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Presentation Transcript

Case Study: My SAP Implementation at the Associated Press : 

Case Study: My SAP Implementation at the Associated Press Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press

Company Overview: 

Company Overview Founded in 1848, The Associated Press is the oldest and largest news organization in the world, serving as a source of news, photos, graphics, audio and video to the media market and corporations.

About The AP: 

About The AP 1,700 U.S. newspapers 5,000 U.S. radio/TV outlets 8,500 international media customers 500 new media and corporate customers 121 countries served by AP Total 242 bureaus worldwide 3,700 employees worldwide

SAP CRM Initiatives at AP: 

SAP CRM Initiatives at AP Live Sept. 2002 for AP Digital, new media division of AP. Enhancements to AP Digital implementation in 2003 Project organized for Newspaper implementation beginning of 2004. Go live November 2004 By then, CRM will support substantial revenue base for AP.

New Media Market (AP Digital) CRM Implementation: 

New Media Market (AP Digital) CRM Implementation

Landscape Pre-CRM: 

Landscape Pre-CRM Systems: Excel – prospect, sales activity and contract management Filemaker – order processing, trials and customer database SMART – service management and billing PA Billing – invoicing Manual entry, redundant data between systems No integration of systems No standardized reporting from a central system No reporting flexibility for analysis

CRM Objectives: 

CRM Objectives Centralize account, contact, order, opportunity, and contract management Support customer interaction cycle – from customer acquisition, order fulfillment to billing and support Provide a single customer view Deploy reporting tools for business analysis Align systems with corporate direction End Goal: Better customer and business management

Software Selection Process: 

Software Selection Process SAP HR implemented SAP CRM had the required functionality SAP provided a platform: phase in functionality as we were ready ride SAP’s product development curve

SAP Production Versions: 

SAP Production Versions SAP R/3 Release 4.6C: Live with SAP HR Master data, Org Data & Benefits, Payroll CRM Release 3.0, Upgraded to 4.0 Business Warehouse 3.0B

Business Process: 

Business Process

Functionality Implemented: 

Functionality Implemented Campaign Management Customer Interaction Center Order Processing Product Management Opportunity Management Service Contract Management Business Warehouse

Implementation Timeline: 

Implementation Timeline Total implementation time – 5 Months Project Started on April 2002 Live on September 2002 Staffing Internal : 3 External: 4

Campaign Management: 

Campaign Management Two types of Campaigns E-mail and phone campaigns Target Groups are created based on: CRM Master Data (Marketing Attributes, SIC Codes, Est.Rev, # of employees, Address information etc) Information from BW

Call Lists in CIC: 

Call Lists in CIC

Customer Interaction Center: 

Customer Interaction Center

Customer Interaction Center: 

Customer Interaction Center

Business Activities: 

Business Activities Used for Order Processing Trial Order Notifications Service Order Notifications

Activity Screen: 

Activity Screen

Activity Monitor: 

Activity Monitor The Activity Monitor is used to call up lists of all the activities that have been created in the system, according to various criteria such as date and completion status

Activity Monitor: 

Activity Monitor The output can be sorted by any column Layout can be customized for each user

BW:Order Fulfillment Report: 

BW:Order Fulfillment Report

Product Management: 

Product Management Product hierarchies Flexibility of reassigning product categories Product pricing Customer & Product Product Billing frequencies Monthly Quarterly Yearly One Time Fees

Opportunity Management: 

Opportunity Management Logs sales prospects, requested products, sales prospect’s budget, potential sales size , estimated sales probability and expected closing date Information is used in sales pipeline

Opportunity Management: 

Opportunity Management

BW:- Sales Pipeline report: 

BW:- Sales Pipeline report

BW: Lost Opportunities Report: 

BW: Lost Opportunities Report

Service Contract Management: 

Service Contract Management Represents relationships with customers. Contains detailed information about contract with customer: Contract Start Date, End Date, Renewal Date Terms, Services, Delivery methods Billing Frequency, Billing Plan for Services, Royalty Information

BW Reports: Service Contracts: 

BW Reports: Service Contracts Contracts signed in the current year Contracts terminated in the current year Contracts renewed in the current year Contract to be renewed for a given period List of contracts based on sales reps, royalty information, territories & other criteria

Business Warehouse: 

Business Warehouse Used for reporting & data analysis Used for creating target groups for campaign management based on complex queries Generate ad hoc reports for managerial decisions

CRM Billing: 

CRM Billing Billing through CRM application, which is integrated with current non-SAP invoicing and financial application Contracts have billing documents Billing Due Lists Processing of incorrect billing due lists Cancellation of Billing Documents Credit Memos/Debit Memos Much work went into mid-period billing rate changes

CRM 4.0 Upgrade: 

CRM 4.0 Upgrade Territory management Alerts for contracts Customer hierarchies External list management Workflow functionality Web client – not yet implemented Royalties and sales commissions – not yet implemented

Benefits of SAP CRM: 

Benefits of SAP CRM “Orders don’t get lost” Interaction History for future reference, with ability to store customer, product, transaction information No Redundant data entry – resources redeployed Eliminated costs of - $130K Standardized reporting from a Central System

Benefits - CRM Data Sharing: 

Benefits - CRM Data Sharing Campaign Management Opportunity Management Trial Contracts Service Contract Billing Marketing Sales Client Relations Customer Support / Management / Entitlements Billing Enhanced coordination of the various functions Better information about our customers and business

Newspaper Market CRM Implementation: 

Newspaper Market CRM Implementation

CRM Objectives in Newspapers: 

CRM Objectives in Newspapers Improve customers’ experience with the AP Produce efficiencies in ordering and fulfillment processes Provide analytic tools to assess customer relationships and behavior Improve Sales

Newspapers CRM Deployment: 

Newspapers CRM Deployment Customer-facing AP Activities Back-office Execution

Slide37: 

Customer Hierarchy

CRM Functionality: 

CRM Functionality Order processing Opportunity management CRM Pricing Contract management Workflow functionality

Get Organized: 

Get Organized Right team with clear accountability Project management and tools Communication and teamwork Have a good grasp of the big picture, but no detail is too small

Lessons Learned: 

Lessons Learned Set realistic expectations Don’t underestimate data migration Involve users from start – requirements, testing, data migration, training Phase in CRM – with sight on the future, new modules, other business units (scalability) If you encounter errors, check the SAP notes, then create a OSS message