Variant configuration with SAP
Service Offering:
Prototype
Internet Pricing and Configurator
(IPC)
SAP Consulting Industrial Manufacturing
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Selling
configurable
products
Initial situation and task
Variant manufacturers are compelled to offer new variants in constantly shorter intervals. But the
company‘s sales processus are hindered by a general lack of information concerning the current
product features and their availability.
Many sales documents are sent by end customers or sales partners in a non-validated format
(fax, paper, e-mail, telephone).
External presentation of the company‘s
products is outdated / unattractive
Great effort for master data
maintenance / redundancies
Sales documents are sent by end
customers or partners in a
non-validated format (fax, e-mail, ...).
High processing times of
sales offers/orders
High error costs because of missing
validation of configuration
Insufficient information flow towards
sales partners and customers
Sales process
- As is -
Sales process
- To be -
Problem statement
The company is looking for a web based Sales solution for product
configuration that leverages the benefits and investments of SAP variant
configuration.
Result
In order to reduce order processing times and to improve the external presentation of the
company‘s products while at the same time increasing the working efficiency of the sales
team, the management decides to introduce a web based sales solution that addresses all
ordering parties. The solution must also include a tool for pricing and configuration. However
the existing investments and available experience of SAP variant configuration must be
utilized as much as possible.
Your company sells configurable products with an SAP ERP system. The sales team is very
skilled and familiar with the tasks and features of SAP variant configuration. However many
sales documents are sent by end customers or sales partners in a non-validated format (fax,
paper, e-mail, telephone).
The order processing therefore results in a high work load for the sales team. The received
information is often faulty and/or incomplete. There are a lot of questions from sales persons
back to the ordering parties, which leads to significantly longer order processing times.
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Our solution: IPC
SAP Internet Pricing and Configurator (IPC) is used in
many SAP applications to configure products through the
Internet. SAP IPC belongs, technically speaking, to SAP ERP and /or
Customer Relationship Management (SAP CRM), but it can also be run
separately on own web based applications (“standalone”).
As of SAP CRM 5.0 the SAP IPC 7.0 is a component of the
Application Platform (AP). Compared to the previous release that is SAP
IPC 4.0, the technology has been switched to SAP Virtual Machine
Container (VMC), which is part of the SAP Web Application Server (SAP
Web AS) and SAP NetWeaver. Installation of a separate database is not
required as SAP IPC 7.0 is moved to the SAP Web AS.
IPC also contains a JSP application that is integrated into ERP ECO
and CRM web channel. Using this JSP application, internet customers
can easily configure products in the browser.
The IPC can also be called by any external, web based application,
e.g. an own customer web shop (Standalone scenario)
Solution concept
Our solution: IPC
Execution
Sales orders, Logistics
SAP SCM
SAP ERP
Product definition
SAP ERP
Internet Pricing
and Configurator
(IPC)
Marketing
Sales & Service
SAP CRM
SAP ERP
IPC Knowledge base
IPC
ERP
IPC
SAP CRM
Internet Sales
Knowledge
base (ERP)
Create Knowledge base
in SAP ERP
Distribute + use in applications
IPC
IPC
SAP
Mobile sales
Individual*
* on request
Short description
Short description of the solution
Package for the implementation of a prototype for the Internet pricing
and configurator (IPC):
Validation of the existing variant configuration models regarding
feasibility for the IPC
Validation of the existing pricing procedures regarding feasibility for
the IPC-pricing engine (SPE)
Documentation of tasks and feasibility
Creation of a Knowledge base (if possible) for a selected configurable
product
Presentation of the Knowledge base in Standard-IPC (ERP or CRM,
requires AS Java, installed Java components and active VMC)
System requirements:
Prototype will be created on SAP-R/3-customer system
(up from Release 4.6C or SAP ERP ECC 6.0)*
Alternatively, prototype can be created (remotely) on an
SAP-IDES-system.
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Prototype IPC
Proceeding, phases, efforts & results
Resu
lts
On site
Presentation of the prototype Definition of GAPs
Approval of the prototype Discussion on further processing
Final
work shop
Documentation of work shop Proposal of further processing
including effort-estimation for IPC-project
1 PD
~ 5 Project days
* Requires preparation and cooperation of sales, IT, production and development ** Prototype does not
meet requirements of productive use On site/Remote
Creation of the IPC-prototype based on the To-be-process Knowledge base creation
Customizing (XCM)
Sales order creation
BOM explosion
Variant pricing
IPC-prototype for
MTO-Prozess
IPC-Prototype and technical documentation
2-3 PD
On site
Presentation of IPC
Analysis of As-is sales process Analysis of To-be-Sales scenario Definition of To-be-sales process Analysis of pricing structures
Initial
IPC-work shop
Evaluation of requirements Documentation of scope for
IPC prototype
1 PD
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Customer benefits of IPC prototype
Get to know the benefits of SAP-IPC:
Enables/improves the external presentation of the company‘s
products considerably
Reduction of order processing times
Increase of working efficiency of the sales teams due to reduced
media breaks
Maximum utilization of existing investments, system data and
available experience of SAP variant configuration
Increase of TCO by feasibility study
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Contents
1. Initial situation and task
2. Our solution
3. Our proceeding
4. Customer benefits
5. References
Customer efforts
The service „Prototype SAP IPC“ requires the
following customer efforts:
1 employee Sales:
2–3 days
(preparation, support to create prototype*)
1 employee PLM:
1–2 days
(preparation, support to create prototype*)
The described Consulting service is offered with a fixed
price.
Thank you for your attention!
Jörg Lange
Service Portfolio Manager Manufacturing & High Tech
SAP Deutschland AG & Co. KG
Am Schimmersfeld 5 40880 Ratingen
Mobile: +49-171-308 533 6 Fax: +49-6227-78-39386 mailto: [email protected]
© 2014 SAP AG or an SAP affiliate company. All rights reserved. Customer 20
© 2014 SAP AG or an SAP affiliate company.
All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AG’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
