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Siebel 7.

8 Delta Technical Training
Customer Order Management
Pricing Management

Module 00: Siebel 7.8 Pricing Management Overview

Module Objectives

After completing this module you will be able to:
Describe key capabilities and enhancements in the Siebel 7.8 Pricing Management Solution Map List Siebel 7.8 Pricing Management course sequence

SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.

DUPLICATION IS PROHIBITED. Pricing Management Solution Map Price Administration Process-driven Pricing Price Lists / Volume Discounts/Cost Lists Attribute Adjustments Discount Matrix Account & Product Hierarchy Discounts Price Execution Sales BOM / Configurable Product Pricing Promotion Pricing Price Waterfall Price Planning Price Analytics Dashboard Price Waterfall Analysis Price Enforcement Discount Negotiation Action Based Pricing Contract Compliance Discount Approvals Centralized Validation Rules SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.Siebel Customer Order Management Order Lifecycle Management Mobile Excel Spreadsheets Quotes Customer Assets Contracts Orders Pricing Management Price Price Administration Execution Price Planning Price Enforcement Access Databases Call Center Product & Catalog Management Product Product Selection Configuration Deploy Catalogs Define Offerings Billing Systems Retail POS Manufacturing Systems Web External Applications Customer Information Partners Account Opportunity Contact Legacy SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. .

k.New . Reusable pricing sub-procedures Higher profits from personalized prices across all channels Reduced time and cost of changes to pricing policies Higher customer satisfaction due to accurate and consistent pricing Example of a typical pricing procedure SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION.a Pricing Procedure) Ability to implement an agile pricing policy to respond to changing market and customer dynamics Why Features Benefits Difficult to change pricing logic in response to the market conditions Poor coordination of pricing across channels Pricing cannot be personalized for customers/partners/channel Configurable pricing process Graphical interface-driven pricing process definition. DUPLICATION IS PROHIBITED. (a.Configurable Pricing Policy Admin. Enhanced – Price List Administration Enhanced price list transformation Introduction of line-level effectivity dates Pricing logic to reduce the time to market for new products SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. . DUPLICATION IS PROHIBITED.

New – Attribute Adjustments Administration Provides the ability to setup pricing rules based on product or contextual attributes such as product color. SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. . DUPLICATION IS PROHIBITED. Support for custom/legacy sources of data. Price adjustments at different levels of hierarchy. and so on in a table-driven UI interface Multi-purpose attribute adjustments Multiple comparison operators against an attribute Multiple sources of attribute domain Non-enumerated attribute values SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED. account type. New – Discount Matrix Administration An administrative framework that allows customers to establish and manage prices and discounts for products in conjunction with other customer and market factors Tabular price adjustment definition.

DUPLICATION IS PROHIBITED.Account and Product Hierarchy Discount Administration Ability to negotiate or establish discounts at different levels of the customer account hierarchy For example. Customizable Product . . a company that sells laptops offers the following discounts to the XYZ Corporation Account Hierarchy: Account XYZ Corporate XYZ South America XYZ Chile Product Laptop Laptop Laptop Adjustment Type Discount % Discount Amount Price Override Adjustment Value 5% $100 $2500 Or.New . the same company could offer discounts at different levels of the product hierarchy: Product Class Computer Systems Personal Computing Laptops Adjustment Type Discount % Discount Amount Discount % Adjustment Value 5% $50 3% SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION.BOM Pricing Features Why Component-based pricing Sales BOM-specific prices Relationship-based price adjustments Sales BOM-level pricing logic Benefits Pricing Sales BOM /configurable products is very time-consuming Unable to execute Sales BOM-specific pricing Reduce time to market for configurable products / Sales BOM Increase revenues through the ability to create a wider range of product offerings Price in a Sales BOM Price if ordered Standalone SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.

for all products in a class.New – Promotional Discount Administration Product promotion allows users to define adjustments which are applied when the promotion is applied to line item The adjustment can be a default adjustment which is applied to any selected product. or for a product line SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. or it may be specified for a particular product. New – Price “Waterfall” Siebel Pricing Management delivers a “price waterfall” that provides an insight into derivation of the final net price based on the different types of applied adjustments and their respective sequence Sales representatives can consistently and accurately communicate the applied discounts to the customers. DUPLICATION IS PROHIBITED. DUPLICATION IS PROHIBITED. Drilling down on net price shows pricing waterfall SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. .

99 plan Action Code Disconnect Suspend Move Modify Description Cancel Wireless Service Prematurely Suspend the Cable Service for a certain period of time Move the DSL line to a new address Update the service with roaming capabilities Price Impact $200 Disconnect Fee $15 Suspension Fee $30 Change of Address fee No Charge SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. or the entire document Specify discount three different ways: New Target (e. “Will take $10 off these items”) Discount Percentage (e. Benefits Highly usable.g.g.g. New – Action Based Pricing Benefits Why Features Loss of revenue due to early customer terminations/cancellations Poor customer satisfaction by charging customers for services they already paid for Ability to price transactions based on Order Type or Action Code of the line items Ability to define the action codes that will be used to roll up the prices Reduce revenue leakage by better enforcement and tracking of customer contracts/commitments Increase revenues from installed base through charges for different services Product $59. . “Will give these to you for $100”) Discount Amount (e. DUPLICATION IS PROHIBITED.99 plan HBO Prime Package DSL $39.Price Negotiations with Automated Spreading of Discounts Set target by selecting product line. “Will take 15% off these items”) Why Features To address complex requirements for applying discounts. flexible and fast capability for applying manual discounts while enforcing pricing policies SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. single or multiple line items. DUPLICATION IS PROHIBITED.

Service Requests. Consistent Pricing Through Approvals Routing Why • Revenue leakage due to rogue pricing/discounting • Inconsistent discounting policies across the sales organization Use Scenario: Order needs Approvals before submission Features • Route any transactional object (Agreements. Discount levels require Manager's approval.) • Route in sequence or parallel • Monitor approval status Approval Verification Cannot submit order without approvals. . 2004 and ends on Dec. DUPLICATION IS PROHIBITED. etc. 2004 Accept Reject Orders Customer Service Terms & Conditions Contract Management Increase revenue by enforcing penalties Decrease costs by reducing potential litigation SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.Enhanced – Contract Pricing Enforcement Why Lack of ability to track contract violations results in revenue leakage Keep your customers Confirm Penalty Reduce revenue Contract Compliance Customer Contract Compliance Litigation resulting from poor contract compliance Features Track contract terms and conditions Flexible penalty calculation and enforcement Contract renewal Benefits leakage By attempting to delete the following items: -Wireless 1000 Plan -Wireles Web You are violating the 1-Year Contract which began on Janunary 1. Accept Reject Benefits • Reduce revenue leakage due to rogue pricing • Reduce the Agreement negotiation cycle time. SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. 31.

DUPLICATION IS PROHIBITED. DUPLICATION IS PROHIBITED. . market share impact of a price change Features • Margin analysis • Revenue distribution • Price Elasticity Benefits • Set Prices to optimize on business objectives: revenue. profit. or market share SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. Quote-to-Cash cycle is very long because of Quote/Order errors Features Centralized administration of validation rules Order Validation There is no Price List associated with this Order Accept Reject Declarative validation rule definition Custom validation error messages Benefits Reduce Quote/Order error rates Reduce Quote-to-Cash cycle time SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION.Reduce Errors and Order Rework Through Real-time Validation Why Use Scenario: Discount levels exceed the allowed levels. Pricing Analytics Dashboard to Determine Impact of Price Changes Why • Cannot determine the right price • Unable to quantify the revenue. profit.

.Visibility into Discounts that Erode Profits Through Price Waterfall Analysis Why • Do not know the causes of low margins • Unable to determine promotion and discounting effectiveness Features Multi-customer comparison Discount and promotion analysis Pocket price Benefits • Determine promotion and discount effectiveness • Identify discounts eroding profits SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED. DUPLICATION IS PROHIBITED. Pricing Management Course Roadmap Siebel 7.8 Pricing Management Overview Pricing Management Architecture Price List Admin & Flexible Line Item Pricing Attribute Adjustments Pricing Customizable Products Discount Matrices Aggregate Discounts & Promotion Pricing Hierarchical Discounts for Accounts & Products Quote Validation & Approvals Understanding the Price Waterfall SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION.

.Summary This module showed you how to: Describe key capabilities and enhancements in the Siebel 7.8 Pricing Management course sequence SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION.8 Pricing Management Solution Map List Siebel 7. DUPLICATION IS PROHIBITED.