Software Evaluation Guide. Configurator-based Guided Selling and Quoting Solutions for Manufacturers of Complex Products

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1 Sftware Evaluatin Guide Cnfiguratr-based Guided Selling and Quting Slutins fr Manufacturers f Cmplex Prducts

2 Intrductin If yu are like many manufacturers f cmplex prducts such as equipment, machinery, instruments, r specialty vehicles, yu may be finding that the tls yu currently use t cnfigure, qute, and sell yur prducts are n lnger adequate in tday s cmpetitive market. Cmmn prblems include: difficulty in maintaining prduct cnfiguratin and pricing rules; pr integratin between systems; inability t deply tls ver the Internet t supprt yur sales channel, etc. This paper is intended t help yu select a guided selling and quting slutin that will address these and ther prblems and give yur cmpany a distinct edge ver the cmpetitin. The Thery As a manufacturer f cmplex prducts yu have prbably develped a number f tls t help sales peple cnfigure, price, qute, prpse, and rder yur prducts. Thse tls likely cnsist f sales manuals, spreadsheets, and cmputer systems assembled ver the curse f several years. They may be used by yur channel partners such as dealers r distributrs as well as yur wn sales peple. In thery, these tls shuld make the prcess f matching yur prducts t custmer needs a straightfrward exercise, leaving yur sales peple plenty f time t sell and yur engineering department plenty f time t develp new prducts. Guided Selling Guided selling is a prcess by which cmputer-based tls utilizing prduct knwledge captured in electrnic frmat guide sales peple, channel partners, r end custmers thrugh the selectin, cnfiguratin, and pricing f prducts t develp a qute r place an rder. The prcess may als include generatin f cnfiguratin-specific and rder-specific drawings, dcuments, and infrmatin fr use by the custmer r the manufacturer s prductin prcess. The Reality But if yu are like many manufacturers, the reality may be that yu still have challenges. Ask yurself: Guided selling is applicable t prducts that are assembled t rder (ATO), Cnfigured-t-Order (CTO), Made-t-Order (MTO), r partially Engineered-t-Order (ETO). Are the tls yur sales peple actually have inadequate r disjinted, leaving them with the need t frequently ask ther peple fr help, and frcing them t develp manual prcesses f their wn that are inefficient, ineffective, incnsistent, and/r prne t errr? Are yu lsing sales yu shuld have wn because the quting prcess takes t lng; r because yur prpsals ften lack infrmatin yur custmer needs? Are cnfiguratins and qutes ften inaccurate because sales peple smetimes use an ut f date table r spreadsheet t cnfigure r price a prduct (even thugh yu invest a lt f time and effrt and therefre cst trying t keep tls up-t-date)? Are yur valuable sales engineering (r design engineering) resurces cnstantly being called upn t help sales peple with what shuld be rutine requests, leaving insufficient time fr the truly special cases they shuld be handling? 1

3 D yu have a hard time keeping in-huse develped cmputer systems up t date? And d yu wrry that the prgrammer wh des s is the nly persn that really knws hw they wrk? D yu have custmers that are unhappy abut frequent rder prblems that delay delivery r, wrse yet, result in prblems with the delivered prduct? Or have yu put sme frm f rder checkers in place t avid that, but in ding s added additinal time and cst t yur rdering prcess? Des it take t lng t train new sales reps r dealers n hw t sell yur prducts? And d skill levels vary widely acrss yur sales frce? Are yu leaving mney n the table because yur sales peple are incnsistent in making crss-sell r up-sell suggestins? Is the hand-ff between sales and manufacturing disjinted, with drawings and technical specificatins having t be re-created multiple times, and with pr integratin t key business systems? Are yu having a hard time keeping up with cmpetitrs wh are deplying new tls via the Internet and ther means t becme easy t d business with? Resulting Strategic Cncerns If any f these realities sund like yur situatin, yu may als be cncerned abut bigger issues: Is yur prfitability suffering because f lst revenue and/r the added cst f nn value-added activities required t supprt yur sales effrt? Will yur cmpany be able t cntinue t perfrm well in ever mre cmpetitive markets? Will yu be able t grw yur sales frce at a sufficient rate t meet cmpany grwth bjectives withut substantially increasing the cst f selling? Will yu be able t attract the best channel partners if yu are seen as difficult t d business with? What will happen if yu lse any f the key peple with imprtant prduct knwledge in their heads t retirement r the cmpetitin, leaving yu with little r n ability t deal with certain prduct issues? Will yu be able t quickly launch the selling prcess fr new prducts yur cmpany has n the drawing bards? IT Issues If yu have already cnsidered the pssibility f applying Infrmatin Technlgies (IT) t help address these challenges, yu may feel yu have sme difficult hurdles t get ver in rder t d s. Fr instance: Yur in-huse IT peple are prbably ver-wrked as it is, and it s unlikely they culd take n a significant new sftware develpment prject. It desn t make sense fr them t becme a sftware develper in tday s wrld anyway. 2 2

4 There may be n way yur cmpany is ready t cmpletely replace existing business, manufacturing, r engineering systems even if it wuld imprve the selling prcess. At the same time, any new selling system needs t be well integrated with key business systems such as ERP and CRM, and pssibly with yur engineering systems, in rder t be truly effective. Yu wnder if there is anyne ut there wh has the tls, skills, and experience t help yur cmpany vercme these issues and implement an effective slutin. Guided Selling Slutins Frtunately, there is a type f packaged sftware available tday that is usually referred t as Guided Selling r Guided Quting slutins. These slutins are generally built arund a prduct cnfiguratr and related tls and are designed t guide sales peple thugh the majr phases f the prcess fr selling cmplex prducts. The best f these tls prvide the capabilities t: Capture the knwledge (infrmatin, rules, frmulas, etc.) f yur prduct experts and make it available t everyne. Use this captured knwledge t intuitively guide yur sales peple thrugh a step-by-step prcess t: Identify the prduct, mdel, r part that best fits the custmer s needs based n key usage, envirnmental, and perfrmance criteria. Cnfigure the detail features, ptins, and dimensins that will best custmize the prduct t the custmer s specific needs, ensuring that the cnfigured prduct is valid and can be manufactured. Accurately price the prduct based n its detail cnfiguratin as well as varius factrs related t prduct, gegraphy, custmer, prmtins, dealer discunt r markup, etc. Pssibly suggest a higher perfrmance prduct the custmer may want t cnsider, r related prducts such as accessries, service parts, warranty, etc. the custmer might want t purchase at the same time. Generate and assemble a cmprehensive prpsal r bid package that includes all f the essential cntents such as cnfiguratin-driven images, drawings, and CAD mdels, alng with the prper legal, warranty, and descriptive dcuments. Cnvert a qute int an rder and transfer it t yur cmpany s rder prcessing system, and pssibly generate manufacturing infrmatin such as a BOM and ruting fr transfer t yur cmpany s manufacturing system. Als mst Guided Selling sftware slutins are built t integrate with existing business and engineering systems, which is gd news in terms f keeping the impact n yur cmpany IT envirnment t a minimum. 3

5 A Big Impact n Yur Sales and Prfitability A gd Guided Selling system can have a big impact n yur prfitability. Experts such as Gartner Grup and thers say that effective prduct cnfiguratr-based tls will typically: Enhance revenues thrugh imprved selling effectiveness Reduce cst f sales Reduce rder rewrk expenses due t mis-cnfigured rders. In fact, many say that custmer-facing tls such as a Guided Selling system can have mre psitive impact n prfitability than mst ther business prcess enhancement prjects a cmpany might cnsider. This Guide and Hw t Use it Guided Selling sftware may be exactly the tl yu need t take yur selling prcess t the next level. This guide has been develped t help yu rganize and execute an evaluatin prcess fr a Guided Selling sftware slutin. It shuld be a useful tl t help yu: Get yur management team n the same sheet f paper in terms f what yu are lking fr and why Develp a checklist f key sftware and partner characteristics t lk fr in an initial evaluatin f ptential slutins Quickly narrw yur ptins dwn t a shrt list f candidates The first sectin f this guide is fcused n helping yu clarify yur strategic gals fr a Guided Selling system. The secnd sectin is a straightfrward discussin f the key characteristics yu prbably want t lk fr in a Guided Selling system. The final sectin prvides additinal ideas t help yu start yur search and t perfrm the final evaluatin f yur shrt list candidates. 4

6 Sectin 1: Setting Yur Gals fr a Guided Selling System Like any imprtant prject, the critical first step is t identify and gain cnsensus n yur gals. A gd Gal Statement will utline yur specific prcess imprvement bjectives s yu can clearly identify the sftware features yu will need t help achieve them. Business Perfrmance Gals The ultimate gals f a Guided Selling system are t increase sales, reduce cst, and reduce risk. A typical set f peratinal bjectives t supprt this gal wuld be: Capture prduct knwledge in the frm f maintainable rules, tables, and frmulas t drive the guided selling prcess. By ding s, als prtect yur cmpany frm the risk f lsing this knwledge. Streamline the selling prcess i.e. reduce sales rep time and effrt, as well as excessive need fr additinal resurces such as engineering and sales management, and lag time waiting fr answers frm the experts. Standardize and autmate key steps like prduct selectin, cnfiguratin, and pricing t reduce errrs, imprve cnsistency, and speed training fr new sales reps and channel partners Simplify the prcess f disseminating prduct and pricing infrmatin i.e. remve the need t create, distribute, file, find, and use paper infrmatin r disparate electrnic tls. Ideally, make it autmatic that sales peple are using the latest infrmatin every time they wrk n an pprtunity The fllwing table is an example f hw yu might dcument yur cmpany s specific prcess imprvement gals. This will prvide the fundatin fr yur business case. Then as yu review the capabilities f varius sftware packages, yu can step back and cmpare hw well each slutin will, in fact, help yu achieve yur stated gals. This shuld be the basis f yur ultimate evaluatin. GOAL SPECIFIC OBJECTIVES Capture prduct knwledge Reduce risk f reliance n individuals Prvide basis fr autmatin and cnsistency Capture critical infrmatin such as tables, frmulas, and rules used in prduct selectin, cnfiguratin, and pricing in a maintainable electrnic frmat. Make every sales rep and channel partner a prduct expert Reduce cnfiguratin and pricing errrs - ensure accuracy and cnsistency Reduce the need t use sales engineering r ther resurces Speed training Using the captured prduct knwledge, intuitively guide sales peple thrugh the entire quting prcess in a way that: Makes it easy t fllw the prper steps in the prper sequence Ensures that the latest prduct infrmatin is always used Ensures that nly manufacturable prducts are defined Ensures accurate pricing Enables them t wrk interactively with a custmer if/when apprpriate cntinued... 5

7 Gals Table cntinued... GOAL SPECIFIC OBJECTIVES Streamline the verall quting prcess Reduce cycle time (speed custmer respnse) Imprve prductivity; increase the number f pprtunities a rep can handle Reduce selling cst Reduce the time and effrt required fr sales peple t: Find the latest prduct infrmatin Determine the prduct that best matches a custmer s needs, envirnment, perfrmance criteria, etc. Select the prduct features, ptins, dimensins, etc. that will effectively custmize the base prduct fr the custmer s specific needs Develp an accurate price qute Create a cmplete prpsal package Cnvert an accepted qute int an rder Imprve win rates In additin t remving time and errrs frm the quting prcess, help sales reps cnsistently deliver better prpsals: Generate prpsals and supprting materials that effectively present the prduct Prvide the custmer with assciated deliverables that make life easier fr them, such as drawings, CAD mdels, etc. Increase average deal value Help sales peple cnsistently leverage up-sell and crss-sell pprtunities: Autmatically prmpt sales reps t suggest tp-f-the line prducts and ptins alng with their relative benefits Autmatically prmpt sales peple t ask custmer if they wuld like apprpriate accessries, related prducts, upgrades, extended warranty, etc. If apprpriate, include similar prmpts in prpsal dcuments Imprve sales visibility Cntinuusly imprve the sales prcess Better predict demand Prvide infrmatin that ges beynd what is prvided by CRM; e.g.: Ability t analyze qute success (win/lss) crrelatin with specific ptins, features, etc. Better infrmatin fr demand frecasts at the ptin/feature level. Make yur cmpany easy t d business with Recruit premier channel partners Build repeat business Retain best sales peple Leverage the abve bjectives t: Make yur prducts easier fr channel partners t sell than the cmpetitin s Make yur prducts easier fr end custmers t buy than the cmpetitin s Avid custmer and sales channel frustratin by eliminating prduct cnfiguratin and pricing errrs that must be later crrected (i.e. get it right the first time) 6

8 Sectin 2: Perfrming an Effective First Level Sftware Evaluatin Once yu knw the specific prcess imprvements that can lead t the gals f increased sales, reduced csts, and reduced risk, yu can develp a gd idea f what capabilities yu are lking fr in a Guided Selling sftware system t facilitate thse imprvements. In general, the system needs t prvide: The flexibility t handle yur: Prducts Pricing Sales prcess The ability t integrate with yur: Enterprise Resurce Planning (ERP) system r ther existing rder prcessing, manufacturing, and financial systems Custmer Relatinship Management (CRM) system Engineering systems such as Cmputer Aided Design (CAD) and Prduct Lifecycle management (PLM) A level f intuitiveness that will enable yur sales reps and channel partners t rapidly: Learn the system Use it n a daily basis A system management envirnment that will enable yu t ensure: Perfrmance Availability Up t date infrmatin This much is fairly bvius. What may nt be s clear is the set f sftware design characteristics that enable a Guided Selling system t best fulfill these needs. Every sftware supplier has a lng list f functinal and technical features. They are imprtant and yu will need t take the time t fully understand them thrugh demnstratins, Q&A, and reference cntacts befre yu make yur final selectin. But yu cannt affrd t d this level f detail evaluatin n mre than a cuple f slutins. The tables n the fllwing pages prvide a succinct utline f key characteristics yu can lk fr right away in yur preliminary reviews t quickly narrw dwn yur list. This way yu shuld nly need t perfrm a detail review f 1-2 prducts instead f a dzen r mre. 7

9 Sftware Characteristics Table The table belw briefly utlines each sftware slutin characteristic, why it s imprtant, and what t lk fr. SOFTWARE CHARACTERISTICS WHY IT S IMPORTANT WHAT TO LOOK FOR Built arund a very flexible prduct selectin & cnfiguratin engine In rder t meet yur business bjectives (streamline, make every rep an expert, etc.) yu want yur new slutin t guide as much f the prcess as pssible. If the engine is unable t handle imprtant aspects f yur prducts it will dilute thse benefits. Yur prducts and markets may change ver time and yu will want t be able t respnd within the capabilities f the tls yu chse tday. The ability t use a cmbinatin f rules, cnstraints, tables, and frmulas in prduct mdels t ptimize perfrmance and ease f use Selectin capabilities such as: attribute/ requirement questins, results filtering, and match ranking Cnfiguratin capabilities such as: multilevel cnfiguratin, infrmatin links and applets, dynamic presentatin f ptins based n previus selectins, glbal ptins fr rapid cnfiguratin and mass change, exits fr custm prgramming The ability t vary allwed features r ptins based n wh is ding the cnfiguratin (e.g. end custmer vs. dealer, vs. expert sales rep) Very flexible cnfiguratin-driven pricing The gal is t autmate as much f the prcess as pssible in rder t eliminate any nn value-added steps in the sales prcess Calculatins that can use just abut any cmbinatin f table lkups, discunts, multipliers, margins, and markups Ability t calculate list price, discunted price, dealer cst, and/r any ther price/ cst view yu need. Ability t handle special requests Multiple prduct visualizatin ptins Smetimes a picture is wrth a thusand wrds when a sales rep r custmer is trying t understand an available ptin r cmbinatin f ptins. Speed will always be a trade-ff t detail, s yu want ptins. The ability t display images assciated with available features and ptins during the selectin prcess The ability t illustrate a cnfigured prduct with either: Dynamically selected static images Dynamically rendered images (e.g. fr different clrs, materials, etc.) Dynamically generated 2D drawings Dynamically generated 3D mdels Very flexible utput generatin The ability t autmate the generatin f cnfiguratin-specific infrmatin fr prpsals and bid packages can: Be a huge time saver Differentiate yur prpsal and win mre deals The ability t generate cnfiguratin-specific manufacturing infrmatin can dramatically speed prductin and delivery A flexible back-end generatin prcess that can be custmized t drive Parametric 2D r 3D CAD mdels, images, r dcument templates fr: Prpsals, including all f the required sectins and attachments such as terms and cnditins, warranties, detailed specificatins, drawings, etc. Manufacturing rders, including cnfiguratin-specific BOMs, rutings, drawings, and ther infrmatin Output ptins fr Wrd, Excel, r PDF 8 cntinued...

10 Sftware Characteristics Table cntinued... SOFTWARE CHARACTERISTICS WHY IT S IMPORTANT WHAT TO LOOK FOR Designed t easily integrate with existing business, manufacturing, and engineering systems Yu want a new selling system, nt an entire new business system, but Yu want t utilize existing custmer and prduct infrmatin, and Yu want rders t flw smthly int yur existing systems Built-in Enterprise Applicatin Integratin (EAI) capabilities that make it easy t synchrnize data and autmate transactinal flw APIs, web services, r ther tls that make it easy t integrate the cre cnfiguratin engine int ther applicatins yu may have in rder t prvide cnsistent cnfiguratin acrss all business prcesses. Intuitive and easy t use fr sales peple Yu need yur sales peple and channel partners t be able t quickly learn the system with minimal frmal training Yu need sales peple t want t use the system because it makes their jbs easier Familiar web brwser-based user interface The ability t tailr the lk and flw f the prcess t be as familiar as pssible. The ability t build in tls such as hints, infrmatin links, calculatrs, etc. if/as needed The ability t use static and dynamic images t make the prcess as visual as pssible A prven technlgy platfrm and sftware architecture Systems develped n utdated and/r prprietary technlgy may nt be supprted ver the lng term and/r may nt be cmpatible with yur ther infrmatin slutins. Widely accepted industry standard technlgies that will be supprted in the future and are cmpatible with ther infrmatin technlgy slutins yu have already invested in. System management capabilities that ensure perfrmance, scalability, availability, etc. Yur Guided Selling system will be an imprtant part f yur selling prcess. Yu need t be cnfident in its day-t-day peratin in rder t get the full benefit Tls fr capacity planning, high availability, and ther data center tasks. The ability t add server capacity incrementally. Tls fr central management f prduct infrmatin with autmated synchrnizatin f distributed users Rapid Deplyment Slutins that will invlve t many peple ver t many years t deply befre yu start seeing any return can lse spnsrship and ultimately fail befre a successful launch. Lk fr a system that can be deplyed rapidly, in managed phases where yu can see a return n yur investment in a matter f mnths vs. years. 9

11 Slutin Prvider Characteristics Table The peple and cmpany behind the slutin yu chse may ultimately be as imprtant t yur success as the features and functins f the sftware. This table briefly utlines imprtant sftware supplier characteristics, why they are imprtant, and what t lk fr. SUPPLIER CHARACTERISTIC WHY IT S IMPORTANT WHAT TO LOOK FOR In-depth knwledge f cnfiguratin technlgy and its use in real-wrld selling prcesses Cnfiguratin and related technlgies are key t an effective guided selling slutin. Just as imprtantly, yu want a partner that understands the real wrld f selling and appreciates the value f an intuitive, easy t learn slutin. The peple yu meet understand: Yur business bjectives as well as the details f yur prduct cnfiguratin prcess. The full envirnment f CTO, ATO, MTO, and ETO manufacturing. Extensive backgrund in ERP, CAD, and CRM systems Yur guided selling system will undubtedly need t interact with yur existing business systems, and pssibly with yur engineering systems, in rder t maintain a seamless flw f infrmatin and prtect the investments yu have already made in yur existing systems. A gd understanding f the infrmatin flw that is needed between the guided selling system and yur ther systems The ability t quickly understand the capabilities f yur existing systems A structured apprach t implementatin, deplyment, and supprt Intrductin f guided selling will have a significant impact n yur sales prcess yu will want experienced guidance and a prcess yu can feel cnfident in. A cmprehensive prject template fr cnfiguring, integrating, and implementing the new slutin Ideas and assistance, if desired, with the rll-ut t sales peple and/r channel partners A full range f available supprt resurces, including cnsulting, educatin, prject management, helpline, etc. Track recrd f custmer success and an active custmer cmmunity When cmpanies with a wide range f different prducts have been successful, yu can be cnfident the slutin has the flexibility t handle yur needs, and that the cmpany has the peple t help effectively guide yur prject. The willingness t prvide yu with apprpriate custmer cntacts nce yu have determined that the slutin may be right fr yur cmpany. Dcumented custmer success Custmer cmmunicatins and events that fster interactin amng custmers A clear custmer fcus Yu want a partner that ges beynd just delivering their standard slutin t really wrking with yu t help yur cmpany meet yur bjectives. A willingness t help with extensins t the standard slutin if needed. 10

12 Sectin 3: Starting and Cmpleting Yur Search Yu can find mst f the Guided Selling sftware packages targeted t manufacturers by ding an Internet search with terms like guided selling and quting sftware. A particular Internet resurce that prvides gd infrmatin n sftware prducts is a site called Capterra ( Yu can search their slutins using Quting Sftware r Prduct Cnfiguratr Sftware. Once yu have a lng list f candidates, yu will be ready t perfrm yur first level evaluatin using the prcess and criteria utlined in this guide. This can be dne with a few phne calls, a review f the cmpanies web sites and literature, and ne n-site r interactive nline sessin fr an intrductry presentatin, demnstratin, and Q&A perid. At that pint yu shuld be able t narrw the list t yur tp candidates. A gd sequence f steps t g thrugh with each f the shrt list candidates is: A requirements assessment where each supplier visits yur facilities, discusses yur prducts and current selling prcess, and talks with a variety f peple t develp a first-hand understanding f yur needs and pririties. An verview presentatin and demnstratin where yu learn mre abut the scpe, capabilities, and technical architecture f the slutins. As part f this sessin, ask each supplier t describe hw they help custmers implementatin their sftware. Yu may want t fllw up this sessin with additinal questins pssibly using an interactive nline apprach r a cnference call. A scenari-based demnstratin sessin where each supplier demnstrates hw yu wuld handle key aspects f yur prduct and prcess with their slutin and addresses remaining questins. Yur riginal business perfrmance imprvement gals shuld prvide a framewrk fr the scenaris yu wuld like demnstrated. At this pint, yu shuld be ready t select a preferred supplier, pending reference checking and frmal prpsal f prices. The final steps are: Request an rder f magnitude prpsal fr sftware and services t verify the ttal cst is within range Perfrm a reference cntact with ne r tw current custmers that are mst similar t yu. Verify what yu ve been tld and get first-hand input frm current custmers. Request a frmal prpsal fr specific sftware licenses and supprt services. ### 11

13 Abut TDCI TDCI is a leading prvider f guided selling and cnfiguratin slutins fr manufacturers f a prducts with a wide range f features, ptins, and dimensins. Our BuyDesign slutin suite prvides innvative Internet-based slutins t supprt the full interest-t-rder cycle fr cnfigurable prducts that are manufactured, assembled, made, r engineered t rder. All BuyDesign applicatins are built arund cmmn prduct cnfiguratr and prduct visualizatin engines. Cre selling applicatins supprt quting, prpsing, and rdering functins in a variety f deplyment mdels, while additinal applicatins supprt end custmer interest generatin as well as designer specificatin and requirements capture. Fr mre infrmatin, visit BuyDesign 12

14 TDCI Inc Orin Place, Suite 300 Clumbus, OH

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