PIM Benefits in Global Channel Sales- Based Model
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- Evelyn Cannon
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1 PIM Benefits in Global Channel Sales- Based Model
2 Polycom SoundStation 2
3 Market Leadership Across the Line Group video systems: 40% share Frost & Sullivan, April 2008 Video network infrastructure: 25% share Frost & Sullivan, April 2008 Enterprise Wi-Fi handsets: 39% share Infonetics, Sept 2008 Table-top voice conferencing systems: 86% share Frost & Sullivan, 2008 Voice collaboration service provider infrastructure: 23% share Frost & Sullivan, Sept 2008 VoIP handsets with independent VoIP providers: 50% NA share Frost & Sullivan, Feb 2008 (50% Share for North America among independents) 3
4 Collaboration Solutions from Polycom Telepresence CMA Client HDX 4000 HDX 8000 HDX 7000 HDX 9000 TPX RPX Infrastructure & Applications Conference Platforms Management Recording & Streaming Security RSS 2000 RMX Series MGC Series DMA 7000 / CMA 5000 VMC 1000 VBP Series Voice SoundStructure SoundStation IP 7000 Polycom Communicator SoundPoint IP 670 CX700 Applications SpectraLink & KIRK Wireless Telephones 4
5 What s inside The challenges faced in a Global Channel sales model Business Need for PIM and Data Governance Envisioned Benefits Process for picking the right vendor for implementation How the roadmap was developed to drive ROI 5
6 The challenges faced in a Global Channel sales model Communicating Product offerings, availability and changes to a broad audience Lack of scale in communication Inability to get information on demand Complex Product and Pricing options Each product line has country specific configuration options, services and availability Conduct business in 5+ currencies Globally Difficulty understanding Product offerings and interoperability Knowing the Install Base What products do our end customers use, how are they used? 6
7 Other Pain Points Data inaccuracies and inconsistencies in internal systems and presentation to consumers of the data Manual, Spreadsheet-based process inefficient and error-prone Validation rules inconsistent and undocumented Inconsistent compliance checks create legal exposure Large volumes of new product data are hard to keep up with Synchronization and integration of systems due to acquisitions No Data Governance structure No prescribed taxonomy and attributes No prescribed business process across product lines 7
8 What our partners are saying Partner 1 Feels they are losing 3 Million per quarter by not being fully operational Partner 2 Will simply stop selling Polycom if we don t address these basic issues of clear pricing policies and more effective tools Partner 3 We hire a temp every quarter to input your price list into our system and we don t have to do that with any other vendors price list. 8
9 Current State 80 + products 30,000 Parts 9 published price lists in 2 formats per month ~ 22 partner specific price lists per month Product Data Managed and stored in desperate systems Capturing 80% of the product attributes required today Numerous partner unique price lists generated in field or at partner site per month 25+ people submit price add/change requests monthly 1 person in Pricing Operations supports these requests Manual process, opportunity for error, inability to address all partner specific requirements Multiple spreadsheet based approach and data manipulation 9
10 Example of Discount Structure 50 + New Tiers Old Cats NA CALA EMEA APAC Planned Product Slottings EMEA DIST Tier.1 5% Training & Telepresence? Tier.2 Trn.1 10% 8% 10% 10% Global Services Products, PLC - RPX or TPX Implementation services / RPX or TPX Polycom branded / RPX or TPX VNOC services Maintenance services Tier.3 15% Tier.4 20% 20% 20% 20% Global Services Products All Installation and Implementation Services / Polycom Branded Maintenance Services / Polycom Branded Training Services Tier.5 Acc.1, Acc.2, Acc.3, Acc1/TR5 TP1 25% 23% 23% 20% Video, Audio Accessories, VSX & HDX Accessories Tier.6 Aud.2, Aud.3 30% 28% 28% 25% SoundPoint Pro SE-220, SoundPoint Pro SE-225, VoiceStation 100, V700 SoundPoint Pro SE-220, SoundPoint Pro SE-225, VoiceStation % Tier.7 Sw.1, Vid.2, Vid.3, Pdc.8 35% 33% 35% 30% GMS, PathNav, ReadiManager SE200, VMC 1000, HDX Exec Collection, VSX 8000 Exec Collection, PVX, RAS 200A, RAS 200I Via Video, VS SP and EX, VS 4000 Exec Collection, ipower 9000 Exec Collection 5% Tier.8 ipwr.1, ipwr.3, NS.2, Vid.4/TR8, Aud.4 40% 38% 38% 40% HDX 4000, HDX 7000, HDX 8000, HDX 9000, HDX Media Center, MGC 25, VSX 7000, VSX 8000, VSX 3000, V500, V700, Vortex, RSS 2000, V2IU ipower 9000, VSX 7000 Vortex 5% 7% Tier.9 Aud.5, NS.1 45% 43% 41% 40% SoundPoint IP, MGC 50/100, RMX 2000, Web Commander SoundPoint IP 5% Tier 10 Aud.6 50% 48% 45% 43% SoundStation IP SoundStation IP 5% Tier.11 Aud.1, Aud.7, Aud.10 53% 51% 45% 43% Transitionary - SoundStation Premier, SoundStation VTX 1000, Soundstation Transitionary - SoundStation Premier, SoundStation VTX 1000, Soundstation 5% Tier.12 55% Tier.13 Vid.1 59% 57% 45% 45% Transitionary - FX, VS4000, MP, 323, VS128, Modules Transitionary - FX, VS4000, MP, 323, VS128, Modules 5% Tier.99 Vid.99, Aud.99, ACC.99, SW.99, ipwr.99, NS.99 0% 0% 0% 0% Accessories - All Divisions, Global Service Products - Partner Branded Maintenance Services / RPX or TPX Partner branded Maintenance services Spreadsheet based, 30K lines of information? 10
11 PIM Universe Product Management Product & Pricing Info; Compare data End of Life/ Weights & Dims Compliance Availability / 508 / JITC etc Operations Compare data-endof-service; lead time, industry codes, etc. Legal/Sales Partner Specific Contract Specification Product Information Management Partners Product/Pricing Information, Compare data, Filter/Search Capability Sales Product/Pricing Information, Compare data, Filter/Search Capability Other Internal Users Access, track, maintain product attribute data 11
12 Business Objectives Bring products to market faster by leveraging product information & streamlining new item introduction & maintenance processes across line of business Improve overall product data quality through system validation and workflows to enforce business rules for creation & management of product information Reduce product information management costs by eliminating duplicate data entry into multiple repositories & increasing re-use of product information Enable Global Sales Channel to be more effective by providing information on demand the way they want it Provide for a single view of data across lines of business, enforcing data governance of structured and unstructured content 12
13 PIM At-A-Glance PRODUCT PRICING SALES ENABLEMENT COMPLIANCE OPERATIONS / SERVICES POLYCOM SALES PARTNER SALES DATA Product Name, Product Number S/L Description Tied to BOM Weights / Dimensions Lead Time By Product / Service By Theater / Country By Partner Multi currency Associations for quick update Trees Accounting Codes etc Feature / Function Compare Availability all levels 508 BAA JITC Energy Star COO TAA End of Sale Date End of Service Date Software License availability Software version Maintenance Support Pricing Discounting None Standard terms Partner Discount Partner Notification requirements Exhibit A product list Other Partner Specific requirements BENEFIT Ability to easily monitor product and price information Productivity improvement Clean data Better governance Improves Business process Increase throughput and accuracy Decrease or eliminate need to create partner specific price lists If partner specifics still needed, improve our ability to support Tie attributes to products; Store centrally then USE the data for sales tools, training, etc Provides easy update and search capability for product Availability info Provides central repository for and search capability for other Compliance info Increase accuracy of product support information Improve ability to support partners Provide information needed to stay in front of parts / Field replacement unit Provides Sales Quick Price, & Compliance Reference Allow Sales to Search Price List Provide ability to do Product Comparisons Decrease or eliminate need to generate partner specific price lists Allows Partners to filter the Price List as needed Allows Partners to search Price List as needed Provides Easy Access to Compliance data Provide ability to do Product Comparisons 13
14 Phase 1 Focus on improving communication to our extended sales teams (Channel and Polycom sales) Standardize product information across lines of business Capture, create, and manage, information about the products within a PIM platform Capture, Manage and maintain partner specific contract discount and discount within a PIM platform Implement Product Information Portal Easy access to find, understand product offerings globally via our partner portal Enable sales tools to compare products, understand available product offerings and comparatives Make 30,000 products appear as 80 products 14
15 PIM Benefits PIM Partner Portal allows a partner to: Sort / Filter pricing information by country, product, etc Include product attributes needed for partners pricing system Get relevant, current pricing information in the hands of partner sales force quickly and in the format they require Added system flexibility will free Partner and Polycom sales folks to sell rather than chase pricing data PIM solution becomes the keeper of IP vs. an individuals own knowledge of the product offerings Vastly improved data capture and consistency Captures product attribute data at the source Removes redundancy and manual steps from pricing update process Provides better cross system sharing of product information 15
16 Envisioned Benefits ROI Reduced Integration Costs Infrastructure Manual Reduced duplication costs Greater operational efficiencies 1% productivity improvement ~ sales users (including channel sales) Conservatively; 1% improvement in efficiencies in $1 Billion in revenue $10M Revenue - If 1/3 of sales force improves 1% $5M Margin Contribution per Year (@ 50% Margin) 16
17 Envisioned Benefits Streamlined business processes for NPI expected to reduce lifecycle by at least 10% Conservatively reduce cost of processing NPI s by at least 10% Reduced product outages Increase data integrity by applying automatic business validations and pricing algorithms, hence reducing cost of maintaining and fixing the data Ability to setup a Data Governance structure 17
18 Selection Process followed by Polycom Engage a MDM SME to work with Business to gather functional and non functional requirements Shortlist vendors Interview the vendors & demos Invite the top 3 vendors who closely match the requirements to do an onsite or remote demo with actual sample data Let Business and IT both rate the demo as it is easier to see and relate to company data Look at all other intangibles and make a recommendation 18
19 Selection Process Benefits No need to evaluate each and every vendor in a RFI/RFP process Shorter list of vendors to deal with Shorter Selection Process Quick start! 19
20 Roadmap for quick ROI Identify and work with right partner with expertise to help build out the solution Identify core team that is a blend of IT and Business Identify core requirements that can bring immediate value Scope implementation that can be implemented in 3-4 months to start seeing the benefits Reduce risk with iterative approach Build on top of the initial framework Expand to other groups Expand Data Governance structure and framework across the enterprise based on lessons learned during the process 20
21 Thank You! Questions 21
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