Variant configuration with SAP

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1 Variant configuration with SAP Service Offering: Prototype Internet Pricing and Configurator (IPC) SAP Consulting Industrial Manufacturing Dr. Andreas Beyer, SAP Deutschland AG & Co. KG

2 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

3 Initial situation and task Variant manufacturers are compelled to offer new variants in constantly shorter intervals. But the company s sales processus are hindered by a general lack of information concerning the current product features and their availability. Many sales documents are sent by end customers or sales partners in a non-validated format (fax, paper, , telephone). External presentation of the company s products is outdated / unattractive Great effort for master data maintenance / redundancies High processing times of sales offers/orders Selling configurable products Sales documents are sent by end customers or partners in a nonvalidated format (fax, ,...). High error costs because of missing validation of configuration Insufficient information flow towards sales partners and customers

4 Problem statement Sales process - As is - Your company sells configurable products with an SAP ERP system. The sales team is very skilled and familiar with the tasks and features of SAP variant configuration. However many sales documents are sent by end customers or sales partners in a non-validated format (fax, paper, , telephone). The order processing therefore results in a high work load for the sales team. The received information is often faulty and/or incomplete. There are a lot of questions from sales persons back to the ordering parties, which leads to significantly longer order processing times. Sales process - To be - In order to reduce order processing times and to improve the external presentation of the company s products while at the same time increasing the working efficiency of the sales team, the management decides to introduce a web based sales solution that addresses all ordering parties. The solution must also include a tool for pricing and configuration. However the existing investments and available experience of SAP variant configuration must be utilized as much as possible. Result The company is looking for a web based Sales solution for product configuration that leverages the benefits and investments of SAP variant configuration.

5 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

6 Our solution: IPC Solution concept SAP Internet Pricing and Configurator (IPC) is used in many SAP applications to configure products through the Internet. SAP IPC belongs, technically speaking, to SAP ERP and /or Customer Relationship Management (SAP CRM), but it can also be run separately on own web based applications ( standalone ). Supported functions As of SAP CRM 5.0 the SAP IPC 7.0 is a component of the Application Platform (AP). Compared to the previous release that is SAP IPC 4.0, the technology has been switched to SAP Virtual Machine Container (VMC), which is part of the SAP Web Application Server (SAP Web AS) and SAP NetWeaver. Installation of a separate database is not required as SAP IPC 7.0 is moved to the SAP Web AS. IPC also contains a JSP application that is integrated into ERP ECO and CRM web channel. Using this JSP application, internet customers can easily configure products in the browser. The IPC can also be called by any external, web based application, e.g. an own customer web shop (Standalone scenario)

7 Our solution: IPC Accurate, complete and up-to-date product-, pricing and configuration data Marketing Sales & Service SAP CRM SAP ERP Internet Pricing and Configurator (IPC) Product definition SAP ERP Execution Sales orders, Logistics SAP SCM SAP ERP

8 Our solution: IPC Standalone

9 IPC Knowledge base Create Knowledge base in SAP ERP Distribute + use in applications IPC SAP CRM Internet Sales Knowledge base (ERP) IPC ERP IPC SAP Mobile sales Individual* IPC * on request

10 Short description Short description of the solution Package for the implementation of a prototype for the Internet pricing and configurator (IPC): Validation of the existing variant configuration models regarding feasibility for the IPC Validation of the existing pricing procedures regarding feasibility for the IPC-pricing engine (SPE) Documentation of tasks and feasibility Creation of a Knowledge base (if possible) for a selected configurable product Presentation of the Knowledge base in Standard-IPC (ERP or CRM, requires AS Java, installed Java components and active VMC) System requirements: Prototype will be created on SAP-R/3-customer system (up from Release 4.6C or SAP ERP ECC 6.0)* Alternatively, prototype can be created (remotely) on an SAP-IDESsystem. * SAP Standard-/SAP Best Practice Customizing is required

11 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

12 Results Prototype IPC Proceeding, phases, efforts & results I II III Initial IPC-prototype for IPC-work shop MTO-Prozess Final work shop On site Presentation of IPC Analysis of As-is sales process Analysis of To-be-Sales scenario Definition of To-be-sales process Analysis of pricing structures On site/remote Creation of the IPC-prototype based on the To-be-process Knowledge base creation Customizing (XCM) Sales order creation BOM explosion Variant pricing On site Presentation of the prototype Definition of GAPs Approval of the prototype Discussion on further processing 1 PD 2-3 PD 1 PD ~ 5 Project days Evaluation of requirements Documentation of scope for IPC prototype IPC-Prototype and technical documentation Documentation of work shop Proposal of further processing including effort-estimation for IPCproject * Requires preparation and cooperation of sales, IT, production and development ** Prototype does not meet requirements of productive use

13 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

14 Customer benefits of IPC prototype Get to know the benefits of SAP-IPC: Enables/improves the external presentation of the company s products considerably Reduction of order processing times Increase of working efficiency of the sales teams due to reduced media breaks Maximum utilization of existing investments, system data and available experience of SAP variant configuration Increase of TCO by feasibility study Decision support to use the IPC in your company

15 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

16 Selected Live Customers

17 Contents 1. Initial situation and task 2. Our solution 3. Our proceeding 4. Customer benefits 5. References 6. Customer efforts

18 Customer efforts The service Prototype SAP IPC requires the following customer efforts: 1 employee Sales: 2 3 days (preparation, support to create prototype*) 1 employee PLM: 1 2 days (preparation, support to create prototype*) The described Consulting service is offered with a fixed price. * Customer efforts for final work shop not included

19 Thank you for your attention! You are interested? Do not hesitate to contact me: Jörg Lange Service Portfolio Manager Manufacturing & High Tech SAP Deutschland AG & Co. KG Am Schimmersfeld Ratingen Mobile: Fax: mailto:

20 2014 SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AG s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP AG or an SAP affiliate company. All rights reserved. Customer 20

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