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Siebel 7.8 DeltaTechnical Training
Customer Order ManagementPricing Management
Module 00:Siebel 7.8 Pricing
Management Overview
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
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
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SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
Siebel Customer Order Management
Product & CatalogProduct & Catalog
ManagementManagement
ProductSelection
ProductConfiguration
DefineOfferings
DeployCatalogs
Order Lifecycle ManagementOrder Lifecycle Management
Quotes
OrdersCustomer Assets
Contracts
PricingPricing
ManagementManagement
PriceAdministration
PricePlanning
PriceExecution
PriceEnforcement
Customer InformationCustomer Information
Account Opportunity Contact
Mobile
Call Center
Web
Partners
Retail POS
ExcelSpreadsheets
AccessDatabases
BillingSystems
ManufacturingSystems
ExternalApplications
Legacy
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Pricing Management Solution Map
Price AdministrationProcess-driven PricingPrice Lists / Volume Discounts/CostListsAttribute AdjustmentsDiscount MatrixAccount & Product Hierarchy
Discounts
Price Planning
Price Analytics DashboardPrice Waterfall Analysis
Price Enforcement
Discount NegotiationAction Based PricingContract ComplianceDiscount ApprovalsCentralized Validation Rules
Price Execution
Sales BOM / Configurable ProductPricingPromotion PricingPrice Waterfall
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New -Configurable Pricing Policy Admin.(a.k.a Pricing Procedure)
Ability to implement an agile pricing policy to respond to
changing market and customer dynamics
Example of a
typical pricingprocedure
Higher profits from personalizedprices across all channels
Reduced time and cost of changesto pricing policies
Higher customer satisfaction due toaccurate and consistent pricing
Difficult to change pricinglogic in response to the
market conditions
Poor coordination of pricingacross channels
Pricing cannot bepersonalized for
customers/partners/channel
Configurable pricing process
Graphical interface-drivenpricing process definition.
Reusable pricingsub-procedures
Why Features Benefits
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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
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New Attribute Adjustments Administration
Provides the ability to setup pricing rules based on product or
contextual attributes such as product color, account type, andso 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
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New Discount Matrix Administration
An administrative framework that allows customers toestablish and manage prices and discounts for products inconjunction with other customer and market factors
Tabular price adjustment definition.
Price adjustments at different levels of hierarchy.
Support for custom/legacy sources of data.
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New- Account and Product HierarchyDiscount Administration
Ability to negotiate or establish discounts at different levels of the customeraccount hierarchy
For example, a company that sells laptops offers the following discounts to the XYZ
Corporation Account Hierarchy:
Or, the same company could offer discounts at different levels of theproduct hierarchy:
$2500Price OverrideLaptopXYZ Chile
$100Discount AmountLaptopXYZ South America
5%Discount %LaptopXYZ Corporate
Adjustment ValueAdjustment TypeProductAccount
3%Discount %Laptops
$50Discount AmountPersonal Computing
5%Discount %Computer SystemsAdjustment ValueAdjustment TypeProduct Class
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
Customizable Product - BOM Pricing
Reduce time to market for
configurable products /
Sales BOM
Increase revenues through
the ability to create a wider
range of product offerings
Pricing Sales BOM
/configurable products is
very time-consuming
Unable to execute Sales
BOM-specific pricing
Component-based pricing
Sales BOM-specific prices
Relationship-based priceadjustments
Sales BOM-level pricing logic
Why
Features
Benefits
Price if orderedStandalone
Price in aSales BOM
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New Promotional Discount Administration
Product promotion allows users to define adjustments whichare applied when the promotion is applied to line item
The adjustment can be a default adjustment which is applied toany selected product, or it may be specified for a particularproduct, for all products in a class, or for a product line
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
New Price Waterfall
Siebel Pricing Management delivers a price waterfall thatprovides an insight into derivation of the final net price basedon the different types of applied adjustments and theirrespective sequence
Sales representatives can consistently and accurately communicate the
applied discounts to the customers.
Drilling down on net price
shows pricing waterfall
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Set target by selecting product line, single or multiple lineitems, or the entire document
Specify discount three different ways:New Target (e.g. Will give these to you for $100)
Discount Amount (e.g. Will take $10 off these items)Discount Percentage (e.g. Will take 15% off these items)
Highly usable, flexibleand fast capability forapplying manualdiscounts whileenforcing pricingpolicies
To address complexrequirements for applying
discounts.
Price Negotiations with AutomatedSpreading of Discounts
WhyFeatures
Benefits
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
New Action Based Pricing
No ChargeUpdate the service with roamingcapabilities
Modify$39.99 plan
$30 Change ofAddress fee
Move the DSL line to a newaddress
MoveDSL
$15 Suspension FeeSuspend the Cable Service for acertain period of time
SuspendHBO PrimePackage
$200 Disconnect FeeCancel Wireless ServicePrematurely
Disconnect$59.99 plan
Price ImpactDescriptionAction CodeProduct
Reduce revenue leakage by
better enforcement andtracking of customer
contracts/commitments
Increase revenues from
installed base through charges
for different services
Loss of revenue due to
early customerterminations/cancellations
Poor customer satisfaction by
charging customers for services
they already paid for
Ability to price transactions basedon Order Type or Action Code of
the line items
Ability to define the action codesthat will be used to roll up the
prices
Why Features
Benefits
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Enhanced Contract Pricing Enforcement
Increase revenue by
enforcing penalties
Decrease costs by reducing
potential litigation
Lack of ability to track
contract violations results in
revenue leakage
Litigation resulting from poor
contract compliance
Track contract terms and
conditions
Flexible penalty calculation
and enforcement
Contract renewal
Why
Features
Benefits
Contract Compliance
Accept Reject
By attempting to delete the following items:-Wireless 1000 Plan
-Wireles Web
You are violating the 1-Year Contract which began on
Janunary 1, 2004 and ends on Dec. 31, 2004
Keep yourKeep your
customerscustomers
Reduce revenueReduce revenue
leakageleakage
CustomerCustomer
Contract ManagementContract Management
CustomerCustomerServiceService
Terms &
Conditions
ContractContractComplianceCompliance
Confirm
Penalty
Orders
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
Consistent Pricing ThroughApprovals Routing
Route any transactional object(Agreements, ServiceRequests, etc.)
Route in sequence or parallel
Monitor approval status
Why
Features
Benefits
Revenue leakage due torogue pricing/discounting
Inconsistent discountingpolicies across the salesorganization
Reduce revenue leakage dueto rogue pricing
Reduce the Agreementnegotiation cycle time.
Use Scenario: Order needs Approvals before submission
Approval Verification
Accept Reject
Cannot submit order without approvals. Discount levelsrequire Manager's approval.
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Reduce Errors and Order Rework ThroughReal-time Validation
Centralized administration ofvalidation rules
Declarative validation ruledefinition
Custom validation errormessages
Why
Features
Benefits
Quote-to-Cash cycle isvery long because ofQuote/Order errors
Reduce Quote/Order errorrates
Reduce Quote-to-Cashcycle time
Use Scenario: Discount levels exceed the allowed levels.
Order Validation
Accept Reject
There is no Price List associated with this Order
SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
Pricing Analytics Dashboard to DetermineImpact of Price Changes
Margin analysis
Revenue distribution
Price Elasticity
Why
Features
Benefits
Cannot determine the rightprice
Unable to quantify therevenue, profit, marketshare impact of a pricechange
Set Prices to optimizeon businessobjectives: revenue,profit, or market share
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SIEBEL CONFIDENTIAL AND PROPRIETARY INFORMATION. DUPLICATION IS PROHIBITED.
Summary
This module showed you how to:
Describe key capabilities and enhancements in the Siebel
7.8 Pricing Management Solution Map
List Siebel 7.8 Pricing Management course sequence