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