Siebel 7.

8 Delta Technical Training

Customer Order Management
Pricing Management

Module 00: Siebel 7.8 Pricing Management Overview

Module Objectives

After completing this module you will be able to:

Describe key capabilities and enhancements in the Siebel 7.8 Pricing Management Solution Map List Siebel 7.8 Pricing Management course sequence

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Siebel Customer Order Management

Order Lifecycle Management
Mobile Excel Spreadsheets

Quotes Customer Assets

Contracts Orders Pricing Management

Price Price Administration Execution Price Planning Price Enforcement
Access Databases

Call Center

Product & Catalog Management

Product Product Selection Configuration Deploy Catalogs Define Offerings

Billing Systems

Retail POS

Manufacturing Systems

Web

External Applications

Customer Information
Partners Account Opportunity Contact Legacy

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Pricing Management Solution Map

Price Administration
Process-driven Pricing Price Lists / Volume Discounts/Cost Lists Attribute Adjustments Discount Matrix Account & Product Hierarchy Discounts

Price Execution
Sales BOM / Configurable Product Pricing Promotion Pricing Price Waterfall

Price Planning
Price Analytics Dashboard Price Waterfall Analysis

Price Enforcement
Discount Negotiation Action Based Pricing Contract Compliance Discount Approvals Centralized Validation Rules

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New - Configurable Pricing Policy Admin.

(a.k.a Pricing Procedure)

Ability to implement an agile pricing policy to respond to changing market and customer dynamics
Why Features Benefits

Difficult to change pricing logic in response to the market conditions Poor coordination of pricing across channels Pricing cannot be personalized for customers/partners/channel

Configurable pricing process Graphical interface-driven pricing process definition. Reusable pricing sub-procedures

Higher profits from personalized prices across all channels Reduced time and cost of changes to pricing policies Higher customer satisfaction due to accurate and consistent pricing

Example of a typical pricing procedure

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Enhanced Price List Administration

Enhanced price list transformation Introduction of line-level effectivity dates Pricing logic to reduce the time to market for new products

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New Attribute Adjustments Administration

Provides the ability to setup pricing rules based on product or contextual attributes such as product color, account type, and so on in a table-driven UI interface
Multi-purpose attribute adjustments Multiple comparison operators against an attribute Multiple sources of attribute domain Non-enumerated attribute values

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New Discount Matrix Administration

An administrative framework that allows customers to establish and manage prices and discounts for products in conjunction with other customer and market factors
Tabular price adjustment definition. Price adjustments at different levels of hierarchy. Support for custom/legacy sources of data.

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New - Account and Product Hierarchy Discount Administration

Ability to negotiate or establish discounts at different levels of the customer account hierarchy
For example, a company that sells laptops offers the following discounts to the XYZ Corporation Account Hierarchy: Account XYZ Corporate XYZ South America XYZ Chile Product Laptop Laptop Laptop Adjustment Type Discount % Discount Amount Price Override Adjustment Value 5% $100 $2500

Or, the same company could offer discounts at different levels of the product hierarchy:
Product Class Computer Systems Personal Computing Laptops Adjustment Type Discount % Discount Amount Discount % Adjustment Value 5% $50 3%

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Customizable Product - BOM Pricing

Features Why

Component-based pricing Sales BOM-specific prices Relationship-based price adjustments Sales BOM-level pricing logic

Benefits

Pricing Sales BOM /configurable products is very time-consuming Unable to execute Sales BOM-specific pricing

Reduce time to market for configurable products / Sales BOM Increase revenues through the ability to create a wider range of product offerings

Price in a Sales BOM

Price if ordered Standalone

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New Promotional Discount Administration

Product promotion allows users to define adjustments which are applied when the promotion is applied to line item The adjustment can be a default adjustment which is applied to any selected product, or it may be specified for a particular product, for all products in a class, or for a product line

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New Price Waterfall

Siebel Pricing Management delivers a price waterfall that provides an insight into derivation of the final net price based on the different types of applied adjustments and their respective sequence
Sales representatives can consistently and accurately communicate the applied discounts to the customers.

Drilling down on net price shows pricing waterfall

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Price Negotiations with Automated Spreading of Discounts

Set target by selecting product line, single or multiple line items, or the entire document Specify discount three different ways: New Target (e.g. Will give these to you for $100) Discount Amount (e.g. Will take $10 off these items) Discount Percentage (e.g. Will take 15% off these items)

Why

Features

To address complex requirements for applying discounts.

Benefits

Highly usable, flexible and fast capability for applying manual discounts while enforcing pricing policies

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New Action Based Pricing

Benefits Why Features

Loss of revenue due to early customer terminations/cancellations Poor customer satisfaction by charging customers for services they already paid for

Ability to price transactions based on Order Type or Action Code of the line items Ability to define the action codes that will be used to roll up the prices

Reduce revenue leakage by better enforcement and tracking of customer contracts/commitments Increase revenues from installed base through charges for different services

Product $59.99 plan HBO Prime Package DSL $39.99 plan

Action Code Disconnect Suspend Move Modify

Description Cancel Wireless Service Prematurely Suspend the Cable Service for a certain period of time Move the DSL line to a new address Update the service with roaming capabilities

Price Impact $200 Disconnect Fee $15 Suspension Fee $30 Change of Address fee No Charge

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Enhanced Contract Pricing Enforcement

Why

Lack of ability to track contract violations results in revenue leakage

Keep your customers Confirm Penalty Reduce revenue Contract Compliance Customer
Contract Compliance

Litigation resulting from poor contract compliance

Features

Track contract terms and conditions Flexible penalty calculation and enforcement Contract renewal
Benefits

leakage

By attempting to delete the following items: -Wireless 1000 Plan -Wireles Web You are violating the 1-Year Contract which began on Janunary 1, 2004 and ends on Dec. 31, 2004

Accept

Reject

Orders Customer Service Terms & Conditions Contract Management

Increase revenue by enforcing penalties Decrease costs by reducing potential litigation

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Consistent Pricing Through Approvals Routing

Why
Revenue leakage due to rogue pricing/discounting Inconsistent discounting policies across the sales organization

Use Scenario: Order needs Approvals before submission

Features
Route any transactional object (Agreements, Service Requests, etc.) Route in sequence or parallel Monitor approval status

Approval Verification
Cannot submit order without approvals. Discount levels require Manager's approval. Accept Reject

Benefits
Reduce revenue leakage due to rogue pricing Reduce the Agreement negotiation cycle time.

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Reduce Errors and Order Rework Through Real-time Validation

Why

Use Scenario: Discount levels exceed the allowed levels.

Quote-to-Cash cycle is very long because of Quote/Order errors

Features Centralized administration of validation rules

Order Validation There is no Price List associated with this Order
Accept Reject

Declarative validation rule definition Custom validation error messages

Benefits Reduce Quote/Order error rates Reduce Quote-to-Cash cycle time

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Pricing Analytics Dashboard to Determine Impact of Price Changes

Why Cannot determine the right price Unable to quantify the revenue, profit, market share impact of a price change

Features

Margin analysis Revenue distribution Price Elasticity

Benefits

Set Prices to optimize on business objectives: revenue, profit, or market share

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Visibility into Discounts that Erode Profits Through Price Waterfall Analysis
Why Do not know the causes of low margins Unable to determine promotion and discounting effectiveness Features

Multi-customer comparison Discount and promotion analysis Pocket price

Benefits Determine promotion and discount effectiveness Identify discounts eroding profits

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Pricing Management Course Roadmap

Siebel 7.8 Pricing Management Overview

Pricing Management Architecture

Price List Admin & Flexible Line Item Pricing

Attribute Adjustments

Pricing Customizable Products

Discount Matrices

Aggregate Discounts & Promotion Pricing

Hierarchical Discounts for Accounts & Products

Quote Validation & Approvals

Understanding the Price Waterfall

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Summary

This module showed you how to:

Describe key capabilities and enhancements in the Siebel 7.8 Pricing Management Solution Map List Siebel 7.8 Pricing Management course sequence

SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.