Salesforce CRM and Automatic Billing Software

Transcription

1 White Paper Why You Should Take Advantage of Salesforce CRM for Automating the Invoicing A Short Guide for CIOs

2 Executive Summary Salesforce CRM, in conjunction with the Force.com platform, offers solutions for creating, sending, processing and the payment of invoices that meet highest standards, financially as well as technically. A billing app can easily send 10,000 invoices per day and be a wise purchase at just 20 invoices per month. Billing based on Salesforce CRM is advisable, because of The flexibility of the Salesforce technology, witch makes companyspecific solutions with little effort possible The extremely simple implementation and handling Avoiding interface problems The first-class security concept The opportunity to use tools, provided by Salesforce CRM, for the billing app The low cost Technical Innovation with the Force.com-Platform A survey about billing software available on the market, which was published by Forrester Research, shows once again how quickly information can become obsolete. In the end of 2012 Forrester Research rated only eight software companies as key players on the considered market of billing solutions. 1 The Salesforce technology opens up a lot more possibilities than many CIOs believe. At least since the middle of 2013, there is another key player in the market for billing software: Salesforce.com, the world's largest provider of Customer Relationship Management (CRM) software. Such a classifycation may be surprising because Salesforce CRM offers little for billing in the basic version. This changes, however, when Salesforce CRM is enhanced by relevant apps. This document explains what the Salesforce technology offers for billing. The next section describes the functionality provided by first-class billing software. Following this, there are explanations of Force.com platform and the related benefits for users of Salesforce CRM. Based on this, instructions on the technical strengths and the cost-effectiveness of invoicing apps are following. 1 Peter Sheldon: Market Overview: Subscription And Recurring Billing Solutions 2012, Forrester Research, December As key player are rated: Aria Systems, Avangate, cleverbridge, Digital River, evapt, Metanga (MetraTech), Vindicia, Zuora (Sheldon, S. 1). OnCommerce GmbH 2

3 The Practical Benefit of Billing Software The term invoicing means, according to common opinion in Germany, the creation of accounts including accounting. Modern billing software can do much more. The billing software discussed in this document is suitable for the following types of transactions: Transactions that have been recorded on a website, for example, in an online booking system for business customers Transactions that have been recorded in Salesforce CRM, for example, a sales representative or field manager Transactions that have been transferred from an external database by Salesforce CRM, for example via a web service Modern billing software prosesses business transactions, which lead to one-time payments (for example, the purchase of a single transport performance) and those which lead to recurring payments (for example, taking out a subscription). The software can be used for transactions with foreign customers considering the respective country tax regulations and is able to issue the invoice in the appropriate national language. The prejudice, complex pricing models are difficult to automate is widely spread. For transactions that result in recurring payments, advanced billing software also supports pricing models with Rates which are freely selectable by the customer Time-or consumption-dependent billing Graduated prices Commissions, Coupons and Special discounts. Possible are fixed, predetermined payment dates (for example, at the beginning of each month) or variable payment dates, which are determined according to certain rules (for example, payment upon reaching a certain amount of money). An invoice automatically generated can also include positions that are based on different pricing models, such as the first position a monthly rent payment, as the second position the purchase price of a DVD, and the third position is a function of time calculated fee of which a special discount has been deducted. A very simple example provides a portal for donations on which a donor can enter their address data and the donation amount. Once the donor has sent the form, the billing software creates a payment link through which the customer can pay by PayPal. After this is done, the billing software sends the donation receipt by . Accountants, which are working with billing software for the first time are often amazed, how much time it saves. The described sequence from reading the address data and the donation amount in the Salesforce database to sending the donation receipt is completely automated. This also applies if a donor pays in other ways, for example by bank transfer or by using the QR code included in the bill. A much more sophisticated application example is an online portal, where business customers can buy time-limited licenses and matching service packages. Here starts a business process with a customer order that is automatically transferred to the Salesforce database. OnCommerce GmbH 3

4 The customer then receives his bill automatically by . Once the customer has paid his bill, he will automatically receive with the license data and instructions to the booked service package. The billing software sends a customer the bill for the following utilization period in good time before the already paid period ends. The billing software responds to cancellations and tariff changes automatically, both in terms of the licenses, but also in terms of the service packages. Tariffs with installment payment are also possible. The billing software can also be used if the range of services additionally includes physical goods, for example, data media. When an order like this comes in, the employee responsible for the shipping must mark the delivery of the goods in the Salesforce database. The automatic billing works even if licenses, service packages and physical goods are ordered together. Billing software also automates the dunning process. The billing software can send reminders automatically. For this purpose the operator of the online shop must specify how many dunning levels it considers appropriate (usually two following a first reminder) and how fast the software shall respond (for example, first reminder three weeks after invoicing, second reminder three weeks after an ineffective first warning). The open claim could also be put on the bill for another customer's order by the software automatically. As the two examples show, billing software is used to automate processes. Nevertheless, there is always the possibility of manual intervention. A customer receives as a partial credit because of a breakdown in customer service, another customer canceled his order by phone and another customer receives special conditions that differ from those in the Salesforce database stored price models. Billing software is also suitable for mobile use. A service technician onsite, for example, is able to record, what he has done for its customers. He can invoice the services immediately on paper print or send via to the customer. Innovative pricing models are also automatable with billing software. So it is feasible to automate the billing of an online ad provider who sells display places and times at a marketplace to the highest bidder, or uses an auction procedure along the lines of Google AdWords for this purpose. State-of-the-art invoicing software also supports customer self-service portals where customers can view their contract data and change to some extent (for example, specifying a new bank connection, switch to another tariff, retrieve all the previous bills, choosing a renewal option). Customer self-service portals are particularly interesting for businesses looking for longer-term relationships with their customers. OnCommerce GmbH 4

5 Salesforce CRM and the Force.com-Platform An essential part of the product policy of Salesforce.com is to motivate others to develop modules that extend the functionality of Salesforce CRM. These modules, which could be described also as add-ons, are called apps in the Salesforce world. The Force.com platform is the basis to extend the functionality of Salesforce CRM. On Force.com platform developed application programs are called apps. Many of these Salesforce apps are sophisticated software packages with a lot of source code. Salesforce.com has created the Salesforce AppExchange, a marketplace where more than 2,000 apps are listed. The spectrum ranges from free smaller apps to complex software with extensive functionality. The also built by Salesforce.com platform Force.com is used to develop and operate Salesforce apps. From this point of view, Salesforce apps are, technically, Force.com applications. The development environment provided by the Force.com platform includes in particular The programming language apex (similar to Java, but designed specifically for the use in the cloud) The framework Visualforce (for user interfaces, similar to JSF) A couple of interfaces (including SOAP API for connecting, for example, by accounting software) Numerous tools that lighten programmers their work and support teamwork Salesforce apps always use the database from Salesforce CRM. All control elements of the Salesforce Apps are included in the user interface of Salesforce CRM. Who does not know the technology the app is based on, would probably think, that the app is part of Salesforce CRM. The programming of an interface can be much more difficult and expensive than expected. There is no guarantee for smoothly working interfaces. To avoid malfunctions, interfaces must be checked every single time after updating the software. Salesforce apps inherit the functionality of Salesforce CRM. This includes the role concept. Special attention deserves the problems, which will occur by using the services of another system that should have been overcome following the promises of the advertising: The Force.com platform, on which all Salesforce Apps are built, and Salesforce CRM work perfectly together, because both are based on the same technology and Salesforce.com is committed to doing everything regarding to a perfect integration of the two platforms. Then again Salesforce CRM is an extremely powerful system. An employee could have, for example, the idea to create additional database fields of his Salesforce user interface considering certain customer characteristics. Assuming that the company will now transfer data from Salesforce CRM to a platform of another manufacturer to ship its bills with this platform. Now the IT manager has an interface problem because it can be expected that the billing platform does not support the customized database fields. The interface problem between an external billing software solution and Salesforce CRM will be eliminated if the billing software is a Salesforce app. Other billing software has the handicap that the Salesforce functionality is only usable partially. For Salesforce Apps most of the functionality of Salesforce CRM is available automatically. This is mainly because the Force.com platform, as already mentioned, is based on the same technology as Salesforce CRM. A first point that may initially seem trivial is the possibility to define user access rights in an invoicing app finely graduated, like this is given in Salesforce CRM. OnCommerce GmbH 5

6 Certainly can be set user rights virtually in any business software. But that does not mean, that the user access rights there can always be finely graduated like in Salesforce CRM. Salesforce CRM offers the option to exclude users of the billing app from the access to certain financial figures that can be accessed by default with the billing software. From the security point of view Salesforce apps are preferable to other software solutions with comparable functionality. A second point is the corporate security system of Salesforce CRM and Salesforce apps, which is considered top-notch. 2 This assessment is also based on previous experience; the users were able to gather with Salesforce CRM and the Force.com platform. It is worth mentioning in this context, that reliability and security of Salesforce CRM are features rated highest by the 5,288 survey participants in the Salesforce.com Customer Satisfaction Survey in Every app published on the Salesforce AppExchange passes through so called Salesforce security reviews continuously, to guarantee the highest safety requirements for Salesforce apps. 3 Security issues can particularly happen if external systems are connected to the Salesforce solution, for example, a separate online shop, or a external billing platform. If, instead of an external system, a Salesforce app is used, this problem is eliminated. Salesforce apps are therefore much better than with Salesforce CRM related external systems from the security view of point. A third point is that for Salesforce apps the same reporting options are available as for Salesforce CRM. Usable therefore is next to tools like the Report Builder also the Analytics API, which enable customers to implement statistical analyzes that go beyond the information provided by Salesforce CRM functionality. The usage of an invoicing app available on the market is usually much cheaper than developing a separate invoicing app. Individual programming is eligible, if there grew up the need to extend the functionality of an already-used app. Salesforce-Apps for Invoicing On Force.com platform not only their own apps can be developed, for example, a separate invoicing app, but also those that complement the other apps. Because of this feature it cannot be denied that the development of a separate billing app may not be worthwhile if a billing app is already available, which covers a large part of the desired functionality by default. Individual programming (own app) in this case makes sense only to complement the functionality of the billing app. An alternative to custom programming is to ask the manufacturer of the invoicing app, if he is willing to extend his software with the features you want. If the manufacturer enters into this, the new features are available in due time to all users of the invoicing app. 2 Phil Wainewright: Busting five misleading myths about cloud, Mai 12, 2014, and the published links there OnCommerce GmbH 6

7 This solution would be for the customer who wants to have the new features, usually not free, but very reasonably priced (compared to individual programming). Good example of the flexibility of the Salesforce technology provides products with many configuration options, which especially occur in major enterprises in the manufacturing industry. Salesforce CRM would be insufficient for this purpose. The solution is to extend Salesforce CRM through a product configurator app. The invoicing app can then, because of the same technological base, generate the needed invoices automatically. This is also possible, if the large company sets its prices following a very complicated process (target country, type of customer, discounts, etc.). The practical importance of flexibility is huge, because companies evolve over the time, creating new, not always predictable requirements to the software. The implementation of a billing app is much more simple than many CIOs believe. Regarding to a Salesforce billing app the word implementation sounds rather exaggerated: The implementation means, means in fact that a user is logged in to his Salesforce CRM, selects the billing app within the CRM and sets up the app using the graphical user interface. The user interface is selfexplanatory. A lot of things, including the configuration of pricing models can be realized by using the mouse. A CSS style sheet controls the invoice layout, predefined placeholders exist for variable invoice items and special calculations are, similar to Excel, realized by simple formulas. A technophile user can set up the invoicing app usually by himself, because the technical documentation provides all the necessary information. But the most convenient and efficient solution is to set up the invoicing app with the support of a technician of the manufacturer. In this case the user learns at the same time how they can use the invoicing app later. This is what employees prefer if they have no interest in computer technology at all. Such training costs about 1,500 to 3,000, depending on the expenditure of time. A billing app can be a wise purchase, even at 20 invoices per month. Benefits: Time savings Error Prevention Automated reminders Automated Payment Processing Scalability With a billing app can easily shipped 10,000 invoices per day. If the number of bills, to be sent per day, is much larger, a customized solution must be found, which is always possible. However, often a staggering range is possible (for example, not 40,000 invoices in one day, but four 10,000 packets to four days). For the minimum number of monthly invoices to be sent, from which the use of an invoicing app is worth, there are the following rules of thumb: 1. The use of an invoicing app is profitable from 50 invoices per month. 2. The use of an invoicing app is useful already at 20 invoices per month, if the calculation of the amount to be invoiced is complex and error-prone. OnCommerce GmbH 7

8 With a relatively large number of invoices per month a billing app, compared with a manual solution, leads to a significant cost reduction due to a much lower time effort: Calculation Example about 500 Invoices per Month Without Billing App With Billing App Working days needed for the billing per month 20 All parts of billing process are managed manually. 8 Most parts of the billing process are automated. Staff costs p.a. 23,014 9,205 License fee p.a. 0 1,656 Total costs p.a. 23,014 10,861 A billing app pays for itself very quickly. The example shows that the use of an invoicing app can also be useful if, for organizational reasons, initially only one part of the billing is automated. In the first step, for example, the invoicing for domestic customers will be automated, in a second step, the commission calculation and in a third step, the billing for foreign customers. In the calculation example an annual salary of 35,000 was set. 20 working days needed for billing per month are 240 working days a year, 35,000 * (240/365) = 23,014 result (rounded). 8 days per month are 96 working days per year, 35,000 * (96/365) = 9,205 (rounded). The Part of the Force.com Platform The previous explanations show once again how quickly changed the software market: tasks that once were difficult are suddenly easy to manage. A modern invoicing app can do much more than similar software published a couple of years ago and is still easy to use. As an important premise for this progress the Salesforce technology was named, which both, Salesforce CRM and Force.com, are based on. Because of this technology Salesforce apps will receive a basic level of functionality automatically, so the user is able to work with the app as if it were a part of Salesforce CRM. In addition, the Force.com platform provides a component library and visual tools. Both save experienced Salesforce developers much effort. Force.com offers the perfect platform for technical innovations. The Force.com platform, which has more than 100,000 corporate clients, offers the opportunity to create extremely powerful Salesforce apps with relatively little code. Such apps can be available as standard software on OnCommerce GmbH 8

9 the market or even individual software that complements the functionality of standard software freely. Quite small software companies are able to develop apps based on the Force.com platform, apps with functionality that many IT managers would expect only from very extensive software packages of large software manufacturers. Anyone interested in a convenient way concerning the merits of a billing app can register on the website to a free webinar, which lasts approximately one hour. The participants in the webinar see how easily a billing app can be handled. Each participant has the chance to ask difficult questions about the software. About the Publisher The OnCommerce GmbH is a software company based in Jena. The company, founded in 2010, develops Salesforce applications and provides assistance with implementation, user training and support. OnCommerce is approved Salesforce Independent Software Vendor (ISV) and the first Salesforce Product Development Outsourcer (PDO) for Germany. Key product of OnCommerce is bill.on, a versatile Salesforce billing application. Customers include, among others, ADTECH, a subsidiary of AOL Networks and the Delivery Hero Holding GmbH. OnCommerce GmbH 9