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Marcus Kirchler, Dirk Manhart, Jörg Unger

Service with SAP CRM


®

Bonn � Boston

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Contents at a Glance

1 Introduction to CRM  . .................................................. 19

2 Service with SAP CRM – Overview of Functions  ......... 65

3 Service with SAP CRM – Processes and Customizing  .. 121

4 Critical Success Factors for CRM Projects  ................... 277

5 Example from the Automotive Industry  ...................... 329

6 Summary  ...................................................................... 357

A Operating a CRM System with ITIL  ............................. 363

B References  .................................................................... 371

C Authors  . ....................................................................... 373

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Contents

Introduction................................................................................... 13

1 Introduction to CRM  .................................................... 19

1.1 Key Concepts and Control Mechanisms in Customer


Relationship Management  ............................................. 19
1.1.1 Customer Focus  . ................................................. 20
1.1.2 Customer Satisfaction  .......................................... 21
1.1.3 Customer Retention  ............................................ 21
1.1.4 Customer Lifecycle  .............................................. 22
1.1.5 Control Mechanisms in CRM  ............................... 24
1.2 Service Management as Part of CRM  ............................. 25
1.2.1 Service and Service Management  ........................ 27
1.2.2 Service Portfolio as a Differentiation Factor  ......... 28
1.2.3 Challenges in Service Management  . .................... 29
1.3 Software Support for CRM  ............................................. 31
1.3.1 The Future Significance of CRM Solutions  . .......... 32
1.3.2 Benefits to Companies of Integrated CRM
Systems  ............................................................... 32
1.4 Customer Relationship Management with SAP CRM  ...... 35
1.4.1 SAP CRM Roadmap  ............................................. 35
1.4.2 Overview of SAP CRM  . ....................................... 37
1.5 Service Management with SAP CRM  . ............................ 42
1.5.1 Service Sales and Marketing  ................................ 44
1.5.2 Service Contract Management  ............................. 45
1.5.3 Installed Base Management  . ............................... 47
1.5.4 Customer Service and Support  . ........................... 48
1.5.5 Field Service Management  .................................. 49
1.5.6 Depot Repair  . ..................................................... 50
1.5.7 Warranty and Claim Management  ....................... 51
1.5.8 Service Parts Management  .................................. 52
1.6 Service with SAP CRM or SAP ERP CS – a Comparison  ... 53
1.6.1 Service Operations  .............................................. 54
1.6.2 Service Sales  . ...................................................... 57
1.6.3 Other Functions and Processes  ............................ 57

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Contents

1.6.4 Conclusion  .......................................................... 61


1.7 Architecture of SAP CRM Systems  . ................................ 61
1.8 Summary  ....................................................................... 64

2 Service with SAP CRM – Overview of Functions  . ........ 65

2.1 User Interface  ................................................................ 65


2.1.1 UI Configuration Tool  .......................................... 65
2.1.2 Component Enhancement  ................................... 66
2.2 Master Data and Basic Functions  ................................... 66
2.2.1 Master Data  ........................................................ 67
2.2.2 Basic Functions  . .................................................. 67
2.3 Service Order Management  ........................................... 69
2.3.1 Process Flow  ....................................................... 70
2.3.2 Service Quotations  .............................................. 71
2.3.3 Service Orders  ..................................................... 72
2.4 Warranty Processing  ...................................................... 78
2.5 Complaint Processing  .................................................... 80
2.5.1 Process Flow  ....................................................... 81
2.5.2 Special Functions  . ............................................... 83
2.5.3 Follow-Up Functions  ........................................... 84
2.5.4 Supported Scenarios  . .......................................... 86
2.5.5 Communication Channels  .................................... 87
2.6 Product Service Letters and Recalls  ................................ 88
2.6.1 Product Updates  ................................................. 89
2.6.2 Recalls  . ............................................................... 90
2.7 Service Contracts  ........................................................... 92
2.7.1 Process Flow  ....................................................... 93
2.7.2 Functions in SAP CRM  . ....................................... 94
2.7.3 Functions Available Through Integration With
Other SAP Components  ...................................... 96
2.8 Service Resource Planning  ............................................. 97
2.8.1 Process Flow  ....................................................... 98
2.8.2 Functions  ............................................................ 99
2.9 Mobile Service  . ............................................................. 104
2.9.1 Organizational Support  . ...................................... 105
2.9.2 Service Order Processing  ..................................... 106
2.9.3 Service Support Functions  ................................... 108

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Contents

2.10 SAP Business Communication Management  . ................. 109


2.10.1 Overview and Functionality  . ............................. 109
2.10.2 Interaction Center  ............................................. 111
2.10.3 Softphone  ......................................................... 112
2.10.4 User Administration  .......................................... 115
2.10.5 Routing Management  . ...................................... 116
2.10.6 Organizational Tools  . ........................................ 116
2.10.7 System Administration  ...................................... 117
2.10.8 Monitoring and Analysis  . .................................. 118
2.11 Summary  ....................................................................... 120

3 Service with SAP CRM – Processes and Customizing  ... 121

3.1 Basis Customizing  .......................................................... 121


3.1.1 Organizational Plan  ........................................... 121
3.1.2 User Role  .......................................................... 127
3.1.3 Customer  .......................................................... 135
3.1.4 Product  ............................................................. 139
3.2 Service Order Management  ........................................... 147
3.2.1 Process Display  ................................................. 147
3.2.2 Customizing in the System  ................................ 151
3.3 Service and Repairs Processing (In-House)  ..................... 183
3.3.1 Process Display  ................................................. 183
3.3.2 Customizing in the System  ................................ 188
3.4 Service and Repairs Processing (Field Service)  ................ 190
3.4.1 Process Display  ................................................. 190
3.4.2 Customizing in the System  ................................ 194
3.5 Reactive Complaints Management  ................................. 195
3.5.1 Process Display  ................................................. 196
3.5.2 Customizing in the System  ................................ 199
3.5.3 Intelligent Solution Database  ............................ 218
3.6 Proactive Complaints Management  . .............................. 221
3.6.1 Process Display  ................................................. 221
3.6.2 Customizing in the System  ................................ 223
3.7 Service Case Management  ............................................. 226
3.7.1 Process Display  ................................................. 226
3.7.2 Customizing in the System  ................................ 228

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Contents

3.8 Service Resource Planning  ............................................. 235


3.8.1 Process Display  . .................................................. 236
3.8.2 Customizing in the System  . ................................. 238
3.9 Service Contract Management  ....................................... 247
3.9.1 Process Display  . .................................................. 248
3.9.2 Customizing in the System  . ................................. 250
3.10 Warranty Management  .................................................. 258
3.10.1 Process Display  . .................................................. 259
3.10.2 Customizing in the System  . ................................. 261
3.11 Summary  ....................................................................... 276

4 Critical Success Factors for CRM Projects  ................... 277

4.1 General Success Factors  ................................................. 278


4.2 Critical Success Factor – Procedure Model  ..................... 279
4.3 Critical Success Factor – Change Management  ............... 284
4.3.1 Introduction to Change Management  .................. 285
4.3.2 Reasons for Change Management  . ...................... 289
4.3.3 Ideal Change Management Procedure Model  ...... 292
4.4 Critical Success Factor – Data Quality  . ........................... 299
4.4.1 Duplicate Handling in the Standard SAP System  . .. 303
4.4.2 Integrating Address Management Software
into SAP Systems  . ............................................... 305
4.4.3 Data Quality Activities in the CRM Project  .......... 313
4.5 Critical Success Factor – Test Strategy  . ........................... 320
4.5.1 Test Model  .......................................................... 321
4.5.2 Test Phases  .......................................................... 323
4.5.3 Test Preparation  .................................................. 324
4.5.4 Test Implementation  . .......................................... 325
4.6 Summary  ....................................................................... 327

5 Example from the Automotive Industry  . ..................... 329

5.1 Fundamentals of the Automotive Industry  ..................... 329


5.2 Customer Interaction Center  .......................................... 332
5.2.1 Overview  ............................................................ 332
5.2.2 Functional Areas  . ................................................ 332

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Contents

5.3 Complaints Management  ............................................... 336


5.3.1 Customer Case/Task in Complaints
Management  . ..................................................... 336
5.3.2 Creating a Case/Task  ........................................... 337
5.3.3 Processing a Case/Task  ........................................ 343
5.3.4 Closing a Case/Task  ............................................. 344
5.3.5 Proactive Complaints Management  ..................... 347
5.4 Recall Management  ....................................................... 348
5.4.1 Preparing for a Recall  .......................................... 350
5.4.2 Conducting a Recall  . ........................................... 351
5.4.3 Recall Reports  ..................................................... 355
5.5 Summary  ....................................................................... 356

6 Summary  ....................................................................... 357

Appendices  ......................................................................... 361

A Operating a CRM System with ITIL  . ........................................ 363


B References  .............................................................................. 371
C Authors  . ................................................................................. 373

Index.............................................................................................. 375

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This chapter explains the basic business concepts underpinning
CRM in the service area and provides initial insight into the func-
tions of SAP CRM.

1 Introduction to CRM

This chapter begins by providing a general introduction to the concepts


and control mechanisms of customer relationship management. It then
focuses specifically on the role of service management as part of cus-
tomer relationship management (CRM). After familiarizing you with
these basic business principles, this chapter turns its attention to the
ways in which CRM is supported by software solutions and, in particular,
by SAP CRM 2007. The range of options available is illustrated by a brief
introduction to the functions of this software and a comparison with the
Customer Service (CS) component in SAP ERP. Chapter 1 closes by taking
a look at the system architecture of SAP CRM.

1.1 Key Concepts and Control Mechanisms in


Customer Relationship Management

To help you understand the CRM approach, we will begin by explain- Key concepts and
ing the objectives behind CRM and a number of concepts that are fre- control
mechanisms in
quently discussed in relation to this concept. These include customer
CRM
focus, customer satisfaction, and customer retention. We will then provide
an overview of the customer lifecycle, which plays a particularly impor-
tant role in relation to a company’s service processes. In this section, we
also explain the basic mechanisms that a company can use to control
and improve customer relationship management within the individual
functional areas of the CRM approach, namely operational, strategic, and
analytical CRM.

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1    Introduction to CRM

1.1.1 Customer Focus


A paradigm shift in The implementation of CRM leads to a significant paradigm shift in a
companies company’s focus. The transition from a sellers’ market to a buyers’ mar-
ket described in the introduction underlines the necessity of this para-
digm shift, which moves a company’s focus from the product to the cus-
tomer and to the customer’s current and potential future needs (Holland
2004). A customer focus at all employee levels is often accompanied by
a transformation of the corporate philosophy. In the automotive indus-
try, for example, presumed customer requirements were only taken into
account when designing vehicles in the past. Now, however, a new focus
on customer-related activities goes above and beyond product features,
to include, for example, customer-focused services.

The strategic level As part of strategic decision-making processes, the analytical function
of the company’s IT solutions are used to provide decision makers with
the information they need to make decisions based on the data stored
in the system. This data includes, in particular, information that is avail-
able in a data warehouse and can be evaluated using data mining analysis
techniques.

The operational The operational level of CRM encompasses both the supporting function
level of CRM information technology and the customer focus of the organiza-
tional processes and structural organization (Raab, Werner 2008). A com-
pany that places its customers center-stage must also strive to enhance
the expertise of its customer-facing employees so that these can fulfill
their tasks to the best of their abilities.

One way to do this is to give these employees greater decision-making


powers. In this way, process efficiency is no longer based on procedures
for dealing with and reaching agreement with levels that are higher up
in the hierarchy. Instead, it is ensured by giving individual employees
the ability to make customer-focused decisions at their own level (Link
2001). In addition to this decision-making authority, it is also essen-
tial to provide these employees with all of the information required to
reach their decisions. Employees can access this information by looking
through a complete history of interaction with a customer or using an
analytical CRM system.

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Key Concepts and Control Mechanisms in Customer Relationship Management    1.1

1.1.2 Customer Satisfaction


A high level of customer satisfaction, which means a high level of cus-
tomer loyalty, brings strategic benefits by raising the barriers to market
entry for any potential competitors. Customer satisfaction is the direct
result of customers’ subjective perceptions of the shortfall between
their expectations and the degree to which these expectations are met
by the company’s provision of services. A company must therefore
strive to ensure that their customers’ experience of the company’s ser-
vices exceeds their expectations and leaves the customer with a positive
impression. If we apply the CRM approach to this concept, the objectives
in relation to customer satisfaction become, first, to pinpoint customer
expectations and the underlying level of customer requirements, and,
second, to determine the level of customer satisfaction in relation to the
services provided.

1.1.3 Customer Retention


We can distinguish between two fundamental types of customer reten-
tion, namely, customer attachment and customer binding. In this context,
attachment refers to a voluntary attachment of customers to a brand or
company that is not bound by practical constraints. Binding, meanwhile,
means that circumstances “bind” the customer to a company in a way
that is no longer voluntary. Customer binding may be based on contrac-
tual, economic, or technical or functional constraints. Examples include
long-term cooperation agreements, contractually agreed sales quantities,
or a current lack of alternatives. In the case of customer attachment, the
connection is predominantly a psychological one, and is based on cus-
tomer satisfaction, personal relationships, habits, or even tradition.

The benefits of customer retention are largely economic, and are par- Three key benefits
ticularly evident in long-term customer relationships. We can identify
three key benefits to a company of a high level of customer retention
(Homburg, Krohner 2003):

EE Sales-related benefits
These result from a potential increase in the volume of sales to a
customer. Companies who maintain long-term relationships with

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1    Introduction to CRM

their customers can become ever better at meeting customer-specific


requirements and, in this way, reduce the likelihood of customer
defection, as well as make their own range of services more attractive
than the competition. In addition to acquiring knowledge of the cus-
tomer as part of the customer relationship, long-term business rela-
tionships also allow companies to achieve greater success in terms of
cross-selling.
EE Cost-related benefits
These result from a reduction in transaction costs and coordination
costs as the customer relationship develops. The alternative costs of
acquiring new customers are also reduced.
EE Stability-related benefits
These benefits are achieved if negative market influences on the com-
pany can be offset by long-term customer relationships.

1.1.4 Customer Lifecycle


One focal point for the CRM approach is a holistic view of the customer
lifecycle. This enables a clear vision of the phases during which a com-
pany must apply certain CRM instruments to their relationship with a
customer (see Figure 1.1). The customer lifecycle also demonstrates the
economic potential that can be achieved through long-term customer
retention (Müller 2004). Customer retention starts in the initiation phase
with the first contact between the company and the customer. The objec-
tive of using a CRM system must be to support the relationship with the
customer through information analysis and control to enable long-term,
profitable customer retention.

Overcoming Throughout the customer lifecycle, the relationship with the customer
periods of risk progresses through various phases in terms of the intensity of the cus-
tomer’s loyalty. Each of these risk phases involves a threat to the company
of losing the customer.

However, the overall benefit to the company of customer retention


increases the longer the customer can be retained. Within this lifecycle,
CRM therefore plays a decisive role in helping companies overcome these
periods of risk and prevent a potential loss of the customer’s loyalty.

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Key Concepts and Control Mechanisms in Customer Relationship Management    1.1

Intensity of Relationship
(e.g. Customer Value)

Potential Existing Former


Customer Customer Customer

Degeneration
Phase

Revitali-
zation-
Phase

Initiation Sociali- Risk Growth Risk Maturity Risk Cancell- Abstinence Time
Phase zation Phase Phase Phase Phase Phase ation Phase
Phase Phase

Develop
Customer Utilize Customer Potentials
Potentials

Regaining Customers,
Customer Customer Retention: Termination of
Acquisition Retention and Penetration Customer Relationships

Figure 1.1  Customer Lifecycle Management (from Stadelmann et al. 2003, S. 35)

It also provides a basis for the efforts of a company to retain customer Extending the
loyalty at a late stage in a relationship with a customer. This is particu- customer
relationship
larly useful because, when we weigh up the costs and benefits, maintain-
ing an ongoing relationship with the customer is much more efficient
than trying to win the customer back at a later stage or trying to acquire
new customers to maintain business volumes. An extension of the cus-
tomer relationship, which is often very beneficial for companies, is only
possible if the effective benefits of a continued business relationship can
be clearly demonstrated to the customer even at a late stage in the rela-
tionship. The services a company can offer its customers therefore take
on a special significance.

Service is a key factor that enables companies to effectively extend the Service as a key
customer lifecycle and to increase the profitability of their customer rela- factor

tionships. Therefore, customer relationship management must also seek


to enable a quality of service that delivers added value to the customer
based on the continued business relationship. Within a company’s CRM

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1    Introduction to CRM

process, it is of key importance to the service area that the CRM IT solu-
tions allow the company to achieve the desired level of service quality.

1.1.5 Control Mechanisms in CRM


The overall CRM process in a company can be divided into various func-
tional areas, listed below:

1. Analytical CRM

2. Strategic CRM

3. Operational CRM

The complex relationships between these functional areas and their con-
trol mechanisms in customer relationship management are shown in
Figure 1.2.

Analytical CRM: Reporting and Analysis Methods:


Helps to enter customer data and Support the transparency and analy-
to integrate the data into a 360- Data sis of customer relationships
degree view of the customer

Knowledge
ge
ed
wl
Actions

o
Kn

Relationship Optimization Relationship Planning:


in operational CRM: Supports the coordination of ac-
Knowledge gained from analy- Goals tions and leads employees to focus
ses can help to initiate personal- on universal goals
ized actions

Figure 1.2  Functional Areas and Control Mechanisms in CRM

1 Based on the current situation, the details of which can be deduced


from the existing data by means of analysis (analytical CRM). 2 Knowl-
edge can be gained that can be used for the strategic planning (strategic
CRM) of goals. These goals, together with the findings of the analysis,
produce 3 specific actions and measures, for example, for optimizing cus-

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Service Management as Part of CRM    1.2

tomer relationships (operational CRM). The effects of these actions have


an impact on the data basis, which, if the company takes a 360-degree
view of the customer, will ideally result in renewed optimization of the
corporate strategy in relation to customer relationships. In this way,
these control mechanisms enable ongoing improvement of customer
relationship management in a company.

To ensure that these complex interactions of information and control


mechanisms can be implemented in companies in practice, a compre-
hensive and flexible system is essential to provide support for CRM pro-
cesses. This system must provide a sufficiently broad view of all cus-
tomer-relevant information, enable strategic and timely implementation
of measures, and allow the effects of these measures to be monitored
directly.

1.2 Service Management as Part of CRM

Customer satisfaction is considered to be a decisive factor in determin-


ing customer loyalty to a company. An active influence is exerted on
customer satisfaction during each phase of contact. An analysis of the
customer lifecycle clearly shows that various measures allow a company
to come into direct contact with a customer in the after-sales phase. In
this context, the sales area is particularly effective in exercising a positive
influence on customer satisfaction.

Up to this point, we have looked at the management of customer rela-


tionships from a generic perspective. Taking a 360-degree view of a
customer and taking account of the entire customer lifecycle are two
approaches that are particularly effective ways for companies to create a
sound basis for embedding the service area within customer relationship
management (see Figure 1.3).

The services and service management offered must always be economi-


cally efficient and must not be at odds with the profitability criteria for
the provision of services.

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1    Introduction to CRM

Internal Fields of Competence Affected by CRM External


System in an Enterprise System

Stake- Compe-
holders Vision/Mission tition
Strategic
Goals

Strategic Planning

Marketing Sales After-Sales/


Service

Structural Organization

Process Organization
Technology

Figure 1.3  Service as Part of Customer Relationship Management

Target criteria for At this point, it should be pointed out once again that a service does not
the “service” area represent an end in itself. Rather, it must help the company achieve the
following goals:

EE Quantitative goals
EE Revenue target
EE Profitability target
EE Qualitative goals
EE Increased customer satisfaction
EE Increased customer loyalty

These generally applicable goal criteria overlap with some of the goal cri-
teria for customer relationship management as a whole. In many phases
of a customer relationship where sales transactions are placed center-
stage, the term service can be applied to additional services relating to the

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Service Management as Part of CRM    1.2

product itself. Here, however, the focus is on the services that become
relevant after the product is sold, that is, at the after-sales stage, even if
services that go above and beyond the mere provision of a product may
also be offered at the pre-sales and sales stages (see Figure 1.4).

Focus on Service

Pre-Sales Sales After-Sales

Service Service Offerings

Figure 1.4  Focus on After-Sales Service

Examples of the services that a company may offer its customers before Services before,
or during the sale of a product include sending information material during, and after
the sale of a
and flyers, product samples, and a hotline to handle customer inquiries.
product
Services offered after the sale of a product relate in particular to the fol-
lowing areas:

EE Complaint handling
EE Maintenance and installation
EE Provision of product add-ons
EE User helpdesks
EE Service centers
EE Field service employees

1.2.1 Service and Service Management


The concept of “service” was a hot topic at the end of the 1980s and the
start of the 1990s in the context of the “service wave.” Back then, initial
considerations regarding the introduction of service concepts provided
an important starting point for recognizing the necessity of providing
customers with services. Services were already being identified as an
important distinguishing feature of companies, and nothing has changed

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1    Introduction to CRM

in this regard since then. For example, Samuel J. Palmisano, CEO of IBM,
described the service area as the most important area in his company in
2003.

In 2006, services earned companies in the mechanical engineering indus-


try approximately 43.3 billion euros. More than one-third of all services
relate to after-sales service offerings. The most profitable after-sales areas
in this context are service parts, which account for about 18% of com-
panies’ EBIT (earnings before interest and taxes), consulting and value-
added services (around 16%), and repair and maintenance (about 12%)
(Mercer Management Consulting 2006).

1.2.2 Service Portfolio as a Differentiation Factor


The services provided by a company have various benefits, both for cus-
tomers and for the company itself. The benefits to the customer are
based on the following factors:

EE Breadth and depth of services offered compared with customer


ex­pec­tations
EE Accessibility of services
EE Service prices
EE Degree of performance of services
EE Short waiting times
EE Completeness

The service portfolio can be divided into three areas, namely, Must have,
Need to have, and Nice to have (see Figure 1.5). It is impossible to make
generalizations about which specific services will fall into which of these
areas at any given time because this depends on various developments:

EE Technological developments
EE Standardization developments
EE Consolidation of services in the market due to the adaptation of all
competitors
EE Consumer habits

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Service Management as Part of CRM    1.2

Customer Satisfaction Differentiation Range

Service Offerings

Must have: rudimentary services


Need to have: services geared toward competition

Nice to have: services differentiating from the competition

Figure 1.5  Differentiation Range of Customer Satisfaction

The Must have area includes service offerings that customers expect at Must have
all events and therefore must be offered. These include legally binding
warranties or the availability of replacement parts for repair.

The Need to have area includes all services that are offered by competitors Need to have
and can therefore be regarded as a necessity. Customers often assume
that the same services will be offered by direct competitors, and the
only factor that impacts on their satisfaction in many cases is the non-
existence of these expected services.

The Nice to have area is of particular significance in relation to differentia- Nice to have
tion. Companies can exercise a positive effect on customer satisfaction
by offering services in this area. If they succeed, they will create a unique
selling point that will set them apart from the competition.

1.2.3 Challenges in Service Management


Up to this point, we have described how services can increase customer Competition in the
satisfaction and improve customer retention by serving as a differentia- service area

tion factor that gives companies a competitive edge. However, in this


role as a key differentiation factor, both the services themselves and
how they are perceived by customers are particularly sensitive to mar-
ket dynamics and increasing customer requirements. Competitors will

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1    Introduction to CRM

also take advantage of any opportunities to gain an edge in the market


through the provision of services. This means that companies are con-
stantly competing for customers by continuously improving the scope
and quality of their services. If a company is to survive in the market
and hold on to its customers, it must continually improve its services and
adapt to market conditions.

As shown in Figure 1.6, the opportunities for differentiation decrease


over time as competitors adapt to the higher service level and customer
expectations continue to rise.

Decreasing opportunities for


differentiation
Diminution of - Cause:
old
differentiation range a) Adaption of service offerings by the
new in terms of time competition
Customer Satisfaction

b) Increasing customer expectations

Challenges derived
- Identify new differentiation features
- Optimize existing differentiation features
(quality, responsiveness)
- Instruments:
a) Technology
b) Process Optimization
Service Offerings c) …

Figure 1.6  Market Dynamics – Decreasing Opportunities for Differentiation

A company must be able to respond to this change by identifying new


differentiation features and incorporating these into their service portfo-
lio, or by improving the quality of their existing differentiation features
to gain a fresh competitive edge.

Three main instruments can be used for this purpose:

EE Technology and systems


EE Service processes
EE Service employees

Interplay between However, none of these can be examined in isolation. To establish a cer-
the three tain level of quality in terms of service processes and to improve this on
instruments
an ongoing basis, you first require technologies and systems that enable
a very high level of process quality. In addition, service employees not
only require adequate education, training, and motivation to carry out

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Software Support for CRM    1.3

their duties, but also rely on process quality and on optimized technolo-
gies and system design.

In this context, the choice of supporting technology and systems is criti- Critical role of
cal to the company because it has a direct effect on the other instruments technology and
systems
of processes and employees. One thing a company must be able to do to
withstand the competition for customers in the service area is to select
the right technology and systems that can create the conditions neces-
sary for establishing an excellent quality of services compared with the
competition and retaining this leading edge. In the following sections,
we demonstrate how CRM systems and their service functions can help
a company to do just that.

1.3 Software Support for CRM

In the market for systems that support business processes, the develop- Dynamic
ment of CRM solutions has become very dynamic only recently, com- development

pared with generic enterprise resource planning (ERP) or supply chain man-
agement (SCM). Systems referred to as sales force automation (SFA) systems
or, in Europe, as computer aided selling (CAS) systems, became established
in the early days as a primary support for sales. These were primarily
intended to help sales employees complete the following key tasks:

EE Manage customer contacts


EE Organize sales activities
EE Classify sales opportunities
EE Analyze developments in sales
EE Collect information about customers and products

However, as part of this dynamic development, customer requirements


arose that could not be met by these early systems, for example, the
need to access all previous outcomes of contact with a customer any
time that communication with this customer is required. More complex,
integrated systems were needed to enable the newer CRM strategies.
To practice successful and far-reaching customer relationship manage-
ment, systems are now required that enable a process-oriented view of
the customer. This can only be realized if large volumes of data can be

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1    Introduction to CRM

structured and processed and if the systems can be tightly integrated


with the systems used in other areas of the company, such as logistics
and finance.

1.3.1 The Future Significance of CRM Solutions


In many cases, the level of development that allows processes to be sys-
tematically mapped in integrated IT systems, which is already complete,
or at least at an advanced stage in the area of ERP and SCM solutions,
is yet to come for customer relationship management. Many companies
have, by now, acknowledged the importance of CRM to their future
survival and, taking a medium-term view, are aware of the necessary
investment in IT solutions that will fulfill the company’s requirements
in terms of implementing and supporting CRM processes. In many cases,
one of the key tasks for IT in a company is to offer business departments
a modern, highly integrated IT solution for CRM.

This trend is well documented, for example, by a study by the Economist


Intelligence Unit (2005). This revealed that customer relationships and
customer service was by far the number 1 business area (62%) where IT
is to play a decisive role in the medium term. This was followed by sales
and marketing (34%) and new product and service development (31%).

1.3.2 Benefits to Companies of Integrated CRM Systems


Customer relationship management is a complex, holistic approach that
strives to enhance a company’s profitability by improving its relation-
ships with its customers. Individual, preliminary objectives and methods
can be identified, which together allow this overall goal to be achieved.

The implementation of an integrated CRM solution requires an invest-


ment by a company that must yield a range of additional benefits that
go above and beyond the company’s basic requirements in terms of a
CRM strategy and CRM processes. In this way, companies can benefit
from the overall added value of a modern CRM system, in addition to its
basic operational functions.

360-degree view of Customer data provides a starting point for any CRM activity. If a signifi-
the customer cant improvement is to be made in customer relationship management,

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Software Support for CRM    1.3

it is not sufficient to manage only some of this customer data. Rather,


a complete, holistic view of all available customer data and the rela-
tionships between this data, in other words, a 360-degree customer view,
serves as an essential starting point. This can incorporate the following
features:

EE Transparency of all customers and customer requirements


EE A unified picture of complex customer and object structures in a cen-
tral, universal model (and therefore system)
EE A complete history of interactions with the customer across all busi-
ness departments
EE Documentation and retention of important customer knowledge
from customer-facing processes (for example, price agreements or
call reports)
EE Assessment of the success of customer care measures (for example,
acquisition, campaigns, contact intensities, lead times for customer
complaints)
EE A feedback system, whereby knowledge about a customer gleaned
from past interactions with that customer is fed into current or future
interactions (for example, reasons for rejecting past offers are taken
into account when determining future interaction)

The complexity reflected by this type of 360-degree view of the customer


can only be mapped by IT using the latest CRM software solutions. The
design of the solutions is therefore of particular importance in determin-
ing whether a company is in a position to use this type of holistic view
of its customers to achieve its CRM objectives.

Increasing customer loyalty is another goal for CRM. Customer loyalty is Increasing
another important factor in the overall profitability of the lifecycle of a customer loyalty

customer relationship (see Section 1.1.4 Customer Lifecycle). The follow-


ing tools are particularly effective in enhancing customer loyalty:

EE Personalized contact and personalized services based on a complete


interaction and information basis
EE Unified, strategic communication (one face to the customer) across all
departments

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1    Introduction to CRM

EE A constant presence and constant availability (24/7) to customers


using all communication channels

Importance of an In relation to these measures for increasing customer loyalty, it also


integrated CRM becomes clear that these can only achieve a corresponding process qual-
system
ity if an integrated CRM system allows the company to integrate all rel-
evant information, technologies and functional areas so that information
is exchanged and all subprocesses are linked in virtual real-time.

Additional This type of system support for processes also allows companies to lever-
potential for age additional potential to increase sales or reduce costs:
increased sales
EE Faster, more streamlined customer-facing processes thanks to
greater efficiency, for example, by establishing customer self-service
processes
EE Performance differentiation (prices, discounts, advertising mate-
rial, and so on) or a cost-efficient enhancement of customer care (for
example, call centers)
EE Increased sales through cross- or up-selling
EE Reduced costs through the use of new contact channels
EE Reduced costs through the transfer of functions from the company
itself to customers, partners, or vendors
EE Reduced costs in outbound campaigns thanks to suitable target
groups
EE Reduced costs in the supply chain due to a clearer focus of investment
in the most profitable customers
EE Strategic analysis and development of potential by linking customer
and market data (lead management and opportunity management)
EE Increased customer lifetime values thanks to greater customer loyalty
EE Integration of partners into the process chain, for example, as part of
sales promotions campaigns (channel integration)

In addition to the benefits for the company itself, account must also be
taken of the fact that customers should benefit from the company’s use
of a CRM solution. This is essential to the establishment of sustainable,
stable, and mutually beneficial business relationships.

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Customer Relationship Management with SAP CRM    1.4

1.4 Customer Relationship


Management with SAP CRM

Section 1.4.2 Overview of SAP CRM, provides an overview of the func-


tions provided by an SAP CRM system. First, however, we provide a
short introduction to SAP’s CRM Roadmap to briefly explain the recent
development of the various releases.

1.4.1 SAP CRM Roadmap


Figure 1.7 shows the current situation with regard to the individual
releases of the SAP CRM system.

The SAP CRM 2005 system was released in 2005. SAP CRM 2005,
together with its predecessor, SAP CRM 4.0, currently represents by far
the greatest number of SAP CRM live installations.

SAP CRM Product Release Roadmap


2005 2006 2007 2008 2009

SAP CRM
2005

RAMP-UP UNRESTRICTED SHIPMENT

SAP CRM SAP CRM SAP CRM


2006s/1 2006s/2 2007

PHASED RAMP-UP RAMP-UP UNRESTRICTED SHIPMENT


INTRODUCTION

SAP CRM 7.0

UNRESTRICTED
RAMP-UP
SHIPMENT

Figure 1.7  SAP CRM Roadmap

The subsequently developed 2006s/1 and 2006s/2 systems were pre-


paratory releases, which a limited number of customers used to jointly
develop Release 2007 with SAP. Starting in early 2008, SAP CRM 2007
was available to a broad range of customers as part of a ramp-up phase.

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1 Introduction to CRM

Since the middle of 2008, customers have been able to use this release
without any restrictions, and the introduction of release 7.0 is planned
for 2008/2009.

Developmental Overall, the development from Release 2005 to Release 2007 can be
leap regarded as the greatest progress made in the recent history of SAP CRM
systems. The most obvious change is undoubtedly the new user interface
(UI), which is based on web standards and is easily personalized by the
user and more user-friendly than any previous SAP CRM system. With
this new UI, it is very easy to integrate external Web services, such as
news feeds, and so on. Many functions are integrated into the interface
as web client popups.

With the new-look interface (see Figure 1.8) and the high level of usability,
SAP has made a decisive leap forward in the area of CRM systems. Back in
the days of Release 2005, the main argument in favor of using SAP CRM
was its high level of integration with the SAP ERP system. With Release
2007, however, the SAP CRM system can now also hold its own in the
market in terms of both usability and functional scope. Meanwhile, this
integration has also been enhanced. (For more details, refer to Section 1.7
Architecture of SAP CRM Systems.) As a result, the need for users from
the marketing and sales areas to weigh integration against usability will
soon be a thing of the past because the new CRM release offers both.

Figure 1.8 The New Look of SAP CRM 2007

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Customer Relationship Management with SAP CRM    1.4

1.4.2 Overview of SAP CRM


The SAP Customer Relationship Management (CRM) solution offers an end-
to-end range of functions to cover the entire lifecycle of customer rela-
tionship management, as well as instruments for analysis and planning.

Customer relationship management can be roughly divided into the fol- Phases of CRM
lowing phases:

1. Engagement
This phase involves identifying possible customers and acquiring
them for an initial sale.
2. Transaction
This phase involves establishing business agreements and processing
sales.
3. Fulfillment
This phase involves delivering the promised services to customers
and billing for services rendered.
4. Service
This phase involves offering and delivering additional, product-based
after-sales services.

Various functions are also available across all four phases, which allow
the phases to be planned (analysis and planning) and help the business
departments and management make decisions affecting customer rela-
tionship management.

This book focuses on the service area, which we introduce in Section


1.5 Service Management with SAP CRM, and discuss in more detail in
subsequent sections. First, however, we will briefly introduce the first
three CRM phases and the more important functions assigned to these
in the SAP CRM system. This introduction is by no means exhaustive,
and we will limit ourselves to just some of the functions provided as
part of the very extensive functional scope. We will then move on with
a more detailed and comprehensive discussion of the topic of this book,
that is, service.

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1    Introduction to CRM

Engagement
The engagement area largely covers the following functions: marketing,
lead management, customer segmentation, quantity assignment, product
proposals, and communication.

Marketing The Marketing Planner is a particularly useful tool for marketing. This
maps and hierarchically structures a company’s marketing activities in
the form of corresponding plans, organized, for example, by customer
categories, countries, or products. It supports the exchange of data both
within the CRM system and between the CRM system and external appli-
cations such as Microsoft Outlook or Project. Marketing campaigns can
also be planned in SAP NetWeaver Business Intelligence (BI), if it is used,
which means that corresponding key figures are generated there also.

Lead management Lead management allows you to identify and classify sales opportunities
with a view to tracking down market opportunities and sales oppor-
tunities. The SAP CRM system allows you to manage all relevant data,
manage the development of the sales opportunity into a customer, and
transform a lead into a customer in the system directly, together with all
of the assigned information.

Segment Builder Another key function in this area is the Segment Builder, which supports
customer segmentation. This allows activities and campaigns to be aimed
directly at customers that are likely to respond positively to these, based
on specific characteristics, such as product preferences in the past. As a
result, campaigns can be designed in a more strategic and cost-effective
manner.

Quantity Quantity assignment allows for the distribution of a possibly limited prod-
assignment uct capacity among various customers. For example, a company can
allocate the largest available quantities of a product that is to be newly
launched in the market to the customer that generated the greatest rev-
enue in the past because this customer is also more likely than others to
want to buy large quantities of this product.

Product proposals An extensive product proposals function is also provided, which uses
product association rules to generate product proposals from the data
stored about a customer’s past transaction behavior. These proposals are
particularly likely to lead to a sale to the customer in question. This sup-

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Customer Relationship Management with SAP CRM    1.4

ports the conventional tools used to boost revenue with customer cross-
selling and up- and down-selling.

Finally, the functions provided for communication are also worthy of a Communication
mention. In the past, a major shift took place in marketing from generic
mass communication to increasingly individual and personalized com-
munication with customers. This personalization or individualization
of customer communication would be impossible without a CRM sys-
tem that can offer the relevant capabilities, because these processes fre-
quently require a high degree of automation, a large data volume, and a
correspondingly high level of data quality if the time and effort involved
are to be kept within reasonable limits. SAP CRM provides the user with
support in relation to all relevant communication channels.

Transaction
In this area of customer relationship management, tools are provided
to support the organization of sales, for example, tools to manage sales
territories or sales activities. In addition, this CRM phase maps the sales
activity cycle, which includes the planning and management of business
partners and sales opportunities, order acquisition, and the analysis of
sales key figures.

The organizational elements of this functionality (territory management and Territory and
activity management) support the modeling of organizational structures activity
management
and corresponding functions, such as reporting, and the management
of specific sales activities, such as the scheduling of sales negotiations
and the allocation of sales resources. For example, all customer-specific
activities, such as on-site sales negotiations and telephone inquiries, are
recorded. As a result, the latest status of interaction in a customer rela-
tionship is transparent to all sales employees. This makes it easier for a
sales employee to work temporarily on a customer account that is nor-
mally the responsibility of another sales employee, for example.

If used in conjunction with SAP NetWeaver Business Intelligence, these


sales activities can also be analytically evaluated. This creates transpar-
ency regarding which sales activities were particularly efficient and which
did not succeed in meeting the target set. This allows the company to

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1    Introduction to CRM

optimize its sales activities over time and to develop greater efficiency
of sales.

Business partner Business Partner and Opportunity Management enables the management
and opportunity of information about business partners and about sales opportunities.
management
Whereas the business partner cockpit provides a comprehensive view of
business partners and all data relating to them, Opportunity Management
records sales opportunities and helps sales employees convert these
opportunities into real sales. For example, it allows sales opportunities
to be compared on the basis of their expected likelihood of success or
their expected volume, which allows sales efforts to be focused on the
most promising and profitable sales opportunities.

Order acquisition Order Acquisition represents the next phase, in which a sales opportunity
has been turned into an actual sale, and sales documents such as requests
for quotation, quotations, and orders are created, which can be managed
as part the order acquisition process. Functions that may be familiar to
you from the Sales and Distribution (SD) SAP ERP model are also inte-
grated into order acquisition to enable efficient order processing. These
include the preparation of organizational data, partner determination in
the relevant partner roles, product determination and selection, pricing,
availability check, and date management.

In the order document flow, the individual sales documents can be con-
verted into other sales documents in accordance with the predefined
sequence (for example, a quotation is converted into an order) to reduce
unnecessary additional effort, such as duplicate entry of document data.
Extensive copy functions are available for this purpose if similar sales
transactions are to be initiated.

The transaction area also includes functions for managing contracts


and business agreements, which define specific pricing and conditions
between two business partners, and which can then be copied into the
relevant orders between the partners.

Fulfillment
Once the sales transaction is confirmed and the order created, this order
must be fulfilled by the provision of the corresponding service. SAP CRM
helps companies do this with functions for checking availability, billing

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Customer Relationship Management with SAP CRM    1.4

(including credit management and payment processing), and shipping


and transportation.

First, an Availability Check (also known as the Available-to-Promise [ATP] Availability check
check) allows you to schedule the order quantity based on the defined
dates and planned capacities. This function can also be used as a simu-
lation, for example, to agree on delivery dates with the customer in
advance. If the desired delivery date cannot be met with backward
scheduling, forward scheduling is used to give alternative target dates.
The aspects of shipping and transportation can be integrated into the
date calculation, and can take account of other customer preferences,
such as partial or full deliveries.

For Billing and Payment Management, SAP CRM supports a very wide Billing and
range of payment methods, from conventional billing to billing based payment
management
on agreed payment terms, and electronic payment forms, which are pri-
marily used in business-to-customer (B2C) scenarios involving a large
number of mostly unknown business partners. Payment processing also
includes credit management, which allows customers to be granted cer-
tain lines of credit or customer classification to be used to influence the
sales transaction so that, if customers exceed defined credit lines, warn-
ings are displayed (depending on the customer classification) or sales
documents (such as orders or deliveries) are locked and can only be
released by employees with sufficient authorization.

All processes through which a product passes from finishing to goods Shipping
issue are mapped in shipping. These include the creation of deliveries
with the corresponding delivery documents (delivery notes and so on)
and, where relevant, the necessary foreign trade documents, as well as
picking, packing, and goods issue. If an SAP CRM system is also used,
these functions are enhanced with an extensively automated shipping
process, which also enables deadline monitoring and the integration of
storage capacities, for example. When the goods issue is posted at the
end of the shipping process, the product leaves the company. At this
point, the necessary stock postings, including all value changes, are made
in the company’s accounting system.

An extensive range of functions is provided in relation to transportation. Transportation


These allow you to group the various deliveries together in shipments,

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1    Introduction to CRM

select the best transportation service provider and routes, and create the
necessary shipment documents. Also included are functions to calculate
the transportation and shipment costs, taking account of the product
and packing information in the delivery documents (for example, weight
and size).

Global functions: The next phase of customer relationship management, namely, service,
analysis and is discussed in Section 1.5 Service Management with SAP CRM, in more
planning
detail than the previous phases described here. First, however, we take
a look at the global aspects of customer relationship management, that
is, Analysis and Planning.

To monitor order processing and services, and to provide starting points


for possible improvements, SAP CRM includes a range of reports and
analyses that can indicate process quality and efficiency in this area. In
this context, a range of key figures can be generated (for example, for
delivery reliability or the occurrence of returns). Thanks to the consider-
able flexibility of these potential reports, each company can define its
own key figures for its own analyses and reports.

1.5 Service Management with SAP CRM

As illustrated in the SAP CRM Roadmap in Section 1.4.1 SAP CRM Road-
map, the enhanced functions in SAP CRM Release 2007 make it perfectly
equipped to cover the service area. We examine these functions in detail
with specific reference to the system in Chapter 2, Service with SAP CRM
– Overview of Functions, before explaining the options these provide in
terms of process design in Chapter 3, Service with SAP CRM – Processes
and Customizing. In the next section, we start by providing an initial
overview of the service areas in a company that are supported in terms
of the structuring and fulfillment of tasks in SAP CRM Release 2007.

Putting service Figure 1.9 provides an overview of how the topic of service fits into the
into an overall overall context of customer relationship management. Here, service is
CRM context
shown on the same level as the other two major process categories in CRM.
Like sales and marketing, service is connected to the customer through
various communication channels, such as the Internet or call centers.

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Service Management with SAP CRM    1.5

As shown in Figure 1.10, the functional service areas in a company can


be divided into the following three categories, which make up a service
management cycle:

EE Collaborate
EE Analyze
EE Optimize

These three categories, in turn, are composed of a total of eight different


service segments, which are described in detail in the sections below.
We also describe how these service areas are implemented in SAP CRM
2007.

Customer

Partner
Mobile
Channel
Internet Call Center
MARKETING SERVICE

Sales
ANALYTICS

End-to-end,
Industry-specific
Processes

Powered by
SAP NetWeaver ®

Figure 1.9  Service as Part of the Portfolio of the SAP CRM Solution

The following sections provide an initial overview of the business


requirements for service in the various areas of the service management
cycle, and explain how these requirements are addressed in SAP CRM
Release 2007.

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1    Introduction to CRM

Collaborate

Service Service
Parts Sales &
Management Marketing

Warranty Service
& Claim Contract
Management Management

CUSTOMER
Depot Installed
Repair Base
Management

e
Field Customer

yz
O

Service Service &

al
pt

Management Support

An
im
iz
e

Figure 1.10  Service Management Cycle

1.5.1 Service Sales and Marketing


Services also need to be advertised in the market using marketing and
turned into revenue through sales. SAP CRM 2007 supports these busi-
ness functions for service management in a similar way as the higher-
level areas of sales and marketing.

The following aspects are mapped as part of the sales and marketing of
a company’s services:

EE Service marketing and campaign management


EE Service lead and opportunity management
EE Service quotation management
EE Service solution sales: order, contract, and bundling of products and
services

We can essentially distinguish between three different types of service


based on their characteristics and objectives. Each of these three ser-
vice types have different goals and use different tools supported by SAP
CRM.

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Service Management with SAP CRM    1.5

Reactive services represent the company’s reactions to customer expec- Reactive service
tations, for example, the provision of information about a product in
response to a customer inquiry. The objectives of reactive services are to
maintain and enhance customer satisfaction (see Section 1.1.2 Customer
Satisfaction). SAP CRM provides relevant tools in the form of account
and contact management, a customer database, and the integration of
customer-related service processes.

Active services address the quality of the customer relationship, and serve Active service
to sustain this relationship, improve customer loyalty, and enhance the
customer relationship in terms of profitability and lifecycle (see Section
1.1.4 Customer Lifecycle). As part of these proactive services, the cus-
tomer is offered additional services, such as maintenance offers, dis-
counts on additional products, and so on. These requirements are cov-
ered by SAP CRM with relationship marketing, campaign management,
and process integration.

Selective services seek to enhance the profitability of a customer. Relevant Selective service
analyses are used to determine the customer segment for which it can
be assumed that the company can increase its profits by implementing
selective services. SAP CRM supports selective services with customer
value analysis, advanced analysis tools, and optimization of the service
portfolio.

1.5.2 Service Contract Management


It may prove beneficial to both a company and its customers to establish
service contracts because a long-term service relationship offers advan-
tages to both. Service contracts usually specify the following service
properties, among others:

EE Response times for the service


EE Availability times of a product or service
EE Availability and costs of service parts
EE Service and maintenance intervals

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1    Introduction to CRM

Benefits for The advantages of these kinds of service agreements for companies
companies incude:

EE The establishment of a service business with its own sustainable busi-


ness model as an independent profit center within the company
EE Increased customer loyalty based on long-term service contracts
EE Enabling individual approaches to meeting customer requirements in
terms of service
EE Precise tailoring of services to suit customers (in the sense of service
packages)
EE Definition of conditions for warranty to improve risk management
EE Optimized contract profitability

Benefits for Benefits to the customer can also be identified, in particular, in the case
customers of products that require a high level of maintenance:

EE Stable, uninterrupted use of the product thanks to regular maintenance


EE Maximized product availability thanks to minimized maintenance
and repair phases
EE High level of service availability due to guaranteed response times in
a service case
EE Forecasted service costs

SAP CRM SAP CRM 2007 supports service contract management with the follow-
functionality ing functions:

EE Creation of service agreements


EE Creation of service contract quotations
EE Management of service contract lifecycles
EE Service level management
EE Management of quantity and value contracts
EE Definition of the form of the contract based on level of usage
EE Management of “proactive” maintenance measures

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Service Management with SAP CRM    1.5

1.5.3 Installed Base Management


In SAP CRM 2007, installed base management not only refers to the Product
management of data that is directly related to the customer, but also configuration
lifecycle
incorporates the management of the products currently used by the cus-
tomer, including all service-related information about these products.
Transparency regarding the product configuration currently used by a
customer is essential, in particular in the case of technology-intensive
products that are shipped in several different configurations or with dif-
ferent components over the course of their lifecycle. Past service mea-
sures involving a change to the configuration or the replacement of com-
ponents can also be mapped.

Figure 1.11 shows the typical lifecycle of a product configuration as part


of an installed base.

Starting with order management, the agreement defines which product


the customer purchases in which configuration, and possibly also how
this product is installed at the customer site. The agreement also speci-
fies whether the customer purchases the product or whether it is to be
made available to the customer for a limited period only (rental/lease
contracting and so on).

Quotation &
Configuration Order Management

Procurement or
Production On-Site
Installation

Installed Base
Scrapping/
Re-Sell
Contract
Inhouse On-Site Management
Repair Repair

Figure 1.11  Lifecycle of the Installed Base of a Customer

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1    Introduction to CRM

The conditions governing service and maintenance and rental conditions


(where relevant) are agreed later as part of contract management.

Provision can be made for on-site repairs or repairs in the service depart-
ment as part of the repair cycle. In both cases, the system provides the
relevant configuration data for the customer product.

In addition, agreements can also be put in place specifying that resale or


disposal of the product is supported by the vendor, who can similarly
select the relevant product information and therefore also the resale con-
ditions and disposal measures in this case.

SAP CRM SAP CRM 2007 supports all of the following business requirements:
functionality
EE Precise and up-to-date installed base and product configuration data
EE Management of product status information (for example, counter
readings)
EE Tracking of the product configuration across the entire maintenance
lifecycle (for example, the use of replacement parts)
EE Management of changed or updated safety regulations and instruc-
tions for use
EE Identification of up-sell sales opportunities in the customer context
EE Management of the entire lifecycle and product history (for example,
in relation to the serial numbers of components)
EE Support for remote monitoring of product statuses and service cases

1.5.4 Customer Service and Support


Customer service and customer support cover the following business
requirements:

EE Receipt of service requests from the customer: Planning, process-


ing, and monitoring of the relevant activities performed by service
employees
EE Access to all relevant customer information, such as customer master
data, customer product data, contracts, and warranties (360-degree
view of the customer)

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Service Management with SAP CRM    1.5

EE Triggering and monitoring of any necessary follow-up actions: Which


follow-up actions are required and when must they be completed?
EE Availability of technical information to complete service tasks and,
where relevant, information specifying how the configuration of the
customer product has been changed by the service tasks
EE Management of a status description of the product that is serviced
EE Documentation of service activities

SAP CRM offers both operational and analytical functions to help com- SAP CRM
panies meet these requirements in the customer service area: functionality

EE Operational functions
EE Tools for customer self-service (online help, product information)
EE Service request management
EE Complaints management
EE Management of service activities
EE Complaints and returns management
EE Service quotation and order management
EE Escalation management
EE Solution database
EE Analytical functions
EE Measurement of interaction times
EE Analysis of the proportion of problems solved at each support
level
EE Monitoring of missed deadlines
EE Identification of problematic customer situations or accounts

1.5.5 Field Service Management


Field service is an area that is constantly increasing in volume in service-
oriented business environments. Customers value the provision of an
on-site service, and companies are increasingly discovering this form
of direct customer contact to be an effective differentiation factor to set
them apart from their competition.

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1    Introduction to CRM

Against this backdrop, a CRM solution must also be able to support a


range of requirements relating to field services. Typical requirements in
this context are as follows:

EE Analysis of service performance in the field service compared with


objectives and customer commitments
EE Analysis of the effectiveness of field service personnel
EE Identification of typical problem scenarios to improve quality
EE Comparison of the company’s service costs with profits from the cor-
responding customer contracts
EE Analysis of the service parts used in order to optimize the equipment
available to field service personnel

SAP CRM SAP CRM supports these requirements with the following functions:
functionality
EE Management of preventative and corrective maintenance measures
EE Service order management
EE Resource planning for field service employees
EE Management of service order confirmations
EE Management and re-ordering of service parts
EE Mobile access to relevant system information

1.5.6 Depot Repair


Depot repair refers to a scenario where repair or servicing does not take
place at the customer site. Instead, the product that requires mainte-
nance is returned to the company, where the repair is then carried out.
Due to the differences in terms of logistics, capacities, and the mainte-
nance situation, a different set of service process requirements arise in
this case than in the case of field service maintenance:

EE Utilization planning
Transparency of the repairs to be expected, requirements forecast for
service parts, and monitoring of service commitments
EE Management of the repairs cycle
Checking of the service case against the contractually guaranteed ser-
vices, escalation management, emergency release of service parts,

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Service Management with SAP CRM    1.5

installation of upgrades and product changes and, if necessary, grant-


ing of discounts or credit
EE Execution of repairs
Checks to determine that the repair is justified, management of check
lists and solution databases, management of maintenance history,
development of best practices
EE Completion of repairs
Documentation of the relevant measures and possibly also withdrawal
and disposal of the product if the repair is not practically possible or
economically viable

These processes are implemented in the following functions in the SAP SAP CRM
CRM system: functionality

EE Returns management
EE Repair quotation and order management
EE Monitoring of the repairs process
EE Management of repair confirmations
EE Integration of services from other providers
EE Management of payment conditions such as discounts or credit

Analytical functions are also provided in addition to the purely opera-


tional functions to support repairs processing:

EE Optimization capacity utilization based on forecast functions


EE Identification of typical repair scenarios to improve quality
EE Documentation of potential improvements to repair processes
EE Monitoring of the company’s own on-time delivery performance and
the customer’s payment history
EE Repair costs analysis as a basis for making decisions to upgrade or
withdraw products

1.5.7 Warranty and Claim Management


Like the general increase in service level, the granting of warranties or
guarantees has increasingly become a factor that differentiates compa-

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1    Introduction to CRM

nies from competitors in recent years. It is also becoming clear that the
general legal requirements in most markets tend to demand that compa-
nies provide increasingly comprehensive warranties.

Due to the growing market significance of the subject of warranty, the


following developments must be taken into account in this area:

EE Warranties are being increasingly used for marketing and sales


purposes.
EE Stricter legal conditions give rise to increased requirements.
EE A higher volume of warranties justifies the use of more extensive
checking to determine who is liable for repairs under the terms of
the warranty.
EE Service and warranty are being increasingly viewed as profit centers,
which need to be able to predict service costs with greater accuracy.
EE Complex products involve many suppliers, all of whom need to be
included in the warranty.

SAP CRM These developments are acknowledged in SAP CRM 2007, which pro-
functionality vides the following functions to support the service area of companies:

EE Management of warranty agreements for both the customer and the


vendor
EE Management of product registrations: multi-channel, web-based
­customer self-service, advertising of service contracts, customer data
entry
EE Support for checking of warranty claims
EE Control of warranty claim processing

1.5.8 Service Parts Management


Unlike production of the actual product, service parts management makes
high demands of companies, which need to be incorporated into the
company’s corresponding processes. The essential differences between
service parts management and the manufacture of finished products are
listed below:

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Service with SAP CRM or SAP ERP CS – a Comparison    1.6

EE The demand for service parts is very fluid, and the quality of forecasts
is poor due to unforeseen service and repair requirements.
EE Demand must be controlled at the component level because there is
no fixed relationship between the components to be provided, as is
the case in production (using bills of material [BOMs], for example).
EE Many vendors are involved, and all of these experience the same dif-
ficulties with the forecasting of demand in the service parts market.
EE Service parts may be interchangeable; various specifications of a ser-
vice part may be suitable replacements for the original part.

SAP CRM 2007 includes extensive service part management functions to SAP CRM
meet the challenges, in particular, when used in conjunction with SAP functionality

SCM. These include the following:

EE Supply Chain Management for service parts


EE Supply Chain Collaboration with vendors and customers
EE Functions for sales and distribution, requirements planning, repeat
orders, pricing, and storage of service parts

1.6 Service with SAP CRM or SAP


ERP CS – a Comparison

Customers can choose between two alternatives when it comes to service


processes in an SAP system, namely Customer Service (CS) functions,
which are already available in the SAP ERP system, or the service area of
the CRM solution. This section compares both variants due to the very
wide range of potential requirements companies may have in terms of an
IT solution in the service area. Therefore, we will list and briefly describe
various functions and processes and explain whether and to what degree
these areas are covered by either SAP ERP CS or SAP CRM Service.

The analysis is conducted at a general level and represents a global evalu-


ation. Since it is impossible to take individual process steps into account
in this case, deviations may arise in the analysis of company-specific
detailed processes.

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1    Introduction to CRM

1.6.1 Service Operations


Service operations represents a key functional area of the solutions com-
pared here. It is concerned with all aspects of the planning and imple-
mentation of service activities. These functions are offered by both SAP
ERP CS and SAP CRM. We will therefore focus on the different ways in
which these support this area.

Maintenance Planning
Maintenance planning means the fulfillment of contractually agreed obli-
gations to carry out preventive maintenance measures. This includes effi-
cient scheduling of service activities to avoid interruptions to customer
processes. The timely availability of the necessary resources (personnel,
material) is essential here. The objective is to achieve a high level of
customer satisfaction through contract fulfillment and a low error rate.
In addition, the effectiveness of the preventive maintenance measures
is increased through the optimization of resource planning and time
scheduling.

Both SAP ERP CS and SAP CRM Service offer maintenance plans with
and without a contract reference for this purpose. However, these are
not automatically generated from service items in the case of SAP ERP
CS. In the SAP CRM system, all required data is defined in the con-
tract (object, product, release list, and service plan data). Both variants
offer flexible control options and planning delivery schedules that can
be automated.

Tickets for Unplanned Services


Tickets for unplanned services are intended to ensure efficient and correct
processing of incoming service requests from customers. This requires
fast identification of the customer, location, and defective equipment to
guarantee fast processing of the service requests, leading to increased
customer satisfaction. Data gaps in the IT system are also closed. Yet
another benefit is the fact that leads can be identified and forwarded to
the service sales team.

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Service with SAP CRM or SAP ERP CS – a Comparison    1.6

With SAP ERP CS, message-based and order-based entry options are
available, whereas SAP CRM Service supports order-based only. Both
alternatives allow for fast identification of customers, objects, contracts,
and warranties. With SAP ERP CS, however, restrictions apply in the
areas of ticket routing, lead generation, and text entry. SAP CRM Service
provides enhanced maintenance functions such as a knowledge database
and escalation.

Explanation of Unplanned Services


The subsequent service steps are maintenance, diagnosis, and, possi-
bly, a direct solution of the problem. In other cases, the information
gathered is used to dispatch a suitable technician or the required mate-
rial, for example. Possible sales leads are forwarded directly. This can
increase profitability and efficiency through direct problem resolution.
In addition, unnecessary journeys and wait times are minimized, which
produces a cost saving. Shorter response times and increased first call
resolution also improve customer satisfaction.

Whereas SAP ERP CS only provides restricted options in this area based
on assisted help resources, SAP CRM Services offers advanced functions
based on the use of question catalogs and guides. In addition, the docu-
mentation area includes extensive options (such as error classification
based on service catalogs). Direct lead generation for sales is only pos-
sible with SAP CRM Service.

Sales Installation Order


In many cases, the installation of systems is anchored in the sales order
as an independent item. The purpose of this is to trigger a service order
for the installation directly. As a result, the installation of sales objects is
automatically added to the pool of service orders. This means that it is
taken into account in overall planning. The advantage of this is that the
sales department has a clearer overview of order progress in the imple-
mentation phase.

This is a standard scenario in SAP ERP CS, which is globally implemented


using service products as installation items in the sales order. SD service
items can be used to configure services for the installation. SAP CRM

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1    Introduction to CRM

Service does not support this function directly, although it can be imple-
mented using customer enhancements.

Service Planning
The goal of service planning is to create the groundwork for an efficient
and effective implementation of services. This requires the assignment of
suitable personnel and the necessary materials and tools. This can signifi-
cantly improve the efficiency of planning in terms of both personnel and
material resources. In addition, an awareness of priorities and of open
issues and work already begun helps increase customer satisfaction. This
optimizes the response to new service requests. Tracking of transactions
can also be improved, and confirmations made more effective.

Some limitations apply to this function in SAP ERP CS (planning of per-


sonnel resources, taking account of qualifications, integration of exter-
nal resources). However, these gaps can be closed if the Multi Resource
Scheduling (MRS) component is used. SAP CRM Service, on the other
hand, offers enhanced planning options (for example, the inclusion of
external resources and graphical planning tools). Neither variant allows
for cross-plant planning.

Execution of Services and Reports


The Service and report execution function is intended to make service
activities more efficient. Relevant data is confirmed for settlement and,
in some cases, updates of the technical object. Meanwhile, the return of
parts not required is initiated without delay. The result is an effective,
customer-based execution, which has a positive impact on customer sat-
isfaction. Fast and correct confirmations also speed up the settlement
and billing processes. Moreover, forwarded sales leads generate addi-
tional results in the service area. All requirements are covered by both
SAP ERP CS and SAP CRM Services.

Service Billing
Service billing checks and posts the service report. Sales leads and oppor-
tunities entered in the report are recorded and forwarded. This results in
correct updating and cost assignment based on the service agreement or

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Service with SAP CRM or SAP ERP CS – a Comparison    1.6

warranty cover. Additional results are also generated by sales leads. In


addition, the information recorded about the customer and equipment
enables strategic improvement and retrofitting measures. Here, too, all
requirements are covered by both SAP ERP CS and SAP CRM Service.

Evaluations
Completed service activities, product performance, and root cause analy-
ses are evaluated. Cause analyses are forwarded to product development,
and can help improve products and enhance maintainability. The analy-
sis of service activities can be drawn upon when providing customers
with quotations for similar services. Bottlenecks are also identified and
kept to a minimum. Both SAP ERP CS and SAP CRM Service offer only
limited evaluations as standard. These can only be enhanced by using
SAP NetWeaver BI.

1.6.2 Service Sales


Companies for which service represents a strategic business area take
a proactive approach to the sale of services. Various channels are used
to identify business opportunities (for example, sales campaigns and
installed bases). These opportunities are qualified and converted into
quotations in a standardized process flow, which may lead to the closing
of sales contracts. Once a contract has been successfully concluded, ser-
vice begins with the transfer of documents from sales to service. Service
sales therefore represent an upstream process step for the actual service.
All requirements in this area are covered by SAP CRM Service. SAP ERP
CS also offers many relevant functions. However, it has some weak points
in relation to lead generation, acquisition, and contract negotiation.

1.6.3 Other Functions and Processes


Outside of the core functions of the two solutions that we have exam-
ined so far, additional functions or processes are also provided to sup-
port users in the service area. Below, we provide a brief discussion of
these additional features of the CS component and of SAP CRM.

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1    Introduction to CRM

Technical Objects and Installations


Technical information about products is mapped in the system in the
form of objects. These objects are of central importance because the qual-
ity of the object information determines the cost-effectiveness and the
capabilities of service processing. Relevant information (for example,
equipment, object structure, or BOMs) needs to be accessible at all
times.

SAP ERP and SAP CRM use different structures to represent the objects.
Both systems also use specific information content. If the two systems are
connected, it is therefore usually necessary to store the technical assets in
both applications. This necessitates the use of bidirectional replication.

In SAP ERP CS, technical objects are converted into combinations of


equipment and functional locations, which enables the mapping of com-
plex structures and the incorporation of material and object BOMs. Clas-
sification characteristics are used for flexible mapping of customer-spe-
cific characteristics. A range of options is available for the mapping of
technical objects.

In the SAP CRM system, these are represented as installations. The struc-
tural elements in this case are products, individual objects, texts, and
installations. Product BOMs can also be used. Customer-specific charac-
teristics can be implemented using set definitions. If an SAP ERP system
is connected, it is important to ensure consistency between the object
data in the two systems. As of SAP CRM Release 5.0, a bidirectional
equipment download function is provided as standard to do just that.

Service Contracts
Service contracts represent fixed agreements with the customer. In
addition to conditions and validity periods, these contain details of
the services that are to be provided, service level agreements (SLAs),
and warranties. Part of service processing involves checking whether
a contractual relationship is in place and which requirements are to be
met. Long-term agreements ensure that the service business has plan-
nable results.

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Service with SAP CRM or SAP ERP CS – a Comparison    1.6

Both SAP ERP CS and SAP CRM Service offer a wide range of options
relating to service contracts. However, SAP CRM Service offers enhanced
functions when it comes to setting the parameters of SLAs and contract
changes, as well as the option of creating usage-dependent contracts.

SLA Monitoring and Escalation


Contractually agreed SLAs guarantee the availability of customer objects.
Adherence to SLAs is observed and monitored during the entire opera-
tion. If these are violated, the case is escalated in accordance with defined
rules. Compliance with SLAs results in the avoidance of contractual pen-
alties, plus a simultaneous increase in customer satisfaction.

Whereas SAP ERP CS includes some basic options for mapping SLAs, its
weaknesses become evident in relation to the assignment of SLA condi-
tions to process steps, the handling of parallel conditions, and escalation
mechanisms. SAP CRM Service, meanwhile, scores high points with the
functions it offers in this area.

Mobile Service Processing


Mobile devices provide support for service processing by service tech-
nicians, allowing them to organize their work. Information about cus-
tomers is directly available, as is information about installations and
assets or service contracts. Mobile devices are also used for working
time recording. Efficiency is ensured by a well-directed service perfor-
mance, fast processes and confirmations, and a correct dataset. At the
same time, administrative time-wasting is avoided, and the quality of
service is improved.

Whereas SAP ERP CS only allows service technicians to connect to the


system using laptops, SAP CRM Service also supports mobile hand-held
devices.

E-Service
Web access allows customers and employees to use a range of func-
tions, such as service requests, transaction tracking, checking of warranty

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1    Introduction to CRM

claims, and product registration. An immediate and personalized service


has a positive impact on customer satisfaction. In addition, customer
behavior can be recorded more effectively, and a reduced volume of tele-
phone calls ensures a reduction in costs.

Both alternatives support e-services. However, SAP ERP CS offers only


limited options for the provision of customer-specific activities.

Complaints Processing
The correct processing of complaints is of key importance to a customer
relationship. The individual process steps consist of the recording, analy-
sis, processing, and evaluations of complaints. The benefits are a struc-
tured complaints process, improved customer satisfaction through return
material authorization (RMA) processes and precise feedback. Automated
process flows also have the potential to save costs.

In SAP ERP CS, complaints processing is not a complete standard sce-


nario with integrated functions. The necessary follow-up processes
have to be triggered individually. SAP CRM Service, however, supports
a range of functions (such as contracts checks, including warranty and
SLA/escalation, availability check, invoice correction, release process,
and so on).

Case Management
Case management enables the processing, management, and consolida-
tion of information relating to a specific problem. Various objects (prod-
ucts, transactions, business partners) are incorporated into the case for
this purpose. Service orders can then be assigned to a case or generated
from a case. This produces a global exchange of information, which,
above all, simplifies the decision-making process in complex cases.
Moreover, case management provides a business-oriented overview of
each case. An efficient allocation of processing resources can also help
reduce costs.

Case management is not available in the SAP ERP system. SAP CRM
Service, on the other hand, offers a large functional scope. A range of

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Architecture of SAP CRM Systems    1.7

standard cases is predefined in the system (for complex products, for


example), for which services can be provided.

1.6.4 Conclusion
In the comparison drawn here, the SAP CRM Service functions offer
clear benefits over those provided in the SAP ERP CS component. SAP
ERP CS offers most standard processes and functions are provided. How-
ever, SAP CRM offers many additional options and is the more complete
alternative overall. This system enables a 360-degree view of the cus-
tomer, and optimizes the link between sales and service. SAP CRM 2007
offers additional functions and an intuitive, user-friendly interface.

When deciding whether to use SAP CRM Service or SAP ERP CS, the
two most important factors to consider are, first, the company’s service
orientation and, second, the question of whether SAP ERP CS is already
in use or whether the company is venturing into the service business
area for the first time.

It generally only makes sense to change over to SAP CRM Service if ser-
vice already is or is to become a strategic business area for the company
or if the non-service functions in marketing and sales are also to be used.
In this case, the costs of a changeover would be justified by the strengths
of SAP CRM described above. If the company is entering this area for the
first time, on the other hand, there is barely any justification to choose
SAP ERP CS over SAP CRM Service.

1.7 Architecture of SAP CRM Systems

Now that we have provided an overview of the functions of the SAP


CRM system, we will turn briefly to the SAP CRM system architecture.

As already mention in Section 1.4.1 SAP CRM Roadmap the market for
SAP CRM solutions has experienced many innovations in recent times,
and these are reflected in the architecture of the SAP CRM systems. To
begin, Figure 1.12 shows the familiar architecture from Release 2005.

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1    Introduction to CRM

Figure 1.12  Architecture of SAP CRM 2005

The CRM Core has a 1:1 connection with the SAP ERP system, and is
integrated with SAP NetWeaver technology. Functions such as on-demand
and on-promise are already integrated at this point. A choice of interface
is available, namely, the PCUI interface or the conventional SAP GUI
from SAP R/3. Several changes have been made in the current release,
Release 2007, as shown in Figure 1.13.

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Architecture of SAP CRM Systems    1.7

Figure 1.13  Architecture of SAP CRM 2007

Now, for the first time, an SAP CRM system can be integrated with more
than one SAP ERP system. The CRM Core is largely preserved in the
familiar functions such as the Business Objects but has also been enhanced
with new design options. Customer-specific business logic can now also
be implemented as part of the Enhanced Workbook. In addition, a number
of SAP core components have been enhanced. The most obvious change,
however, is the new interface. The new UI is based on web technology

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1    Introduction to CRM

and can also be personalized to a high degree with the new UI Configura-
tion Tool. External content such as web applets and RSS feeds can also be
integrated. Finally, the whole look and feel of the user interface can be
customized to tie in with the company’s corporate design.

1.8 Summary

This chapter has explained the basic business aspects of working with
CRM, and provided an initial insight into the functions of SAP CRM
2007. You are now familiar with the central concepts and control mecha-
nisms of customer relationship management and understand the role of
service management within CRM. In addition, a detailed comparison
of SAP CRM Service functions and the Customer Service component in
SAP ERP (CS) has also illustrated the range of options provided by these
SAP solutions. To close, we provided a brief introduction to the system
architecture of SAP CRM.

The next chapter provides a detailed overview of the functions of SAP


CRM 2007 in the service area.

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Service Order Management 3.2

group. Figure 3.31 illustrates the example of a Service Resource service


product.

Figure 3.31 Service Product – Service Resource

3.2 Service Order Management

Service order management is arguably the most central service process


in a company deploying SAP CRM 2007. Similar to the role that the
sales order in the Sales and Distribution component (SD) of SAP ERP
plays when selling products, the service order in the CRM system maps
any service conducted in the service area within a company. The service
order, which is a system process, can be created in reference to numer-
ous other relevant service processes and forms the basis for invoicing
customers for services performed.

3.2.1 Process Display


Figure 3.32 provides an overview of the service order management pro-
cess, which is divided into five steps as follows:

1. Create a quotation.

2. Create a service order.

3. Confirm the service order.

4. Conduct the service.

5. Create an invoice.

The sections below explain other service processes that use SAP CRM
2007. Here, service order management is used repeatedly as an integral
part of advanced processes.

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3 Service with SAP CRM – Processes and Customizing

Process Create Create Confirm Conduct Create


Step Quotation Service Order Service Order Service Invoice

Role Service Employee Service Manager Service Technician Service Employee

1. Customer requests Once the customer Service order Service is conducted Invoice creation is
quotation has accepted the is confirmed and confirmed initiated
2. Quotation is quotation, the quotation
created is converted into
3. Quotation is sent a service order.
to customer

Figure 3.32 Processes and Roles in Service Order Management

Step 1: Creating a A service quotation is frequently created before a service order, even if
quotation this is unnecessary. The service quotation is generally created in response
to a customer inquiry (see Figure 3.33). However, it can also be used as
a proactive marketing technique. A service quotation already contains
all of the information that a customer requires, for example, the product
that will be affected by the service, the price for providing the service,
and a possible schedule for conducting the service. Once the service
employee creates the quotation, the customer is informed.

Figure 3.33 Creating a Service Order Quotation

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Service Order Management 3.2

Once the customer has accepted a service quotation, the service employee Step 2: Creating a
creates a service order that references the relevant service quotation (see service order

Figure 3.34). Consequently, the system copies all of the important infor-
mation contained in the quotation to the service order. Here, users also
have the option to categorize the service order using a predefined cat-
egory catalog, which can also be supplemented and customized.

When you enter items in a service order, you can use several item catego-
ries such as service items, service parts items, sales items, or costs asso-
ciated with expenses. In the case of service parts or sales items, an ATP
check (available to promise, ATP) is performed if SAP ERP has been inte-
grated accordingly. Similar to the sales order, a credit limit check can also
be activated for a service order. Furthermore, when you create a service
order, the system determines whether service contracts or warranty agree-
ments exist for this customer and the corresponding product. If so, the
conditions attached to the order automatically take them into account.

Figure 3.34 Creating a Service Order

Depending on the required process characteristics, the role of service Step 3: Confirming
manager can also be used as a supervisory role for service employees. the service order

If implemented in this way, this control instance must first confirm the
service orders before the actual order content can be processed and the
necessary resources made available.

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3 Service with SAP CRM – Processes and Customizing

Step 4: Conducting If the service order is released, the service technician can conduct the
the service services contained in the order for the customer. This may mean that the
service employee repairs a product that the customer has returned to the
company, or he repairs the product on-site at the customer location. The
sections devoted to service and repairs processing describe in greater
detail the differences between a service conducted within the service
department of a company and a service conducted on-site at the cus-
tomer location (see Section 3.3 Service and Repairs Processing (In-House)
and Section 3.4 Service and Repairs Processing (Field Service)).

Once the service technician has conducted the service, he confirms the
service order and documents the fact that the service has been conducted
by creating a service confirmation in the system (see Figure 3.35) and
completing a questionnaire (see Figure 3.36).

Figure 3.35 Creating a Service Confirmation

Step 5: Creating an Once the service order has been confirmed, the service employee initi-
invoice ates the process of issuing an invoice to the customer. Here, the system
also takes account of the possible diverseness of services, depending on
the item in the service order (for example, services covered by warranty
agreements are conducted at no extra cost to the customer).

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Service Order Management 3.2

Figure 3.36 Service Confirmation – Questionnaire

3.2.2 Customizing in the System


The following sections describe Customizing for the service order process
in the CRM system.

Customer-Specific Customizing
All of the functions and entries below whose names begin with Z are al-
ways copies of SAP standard functions that have been adjusted to include
customer-specific changes. Here, the underlying SAP standard functions are
described as an introduction.
The abbreviation IMC within the Customizing names denotes specific Cus-
tomizing for a fictitious company called IMC, for which we are implementing
the CRM system.

Transaction Types
When you follow the IMG path Customer Relationship Management •
Transactions • Basic Settings • Define Transaction Types, you access
the maintenance screen for transaction types (see Figure 3.37).

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3 Service with SAP CRM – Processes and Customizing

Figure 3.37 Maintaining Transaction Types

A transaction type defines characteristics and features of a business trans-


action (for example, a service order or service order quotation) and spec-
ifies the control attributes (for example, text determination procedure,
partner determination procedure, status profile, and organizational data
profile). These transaction types, in turn, control how these business
transactions are processed.

A transaction type is assigned to one or more business transaction cat-


egories (for example, Service or Sales). The business transaction category
determines the business context in which a transaction type can be used
(for example, Service or Sales). Consequently, one business transaction
category is the leading business transaction category. This does not rep-
resent a hierarchical relationship with other business transaction catego-
ries, but rather a preference.

The business transaction category influences the various Customizing


settings that you have to make at the header level. For example, you
define settings such as the goal of the activity or the subject profile for

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Service Order Management    3.2

the business transaction category Activity, the document pricing pro-


cedure or the payment plan type for the business transaction category
Sales, the subject profile for the business transaction category Service,
and the budget posting transaction type for the business transaction cat-
egory CRM Budget Posting.

The transaction type settings are configured in five steps (see Figure Configuring the
3.37): transaction types

1. Define transaction types (Definition of Transaction Types).


2. Assign business transaction categories (Assignment of Business Trans-
action Categories).
3. Customizing at the header level (Customizing header).
4. Assign blocking reasons (Assign Blocking Reasons).
5. Permit channels for transaction types (Channel).

You can then create a new transaction type or copy a transaction type
that has already been defined. However, when you copy a transac-
tion type, you must ensure that you adjust the transaction type
accordingly.

Service Order Quotation – SAP Standard Used


The transaction type used in this example (ZSAA) is a copy of the SAP stan-
dard transaction type SRVQ.
The customized partner determination procedure shown (ZIMC006) is a copy
of the SAP standard 00000042, and the customized organizational data pro-
file ZSVR00000001 is a copy of the SAP standard 000000000008.

As the first step, you must define details such as a description of the Step 1: Defining
transaction type and the relevance of contract determination for the transaction types

transaction type ZSAA (see Figure 3.38). The leading business transac-
tion category must be defined as a service process.

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3 Service with SAP CRM – Processes and Customizing

Figure 3.38 Creating and Configuring Transaction Type ZSAA – Service Order
Quotation IMC

Step 2: Assigning Now that you have defined the transaction type ZSAA, you must assign
business the associated business transaction categories. These are influenced by
transaction
the business context in which a transaction type or item category can
categories
be used (for example, Service, Sales, or Activity). Figure 3.39 shows the
business transaction categories defined for the transaction type ZSAA.

Figure 3.39 Assigning Business Transaction Categories to Transaction Type ZSAA

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Service Order Management 3.2

You must now define Customizing header data for every business trans- Step 3:
action category that you have defined. This header data includes, for Customizing at
header level
example, the Sales business transaction category, in which a link to the
relevant pricing is established, among other things (see Figure 3.40).

Figure 3.40 Transaction Type ZSAA (Sales – Customizing at Header Level)

In the Customizing header for the service area (see Figure 3.41), you
can maintain the relevant subject profile for the service and possibly the
existing transaction type for the confirmation.

Figure 3.41 Transaction Type ZSAA (Service – Customizing at Header Level)

The last business transaction category to be defined for the transaction


type ZSAA is the business transaction category Activity. Even though this
business transaction category is known as Business Activity in the list of

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3 Service with SAP CRM – Processes and Customizing

business transaction categories (see Figure 3.39), detailed information


for the activity area is entered here (see Figure 3.42).

Figure 3.42 Transaction Type ZSAA (Business Activity – Customizing at Header Level)

Defining categories On the Details screen, you can define various categories, among other
things. These categories define the functions available for each activity
type.

Service Order – SAP Standard Used


The transaction type used in this example (ZSVO) is a copy of the SAP stan-
dard transaction type SRVO.
The status profile shown (ZSRV_ST1) is a copy of the SAP standard status
profile SRV_ST01, and the action profile ZIMC_SERVICEORDER_HEADER is
a copy of the SAP standard action profile SERVICE_ORDER.

In terms of Customizing, the transaction types ZSVO and ZSAA (from the
previous section) differ only in terms of the entries shown in Table 3.3.

Field Value
Status profile ZSRV_ST1
Date profile SRV_HEADER
Action profile ZIMC_SERVICEORDER_HEADER

Table 3.3 Differences Between Transaction Types ZSAA and ZSVO

The business transaction categories assigned are almost identical to those


for transaction type ZSAA (see Figure 3.39). They differ only in Custom-

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Service Order Management    3.2

izing at the header level for the Service and Activity areas (see Tables 3.4
and Table 3.5, respectively).

Field Value
Transaction Type ZSVC
Confirmation
Table 3.4  Differences Between Transaction Types ZSAA and ZSVO in the ”Service”
Area – Customizing at Header Level

Field Value
Category 202 Telephone call
Priority 1 Very high
Subject Profile Act000001 Activity reason

Table 3.5  Differences Between Transaction Types ZSAA and ZSVO in the “Activity”
Area – Customizing at Header Level

Service Confirmation – SAP Standard Used


The transaction type used in this example (ZSVC) is a copy of the SAP stan-
dard transaction type SRVC.

Table 3.6 highlights the differences between transaction types ZSVC and
ZSAA.

Field Value
Leading Transaction Category BUS2000117 – Service Confirmation
Status Object Type COH
Contract Determination No entry
Agreement Determination No entry
Partner Determination 00000024 – SAP Confirmation Header
Procedure
Organizational Data Profile 000000000021 – SAP Org. Data Profile for
Confirmations
Date Profile SRV_RM_ITEM1
Action Profile SERVICE_CONFIRMATION

Table 3.6  Differences Between Transaction Types ZSAA and ZSVC

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3 Service with SAP CRM – Processes and Customizing

The business transaction categories assigned are almost identical to those


for transaction type ZSAA (see Figure 3.39).

Partner Determination Procedures


When you follow the IMG path Customer Relationship Management
• Basic Functions • Partner Processing • Define Partner Determina-

tion Procedure, you access the maintenance screen for partner deter-
mination procedures (see Figure 3.43).

Figure 3.43 Maintaining Partner Determination Procedures

In this activity, you define partner determination procedures, and the


system automatically assigns partners to the business transactions. Fur-
thermore, the partner functions and access sequences are combined
here.

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Service Order Management    3.2

Caution: Copy the SAP Standard


We recommend that you either use the Customizing Wizard to create a new
partner determination procedure or that you copy an existing procedure and
then change the copy accordingly. You can therefore access the SAP standard
as a template at all times. Avoid changing SAP standard procedures that al-
ready exist. Otherwise, you risk losing templates that have been perfected.

If you define a new procedure, assign it to a transaction category or an


item object type and specify mandatory partner functions. The system
searches for these partner functions in transactions. If you later assign
the procedure to a transaction type or item category, the settings that
you make here apply to transactions of this type or for items of this
category.

Using the Wizard to Create Partner Determination Procedures


In SAP CRM 2007, you can use a wizard to create partner determination
procedures. You can access this wizard by following the IMG path Customer
Relationship Management • Basic Functions • Partner Processing • Define
Partner Determination Procedure and select Create Partner Determination
Procedure.

Once you have created a new procedure (either using the wizard or
manually), check it for errors. To do this, select Check Partner Determi-
nation Procedure.

Once you have defined the partner determination procedure, you must
maintain the following areas:

EE List of procedure users


EE Definition of partner functions in the procedure
EE Description of the interface settings

“Service Process Header” Partner Determination Procedure – SAP


Standard Used
The partner determination procedure used in this example (ZIMC006) is a
copy of the SAP standard partner determination procedure 00000042.

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3 Service with SAP CRM – Processes and Customizing

In the partner determination procedure definition, assign this procedure


to one or more transaction categories or item object types (see Figure
3.44).

Figure 3.44 Procedure Users for Partner Determination Procedure ZIMC006

You then add or change the partner functions contained in this pro-
cedure. Some settings need to be made for each partner function, for
example, minimum and maximum number of partners for each transac-
tion, the type of new partner determination, which access sequence the
system uses for the partner determination, and whether manual entries
are permitted (see Figure 3.45).

Figure 3.45 Partner Functions in the Procedure ZIMC006

To complete the partner determination procedure definition, enter details


about the interface settings (see Figure 3.46). Here, you can influence the
partner functions to be displayed in the individual partner fields (for

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Service Order Management 3.2

example, contact person). Depending on the customer-specific require-


ments, an entry may be required here.

Figure 3.46 Interface Settings in the Procedure ZIMC006

“Service Process Item” Partner Determination Procedure – SAP


Standard Used
The partner determination procedure used in this example (ZIMC007) is a
copy of the SAP standard partner determination procedure 00000043.

In contrast to the procedure users listed in Figure 3.44 for the partner
determination procedure ZIMC006, the procedure users listed in Table
3.7 are defined in the partner determination procedure ZIMC007.

Procedure Users
BUS2000117 Service Confirmation
BUS2000140 ServiceProductItemCRM
BUS2000142 ServMatConfirmItem
BUS2000146 ServMaterialItemCRM

Table 3.7 Differences Between Partner Determination Procedure ZIMC007 and


Partner Determination Procedure ZIMC006

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3 Service with SAP CRM – Processes and Customizing

The partner functions entered for the partner determination procedure


ZIMC007 are almost identical to those for the partner determination
procedure ZIMC006 (see Figure 3.45).

Date Profile
When you follow the IMG path Customer Relationship Management •
Basic Functions • Date Management • Define Date Profile, you access
the area in which you define and maintain dates (see Figure 3.47).

Figure 3.47 List of Previously Configured Date Profiles

Date management enables you to process any number of dates in a trans-


action. It is used, for example, in contracts (for example, cancellation
date, term) and quotations (valid-to date).

In this work step, you define durations (duration types), date types, and
date rules. The system uses all of the above, which are grouped into a
specific date profile, to display and automatically determine dates in a
transaction. Using the date profile, the system controls the date types,
durations, reference objects, and date rules that can be used in a specific
transaction type or item category.

Depending on the date profile, you also define (in this activity) the prop-
erties of the date types and durations (for example, the time unit, refer-
ence object, duration, and date rule).

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Service Order Management 3.2

“SLA Data in Position” Date Profile – SAP Standard Used


The date profile used in this example (ZSV_SLA_ITEM: SLA Data in Position
IMC) is a copy of the SAP standard date profile SRV_SLA_ITEM.

In the first step of this example, you assign one or more reference objects Step 1: Assigning
to the date profile (see Figure 3.48). You use the reference object to con- reference objects

trol the relevant time zone for the transaction dates. The reference objects
determine, among other things, the factory calendar, which is important
for determining dates (for example, taking account of public holidays).

Figure 3.48 Reference Objects for Date Profile ZSV_SLA_ITEM

You then configure one or more date rules for this date profile (see Figure Step 2: Configuring
3.49). Date rules have version management to ensure that date rules used date rules

in unfinished transactions can remain unchanged. You can use these date
rules to create a new version that is valid as of its creation date and time.
Only the current version is used in new transactions. The word Standard
always identifies the current version in the list of date rule versions.

Figure 3.49 Date Rules for the Date Profile ZSV_SLA_ITEM

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3 Service with SAP CRM – Processes and Customizing

Step 3: In the third step, you create one or more date types for the date profile
Determining (see Figure 3.50). Date types refer to specific times such as First Response
date types
By, Notification Receipt, or Billing Document Created On.

Figure 3.50 Date Types for the Date Profile ZSV_SLA_ITEM

Step 4: Specifying To complete the date profile definition, you can specify the required
the required duration, if necessary. This can be, for example, a contract term, a pro-
duration
cessing time, or a warranty term.

Action Profiles
You define action profiles by following the IMG path Customer
Relationship Management • Basic Functions • Actions • Actions in

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Service Order Management 3.2

Transaction • Change Actions and Conditions • Define Action Pro-


files and Actions (see Figure 3.51).

The maximum number of actions permitted for a transaction type is


determined in an action profile. Here, you also determine general condi-
tions for the actions contained in the action profile. Examples include
the time when the system starts the action (for example, saving the docu-
ment) or the way in which the system performs the action (for example,
workflow, method call, or Smart Forms).

Figure 3.51 List of Previously Configured Action Profiles

In this activity, create an action profile and templates for actions.

Using the Wizard to Create Action Profiles


In SAP CRM 2007, you can use a wizard to create action profiles. You can call
this wizard by following the IMG path Customer Relationship Management
• Basic Functions • Actions • Actions in Transaction • Use Wizard to
Create Actions (see Figure 3.52).

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3 Service with SAP CRM – Processes and Customizing

Figure 3.52 Action Profile Wizard – Using a Wizard to Create Actions

“Control SLA Dates” Action Profile – SAP Standard Used


The action profile used in this example (Z_SERVICE_ORDER_ITEM_SLA_IMC:
Control SLA Dates IMC) is a copy of the SAP standard action profile SER-
VICE_ORDER_ITEM_SLA.

Action profiles are configured in the same way as date profiles, using
several steps as follows:

1. Definition of the action profile


2. Description of the action definitions
3. Processing types for the action definitions

Step 1: Defining In the first step, you must describe and define the action profile (see Fig-
the action profile ure 3.53). At the same time, you must link the action profile to the date
profile described above.

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Service Order Management 3.2

Figure 3.53 Details for the Action Profile Z_SERVICE_ORDER_ITEM_SLA_IMC

After that, specify one or more associated action definitions for each
action profile (see Figure 3.54).

Figure 3.54 List of Action Definitions for Z_SERVICE_ORDER_ITEM_SLA_IMC

Here, you can specify additional details (see Figure 3.55). Below are some Step 2: Describing
sample options that can be defined on the Details screen. For Processing the action
definitions
Time, you can determine, for example, whether immediate processing
is necessary. The action is then started as soon as the start condition is
fulfilled. Another option is to start the action immediately after you save
the transaction.

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3 Service with SAP CRM – Processes and Customizing

Figure 3.55 Details for the Action Definition Z_COMPLETE_PSL_ITEM

If you select the Partner-Dependent checkbox, you can define a part-


ner function or partner function category that will apply to the action.
This may be relevant, for example, if reminder emails are to be sent to
all partners involved in the process or if an email is to be sent to the
employee responsible.

If you select the Changeable in Dialog checkbox, the user can change the
action’s condition and processing parameters in the document.

If you select the Executable in Dialog checkbox, the user can manually
trigger the action in the transaction. Finally, if you select the Display in

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Service Order Management 3.2

Toolbox checkbox, the action is displayed as an icon in the transaction


toolbar, and the user can schedule the action from there.

Under Action Merging, select Max. 1 Action for Each Action Definition
if you want to execute the action once only. Select Max. 1 Unprocessed
Action for Each Action Definition if you want to be able to execute the
action several times.

To complete the action profile definition, you describe one or more Step 3: Processing
processing types for each action definition (see Figure 3.56). Here, you types for the
action definitions
can choose from the method call, workflow, or Smart Form processing
types.

Figure 3.56 Overview and Details for the Processing Types for the Action Definition
Z_COMPLETE_PSL_ITEM

We do not discuss the action definitions Z_SERVICE_ORDER_ITEM_


SLA_START and Z_SERVICE_ORDER_ITEM_SLA_END in further detail

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3 Service with SAP CRM – Processes and Customizing

because they are created in the same way as the action definition Z_
COMPLETE_PSL_ITEM and differ only in terms of the time of process-
ing (1 Processing using Selection Report instead of 4 Processing When
Saving Document) and the partner function (New: ZIMC002 – Person
Responsible).

Unlike the processing type Method Call for the action definition Z_COM-
PLETE_PSL_ITEM, the processing types for the action definitions Z_SER-
VICE_ORDER_ITEM_SLA_START and Z_SERVICE_ORDER_ITEM_SLA_
END are both Smart Forms Mails (see Figure 3.57).

Figure 3.57 Overview and Details for the Processing Types for the Action Definition
Z_SERVICE_ORDER_ITEM_SLA_START

In turn, the action definitions Z_SERVICE_ORDER_ITEM_SLA_START


and Z_SERVICE_ORDER_ITEM_SLA_END differ only in terms of the dif-
ferent forms (see Table 3.8).

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Service Order Management    3.2

Action Definition Form Name


Z_SERVICE_ORDER_ITEM_SLA_START CRM_SERVICE_SLA_MAIL_RF
Z_SERVICE_ORDER_ITEM_SLA_END CRM_SERVICE_SLA_MAIL_RR

Table 3.8  Differences Between Z_SERVICE_ORDER_ITEM_SLA_START and Z_


SERVICE_ORDER_ITEM_SLA_END

“Service Order Header” Action Profile – SAP Standard Used


The action profile used in this example (ZIMC_SERVICORDER_HEADER: Ser-
vice Order IMC Header) is a copy of the SAP standard action profile SER-
VICE_ORDER.

Tables 3.9 to 3.11 highlight the differences in relation to the action pro-
file Z_SERVICE_ORDER_ITEM_SLA_IMC (described above).

Action Profile ZIMC_SERVICORDER_HEADER


Object Type Name BUS2000116
Date Profile No entry
Context Class CL_DOC_CONTEXT_CRM_ORDER

Table 3.9  Details for the Action Profile ZIMC_SERVICORDER_HEADER

Action Profile ZIMC_SERVICORDER_HEADER


Action Definition ZIMC_ADHOC_REMINDER1

Table 3.10  Details for the Action Definitions for the Action Profile
ZIMC_SERVICORDER_HEADER

Action Definition ZIMC_ADHOC_REMINDER1


Processing Type Smart Forms Mail

Table 3.11  Details for the Processing Type for the Action Definition
ZIMC_ADHOC_REMINDER1

Conditions
When you follow the IMG path Customer Relationship Management •
Basic Functions • Actions • Actions in Transaction • Change Actions

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3 Service with SAP CRM – Processes and Customizing

and Conditions • Define Conditions, you access the area in which you
define and maintain conditions (see Figure 3.58).

Figure 3.58 List of All Actions and Details for the Conditions

Here, conditions include (a) the exact definition of the schedule condition
and (b) the start condition for each action definition (using transportable
conditions). You can also specify whether the action is automatically
scheduled when the schedule conditions take effect. One example of a
possible start condition is “four weeks before the contract end date.”

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Service Order Management 3.2

“Control SLA Dates” Start Condition – SAP Standard Used


The start condition used in this example (Z_SERVICE_ORDER_ITEM_SLA_
IMC: Control SLA Dates IMC) is a copy of the SAP standard action profile
SERVICE_ORDER_ITEM_SLA.

If you double-click the action Z_SERVICE_ORDER_ITEM_SLA_IMC, the


system displays the list of defined action definitions on the upper-right
half of the screen and the details for the corresponding action definitions
on the lower half of the screen (see Figure 3.59).

Figure 3.59 Detailed Overview of the Action Definitions for the Action Z_SERVICE_
ORDER_ITEM_SLA_IMC

The Start Condition tab page on this detailed overview screen contains an
overview of the start conditions for each action definition selected (see
Figure 3.60). Here, you can create conditions for each action definition.

You can select Edit Condition to access the screen for editing parameters.
Here, you must assign the relevant date profile for the condition.

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3 Service with SAP CRM – Processes and Customizing

Figure 3.60 Summary of the Start Condition for the Action Definition
Z_COMPLETE_PSL_ITEM

If you double-click the Condition Definition field, the system opens the
wizard for creating each condition (see Figure 3.61). You can select the
values in the Expression 1 column from the complete list shown. You can
also choose from other operators shown. You can also select Expression 2
from the list provided, or you can enter Expression 2 as a constant. You
can then link the conditions in a logical manner.

Figure 3.61 Editing Start Conditions for Z_COMPLETE_ITEM

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Service Order Management 3.2

The following applies to the start conditions for the action defi-
nition Z_SERVICE_ORDER_ITEM_SLA_START for the action
Z_SERVICE_ORDER_ITEM_SLA_IMC:
&CRM Service Product Item.System Status& I1005
and
&To Do By& < &Current Date&

In addition, the following applies to the start conditions for the


action definition Z_SERVICE_ORDER_ITEM_SLA_END for the action
Z_SERVICE_ORDER_ITEM_SLA_IMC:
&CRM Service Product Item.System Status& = I1002
and
&First Response By& < &Current Date&

“Service Order Header” Start Condition – SAP Standard Used


The start condition used in this example (ZIMC_SERVICORDER_HEADER:
Service Order IMC Header) is a copy of the SAP standard action profile SER-
VICE_ORDER.

No start conditions are defined for the action ZIMC_SERVICORDER_


HEADER.

Item Category
When you follow the IMG path Customer Relationship Management
• Transactions • Basic Settings • Define Item Categories, you access

the area in which you define and maintain item categories (see Figure
3.62).

Figure 3.62 List of Previously Configured Item Categories

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3 Service with SAP CRM – Processes and Customizing

An item category defines characteristics and features of a transaction


item and therefore controls item processing. First, the item category is
assigned to an item object type. The item object type determines the
business context in which an item category is used. Similar to the trans-
action type, the item category is assigned to one or more business trans-
action categories.

“Service Item” Item Category – SAP Standard Used


The item category used in this example (ZSVP: Service Item IMC) is a copy of
the SAP standard item category SRTP.

Configuring the Item categories are configured in several steps as follows:


item categories
1. Definition of the item category
2. Description of the business transaction categories
3. Customizing the item

Step 1: Defining In the first step, you must describe and define the item category (see
the item categories Figure 3.63). In addition to assigning a name to the item category, this
is where you also define important control attributes such as the item
object type, the text determination procedure, the partner determina-
tion procedure, the status profile, the organizational data profile, and the
number range assignment. Depending on its status, the status profile can
be used, for example, to transfer the transactions to the ERP system.

Figure 3.63 Defining the Item Category ZVSP

Step 2: Describing The business transaction categories belonging to the item category ZVSP
business are defined in the next step (see Figure 3.64).
transaction
categories

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Service Order Management 3.2

Figure 3.64 Overview of the Business Transaction Categories Assigned to the Item
ZSVP

To complete the item category definition, you must adjust the business Step 3:
transaction categories (see Figure 3.65). Customizing the
item

Figure 3.65 “Service” Business Transaction Category – Customizing the Item

In the Service business transaction category, you can use the Resource
Plng Relevance checkbox to determine whether the item is relevant to
resource planning. If an item is relevant to resource planning, a resource
requirement will be generated for the item. Furthermore, you can use
the Relevance to Costs checkbox to control whether confirmed infor-
mation such as times and material are to be distributed to backend
systems.

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3 Service with SAP CRM – Processes and Customizing

In the Sales business transaction category, you can use the Pricing-rel.
checkbox (see Figure 3.66) to determine the extent to which an item is
pricing-relevant (Pricing Data section) and the extent to which the item
is transferred to follow-up documents (Quotation Data section, Subsequ.
processing checkbox).

Figure 3.66 “Sales” Business Transaction Category – Customizing the Item

Item Category Determination


When you follow the IMG path Customer Relationship Management •
Transactions • Basic Settings • Define Item Category Determination,
you access the area in which you define and maintain the item category
determination (see Figure 3.67).

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Service Order Management 3.2

Figure 3.67 List of Previously Configured Item Category Determinations

In this work step, you can determine the item categories that the system
proposes during transaction processing for each transaction type and
item category group. At the same time, you can determine which item
categories you can manually enter as alternatives to the system propos-
als. A maximum of three alternative item categories is possible.

“Order Quotation” Item Category Determination SAP Standard Used


The item category determination used in this example (ZSAA: Order Quota-
tion IMC) is a copy of the SAP standard item category determination SRVQ.

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3 Service with SAP CRM – Processes and Customizing

As part of Customizing, you must configure separate item category deter-


minations for all previously used transaction types. As described at the
outset, several item category groups or item categories can be assigned
to each transaction type. This results in a matrix of setting options that
cannot be described in detail here. Instead, we show you the exam-
ple below (see Figure 3.68), which is representative of all item category
determinations, and for which the SAP standard was adjusted. During
item category determination, in particular, you assign the relevant trans-
action type and item category. The other item category determinations
are similar to the SAP standard transaction type SRVQ.

Figure 3.68 Example of Item Category Determination for Transaction Type ZSAA

“Order” and “Confirmation” Item Category Determination – SAP


Standard Used
The item category determination ZSVO (Service Order IMC) is a copy of the
SAP standard item category determination SRVO, and the item category de-
termination ZSVC (Service Order IMC) is a copy of the SAP standard item
category determination SRVC. For both item category determinations, we
refer to the example provided in Figure 3.69.

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Service Order Management 3.2

Copying Control
When you follow the IMG path Customer Relationship Management •
Transactions • Basic Settings • Copying Control for Transactions •
Copying Control for Transaction Types, you access the area in which
you define and maintain the copying control (see Figure 3.69).

Figure 3.69 List of Previously Configured Copying Control Definitions for Transaction
Types

In this area, you determine the copying control for transaction types
and item categories. For this purpose, you create a source transaction
and item type and a target transaction and item type and determine the
corresponding conditions for these combinations. In each case, you then
create a source item category and a target item category and determine
the corresponding conditions.

“Service Order Quotation” Copying Control SAP Standard Used


The copying control used in this example (Service Order Quotations IMC),
which references transaction type ZSAA, is a copy of the SAP standard copying
control, which references transaction type SRVQ.

Similar to the copying control settings for the SAP standard item cat-
egory determination SRVQ, the source and target transaction type com-
bination changes from the SAP standard SRVQ – SRVO to the customer-
specific pair ZSAA – ZSVO.

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3    Service with SAP CRM – Processes and Customizing

“Service Order” Copying Control – SAP Standard Used


The copying control used in this example (Service Order Quotations IMC),
which references transaction type ZSVO, is a copy of the SAP standard copying
control, which references transaction type SRVO.

Similar to the service order quotation, it is necessary to determine the


copying control settings for the transaction type ZSVO. This also depends
on the SAP standard transaction type SRVO (see Table 3.12).

Source Transaction Type Target Transaction Type


ZSVO CLMA
ZSVO CRMC
ZSVO CRMR
ZSVO ZRVC
ZSVO ZSVO
ZSVO SRVT

Table 3.12  Overview of the Copying Control Setting for Transaction Type ZSVO

“Confirmation” Copying Control – SAP Standard Used


The copying control used in this example (Service Order Quotations IMC),
which references transaction type ZSVC, is a copy of the SAP standard copy-
ing control, which references transaction type SRVC.

It is then necessary to determine the copying control settings for trans-


action type ZSVC. Because none of the entries listed is a relevant target
transaction type for this example, we do not discuss this in further detail
here (see Table 3.13).

Source Transaction Type Target Transaction Type


ZSVC CRMC
ZSVC SRMR
ZSVC FANF

Table 3.13  Overview of the Copying Control Setting for Transaction Type ZSVC

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Index

360-degree view, 25, 33, 61, 118 Automotive industry, 329


Availability check, 41, 149

A
B
Abstract prototype, 283
Acceptance procedure, 327 Basic data, 135
Acceptance test, 323 Basis configuration, 121
Account Billing, 69, 188
create, 136 Billing and payment management, 41
detail maintenance, 137 Billing error, 87
search, 138 Bill of material, 139, 143
Account overview, 68 Business address services, 305, 313
Action definition Business object, 63
describe, 167 Business partner
processing types, 169 create, 124, 126
Action profile, 164, 189, 194, 206, 268 Business partner and opportunity
define, 166 management, 40
wizard, 166 Business partner data, 301, 302
Active service, 45 Business transaction categories
Activity describe, 210
planned, 84 Business transaction category, 152
Address format standardization, 307 assign, 154
Address list, 351 describe, 176, 273
Address management software, 302, sales, 178
305, 306, 310 service, 177
After-sales, 27 Business transactions, 324
After-sales activity, 329 Business transaction type
After-sales service, 27, 28 complaint, 211
Analysis and planning, 42 Buyers’ market, 20
Application Management, 283, 363
Approval process, 85
Assembly, 139 C
ATP check, 149
Attribute Call center, 34
customer-specific, 142 Campaign
Attribute assignment, 123 concluded, 355
Authorization, 244 trigger, 353
Authorization object Campaign management, 349
CRM_CONFIG, 66 Case attribute, 230
SCMG_LVL, 233 Case closing profile, 234
S_SCMG_CAS, 233 Case management, 60
Authorization profile, 244, 245 Case/Task, 334

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Index

Case type, 228 Contact Event Manager (CEM), 110


Catalog, 213 Contact person, 137
Change charter, 294, 295 create, 137
Change management, 279, 284, 290, Contact routing, 109
294, 364, 366 Contract management, 48
instruments, 286 Controlling, 69
procedure model, 292 Control mechanisms, 19, 24
Change plan, 295 Copying control, 181, 190, 195, 212,
Change process, 287 258, 275
Change programs, 295 Corporate account, 143
Closing a case/task, 345 Corporate philosophy, 20
Code and code group, 213 Credit limit check, 75, 149
Code group profile, 214 CRM, 19, 329
Communication, 39 analytical, 24
Communication channel, 87 operational, 24
Interaction Web Client, 87 strategic, 24
Internet-based Customer Self-Service, CRM phases
87 engagement, 37, 38
SAP Mobile Service, 87 fulfillment, 37, 40
Complaint service, 37
close, 198 transaction, 37, 39
create, 197 CRM strategy, 279
evaluate, 199 CRM vision, 279
process, 198 Cross-selling, 34
Complaint process, 82 Customer, 135
Complaint processing, 80 Customer dissatisfaction, 347
process flow, 81 Customer-facing organization, 135
Complaint scenarios Customer Factsheet, 334
identify, 222 Customer feedback, 346
Complaints management, 336 Customer focus, 20
closing a case/task, 344 Customer Interaction Center, 111, 332
creating a case/task, 337 functional areas, 332
customer case/task, 336 user interfaces, 332
facts, 342 Customer lifecycle, 22, 23
fast entry, 337 risk phases, 22
proactive, 221, 347 Customer loyalty, 21, 33
processing a case/task, 343 Customer retention, 21
reactive, 195 cost-related benefits, 22
Complaints mangement customer attachment, 21
transaction data, 341 customer binding, 21
Complaints processing, 60 sales-related benefits, 21
Component enhancement, 66 stability-related benefits, 22
Computer aided selling (CAS), 31 Customer satisfaction, 21, 348
Concentration efforts, 329 Customer Self-Service
Condition, 171, 189, 195 Internet-based, 88
Configuration management, 364, 367 Customer service, 48

376

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Index

Customer support, 48 E
Customizing, 151, 188, 194, 199, 223,
228, 238, 250, 261 Enhanced Workbook, 63
header level, 155 Escalation model, 340
E-service, 59
External list management (ELM), 313
D
Data F
classifying, 300
cleanse, 305, 313 Field service, 49, 183
Data errors, 300 Field Service, 190
Data mining, 20 Follow-up phase, 297
Data quality, 279, 299, 300, 313 Forwarded, 335
project phase, 314 Framework enhancement, 66
standard, 318 Fuzzy search, 307, 310, 311
Data warehouse, 20
Date profile, 162, 189, 194, 204, 267
Date rules
G
configure, 163
Date type, 240 Goal criteria
determine, 164 qualitative, 26
Debit memo quantitative, 26
send, 261 Goodwill, 346
Delivery of a different product, 87 Goodwill costs, 342
Depot repair, 50 Gradual implementation, 279
Design, 316
Detailed data, 137
Development and implementation
phase, 296
H
Development test, 322 Heuristic rules, 308
Differentiation factor, 28 Hierarchy creation, 68
competition, 29
Differentiation range, 29
Direct link, 133
Dropdown list, 135
I
Duplicate pairs, 303 ID, 137
Duplicate record, 304 Implementation
Duplicates gradual, 279
check, 312 methodical, 281
identification of, 311 Incident management, 364, 365
potential, 302, 309 Infotype
Duration Business Role, 129
specify, 164 In-house, 183
Initial priority, 340
Input help, 135

377

206_Book.indb 377 2/3/09 9:32:19 AM


Index

Installation, 58 M
Installed base, 47, 67, 139
Installed base management, 47 Maintenance planning, 54
Integration of measuring devices, 76 Marketing, 38
Integration test, 322 Market stagnation, 330
Intelligent Solution Database, 218 Mass manufacturer, 330
Interaction Web Client, 87 Mass processing, 115
Internet-based Customer Self-Service Master data, 67
Center, 88 Material flow, 81
Invoice Mentoring strategy, 291
create, 150, 188, 194, 250 Methodical implementation, 281
send, 261 Microsoft Outlook, 105
Invoice correction, 85 Mobile service, 104
Item Mobile service order management
Customizing, 177, 211, 273 process flow, 106
Item category, 175, 176, 189, 195, 209, Mobile service processing, 59
272 Mobilization phase, 295
define, 176, 210, 272 Must have, 28, 29
Item category determination, 178, 189, My Group, 335
195, 211, 256, 274 My Tickets, 335
Item level, 67
ITIL, 363
IT Infrastructure Management, 363
N
Namespace, 128
K Navigation bar profile, 132
Need to have, 28, 29
Key performance indicator (KPI), 78 Nice to have, 28, 29
Notes, 69
Number range, 137
L
Lead management, 38 O
Lemon Law, 222
Letter campaign, 351 Object description
Level enhanced, 129
operational, 20 Object list, 95
strategic, 20 Objects, 241
Link Online integration interface (OII), 110
for work center, 133 Operational level, 20
group of direct, 133 Order acquisition, 40
logical, 133 Ordering of an incorrect product, 87
Location, 242 Order management, 47
Logical link, 133 Organizational model, 121
Logistical integration, 75 Organizational model maintenance, 129
Lotus Notes, 106 Organizational node, 126

378

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Index

Organizational plan, 121 mobile service order management, 106


Organizational structure, 121, 123 product update, 90
sales, 123 product update with product service
service, 123 letters, 90
Organizational unit, 121 service and repairs processing (field
Original Equipment Manufacturer, 330 service), 191
Over-delivery, 87 service and repairs processing (in-
house), 183
service case management, 226
P service contract management, 248
service contracts, 93
Parameters for the interaction history, service order management, 70, 148
351 service resource planning, 98, 236
Parsing, 308 warranty management, 259
Partner determination, 67 warranty processing, 78, 79
Partner determination procedures, 158, Process and documentation flow, 325
188, 194, 203, 253, 263 Processing type
Partner function category, 241 method call, 170
Partner functions, 159 Product
Personal Task, 335 register, 248
PFCG, 127 return, 187
Planned activity, 84 Product configuration management, 47
Planning to Implement Service Product proposal, 68
Management, 363 Product proposals, 38
Position, 122 Product service letter (PSL), 88
Postal directory, 305 process flow, 90
Pre-sales, 27 Product update, 89
Price accumulation, 68 process flow, 90
Price error, 87 Progress monitoring, 326
Pricing, 68 Project definition, 315
Priority, 339 Project plan, 314
Problem Project risk management, 291
log, 184, 196, 237 Prototype
Problem and solution type, 218 detailed, 283
Problem management, 364, 366 horizontal, 284
Problem subtype vertical, 283
define, 219
Problem type
define, 219 Q
Procedure model, 279
defined, 281 Qualification management, 243
Process Qualification scale, 243
complaint processing, 81 Qualifications catalog, 244
complaints management, proactive, Quality gate, 284
222 Quantity assignment, 38
complaints management, reactive, Quantity check, 83
196 Quantity confirmation, 83

379

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Index

Quantity determination, 83 Sales stage


Quotation after-sales, 27
create, 148 pre-sales, 27
sales, 27
SAP Business Communication Center,
R 109
SAP Business Communication
Rapid prototyping, 283 Management (BCM), 109
Reactive service, 45 integration with, 114
Recall, 90, 91 integration with SAP CRM, 110
prepare, 350 softphone, 112, 113
Recall Cockpit, 350 SAP CRM, 35, 53
Recall management, 348 architeture, 61
Recall report, 355 SAP CRM 2005, 35, 62
Reference documents, 83 SAP CRM 2006s/1, 35
Reference object, 67 SAP CRM 2006s/2, 35
assign, 163 SAP CRM 2007, 35, 63, 147
Release management, 364, 366 SAP CRM Roadmap, 35
Repair cycle, 48 SAP CRM Service, 42, 43
Repair request SAP CRM system, 349
accept, 191 SAP ERP, 31, 147
Repairs processing, 150, 183 integration with, 96
Requirements analysis and definition, SAP ERP CS, 53
315 SAP ERP Financials, 188
Return authorization, 84 SAP Mobile Service, 88
Role SAP NetWeaver Business Intelligence
bill-to party, 137 (BI), 57, 69, 96
employee, 130 integration with, 96
payer, 137 SAP SCM, 31
service manager, 149 SAP standard function, 188, 194
ship-to party, 137 Satisfaction survey, 297
sold-to party, 137 SD, 147
Role configuration key, 131 Search, 335
Rollout Search criteria, 138
parallel, 314 Search function, 139
Routing management, 116 Security Management, 363
RSS feed, 64 Segment Builder, 38
Runtime Repository, 66 Selection time range, 240
Selective service, 45
Sellers’ market, 20
Seller warranty, 68
S
Service, 329
Sales, 27 conduct, 150, 186, 193, 250, 259
Sales force automation (SFA), 31 Service and report
Sales installation order, 55 execution, 56
Sales order, 147 Service billing, 56

380

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Index

Service case Service quotation, 71


analyze and classify, 227 expiration analysis, 72
close, 227 pipeline analysis, 72
evaluate, 228 success analysis, 72
open, 227 Service quotation and service order
process, 227 create, 185, 192
Service confirmation, 187 Service resource
Service contract, 45, 58, 92, 93, 149 implement, 238
create, 248 plan, 237
determine, 237 Service resource planning, 97, 122
process flow, 93 analysis of qualifications, 103
release, 250 analysis of service orders, 104
Service contract determination, 74 process flow, 98
Service contract management, 45, 94 resource-based analysis, 103
Service Delivery, 363 Service sales, 44, 57
Service desk, 364 Service Support, 363
Service employee, 185, 191 Service technician, 150, 250
Service level Service type, 44
defined, 95 active service, 45
Service management, 25 reactive service, 45
Service management cycle selective service, 45
analyze, 43 Set type
collaborate, 43 customer-specific, 142
optimize, 43 Shipping, 41
Service marketing, 44 SLA, 58
Service operations, 54 escalation, 59
Service order, 72, 147 monitoring, 59
confirm, 149 Solution Database, 218
create, 149, 237 intelligent, 218
Service order management, 69 Solution subtype
process flow, 70 define, 220
Service order processing Solution type
analysis of service processes, 78 define, 220
resource-oriented analysis, 77 Sources of error, 299
Service parts management, 52 Spare part, 139
Service plan, 73 Stakeholder analysis, 289, 291
Service planning, 56 Standard interface, 303
Service portfolio, 28 Start condition, 173
Must have, 28, 29 Status, 339
Need to have, 28, 29 Status management, 69
Nice to have, 28, 29 Strategic level, 20
Service process, 121 Strategy for growth, 330
Service processing, 150 Subject, 215
mobile, 59 Success factors
Service product, 144 critical, 277
Service profile, 239 general, 278
Service quality, 78

381

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Index

T Up-selling, 34
User
Technical objects, 58 create, 124, 125
Technical support, 327 User assignment, 245
Templates, 68 User role, 121, 127
Territory and activity management, 39
Test cases, 325
Test concept, 323 V
Test environment, 323, 324
Test implementation, 324, 325 Validation
Test management, 324 postal, 307, 311, 312
Test model, 321 Vehicle, 334
Test phase, 323 Views
Test preparation, 324 adjust, 130
Test scripts, 325 VIN, 350
Test strategy, 279, 320 V-Model, 322
Text determination procedures, 216
Training aids, 296
Training materials, 296 W
Transaction
BP, 125 Warranty
BSP_WD_CMPWB, 66, 130, 135 confirm, 261
COMM_ATTRSET, 142 create, 260
COMM_HIERARCHY, 139 register, 248
CRMM_UIU_PROD_CONFIG, 142 send, 261
EEWB, 135 Warranty agreement, 149, 188
PFCG, 128 Warranty and claim management, 51
PPOCA_CRM, 122 Warranty case, 342
PPOMA_CRM, 122, 126, 129 Warranty processing, 78
PPOMA_CRM or PPOCA_CRM, 122 process flow, 79
SU01, 125, 128 Warranty product, 144
Transaction type, 151, 152, 188, 194, Warranty service, 74
200, 250, 261 Web applet, 64
define, 153 WebClient, 332
Transportation, 41 Web GUI, 135, 246
Wildcard search, 303
WinClient, 332
U Wizard, 159
Work center, 133
UI, 36, 63, 65 Worklist, 335, 343
UI configuration, 142
UI Configuration Tool, 64, 65
Under-delivery, 86 X
Unique selling point, 331
Unplanned service XIF interface, 76
explanation, 55
ticket, 54

382

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