Week 1: CRM and Marketing Overview

Unit 2: Overview of SAP Business ByDesign CRM

 Why does
customer
engagement
matter?
Customers are in control
The rules are changing
The customer journey is complex
Customer: “This is no longer
Service

my journey!” Invoice

Delivery

Business: “How many

systems do I need Purchase
to engage with
customers?” Desire

Interest

Awareness
 Overview of SAP Business ByDesign CRM
End-to-end customer engagement
Marketing & presales
communication
Service execution ▪ Marketing
project-based & productized communication
▪ Standard services ▪ Activity & lead
(e.g. facility management) management
▪ Field service & repair ▪ Mobile & groupware
▪ In-house repair with customer returns integration

Low-touch sales &

Collaboration
commerce integration
Invoicing ▪ Short sales cycles / high volume of customers
Analytics ▪ Internet sell from stock & service (order)
▪ Point-of-Sales
▪ Over-the-counter sales

High-touch sales
▪ Long sales cycles / low volume of customers
▪ Manual sell from stock for complex products
▪ Manual selling service for e.g. projects or
standardized services
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Overview of SAP Business ByDesign CRM
Embedded mobility & collaboration for marketing, sales & service Groupware

Approvals, tasks,
notifications, telephony

Collaboration Dashboards, KPIs

Groupware
Analytics

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Overview of SAP Business ByDesign CRM
Customer engagement work centers and views
KEY BENEFITS
▪ End-to-End planning and execution
▪ Designed for managers & employees in marketing, sales, service and commerce

Product & Field

Account New Sales Service Service Service Customer Managing E-
Marketing Service Service
Management Business Orders Desk Orders Entitlements Invoicing My Area Commerce
Portfolio and Repair

Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview

Leads Accounts Leads Sales Products Service Service Order Contracts Project Approvals Account
Orders Requests Order Pipeline Invoicing Export Run
Market Account Opportunities Services Processing Registered My
Contracts Knowledge Service Products Invoice Department Internet Order
Information Hierarchies Reports
Sales Entitlements Base Confirmations Requests Deletion Run
Returns Warranties Sales
Competitors Contacts Quotes Certificate
Product Reports Reports Invoice Planning
Reports Specifications Service Documents Management
Competitor Partners Reports Reports
Levels
Products Reports
Product Invoice Runs
Activities Service
Catalogs
Target Categories Recurring
Groups Reports Pricing Invoice
Reports Templates
Campaign Reports
Management Credit Card
Authorization
Reports Runs
Point-of-Sale
Transactions

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Overview of SAP Business ByDesign CRM
Generate new business by executing marketing campaigns & tracking response with campaign-specific sales
KEY BENEFITS
▪ Create precise target groups to address your market segments
▪ Execute campaigns via phone, letter, or mail with the multi-language and responsive direct mail execution
▪ Directly generate activities, leads, and sales orders etc. as response including campaign-specific pricing
▪ Track responses to measure the success of your campaign

Execute Campaigns
Create Add to
Initiate Execute
target account
campaign mailing
group history

Track Responses
Redefine
Measure Create Customer Customers
target
results response reaction
group

Measure your success and directly contact the right customers

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Overview of SAP Business ByDesign CRM
Marketing communication: generating sales with direct mail campaigns

2. Follow-up
sales
execution

1. Direct mail
execution

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Overview of SAP Business ByDesign CRM
High-touch sales: long sales cycles / low volume of customers

Presales communication & tracking

▪ Account & contacts
▪ Lead management
▪ Opportunity management
▪ Activities
▪ Quotes
▪ Groupware
Sales execution & delivery ▪ Collaboration window
▪ Sell from stock
High-Touch
▪ Execute service
Sales
▪ Delivery & return
▪ Tax, invoice

Manage & win high-value deals

▪ Simulate pipeline & sales planning
▪ Product catalog, pricing
▪ ATP > Quote > Contract > Order
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Overview of SAP Business ByDesign CRM
New business: Track opportunities and simulate sales pipeline

Track & simulate

sales pipeline
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Overview of SAP Business ByDesign CRM
Selling and delivering materials: Execute with pricing and availability check

Automate order creation

and execution
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Overview of SAP Business ByDesign CRM
Selling and executing services: project, standard, and field service & repair

Standardized service
▪ Selling & execution for regularly
recurring services
▪ Managing contracts
▪ Invoicing including expense tracking

Field & in-house repair

▪ Field engineer execution Service
▪ Spare parts logistics Selling
▪ Customer returns & Execution
▪ In-house repair
▪ Service contract, request,
order, confirmation, invoice
Project-based service
▪ Selling & execution of complex
service projects
▪ Powerful project planning and
invoicing
▪ Invoicing including expense tracking
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Overview of SAP Business ByDesign CRM
Selling projects: project-based service invoicing
Invoicing based on
project progress &
timelines

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Overview of SAP Business ByDesign CRM
Low-touch sales: short sales cycles / high number of customers
KEY BENEFITS
▪ Extend your digital core in SAP Business ByDesign with any 3rd-party marketing, sales & service application
▪ More than 300 standard web services are provided with ByDesign and can be leveraged to integrate any kind of 3rd-party software
▪ Customer OData services can be exposed using the OData workbench for more than 300 business objects
▪ Most common customer engaging scenarios like Webshop or customer portal can be built using sales order, invoice, account etc.
▪ Integration either by using a middleware like SAP CPI or point-to-point integration

e.g. Webshop, CPQ, Marketing

3rd party marketing, Executing and
Automation, Service ▪ Order > Fulfillment > Invoicing
sales & service invoicing customer
applications Engagement, Customer ▪ Credit card payment requests
Portal, Point-of-Sales Standard ▪ Account management
Most important integration points: Web Services ▪ Product catalog management
▪ Account ▪ Product availability
▪ Sales order ▪ Flexible pricing
▪ Customer invoice Middleware ▪ Invoicing & tax
▪ Service request, order & confirmation ▪ Service requests
▪ Product & price master data ▪ Lead generation
▪ Product availability check (ATP) ▪ …more
▪ Point-of-sales transaction
▪ Activity
▪ Opportunity
▪ Lead
▪ …more
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Overview of SAP Business ByDesign CRM
Customer invoicing – automated and flexible for products, services, and projects including tax calculation
KEY BENEFITS
▪ Invoicing for services and products can be completely automated
▪ Scheduled invoicing for standardized and project-based services
▪ Combine all entities from sales orders and customer projects (i.e. time, expenses, products, 3rd party) to schedule or individually
compose project invoices

Product & Service Invoice Schedule Project Invoicing

Invoicing
Invoice or credit memo is Invoice schedules Customer project
automatically triggered or automatically create provides all entities for
manually created invoices Invoicing

Products Standardized Time sheets

▪ Outbound services from sales
delivery or return orders or services
from contracts Expense reports

Services
Project-based 3rd-party services
▪ Service
confirmation or services from
execution of fixed sales orders
Material consumption
price item
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Overview of SAP Business ByDesign CRM
Transparency with embedded analytics and planning
KEY BENEFITS
▪ Analytics, planning & simulation based on real-time data either embedded or in Excel
▪ Deep insight through interactive drilldown with predefined key figures & characteristics for marketing, sales & service
▪ Insight to action: direct navigation to business data e.g. open account or create target group
▪ More than 500 built-in reports in all application areas

Pipeline Simulation
Target Planning
Insight to Action
Dashboards & KPIs

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Overview of SAP Business ByDesign CRM
Extend your customer engagement solution as you grow
KEY BENEFITS
▪ Start with the key processes and
go-live quickly
▪ Grow to the full SAP Business Basic configuration Extend functionality Fully integrated
ByDesign whenever you are ready
e.g. Marketing to e.g. Sales quotes or e.g. Order to cash (products)
▪ Adapt solution scope along opportunity service desk or order to cash (services)
business scenarios or work centers
▪ Configure system by answering Scope
questions in a business language
▪ Separate process configuration
from organizational model
▪ Ensure consistent configuration Business Scope Selection Central Master Data
that is ready-to-run

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Additional Material
Overview of SAP Business ByDesign CRM
Flexible pricing drives profitability
KEY BENEFITS
▪ Drive profitability with smart & efficient pricing strategies via price list approach
▪ Ensures that the right price will always be automatically calculated and pre-populated
▪ Integrated manager approval process for quote/order processing and price list set up

200 $
Base price

Customer-
specific price
175 $
Discount given
individually or
applied automatically

Cost price 150 $

Price for a
product/service

Pricing strategy – Differentiate Ensure profitability of your

pricing based on customer value entire business

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Overview of SAP Business ByDesign CRM
Challenges in Customer Engagement and Commerce (CEC) for midsize enterprises
KEY BENEFITS
▪ Grow the business: Identify customer’s potential and needs to maximize business opportunities
▪ Ensure profitability: Constant pressure on margins through increased competition. Leverage sales & service through integration to
logistics & financials
▪ Stay customer-centric: Ensure customer focus while keeping up with an increased speed of change

Grow the Business

 Win and retain customers leveraging digital and non-digital channels
 Better knowledge about customer for direct and indirect sales
 Convert customer loyalty to revenue

Ensure Profitability
 Explore potential through customer segmentation
 Reduced time-to-cash through integration into commerce, logistics, & financials
 Embedded analytics for transparency and fast decisions

Stay Customer-Centric
 Have the right info at the right place at the right time
 Simplify customer self-service with omnichannel commerce integration
 Manage customer expectations in all interactions

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Overview of SAP Business ByDesign CRM
Seamlessly integrated customer engagement across SAP Business ByDesign
KEY BENEFITS
▪ One view through true end-to-end processes covering marketing, commerce, sales and service
▪ Ensures commitments and profitability through integration into supply chain and financials
▪ Provides Professional Services solution from selling to execution and invoicing of projects

Marketing

Selling Products

Goods & Selling Services

Services
Value Chain Selling Projects

Customer Service

Order/
Acquisition Opportunity Fulfillment Invoicing
Contract

Enterprise Financial Accounting

Functions Organizational Set-Up, People Management, Responsibilities

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Overview of SAP Business ByDesign CRM
Customer engagement work centers: tailored to the needs of each user

Product & Field

Account New Sales Service Service Service Customer Managing E-
Marketing Service Service
Management Business Orders Desk Orders Entitlements Invoicing My Area Commerce
Portfolio and Repair

Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview Overview

Leads Accounts Leads Sales Products Service Service Order Contracts Project Approvals Account
Orders Requests Order Pipeline Invoicing Export Run
Market Account Opportunities Services Processing Registered My
Information Hierarchies Contracts Knowledge Service Products Invoice Department Internet Order
Base Reports Deletion Run
Sales Entitlements Confirmations Requests
Competitors Contacts Quotes Returns Warranties Sales
Product Reports Reports Invoice Planning Certificate
Competitor Partners Reports Reports Specifications Service Documents Management
Products Levels Reports
Product Invoice Runs Reports
Activities
Target Catalogs Service
Categories Recurring
Groups Reports
Pricing Invoice
Campaign Reports Templates
Management Reports
Credit Card
Authorization
Reports
Runs
Point-of-Sale
Transactions

Reports
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Overview of SAP Business ByDesign CRM
Customer analytics: embedded customer analytics to measure success

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Overview of SAP Business ByDesign CRM
Customer analytics: Manage sales success by setting and tracking targets

Track sales
success & gaps

Copy &
adjust sales
target plans
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Overview of SAP Business ByDesign CRM
Proactive customer payment management for sales & finance
KEY BENEFITS
▪ Keep track of customer receivables aging to identify most critical customers with open payments
▪ Proactive management of revenue collection by triggering and monitoring customer-facing activities
▪ Increase cash flow and reduce day-sales-outstanding by identifying issues and actively communicating and monitoring payment
agreements

Outstanding Monitor Customer Incoming

… Order Delivery Invoicing Receivables Payments …
Payments

Cash is king or how to reduce DSO? Customer Payment Management

Cash flow is a key factor in the potential for
long-term success. A company may have all
the revenue in the world, but without the ability
to generate cash, it can easily fail. Giving your
sales and financials team a joint tool to
collaborate effectively on open customer Manage Identify critical Create & track Get your money
payments is key. customer customers with customer
invoices overdue payment
payments activities
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Overview of SAP Business ByDesign CRM
Selling and executing standard services (e.g. managed services)
KEY BENEFITS
▪ End-to-end Customer Contract Management scenario supports sales of recurring services and entitlements
▪ Use contracts for managed services (e.g. IT) or customer support (e.g. warranty extensions)
▪ Define price agreements, confirm times, expenses, and invoice on periodic basis

Customer Service
Acquisition Opportunity Invoicing
Contract Delivery

Customer Management & Execution

Manage Internal & Periodic Monitor

customer external invoicing profitability
invoices service
confirmation
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Overview of SAP Business ByDesign CRM
Selling and executing service and consulting projects
KEY BENEFITS
▪ Covering the complete lifecycle: acquisition, planning, execution, and reporting
▪ Seamless integration to Procurement, Human Resources, Project Management and Financials
▪ Consolidated sales and project pipeline allows for accurate resource planning & forecast
▪ Project invoicing: Schedule (e.g. periodical, milestones) or individually compose customer invoices

Statement of Service
Acquisition Opportunity Invoicing
Work Delivery

Project Planning & Execution

Skill/capacity- Time & 3rd party Project Monitor

based staffing expense procurement & invoicing profitability
recording confirmation

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Overview of SAP Business ByDesign CRM
Executing customer service from service requests to field service & repair
KEY BENEFITS
▪ Supports entire range of customer service – from simple service request and complaints to sophisticated field service & in-house repair
▪ Leverage your service entitlements (e.g. warranties), service level objectives, and knowledge base: from simple problem solutions
and FAQs to repair instructions
▪ Consistency of service delivery across communication channels – self service, mobile, telephony

Service Request Field Service Repair In-House Repair / Partner Repair

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Overview of SAP Business ByDesign CRM
Flexible sales planning
KEY BENEFITS
▪ Easy plan creation and copy of plan data
▪ Workplace-embedded planning with Excel
▪ Powerful Plan/Actual reporting to monitor sales targets, forecasts, and revenue at a glance

influences

Sales Targets Dimensions: Sales Monitoring

 Sales Units
Setting of net sales Plan / Actual reporting based on
 Employees
targets sales orders and forecast
 Customers
 Products

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results into
Overview of SAP Business ByDesign CRM
Embedded multi-channel communication
KEY BENEFITS
▪ Bringing the power of a call center to every single user
▪ Immediate relevant action through real-time collaboration with customers and other partners
▪ Providing the right customer context and follow-up activities when needed
Contact list
 User’s personal contacts
 Business context contacts
Launch collaboration tools such as
Initiate Call  Telephony
VoIP with 3rd party  Instant message
telephone provider  SMS
Missed Items
Send E-Mail/ SMS  Missed alerts, tasks, calls, notifications
 Follow-ups

Business Context
 Identify business partners
Send Appointment  Display contact information
 Display context-relevant business activities
 Work center / control center access rights

Collaboration window brings together different aspects of daily work and supports
the entire customer lifecycle management across multiple channels
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Overview of SAP Business ByDesign CRM
360° view on your business
KEY BENEFITS
▪ Real-time 360° fact sheets providing all key information at a glance
▪ Improved decision support through embedded analytics from various sources
▪ Full transparency and control across your entire business through visible business process flows

Fact Sheets
▪ Account Fact
Sheet
▪ Opportunity Fact
Sheet
▪ Product Fact Sheet
▪ etc.

SAP Business
ByDesign
Process Chain
Views

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History of Customer Management
Overview of SAP Business ByDesign CRM
A full public cloud business management suite as your extendable digital core

Supplier
Corporate Performance Relationship Accounting & Finance
Project Management Supply Chain
Management Management
Human Customer
Sourcing & Procurement Resources Relationship Sales & Marketing
Management Management

Project Management Financial Solution Service & Support

Management Extensions

Manufacturing & Supply Chain Human Resources

SAP HANA

Mobile Analytics eLearning Workflow Documented Open SaaS Secure Global

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Overview of SAP Business ByDesign CRM
A brief history of customer management: There and back again

~1990 – R/3 ~2000 – Business Suite 2018 – Digital core including Customer
including SD with separate CRM Engagement and Commerce

What are the benefits of fully integrated customer engagement?

1. Digital core provides everything from marketing to sales force automation and service execution
2. End-to-end process and visibility
3. End-to-end analytics
4. End-to-end extensibility
5. No duplicate functionalities and master data
6. No triangle integration between ERP, CRM, Webshop, customer portal, point-of-sales,...
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Overview of SAP Business ByDesign CRM
A brief history of customer management: 1980 – R/2: fully integrated RV

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Overview of SAP Business ByDesign CRM
A brief history of customer management: 1990 – R/3: fully integrated SD

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Overview of SAP Business ByDesign CRM
A brief history of customer management: 2000 – Business Suite with separate CRM

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Thank you.
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