Chapter 8 Supporting the Sales Process with SAP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-1

Learning Objectives Q1. What are the Fundamentals of a Sales Process? Q2. How did the Sales process at CBI work before SAP? Q3. What were the problems with the Sales process before SAP? Q4. How does CBI implement SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-2

Learning Objectives Q5. How does the Sales process work at CBI after SAP? Q6. How can SAP improve the integration of customer-facing processes at CBI? Q7. How does e-commerce integrate firms in an industry? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-3

What Are the Fundamentals of a Sales Process? Sales Process Activities and Roles Sales Process within the Value Chain at CBI Main Sales Process Activities, Subactivities, and Actors Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-4

What Are the Fundamentals of a Sales Process? Sales Process Activities and Roles – B2B and B2C sales Figure 8-1 Main Sales Process Activities And Roles Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-5

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6 Horizontal View of the OE/S Process

What Are the Fundamentals of a Sales Process? Sales Process within the Value Chain at CBI – Sales and marketing Figure 8-2 Sales Process Within the Value Chain of CBI Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-7

What Are the Fundamentals of a Sales Process? Main Sales Process Activities, Subactivities, and Actors Figure 8-3 Main Sales Process Activities, Subactivities, and Actors Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-8

What Are the Fundamentals of a Sales Process? Sales Process Activities and Roles Sales Process within the Value Chain at CBI Main Sales Process Activities, Subactivities, and Actors Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-9

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 10 Vertical Perspective of the OE/S Process

How did the Sales Process at CBI Work Before SAP? Six Roles –Three roles performed by people Sales Agent; Warehouse Manager; and Accountant –Three roles performed by separate computer applications with separate databases (DB) Sales DB; Warehouse DB; and Accounting DB Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-11

How did the Sales Process at CBI Work Before SAP? Information Systems Silos –Sales DB: Monitor demand for materials –Warehouse Database: Manage inventory levels –Accounting DB: Manage receivables Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-12

How did the Sales Process at CBI Work Before SAP? CBI’s Sales process – Involved several roles – Resulted in information silos – Inefficiencies Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-13

What Were the Problems with the Sales Process Before SAP? Sales Problems Warehouse Problems Accounting Problems Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-14

What Were the Problems with the Sales Process Before SAP? Sales Problems – No current inventory data – Input errors Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-15

What Were the Problems with the Sales Process Before SAP? Warehouse Problems – Pick and pack for new customer is inefficient if sale is cancelled – No way to share production or supply issues and delays Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-16

What Were the Problems with the Sales Process Before SAP? Accounting Problems – Time spent on invoice and other errors – New customer delays Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-17

What Were the Problems with the Sales Process Before SAP? Sales Problems Warehouse Problems Accounting Problems Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-18

How Does CBI Implement SAP? Figure 8-7 Objectives and Measures for the New Sales Process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-19

How Does the Sales Process Work at CBI After SAP? Maintained same three people roles – Sales; Warehouse; Accounting Single shared database Solutions to prior problems – Sales – Warehouse – Accounting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-20

How Does the Sales Process Work at CBI After SAP? Sales – Pre-sales activities also include updated pricing conditions – Sales orders entered into a single, shared database – Inventory updated in database – Messages sent to accounting for credit approval – Integrates with assembly Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-21

How Does the Sales Process Work at CBI After SAP? Figure 8-9 Sales Order Screen in SAP of 50 Stream Bikes to Heartland Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-22

How Does the Sales Process Work at CBI After SAP? Warehouse – Messages to create outbound deliveries for saved sales orders – Order quantities automatically populated in outbound delivery – Options to overwrite quantities – Post goods issue message to accounting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-23

How Does the Sales Process Work at CBI After SAP? Figure 8-10 Outbound Delivery Screen In SAP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-24

How Does the Sales Process Work at CBI After SAP? Accounting – Messages received for credit checks – Messages received to create invoices – Invoices created from Billing Due List – Payments posted against customer open items Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-25

How Does the Sales Process Work at CBI After SAP? Figure 8-14 Post Incoming Payments Screen in SAP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-26

How Does the Sales Process Work at CBI After SAP? The Benefits of SAP for the CBI Sales Process Access to most recent data New customer approval is more efficient Warehouse doesn’t pack new customer orders in advance Fewer cancelled sales More responsive to customers Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-27

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Integration of Customer-Facing Processes Improving Customer-Facing Process Integration by Sharing Data Improving Customer-Facing Process Increasing Process Synergy SAP Integration Problems with Emerging Technologies Integration Challenges and Lessons Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-28

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Integration of Customer-Facing Processes Customer Relationship Management (CRM) Figure 8-15 Sample of Customer-Facing Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-29

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Improving Customer-Facing Process Integration by Sharing Data Figure 8-17 Examples of Data Sharing Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-30

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Improving Customer-Facing Process by Increasing Process Synergy Figure 8-18 Examples Of Process Synergy Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-31

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? SAP Integration Problems with Emerging Technologies Social CRM Cloud-based CRM Software as a Service (SAS) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-32

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Integration Challenges and Lessons Challenges Processes impact other Processes Conflicting objectives Process change Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-33

How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Integration Challenges and Lessons Lessons Figure 8-20 Process Integration Lessons Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-34

How Does E-Commerce Integrate Firms in an Industry? E-Commerce E-Commerce Integration Merchant v. Nonmerchant companies Improving Market Efficiency Process Integration and Your Business Future Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-35

How Does E-Commerce Integrate Firms in an Industry? E-Commerce Multifirm process of buying and selling goods and services using Internet technologies Figure 8-21 E-Commerce Integration Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-36

How Does E-Commerce Integrate Firms in an Industry? Emergence The way a complex system like an efficient supply chain emerges from the interaction of a large number of simple interactions Interorganizational IS IS used by more than one firm to interact with each other Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-37

How Does E-Commerce Integrate Firms in an Industry? Merchant v. nonmerchant Figure 8-22 Merchant and Nonmerchant List Improving Market Efficiency – Disintermediation – Price elasticity Process Integration and your Business Future Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-38

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 39 The OE/S Process Flowchart

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 40 Control Matrix for OE/S Business Process

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 41

Ethics Guide Are My Ethics for Sale? Creative marketing? Does integration cause an issue? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-42

Conclusion Q1. What are the Fundamentals of a Sales Process? Q2. How did the Sales process at CBI work before SAP? Q3. What were the problems with the Sales process before SAP? Q4. How does CBI implement SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-43

Conclusion Q5. How does the Sales process work at CBI after SAP? Q6. How can SAP improve the integration of customer-facing processes at CBI? Q7. How does e-commerce integrate firms in an industry? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-44

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-45