SAP Customer Success Story Professional Services T-Systems. T-Systems: Managing Global Sales with SAP CRM

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1 T-Systems: Managing Global Sales with SAP CRM

2 T-Systems International GmbH Industry Professional services IT service providers Products and Services Full service provider for the operation of information and communications technology Web Site SAP s SAP Customer Relationship Management (SAP CRM) application Partner SAP Consulting Why would an information and communications technology provider swap its established customer relationship management (CRM) software with a 3,500-user base and wide range of functions for a new one? Fewer interfaces, less maintenance, and lower operating costs were important arguments for T-Systems International GmbH. But added flexibility, internationally optimized opportunity management, and gaining a 360-degree view of all customer data were even more important. 2

3 Intelligent networks and cloud services for a bright outlook T-Systems was founded in 2000 and has been pursuing a strategy of growth ever since. As the major accounts division of Deutsche Telekom AG, T-Systems operates information and communications technology (ICT) using a global infrastructure of data centers and networks. Customers include renowned multinational corporations and public institutions, all of whom have confidence in the expertise and the performance of their provider. With offices in more than 20 countries, the innovative global player looks after companies from all industries. Its customers come from the automotive, telecommunications, banking, and retail industries. They represent the services, media, utilities, manufacturing, public sector, and healthcare industries. To do its job, T-Systems employs around 47,600 people worldwide and generated sales of approximately 9.1 billion in ,600 Employees worldwide 9.1 billion Sales generated in

4 A clever move with benefits for everybody T-Systems successful business approach of focusing on the customer requires large sales teams who work together in the branch offices to look after multinational corporations. They all sell the same portfolio. But when considering whether a new opportunity should be categorized as highly promising and whether the utilization of resources is justified the answers to those questions definitely varied. As long as country-specific procedures and local evaluation standards existed, it was difficult to analyze international market activities with 100% confidence. With the implementation of the SAP Customer Relationship Management (SAP CRM) application, T-Systems wanted to establish a cross-segment, cross-national process that spanned the entire sales process, from receiving a request to performing aftersales activities. The software was to establish uniform standards throughout the company for qualifying an opportunity, provide workflows with automation to support all sales activities, and cover the classic functions for activity and account management. Instead of integration gaps, T-Systems envisioned a solution that would provide central access to a 360-degree view of customer records that would bring together into one cycle all sales, product provisioning, and marketing activities, including complaint management. The focus was on mapping the complex string of interactions between all the parties involved, documenting them so that they comply with the U.S. Sarbanes-Oxley Act and ensuring that we observe the legal requirements for releases and approvals. Peter Detsch, Project Management for CRM and Offer Support s, T-Systems International GmbH 4

5 Corporate-wide uniform platform with SAP software SAP software is key to strategy at T-Systems, says Peter Detsch. Nevertheless, the company opted for SAP CRM only after two conditions were fulfilled. First, it waited until the Web-based version of the software was market ready. Second, it wanted the results of an evaluation it had commissioned, which in fact recommended replacing its existing CRM application on the basis of functions and cost. The existing software had given the 3,500 users at T-Systems a wide range of functions, but IT effort to maintain it and its interface was high. For example, implementing organizational changes in the sales process was effort intensive, yet because the sales process had to reflect market and customer requirements, it was subject to frequent changes that had to be performed rapidly. Now, the integration of SAP CRM and the enterprise resource planning (ERP) software in the back end provides maximum flexibility for future structures without the need for timeconsuming and expensive implementation projects. What s more, the location-independent Web access feature of the SAP software meets an important requirement: it provides the technological basis for updating customer records from any point of entry. In a direct comparison of the candidate software solutions, SAP CRM won with top grades for considerably more intuitive user navigation, ease of customizing, and its reporting features. Every change to our own processes costs time and money. With parameterization, our business requirements and processes are covered in the best way possible because the SAP software can be customized to a great extent. Peter Detsch, Project Management for CRM and Offer Support s, T-Systems International GmbH 5

6 New software for a base of 3,500 users When a company plans an ambitious project to provide new software for thousands of busy users within a fixed timeline, how should it proceed? T-Systems hired experienced implementation consultants from SAP Consulting, hooked them up with their own IT experts, and then sent the team of analysts, business division representatives, and developers off to a campus for a get-together. The off-site group merged to form a highly motivated crew that pursued its common goal with admirable determination. The cross-disciplinary composition of the parties is a feature of the scrum methodology, which ensures continuous communication and productive friction during the implementation phase. Unlike sequential development processes, in which much information gets lost during handovers, all representatives at all business levels have the same understanding at each point in time. In the end, that accounted for the high resolution rate of business requirements. Detsch explains, With SAP CRM, we replaced an existing CRM solution that was one of the biggest in Europe in terms of its 3,500 active users and the functions available. That was no small matter it was highly complex. He commends the consultants from SAP Consulting for their in-depth knowledge and was very satisfied with their performance. After one year in which the team worked together as colleagues to perform systematic preparation, the software went live as planned. The speed at which the team developed solutions was impressive. Thanks to the scrum methodology, we managed in just a year to replace a software system that had become one of the biggest CRM installations in Europe. Peter Detsch, Project Management for CRM and Offer Support s, T-Systems International GmbH 6

7 Completing the sales process in just seven clicks How do you motivate 3,500 employees to adopt a new software application? The answer is, by providing a self-explanatory user interface offering convenient, powerful functions that actually reduce the amount of day-to-day administrative work required. The entire sales process from creating an opportunity to signing the contract is now performed in seven steps. A workflow walks users through. Similar to booking a flight on the Internet, they see what they have to do next. Below the surface, the software logic helps ensure that the special characteristics of T-Systems business which combines hardware, software, business consulting, and IT services into complete solutions to meet clients goals are taken into account. As a result of the product, scope of an offer, customer, and key figures generated by the software, appropriate follow-up activities are triggered automatically for example, countersignatures required for submitting a quotation. Based on the defined rule set, the parameters, and the user s role, SAP CRM works out whether three signatories need to be involved or if one is sufficient. Single subsequent steps, such as sending an to the authorized signatories, are executed automatically, with no further action from the user required. Newly structured processes for complaints management and marketing campaigns were implemented using an approach as rigorous and as methodical. SAP CRM has become the central control system for sales. One of the biggest advantages is that users no longer need to be familiar with a process in detail. They are walked through consecutively, automatically, and in line with regulations. Peter Detsch, Project Management for CRM and Offer Support s, T-Systems International GmbH 7

8 Full concentration on the promising deals Thanks to the technological switch to a standardized system architecture, a 15% reduction in annual total cost of ownership was achieved after just one year. The increased speed of processes has not yet been calculated, but Detsch is nevertheless convinced T-Systems is experiencing a faster time to market. The company plans to have return on investment in 2.8 years. The professional services business is highly diversified, and it has become easy for T-Systems to pursue new opportunities. Because joint customer records are stored centrally and Web access is possible, all parties now work with the same information. This makes it much easier for big teams to work together to manage large accounts. Strict process management and full documentation of each step have resulted in higher data quality and consistency. These factors create the required transparency at the touch of a button. It is possible to see how an opportunity is developing at any time whether it s a signatory who logs on to assess the chance of success or a manager using the software to monitor target achievement. And all these improvements mean better customer service. Thanks to the systematic tracking of centrally entered complaints, issues are resolved much faster. -15% Annual total cost of ownership 8

9 T-Systems Automation of entire process chain T-Systems is currently testing the integration of mobile devices. With the first test users, we are looking at which functions make sense for us, says Detsch. Meanwhile, the development team is working to extend the solution. From 2012, sales employees should be able to use their CRM software to directly access contract appendixes and billing documents stored and managed in the central SAP ERP application. The solution will also be extended to cover downstream process steps associated with contract management. Completion, which will be realized incrementally, is planned for With 100% commitment, T-Systems plans to automate its entire process chain which is just the beginning for the strategists. Their vision is to map all the business processes in the company with no integration gaps and support them using workflows. CMP20685 (12/06) Copyright/Trademark Privacy Impressum 9