SAP Customer Success Story

With the help of the SAP Balanced Scorecard application, were delivering sales results about two weeks earlier than before and the quality of our data is much better.
Christian Schmid, Manager of Finance and International Applications, mobilkom austria

MOBILKOM AUSTRIA
A TELECOM LEADER AUTOMATES SALES COMPENSATION WITH SAP STRATEGIC ENTERPRISE MANAGEMENT AT A GLANCE
Company Name mobilkom austria Austria www.mobilkomaustria.com Industry Telecommunications Key Challenge Provide accurate and timely sales and compensation figures to sales teams to promote sales success and meet company revenue goals Implementation Partner Esprit Consulting Solution and Services SAP Strategic Enterprise Management (SAP SEM), including the SAP Balanced Scorecard application Existing Environment ERP software from SAP SAP Business Intelligence (SAP BI) Implementation Highlights Manages sales incentives programs and automatically populates payroll database Delivers critical sales data to sales reps and managers through an easy-to-use Web interface

Key Benefits Cut time needed to finalize sales results by two weeks Eliminated three days of work each week for the manager who handled compensation manually using spreadsheets Replaced error-prone manual system with accurate automated system Enabled managers to easily identify underperforming sales team members Hardware Hewlett-Packard Operating System HP UNIX

With more than 3 million customers, mobilkom austria is the leading provider of mobile telephone service in Austria. The Vienna-based company serves almost half the countrys mobile phone users and is known for its innovative approach to mobile telephony and data communications. In addition to expanding its services in Austria, the 2 billion company has grown through strategic investments in the emerging markets of southeastern Europe. To make the most of market opportunities in a climate of rapid change, mobilkom austria needed a more efficient way to measure and reward the performance of its sales force. Using the SAP Balanced Scorecard application in SAP Strategic Enterprise Management (SAP SEM) to track and communicate sales results, the company has been able to reduce time wasted on manual data entry processes, improve data accuracy, and more clearly communicate its revenue goals to the sales force.
UNRELIABLE, CONFUSING RESULTS

Like sales representatives in many industries, representatives at mobilkom austria are rewarded each month based on how their performance aligns with the companys sales and revenue goals. But the system the company was using to calculate compensation made arriving at accurate, easily understandable figures a challenge. Compensation and targets varied from salesperson to salesperson and had to be tracked manually by a manager who used an unwieldy spreadsheet solution linked to seven different

databases. The results were not as reliable as we would have liked, says Christian Schmid, manager of finance and international applications for mobilkom austria. We wanted to automate the process of compensation calculation. We believed we could save time and ensure data accuracy in the process. In addition, the compensation calculation methodology used by mobilkom austria provided almost no insight into how sales managers could improve the effectiveness of their team members. It also failed to give sales representatives an understandable explanation of how their pay was calculated each month based
Using the SAP Balanced Scorecard application, we've been able to link the compensation of our salespeople directly to our companys revenue goals. Our managers now have the information they need to help their teams become more productive.
Christian Schmid, Manager of Finance and International Applications, mobilkom austria

SAP: BUILDING ON A STRONG BASE

In 2003, managers in the sales and marketing department at mobilkom austria began looking for a cost-effective solution to improve the companys sales compensation tracking process and promote better sales performance. After deciding that the best approach was to leverage the companys existing SAP ERP software, the team chose the SAP Balanced Scorecard application in SAP SEM. The SAP Balanced Scorecard methodology is based on the management system of the same name developed by Robert Kaplan and David Norton. The methodology helps organizations improve their performance based on focused feedback and analysis of internal business processes and external results. The goals for the mobilkom austria team included quantifying the achievements of individual salespeople and supporting greater management discipline. Building on the mobilkom austria SAP ERP system that was implemented in 1996, the sales and marketing department was able to implement SAP Balanced Scorecard in less than three months. When questions came up during the implementation, says Schmid, experts at SAP were able to provide answers to keep the process on track. Because the SAP ERP solution was already installed, we had a jump-start on the process, he says. Taking advantage of the capabilities of the SAP Balanced Scorecard application, we were able to get additional value from our original investment in SAP ERP software.

on targets and accomplishments. Instead of motivating salespeople, the incentive system confused them. There was a lot about the process that wasnt clear to the sales representatives, says Schmid. Each of them received a spreadsheet at the end of the month, but they didnt get any sense of how their individual goals were tied to the larger goals of the company.

MOTIVATING THE SALES FORCE

FORECASTING WITH CONFIDENCE

Since turning to SAP to automate its sales compensation process, mobilkom austria has transformed a manual, error-prone process into one that is virtually error free. Now that time-consuming manual processes have been eliminated, the manager who tabulated the spreadsheets no longer needs to spend three days each week on that task and can devote more time to higher-value work. The company is reaping additional time savings with a new workflow approach for managing sales results figures. Once sales team managers approve the results for each team member, those numbers can be exported directly into the companys payroll system. With the help of the SAP Balanced Scorecard application, were delivering sales results about two weeks earlier than before and the quality of our data is much better, says Schmid. With SAP Balanced Scorecard, mobilkom austria can use accurate, real-time data to manage its sales incentive programs. The company can track the performance of each salesperson with a system that uses 150 individualized scorecards one for each member of the sales team. Managers can quickly identify which representatives are underperforming and address problems promptly. Using a customized Web interface, mobilkom austria salespeople and managers can log on to the Internet to view important sales information and data about their own compensation. The result is a more motivated and accountable sales force. Using the SAP Balanced Scorecard application, weve been able to link the compensation of our salespeople directly to our companys revenue goals, says Schmid. Our managers now have the information they need to help their teams become more productive.

After achieving promising results using SAP Balanced Scorecard, managers at mobilkom austria are exploring additional ways to increase operational efficiency using SAP SEM. As a next step were looking at using SAP SEMs planning functionality to help us get access to information for budget planning, says Schmid. That should make our revenue forecasting process more accurate and easier to complete.

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