantage of cross-sell and up-sell opportunities.

  • Combine your call center and business data into a single line of business reporting. Integrated reporting provides greater detail and a comprehensive view of your customer service operations, allowing you to make informed business decisions that positively impact the bottom line.

And because Genesys software is based on an open platform approach, the Gplus Adapter enables you to deliver customer service across any network and any site, leveraging investments and existing infrastructure.

Genesys and SAP: Committed to Your Success

The long-term, strategic partnership between Genesys and SAP ensures that you gain increased value from your investments:

  • SAP Certification of the Genesys Gplus Adapters — Genesys completed SAP’s rigorous certification process for mySAP CRM as well as SAP R/3, ensuring high-quality integration and overall customer satisfaction.

  • Longstanding Cooperative Support Agreement — Genesys or SAP can serve as your single point of contact on technical support calls for combined solutions, simplifying implementation and ongoing technical assistance for joint customers.

  • Deep Experience Gained from Joint Customers Worldwide — Together, SAP and Genesys serve companies of every size — from the small business to the large enterprise — and in a wide array of industries, including utilities, manufacturing, and financial services.

Together, Genesys and SAP make CRM and interaction management easier, faster and more profitable.

To learn more about how Genesys and SAP can help you improve customer service delivery while gaining bottom-line results, or to view a demo, please visit www.genesyslab.com/sap.

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Why a Chief Customer Officer Is Key to the Success of CRM Initiatives


Cindy Warner
CRM Solution Director,
Cap Gemini Ernst & Young

Just as the rapid rise of CIOs and CTOs more than a dozen years ago highlighted the growing role of IT management and expertise, the current rise of the Chief Customer Officer (CCO) reflects a continuing focus on customer experience as a key business strategy. In fact, a leading global search firm specializing in technology, Morgan Howard, reports that demand for CCOs surged 240% from January to June 2003, compared to the same period in 2002.

Clearly, companies that want to be competitive — especially where price and quality are no longer key differentiators — are recognizing the value of placing a CCO at the heart of a customer-centric business model to lead all customer-focused initiatives and maximize the return on CRM investments.

The Role of the CCO

Serving as a customer advocate and as an internal liaison representing the needs of the sales, marketing, service, and technology departments, the CCO is dedicated to building a customer management strategy, complete with clear customer service goals.

With a strategy in place, a primary part of the CCO’s role is leading a successful portfolio of customer management initiatives and systems. Of course, as many companies have learned the hard way, simply having CRM tools does not guarantee success. When businesses fail to achieve the desired results from CRM systems, they have often neglected to define a strategy for using the resulting data to improve customer retention, products, or services — or have overlooked the kinds of people and process changes that enable such improvements.

What’s more, a CRM system run solely by the IT department — especially without coordinated, strategic input from sales, service, and marketing — is unlikely to meet its target. With a CCO’s oversight, the planning and operation of a CRM system can be managed on an ongoing basis, taking into account the needs of customers and internal stakeholders. With strategic vision and coordination, ROI can be realized progressively, in effect making each new stage of a CRM improvement initiative self-funding.

Defining Needs

A business strategy for improving or capitalizing on existing CRM systems may be the CCO’s top priority, but not the first order of business. Beforehand, business targets need to be carefully defined. The CCO must work with the internal stakeholders to define goals — perhaps building top-line revenue by 10%, providing a complete service record to the consumer online, or enhancing mobile sales. These goals are then mapped to current practices and CRM capabilities to further define improvements. In this respect, the CCO serves as the gatekeeper to carefully orchestrate efforts to build on and optimize the core SAP R/3 footprint. Because mySAP CRM modules can be installed incrementally, the CCO is critical to prioritizing needed functions and analytics, and determining how to use and enhance the current SAP footprint to support an ever-improving customer experience.

Realizing Desired Results

The CCO should ensure that all parties involved in implementing CRM systems are also experts in the company’s industry and thoroughly understand how specific business practices can be best supported.

With the consumer as a significant — sometimes the most significant — focus in the business, the company’s success will increasingly be determined by the CCO. In a CCO’s hands, CRM tools can reach their full potential as part of a constantly evolving, but always customer-responsive, enterprise.

For more information on developing your customer relationship strategies, see www.us.cgey.com/ind_serv/services/crm.

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Information Applications: Putting CRM Data to Work for All Users


Richard Guth
Senior Director,
Solutions Marketing,
Actuate Corporation

Managing customer relationships aggressively has become key to building business, especially through lean times. But how do organizations determine which opportunities and programs deserve their scarce sales and service resources? The secret lies in finding more meaning in the data they have gathered with their CRM, financial, and other enterprise applications.

To serve customer needs and meet opportunities effectively, organizations must deliver crucial account, product, and market information to everyone, not just a select group of marketing analysts who know how to use expensive OLAP and client/server tools. To make everyone more aware and productive, organizations can deploy Web-based Information Applications built with the Actuate platform that access data from mySAP CRM and other enterprise applications, databases, and warehouses and transform it into actionable, instantly usable intelligence. In addition, organizations must be able to distribute this information easily, efficiently, and securely to employees, partners, and, in some cases, customers themselves, worldwide.

Information Applications built with the Actuate platform integrate data from SAP and non-SAP sources into instantly usable Web reports, dashboards, Excel spreadsheets, analytics and SAP Enterprise Portal content.

Customers use Actuate’s Information Application platform to integrate mySAP CRM data with financial, operational, market, product, and other SAP and non-SAP information sources. With Actuate, they can create one-click management dashboards, drill-down Web reports, server-based Excel spreadsheets, ready-to-use analytics, and ad hoc query capabilities — all of which require zero training to use. In addition, Actuate produces interactive Web-page content that seamlessly integrates with customer, partner, and employee portals built with SAP Enterprise Portal.

Using Information Applications built with Actuate, all users across the extended enterprise — instead of only a select few analysts who understand OLAP tools — can drive revenues anytime and anywhere by obtaining a 360-degree view of customers, uncovering important market trends, and accessing key corporate information.

For more information about how Actuate maximizes the value of all your enterprise information, visit www.actuate.com/sapcrm.

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Can You Afford Not to Test the Performance of Your Customer-Facing Solutions?


Rick Chalkley
Vice President,
e-Integrators

With all the emphasis today on cost-cutting and doing more with less, load testing is probably not foremost on your “to do” list. But now, the latest developments make it an area that deserves a second look — especially in your CRM solutions, where hundreds or even thousands of users inside and outside your organization require access to customer-oriented information, and where slowdowns and poor performance can drastically impact customer experience.

Of course, in the past, all that many companies could see was the load that testing placed on their budgets. Traditional testing absorbs tremendous resources: training, scripting software and repositories, interfaces, human testers, extraction of sample data, and countless other tasks. But what if you could reduce the time, personnel, and effort involved? With shorter, highly automated, less labor-intensive load testing cycles spearheaded by functional users, your organization can perform more tests at lower cost — and ultimately increase the speed and accuracy of the implementation process.

Additional Features of LoadAutomation

  Single-transport installation

  No external scripting — or internal scripting for that matter! — required

  Dynamic data capture and integrity — product automatically handles unique data requirements

  External interfaces (other input systems) are easily replicated without the requirement of another system

  Ease of use, fewer additional resources, and a high degree of reusability help eliminate “shelfware” and lead to significant ROI

  Needs no new additional applications requiring end-user training and software maintenance fees

LoadAutomation, created by e-Integrators specifically for SAP customers, eases the burden of load testing at a fraction of the cost of traditional, script-based load testing.

e-Integrators’ load automation tool allows just two functional users to simulate a user load of 2,600 key data entry personnel along with several external interfaces. You’re able to test the behavior of an application under various real-world and proposed workload scenarios. Find performance issues that would not be discovered without adequate workload stress. Determine application capacity. Test subsystems (memory, CPU, O/S, database, etc.).

LoadAutomation then handles load testing automatically, with no administration or scripting required. Once installed, LoadAutomation resides directly in your SAP R/3 system. It captures actual end-user field entry and function codes; then, detailed performance reports are generated from SAP test data and delivered within SAP, rather than via external spreadsheet sources. LoadAutomation works in SAP CRM, SAP BW, SAP APO, and other SAP applications, as well as in OLTP-based software.

Companies such as Panasonic have enjoyed significant savings from e-Integrators’ testing technology. We invite you to experience firsthand this innovation in load testing technology for your organization. For more on LoadAutomation from e-Integrators, visit www.loadautomation.com.

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Improve Your Sales & Marketing Efforts Using D&B® Inside mySAP CRM and SAP BW


Brian Boekel
Director,
Global Alliances,
D&B

Companies that employ D&B Sales & Marketing Solutions grow at a rate of 40%-50%1 faster than those that do not by:

  • Uncovering who and how big their most important customers are

  • Exploiting untapped opportunities with these customers

  • Acquiring high-growth customers that look like their best existing customers

  • Re-allocating their sales force resources based on revealed growth potential

And SAP has made it easier to make D&B Sales & Marketing Solutions a reality within your SAP landscape. Utilizing D&B inside your SAP landscape can improve your revenue objectives by improving results along each stage of the customer life cycle.

How, from an implementation perspective, can these steps become actionable within SAP?

  Acquire: D&B Marketing Universe for SAP BW has been built to load your customer data alongside an abstract universe of D&B information. This gives you the ability to focus in on prospects that look like your best customers. By improving segmentation capabilities, D&B customers have realized more than double response rates.2 Then, after you perform your segmentation, you will have the ability to load those leads directly into mySAP Customer Relationship Management (mySAP CRM) utilizing the External List Management function.

  Service: D&B for mySAP CRM Data Cleansing can help you get a 360° view of your customers for improved customer service capabilities. You can gain this view by cleaning your customer data records using D&B and the mySAP CRM Data Cleansing function to assist in eliminating duplicate records. Second, you can associate a universal D-U-N-S® Number with each of your business customers to ensure duplicate records are not created in the future. Finally, by appending D&B information to your customer records, you will ensure all touch points with your customers are relevant to their needs. You will be able to position the right products and services with the right customer profile.

  Retain: D&B Customer Analytics for SAP BW has been built to help you analyze your customer records with D&B information alongside it. One of the key capabilities will allow you to roll up your customers to the highest corporate structure, the Global Ultimate D-U-N-S Number, which will allow you to identify your most important customers.

  Grow: D&B Customer Analytics for SAP BW also gives you the ability to understand the full family tree structure of your existing customers, which will open the door for potential cross-sell and up-sell opportunities.

Your company is looking for ways to meet expanding objectives with reduced expenditures — one reason to use mySAP CRM and SAP BW. Your selling and marketing capabilities are improved not only with the software and processes you put in place but also with the data you use in those applications and workflows. D&B can help you in all stages of the customer life cycle: acquire, service, retain, and grow.

For additional information, please contact your D&B sales representative, email us at dnb4sap@dnb.com, or visit www.dnb.com/sap.


1 Source: D&B Global Decisioning Sciences.

2 Source: D&B Global Decisioning Sciences.

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