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Configurator Application Selection Process. Why Do This?. Necessary to set a foundation for comparison based on good business practice and need Need for consistent and repeatable process - PowerPoint PPT Presentation
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Configurator Configurator ApplicationApplicationSelectionSelectionProcessProcess
Why Do This?
• Necessary to set a foundation for comparison based on good business practice and need
• Need for consistent and repeatable process
• Implemented configurator applications for many customers in specific industries and found subtle use differences:– High Tech
– Complex product manufacturers
– Automotive manufacturers
– Heavy equipment manufacturers
– Telecommunication
– Services organizations
What is a Configurator?
Configurators…. How Do They Work? What’s the Difference?
Where/when/how is a Configurator used
“Upgrade” Configuration
• Educate user on product capabilities and features• Assist user in finding appropriate solution
• Educate user on product capabilities and features• Assist user in finding appropriate solution
• Generate complete solution consisting of
equipment, service &
financing• Include CAD drawings, sequence of operations, images
• Generate complete solution consisting of
equipment, service &
financing• Include CAD drawings, sequence of operations, images
• Configure components of the complete solution • Create 100% buildable and shippable equipment which matches customers needs and existing environment.
• Configure components of the complete solution • Create 100% buildable and shippable equipment which matches customers needs and existing environment.
• Create Order specific Bill of Material and Routings• Schedule work orders• Re-configuration for order changes• Provide update for after market support for As-build/ as-shipped information (Installed Base)
• Create Order specific Bill of Material and Routings• Schedule work orders• Re-configuration for order changes• Provide update for after market support for As-build/ as-shipped information (Installed Base)
• Manage installed base information• Create upgrade configuration
• Manage installed base information• Create upgrade configuration
After MarketSupportAfter MarketSupport
ProduceProducts & Ship
ProduceProducts & Ship
Configure& QuoteConfigure& Quote
ProposalConfigurationGeneration
ProposalConfigurationGeneration
GuidedSellingGuidedSelling
Product Configuration
Sales/Solution Configuration
R
R
Collaboration with TSC
There are many known solutions
R
There are many less celebrated & 2nd Tier ERP, CRM & PDM providers
This is Not Like ERP –
No standard for comparisonNo standard for comparison• Each supplier offering is uniqueEach supplier offering is unique
– Sales Configurator • with interfaces to Back Office• May create a Bill of Material
– Manufacturing focus with some Sales capability– CRM based configurator is usually a “lite” version– MRP based configurator’s are historically Back Office focused
• Changing to include Sales and Guided Selling
• Application approach and architecture are differentApplication approach and architecture are different– Guided Selling / Needs Analysis– Mobile and web based deployment– Sales, quotation and proposal generators– Generation of BoM, Routings
• Security differs with each applicationSecurity differs with each application• Apply to many differing implementation/use scenariosApply to many differing implementation/use scenarios
– ERP– Standalone or Best of Breed– SCM – CRM – PDM
Configurator Selection
What is the process?
What is the process?
• You are familiarYou are familiar with this process if you have with this process if you have been on a selection team, but…been on a selection team, but…
– Configurator applications are not mature so there are Configurator applications are not mature so there are few standardsfew standards
– The players are unique and some offer superior product The players are unique and some offer superior product vs. othersvs. others
– A few suppliers offer industry specific User InterfacesA few suppliers offer industry specific User Interfaces– Most suppliers are small except for ERP companiesMost suppliers are small except for ERP companies
• all are hungry for new business• most offer incentives to buy
– The terminology is not the same between suppliers and The terminology is not the same between suppliers and meanings vary greatly…. It is confusingmeanings vary greatly…. It is confusing
– Each supplier offers a unique view of the marketEach supplier offers a unique view of the market• Some offer only web based solutions• Some offer only sales oriented solutions• Some offer manufacturing and sales solutions
But….. Who are they?But….. Who are they?
We can help youWe can help you
What is the process?
• Again, you may have done some of this before…Again, you may have done some of this before…
– Assemble and organize a selection team that contains Assemble and organize a selection team that contains many disciplines including: Sales, Marketing, IT, many disciplines including: Sales, Marketing, IT, Engineering, and anyone having vested interestEngineering, and anyone having vested interest
• Setup a Project Management Organization • Setup needed communications• Determine approvals• Determine progress • Etc…
– Review requirements as they are documented todayReview requirements as they are documented today• Else create configurator requirements
– Initiate a Blueprint process including:Initiate a Blueprint process including:• Review what you do today with an “As-Is”• Determine where you want to be next year and the year after with a
“To-Be”
What is the process?
• Provide you with advice about the availability of Provide you with advice about the availability of configurator software applications in the market today configurator software applications in the market today – How do these match what you do
• Work with you to get to a “short list” quicklyWork with you to get to a “short list” quickly– Usually in a week once requirements are known
• Determine the steps to evaluate each supplierDetermine the steps to evaluate each supplier– Begin with Existing requirements– Add our Best Practices requirements– Determine importance of each requirement– How to Score results– Selection process and who makes the decision
• Vendor/supplier review processVendor/supplier review process– Invitation and rules of the game in the selection– 3 to 4 day in-depth, on-site demonstration for each supplier– You score what you have seen based on your requirements
What Criteria is used?
It’s not just the software
Criteria for evaluation - Application
• Core Functionality• Modeling Environment• Architecture• Integration• User Interface
Best Practice definition: Application
• Core Functionality – Bi-directional, multi level
configuration is 100 % supported– Effective dates are supported and
usable throughout the application – Seamless integration between
product configuration and complex pricing
– Seamless integration between product configuration and guided selling
– Complex arithmetical calculations standard inside the application
– Multiple resources can work on one model simultaneously
– Knowledge Base constructs can be defined globally and reused in multiple models
– Where used capabilities available– Use of tables for data driven
modeling approach– …..
• Modeling Environment – Graphical, web based modeling
environment– No programming skills required for
80+% of rules
• Architecture– Support for mobile, web, and other
deployment scenarios including delta download
– Extension capabilities to access other applications/ data
– API’s in place for deployment flexibility
• Integration– Connectors to all main ERP packages
available
– XML based data structures
• User Interface– Data driven UI generation– UI controls part of Knowledge base
Criteria for evaluation - Organization and Management
• Organization & Staffing• Domain Knowledge• Financial Stability• Partner Network• Future Direction
• Organization & Staffing– Proven implementation methodology– Successful implementations across a wide
range of industries– Sufficient number of R&D resources
• Domain Knowledge– Core Management and key employees
have less than 3+ years of experience in configuration technology
– Track record in successful product configuration implementations
• Financial Stability– Length of time in business– Profitability in software vs. consulting– Positive or Negative earnings– High cash burn rate– Cash position
• Partner Network–Strategic partners for hardware, complementary software and services
• Future DirectionFuture release path in place for multiple releases
Best Practice - Organization and Management
We help YOU make the decision
• We work with you to evaluate the scoringWe work with you to evaluate the scoring
– Guide you to a group decision on scoring each Guide you to a group decision on scoring each requirement for each supplierrequirement for each supplier
– Since we are participants in the supplier demonstrations Since we are participants in the supplier demonstrations we have an insight that is unmatchedwe have an insight that is unmatched
• We have done this before• We have implemented many of these applications • We understand many of the “differences” or their unique features• We understand the technical side of modeling, the architecture, the
maintenance after the sale, etc.
• We can help determine the Total Cost of Ownership [TCO]
– Develop a work product that you can understandDevelop a work product that you can understand• Excel spreadsheet scoring• Visual comparisons for senior management• Final report
Scoring Example
Core Functionality •Bi-directional, multi level configuration is 100 % supported• Effectivity dates are supported and usable throughout the application • Seamless integration between product configuration and complex pricing • Seamless integration between product configuration and guided selling• Complex arithmetical calculations standard inside the application•Multiple resources can work on one model simultaneously• Knowledge Base constructs can be defined globally and reused in multiple models• Where used capabilities availableModeling Environment •Graphical modeling environment•No programming skills required for 80+% of rulesArchitecture• Support for mobile, web, and other deployment scenarios incl. Delta download•API’s in place for deployment flexibilityIntegration• Connectors to all main ERP packages available •XML based data structures User Interface• Data driven UI generation• UI controls part of Knowledge base
BestPractices
Business Risk
0 1 2 3 4 5Core Functionality •Bi-directional, multi level configuration is partially supported• Effectivity dates are supported and usable for most objects • Integration between product configuration and complex pricing • Integration between product configuration and guided selling• Some complex arithmetical calculations standard inside the application•Multiple resources can work on one model simultaneously with coordination effort• Most Knowledge Base constructs can be defined globally and reused in multiple models• Some where used capabilities availableModeling Environment •Graphical modeling environment•No programming skills required for 60+% of rulesArchitecture• Support for most deployment scenarios •API’s in place for deployment flexibilityIntegration• Connectors to most ERP packages available •XML based data structures User Interface• Data driven UI generation
Core Functionality •Bi-directional, multi level configuration is not supported• Effectivity dates not supported and usable for most objects • No out of the box integration between product configuration and complex pricing • No out of the box integration between product configuration and guided selling• No complex arithmetical calculations standard inside the application•Only one resource can work on one model simultaneously• Knowledge Base constructs cannot be defined globally and reused in multiple models• No where used capabilities availableModeling Environment •No Graphical modeling environment•Programming skills required for 60+% of rulesArchitecture• Support for some deployment scenarios •No API’s in place for deployment flexibilityIntegration• Connectors to ERP packages not available •XML based data structures User Interface• No Data driven UI generation
Vendor A (3.81)
Vendor Y (3.80)
Vendor D (3.18)
Vendor Z (2.67)
Vendor C (3.09)
Vendor B (3.07)
Vendor X (4.04)
Putting the Pieces TogetherLeading to Consistent Results
Oracle
Question Vendor Response Score CommentsModeling Environment
Do you support a graphical product modeling environment ?Please explain the syntax and complexity of your product configuration rules ? (i.e. does a product modeler need to have programming skills ?)Can multiple resources work on a single model ?Do you support a web based product modeling environment ?Do you provide a trace capability to “debug” your product configuration rules ?
If yes, what tool sets do you provide to analyze the trace information ?
Do you support “where used” capabilities in order to understand where a product attribute or rule has been allocated to ?Do you support Development, QA and Production Instances of your software?Is your modeling environment customizable?
EngineeringDoes the change process support different statuses (released to Engineering, blocked, released to sales, etc)?Does your configurator support a Special Engineering Request (SER) or ETO process; (i.e. once an initial configuration is complete, can you place a block on its release and forward to Engineering for approval and modification)?
Total Score 0Modeling Environment Score 0.00
Explanation of score5 Our of the box 5 Excellent4 Requires Customization 4 Very Good3 Requires minor development 3 Good2 Requires significant development 2 Average1 Future release 1 Marginal0 Unsupported 0 Unsatisfactory
Revenue / Earnings (millions)Year Revenue Income1999 21.4 -15.32000 35.6 -27.82001 29.2 -140.7
Year end: 03/31
Revenue / Pre-tax income
-150
-100
-50
0
50
1999 2000 2001
Year
Millio
ns
Revenue
Income
Table of Contents
1 EXECUTIVE SUMMARY ............................................................................................................. 3
Overview and High Level Summary................................................................................................... 3Overall ranking results...................................................................................................................... 5Key observations per vendor ............................................................................................................. 6Calico............................................................................................................................................... 6Comergent ........................................................................................................................................ 6Cybrant ............................................................................................................................................ 7Firepond........................................................................................................................................... 7Oracle .............................................................................................................................................. 8Siebel................................................................................................................................................ 8
2 INTRODUCTION......................................................................................................................... 10
3 PROJECT OBJECTIVES ............................................................................................................ 10
Appendix B : High Level Vendor Overview .................................................................................. 29
•Multi level configuration is only partially supported• Effectivity dates are only partiallysupported and usable throughout theapplication• Supports most complex pricingcapabilities• Integration between product configuration and complex pricing• Integration between product configuration and guided selling• Some complex arithmetical calculations standard inside the application• Limited graphical modelingenvironment• Support for mobile, web, and other deployment scenarios incl. delta download• Connectors to most main ERP packages available• Multiple resources can work on one model simultaneously with coordination effort• Most knowledge Base constructs can be defined globally and reused in multiple models• Where used capabilities available formost objects
• Multi level configuration is 100 % supported• Effectivity dates are supported and usable throughout the application• Supports complex pricing capabilities• Seamless integration between product configuration and complex pricing• Seamless integration between product configuration and guided selling• Complex arithmetical calculations standard inside the application• Graphical modeling environment• Support for mobile, web, and other deployment scenarios incl. delta download• Connectors to all main ERP packages available• Multiple resources can work on one model simultaneously• Knowledge Base constructs can be defined globally and reused in multiple models• Where used capabilities available
BestPractices
Business Risk
Trilogy
Selectica
Firepond
Oracle
Siebel
Calico
Cybrant
Comergent
0 1 2 3 4 5•Multi level configuration is only partially supported• Effectivity dates are only partiallysupported and usable throughout theapplication• Supports most complex pricingcapabilities• Integration between product configuration and complex pricing• Integration between product configuration and guided selling• Some complex arithmetical calculations standard inside the application• Limited graphical modelingenvironment• Support for mobile, web, and other deployment scenarios incl. delta download• Connectors to most main ERP packages available• Multiple resources can work on one model simultaneously with coordination effort• Most knowledge Base constructs can be defined globally and reused in multiple models• Where used capabilities available formost objects
What does this mean to you?
• Have a standard for comparison• Provide a fair, unbiased evaluation of suppliers• Eliminate the fluff and vacant promises• Able to “see through” the suppliers sales hype• Compare real-life business issues in each vendor review• Consistent and repeatable• Includes customer requirements• Results in a more robust and complete solution:
– “Best Fit”• Architecture• Modeling• Core functionality
– Company viability– Ongoing Costs are known– ….
• “Done it Before” expertise and experience
