CPQ Cloud Streamlines

Engineered-To-Order
Processes

Todd Franiuk
Consulting Practice Manager
Oracle CPQ Cloud Consulting
April 2, 2015

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The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

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AGENDA

BUSINESS CHALLENGES

CPQ IMPACT

PROCESS STANDARDIZATION

BUSINESS BENEFITS

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 You just might be
Engineer to Order if…
• you require a skilled user to complete configuration tasks
• you commonly create configurations that have never been
sold before
• the customer has extremely precise demands
• the core product has configurable components, but aspects
that are highly custom

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AGENDA

BUSINESS CHALLENGES

CPQ IMPACT

PROCESS STANDARDIZATION

BUSINESS BENEFITS

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Common Challenges in Engineer-to-Order Environments

• Complexity of configuration rules and calculations

Engineering • Automated generation of engineering drawings for unique product configurations

• Differences between sales configuration and engineering configuration

• Complexity of pricing rules
Sales
• Capturing fulfillment dates

• Extracting data in order to calculate a forecast data

• Generation of dynamic bills of material, routings, product attributes,
Operations quality specifications, and associated shop floor documentation

• Quality of product data (e.g., product attributes, customer specs, routings, etc.)
Data • Accessibility of and ability to maintain product configuration rules

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AGENDA

BUSINESS CHALLENGES

CPQ IMPACT

PROCESS STANDARDIZATION

BUSINESS BENEFITS

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PRE-CPQ

REQUIREMENTS PARTS LIST PRICE & QUOTE

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PRE-CPQ MANUAL PROCESS

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ERP IMPLEMENTED

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CPQ WITH ERP IMPLEMENTED

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AGENDA

BUSINESS CHALLENGES

CPQ IMPACT

PROCESS STANDARDIZATION

BUSINESS BENEFITS

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80% Engineered Standard Process

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CPQ’s Impact to Engineering

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AGENDA

BUSINESS CHALLENGES

CPQ IMPACT

PROCESS STANDARDIZATION

BUSINESS BENEFITS
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What’s in it for me?

ENGINEERED TO ORDER
 Win More Orders
 Target High Margin

FULFILLMENT
CUSTOMER
FACILITY
 Easy to Buy
 Reliable  Correct Specs
Planning  Much Fewer
Disruptions

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 Developing CPQ designs
cannot be done in a vacuum
• Need input from upstream (CRM) and
downstream processes (e.g.,
purchasing, manufacturing, quality,
etc.) on anything with a touchpoint to
configurator data
 Start data cleansing and
validation early
• Data quality issues can cause significant
delays in the development of
configurator models

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

What’s in it for me?

ENGINEERED TO ORDER
 Win More Orders
 Target High Margin

FULFILLMENT
CUSTOMER
FACILITY
 Easy to Buy
 Reliable  Correct Specs
Planning  Consistent
Operations

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