Hosted by Case Study: My SAP Implementation at the Associated Press Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press.
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Transcript Hosted by Case Study: My SAP Implementation at the Associated Press Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press.
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Case Study: My SAP
Implementation at the
Associated Press
Fernando Ferre
Director of Finance & Operations
Newspaper & New Media Markets
The Associated Press
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Company Overview
Founded in 1848, The Associated Press is
the oldest and largest news organization
in the world, serving as a source of news,
photos, graphics, audio and video to the
media market and corporations.
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About The AP
1,700 U.S. newspapers
5,000 U.S. radio/TV outlets
8,500 international media customers
500 new media and corporate customers
121 countries served by AP
Total 242 bureaus worldwide
3,700 employees worldwide
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SAP CRM Initiatives at AP
Live Sept. 2002 for AP Digital, new media
division of AP.
•
Enhancements to AP Digital implementation in 2003
Project organized for Newspaper
implementation beginning of 2004.
•
Go live November 2004
By then, CRM will support substantial revenue
base for AP.
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New Media Market (AP
Digital) CRM Implementation
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Landscape Pre-CRM
Systems:
•
Excel – prospect, sales activity and contract
management
•
Filemaker – order processing, trials and customer
database
•
•
SMART – service management and billing
PA Billing – invoicing
Manual entry, redundant data between systems
No integration of systems
No standardized reporting from a central system
•
No reporting flexibility for analysis
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CRM Objectives
Centralize account, contact, order,
opportunity, and contract management
Support customer interaction cycle – from
customer acquisition, order fulfillment to
billing and support
Provide a single customer view
Deploy reporting tools for business analysis
Align systems with corporate direction
End Goal: Better customer and business
management
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Software Selection Process
SAP HR implemented
SAP CRM had the required functionality
SAP provided a platform:
•
•
phase in functionality as we were ready
ride SAP’s product development curve
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SAP Production Versions
SAP R/3 Release 4.6C: Live with SAP HR
Master data, Org Data & Benefits, Payroll
CRM Release 3.0, Upgraded to 4.0
Business Warehouse 3.0B
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Business Process
Lead Generation, Opportunity and Customer Management
Third party
Research
Website
Phone call
(e.g. D&B)
Marketing
Lead generation
0%
Sales
Sales
Qualified Lead
25%
Opportunity Mgmt
75 % or >
Order Fulfillment
Customer Support
Finance
Lead Qualification
Customer,
Contract and
Service
Management
Customer Maint.
Billing
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Functionality Implemented
Campaign Management
Customer Interaction Center
Order Processing
Product Management
Opportunity Management
Service Contract Management
Business Warehouse
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Implementation Timeline
Total implementation time – 5 Months
Project Started on April 2002
Live on September 2002
Staffing
Internal : 3
External: 4
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Campaign Management
Two types of Campaigns
•
E-mail and phone campaigns
Target Groups are created based on:
•
CRM Master Data (Marketing Attributes, SIC
Codes, Est.Rev, # of employees, Address
information etc)
•
Information from BW
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Call Lists in CIC
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Customer Interaction Center
Used to track customer interaction history
Used to create/modify all the transactions
e.g.:
•
Activities, Opportunities, Service Contracts,
Business Partners, etc from a single screen.
Configuration Flexibility based on user
requirements
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Customer Interaction Center
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Business Activities
Used for Order Processing
•
•
Trial Order Notifications
Service Order Notifications
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Activity Screen
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Activity Monitor
The Activity Monitor is
used to call up lists
of all the activities
that have been
created in the
system, according to
various criteria such
as date and
completion status
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Activity Monitor
The output can be sorted by any column
Layout can be customized for each user
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BW:Order Fulfillment Report
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Product Management
Product hierarchies
Flexibility of reassigning product categories
Product pricing
• Customer & Product
• Product
Billing frequencies
• Monthly
• Quarterly
• Yearly
• One Time Fees
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Opportunity Management
Logs sales prospects, requested
products, sales prospect’s budget,
potential sales size , estimated sales
probability and expected closing date
Information is used in sales pipeline
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Opportunity Management
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BW:- Sales Pipeline report
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BW: Lost Opportunities Report
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Service Contract Management
Represents relationships with customers.
Contains detailed information about contract
with customer:
•
Contract Start Date, End Date, Renewal
Date
•
•
Terms, Services, Delivery methods
Billing Frequency, Billing Plan for
Services, Royalty Information
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BW Reports: Service Contracts
Contracts signed in the current year
Contracts terminated in the current year
Contracts renewed in the current year
Contract to be renewed for a given period
List of contracts based on sales reps, royalty
information, territories & other criteria
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Business Warehouse
Used for reporting & data analysis
Used for creating target groups for campaign
management based on complex queries
Generate ad hoc reports for managerial
decisions
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CRM Billing
Billing through CRM application, which is
integrated with current non-SAP invoicing
and financial application
Contracts have billing documents
•
•
•
•
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Billing Due Lists
Processing of incorrect billing due lists
Cancellation of Billing Documents
Credit Memos/Debit Memos
Much work went into mid-period billing rate
changes
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CRM 4.0 Upgrade
Territory management
Alerts for contracts
Customer hierarchies
External list management
Workflow functionality
Web client – not yet implemented
Royalties and sales commissions – not
yet implemented
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Benefits of SAP CRM
“Orders don’t get lost”
Interaction History for future reference, with
ability to store customer, product, transaction
information
No Redundant data entry – resources
redeployed
•
Eliminated costs of - $130K
Standardized reporting from a Central System
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Benefits - CRM Data Sharing
Campaign
Management
Opportunity
Management
Trial
Contracts
Service
Contract
Billing
Marketing
Sales
Client Relations
Customer Support / Management / Entitlements
Billing
Enhanced coordination of the various functions
Better information about our customers and
business
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Newspaper Market CRM
Implementation
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CRM Objectives in Newspapers
Improve customers’ experience with the AP
Produce efficiencies in ordering and
fulfillment processes
Provide analytic tools to assess customer
relationships and behavior
Improve Sales
Newspapers CRM Deployment
Customerfacing AP
Activities
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Market/
Advertise
Promote/
Campaign
Sell
Entitle
Provide
Up-sell/
Cross-sell
Corporate
Marketing
Account
Specific
Marketing
Sales
Support
Contract
Mgmt
Order
Fulfillment,
Billing
Customer
Support
Back-office
Execution
•NNMM
Customer
Hierarchy
•NNMM
Product
Hierarchy
•Marketing
Collateral
(external
visit report
application
and sales
support site
will be
available)
•Contact
Management
•Sales
pipeline
reporting
•Workflows
to route
trials and
orders to
actors and
approvers
•PA Billing
integration for
APDigital
•Workflows
to alert sales
& support of
pending trial
and contract
terminations
Capture Customer Interaction History
Robust business analytics and reporting
•NNMM view
of customers
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Customer Hierarchy
Knight Ridder
Inc.
Knight Ridder Newspapers
Knight Ridder Digital
RealCities
Network
Dailies
Non-Dailies
Other Subsidiaries
- Knight Ridder Washington Bureau
- Knight Ridder/Tribune Information Services
- Knight Ridder Shared Services
Internet
Properties of
Knight Ridder
Special
Interest Sites
Career Builder Network
- CareerBuilder.com
Classified Ventures Network
- Cars.com
- Apartments.com
- Homescape.com
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CRM Functionality
Order processing
Opportunity management
CRM Pricing
Contract management
Workflow functionality
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Get Organized
Right team with clear accountability
Project management and tools
Communication and teamwork
Have a good grasp of the big picture, but
no detail is too small
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Lessons Learned
Set realistic expectations
Don’t underestimate data migration
Involve users from start – requirements,
testing, data migration, training
Phase in CRM – with sight on the future, new
modules, other business units (scalability)
If you encounter errors, check the SAP
notes, then create a OSS message