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Configure, Price, Quote:
Insights, Landscape & Vendor Analysis
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Solution Study
By: Clare Price, VP Research
With: Kristen Maida, Research Analyst
April 2014
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Executive Summary
What is Configure, Price, Quote?
Benefits of CPQ
The CPQ Solutions Landscape
CPQ Deployment Lifecycle
Vendor Selection Criteria
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About the Research Analysts
Our Solution Study Methodology
About Demand Metric
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Action Plan
Analyst Bottom Line
Table of Contents
EXECUTIVE SUMMARY
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Configure, Price, Quote: Insights, Landscape & Vendor Analysis
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Effective Sales Enablement is a multi-stage process. In our Sales Enablement Solutions Study Series, we examine each key stage of Sales
Enablement from initial marketing and sales alignment to the final deal close and revenue capture.
In this report, we focus on the critical sales function of Configure, Price, Quote (CPQ) to provide marketers with a comprehensive
understanding of the CPQ landscape. We will provide:
 A Definition of the Solution
 The Benefits of the Solution
 The CPQ Solutions Landscape
If your organization is considering CPQ software, currently using a CPQ system or providing a CPQ product or service, this report
will provide you with fresh insights on the technology, strategies and vendor solutions.
 CPQ Deployment Cycle
 Vendor Selection Criteria
 Action Plan & Toolkit
4
As the name implies, Configure, Price, Quote (CPQ) solutions
provide functionality to support complex sales transactions.
CPQ systems enable sales teams to custom design or configure a
solution for a customer from different product sets, options or
piece parts; price the solution appropriately and prepare a quote for
the customer in a negotiated sales situation.
At Demand Metric, we define CPQ as comprising the
strategies, processes, technologies and tools that support the
organization’s ability to effectively configure
products/services from a set of options, price a customized
solution based on relevant internal and external factors and
provide a digitally generated quote for customer signature and
payment.
A typical CPQ system includes a design/configuration engine,
pricing engine and quoting system driven by business rules or
constraints, supported by a proposal management system and
augmented by approval workflow systems.
WHAT IS CONFIGURE, PRICE, QUOTE?
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Classic CPQ
Solutions
Proposal
Management
System
Quoting System
Pricing Engine
Product
Configurator
Approval
Workflow
Management
Figure 1: Classic CPQ Solutions
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
5
Primary industries that have heavily relied on CPQ systems include
Manufacturing, Transportation, Telecom, High Tech, Healthcare,
Retail, Insurance and Financial Services. Today, new solutions and
cloud technology have enabled CPQ systems to be used by
small and mid-size companies in various industries, including
general Business Services, Real Estate and Media/Publishing.
Modern CPQ systems have moved way beyond the classic model of
“Configure, Price, Quote” to offer an array of advances, including:
 Product design & modeling tools to extend configuration choices
 Value pricing, modeling & communication tools to enhance
pricing
 ROI and TOC calculators to optimize quoting
 Contract management and guided selling to improve operations
and sales performance
In short, these are not your father’s CPQ systems! We will
detail the range of standard, advanced and specialized functions and
features in the Vendor Selection Criteria section of this report.
Modern CPQ
Solutions
Quote-to-Cash
Functionality
Guided Selling
& Sales
Playbooks
ROI/TCO
Calculators
Value Pricing
Tools
Product
Modeling,
Design &
Catalogues
eSignature
Compatibility
Product
Configurator,
Pricing System
& Quoting
Contract, Order,
Proposal &
Workflow
Management
Figure 2: Modern CPQ Solutions
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
CPQ systems provide significant benefits to the organizations that
employ them.
Benefits for Sales
On the frontlines, CPQ systems have multiple benefits for the sales
organization, including:
 Faster sales cycles from lead to close
 Reduced sales complexity by giving reps pre-optimized solutions
 Reduced prospect decision time
 More opportunities to upsell products/services
 Faster responses to market & competitive pricing pressures
 Increased sales time by spending less time on proposal
development
Benefits for Marketing
CPQ systems enable marketing teams to better enable sales with
more accurate marketing materials and value-based sales tools. Key
benefits of CPQ solutions for marketing include:
 Providing branded proposal documents and contracts
 Ensuring all marketing documents have accurate up-to-date
pricing and product configuration information
 Developing customer-facing product catalogs
 Providing sales playbooks that increase win rates
 Providing value-based sales tools like value propositions, white
papers, ROI/TOC calculators and benefit estimators
BENEFITS OF CPQ
© 2014 Demand Metric Research Corporation. All Rights Reserved. 6
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Benefits to Channel Partners
CPQ systems allow companies to support, promote and control the
configuration and pricing through their distribution channels. This
benefits the channel network by:
 Improving cross-channel visibility and management
 Enabling quick roll-outs of new products and pricing
configurations locally and globally
 Streamlining channel order flow from lead to close
 Reducing errors by allowing users to centrally access, manage and
control offer and document content
 Tracking and measuring channel activity by product and price
 Protecting channel margins and preventing unauthorized
discounting
Benefits for Marketing and Sales Operations
CPQ systems enable operations to reduce errors, protect margins
and effectively manage standardized contracts for profitability by:
 Reducing pricing and quoting errors through managing
constraints and rules
 Formalizing change control processes
 Viewing and managing commissions in real-time
 Reducing risk and ensuring compliance
 Standardizing proposal management
 Building in process efficiencies with workflow authorization and
approval process
 Maintaining approved contract repository
© 2014 Demand Metric Research Corporation. All Rights Reserved. 7
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
History
The market segment generally known as CPQ has grown rapidly
since the introduction of CPQ functions associated with ERP
systems for global enterprises in the late 1980s. Early CPQ systems
focused primarily on the configuration aspect of the solution for
industries like manufacturing.
In the mid-1990s, companies like Selectica (1996) built “selection
and configuration systems” focused on guiding sales teams to make
better decisions during the sales process even with very complex
and complicated product lines.
In the 2000s, companies like Alinean (2001) and LeveragePoint
(2009), extended the functionality of the CPQ segment with niche
products like value-based selling systems and ROI and TCO
applications. That evolution has accelerated in the last five-10 years
with the explosion of the Sales Enablement market segment. Today
CPQ systems are considered a critical link in the Sales Enablement
value chain.
THE CPQ SOLUTIONS LANDSCAPE
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Playing Field
Vendors across the CPQ Landscape fall into four tiers based on the
features and functionality of their offerings:
 Basic: These solutions offer the pure Configuration, Price,
Quote capability (configuration engine, pricing engine, quote
generator) and little more. All of the vendors in this space
except niche players offer the basic solution.
 Standard: Standard solutions offer a CPQ solution
(configuration engine, pricing engine, quoting system) that
includes key supporting functionality ,such as contract, order &
proposal management, workflow approval & authorization and
eSignatures. Vendors in this tier include Altatl and FPX.
 Comprehensive: These options extend the operational
effectiveness of the core CPQ functionality. They include:
product design & modeling, 3D visualization tools and
integration with CRM, SAP and/or ERP systems Vendors in this
tier include Apttus, Cincom, Cameleon Software.
© 2014 Demand Metric Research Corporation. All Rights Reserved. 8
 Cutting-Edge. These options extend the operational
effectiveness of the core CPQ functionality into a full Sales
Enablement Solution. Options include ROI/TOC calculators,
Quote-to-Cash functions, guided selling and predictive sales
analytics. Vendors in this tier include Selectica, Big Machines.
 Niche. Within the CPQ segment are niche solutions that
provide a specific functionality that enhances the value of a CPQ
solution but is not central to its core effectiveness. These
solutions include: eSignatures, channel management; value-based
pricing and modeling systems; benefit estimators; proposal
automation, sales playbooks. Integration with CAD, CAM and
product lifecycle management (PLM) suites may be offered.
Vendors in this tier include Alinean, Docusign, Adobe EchoSign,
Paperless Proposal, Tinderbox, LeveragePoint, Qvidian.
Deployment of a CPQ solution depends on the needs each
organization. CPQ vendor solutions vary widely in feature/function
depth and breath. It is critical to choose one that encompasses the
entire scope of your organizational needs rather than just the first
step or two. Figure 4 shows the progression of the vendors and
their product/service offerings.
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Stage/Tier Features Primary Use Vendor
Basic
Configuration engine,
pricing engine, quote
generator
Configure, price, quote
system
Adobe Echosign, Alinean,
Docusign, LeveragePoint,
Paperless Proposal,
Tinderbox, Qvidian
Standard
CPQ with key supporting
functionality (contract, order
& proposal management;
workflow approval &
authorization and
eSignatures)
CPQ extends to support
distribution channels and
value-based selling
Altatl, FPX
Comprehensive
Standard functionality plus
product design & modeling,
product catalogs and 3D
visualization tools
CPQ to support configuration
industries with heavy
requirements, such as
manufacturing, insurance and
telecommunications
Apttus, Cincom, Cameleon
Software
Cutting-Edge
Comprehensive
functionality plus ROI/TOC
calculators, Quote-to-Cash
functions, guided selling
and predictive sales
analytics
CPQ extended with added
Sales Enablement
functionality
Selectica, Big Machines
Niche
Options at this tier include
channel management,
value-based pricing, benefit
estimators sales playbooks;
can be standalone or
integrated with CPQ
systems
Specialty products & services
that extend the functionality
of a CPQ solution
Adobe Echosign, Alinean,
Docusign, LeveragePoint,
Paperless Proposal,
Tinderbox, Qvidian
Figure 4: CPQ Vendor Solutions Landscape
Evolution of the Landscape
Demand Metric expects the CPQ landscape to be characterized by
increasing integration and consolidation.
Demand Metric expects current niche functionality such as
value based pricing and modeling, and sales playbooks to be
integrated into core CPQ solutions.
Acquisitions like Oracle’s buyout of Big Machines and PROS
Holdings purchase of a controlling interest in Cameleon Software
will accelerate as CPQ functionality becomes more integrated with
CRM and Marketing Automation platforms.
To get a more in-depth look at some of the key vendors within the
CPQ landscape, download Demand Metric’s CPQ Vendors Matrix.
This database identifies and describes a wide-range of vendors
based on target industries, product/service offerings, key features,
unique strengths and key customers.
10
Download
Figure 5: CPQ Vendors Matrix
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
© 2014 Demand Metric Research Corporation. All Rights Reserved.
combinations of customer category, product classification, sales
channel, deal size and volume are standard. When choosing a
pricing engine, consider not only product inventories but channel
and market needs. Make sure they can support all your sales
channels and geo-market reach.
 Quoting System. Quotes should be delivered immediately,
accurately and with your company and/or channel partner brand
embedded. Beyond that, consider vendors that offer Quote-to-
Cash systems that automate each step of the process from
pricing through negotiation, approval, contract signing, invoicing
and payment receipt with tracking analytics and activity alerts.
 Proposal Management. Proposal management systems manage
the proposal process from creation to customer delivery. A solid
proposal system should offer pre-built templates for fast
proposal creation with company/channel branding options. It
should manage the proposal lifecycle via workflow authorization
& approval systems and integrate with an eSignature system for
fast, accurate and legal signature-to-close.
Role in Sales Enablement
Demand Metric considers CPQ to be an integral part of Sales
Enablement as illustrated by our Sales Enablement Framework in
Figure 6. As you will see in Figure 6, CPQ products and services
are associated with Sales Operations and Sales/Account
Management, although many CPQ functions are used in
collaboration with Marketing and Marketing Operations.
Core Components
 Product Configurator. Product configurator software can be as
simple as controlling your existing inventory of products and
parts for assembly or bundling or as complex as designing a new
version of a product from scratch for a specific use case through
design, modeling and 3-D visualization tools. Choose a vendor
that matches the level of complexity of your product
configuration needs.
 Pricing Engine. The pricing engine automatically prices the
chosen configuration based on rules or constraints set by
operations to maintain profits and margins. Pricing by 11
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
CPQ DEPLOYMENT LIFECYCLE
TECHNOLOGY
Senior Management
ROLES RESPONSIBILITIES PROCESSES TECHNOLOGY CONTENT METRICS
Revenue Accountability
Staffing & Channel Management
Reporting to CEO/Board
Budgeting & Planning
Performance Reviews & QA
Recruitment & Retention
CRM
Business Intelligence
MRM
Thought Leadership Blog
Webinar Presentations
Conference Keynotes
Revenue by Channel
Customer Lifetime Value, NPS
Return on Customer (ROC)
Product Management
New Product Development
Create Sales Tools/Guides
Messaging & Positioning
Product Launch
Win/Loss Analysis
Competitive Analysis
Product Mgmt. System
Enterprise Feedback/Survey
Content Management
Data Sheets, Whitepapers
Case Studies/Testimonials
Competitive Analysis
Market Share, Profitability
Brand Equity
Content Usage
Sales Operations
Build Reports & Dashboards
Monitor Sales Productivity
Data Management
Sales Forecasting
Territory Management
Sales Compensation
CRM
Proposal/CPQ
Sales Content Portal
Compensation Model
TCO/ROI Calculators
Sales Playbooks
% Quota Achieved
Sales Cost/Revenue Ratio
Incentive vs. Quota Ratio
Marketing Operations
Build Reports & Dashboards
Marketing Systems Admin
Data Management
Marketing Budgeting
Campaign Analysis
Lead Scoring & Nurturing
Buyer Personas
Customer Journey Map
Proposals, Presentations
Sales Qualified Leads
Cost Per Lead (CPL)
Cost of Acquisition (CAC)
CRM & Marketing Automation
Analytics & B.I.
Asset Mgmt. & MRM
Demand Generation
Lead Generation & Events
Branding & Social Media
Content Marketing
Advertising/Sponsorship
Lead Generation & Appointments
Tradeshows & Webinars
Marketing Automation/Email
Digital Asset Management
Event/Survey Management
How-To Guides
Research Reports
Webinars
Campaign ROI, Email Metrics
Marketing Qualified Leads
Contribution to Pipeline
Sales/Account Mgmt.
Customer Acquisition
Customer Retention
Up-sell/Cross Sell
Sales Process
Opportunity Management
Contact Management
CRM
Proposal/CPQ
Sales Content Portal
New Features/Ideas for R&D
Objection Responses
Sales Scripts
% Quota Achieved
Renewal Rate, Revenue
Opportunity Metrics
Human Resources
Staffing for Sales Enablement
Sales Training
Performance Management
Recruiting & Hiring
New Rep Onboarding
Performance & Firing
Job Descriptions
Quality Assurance/Coaching
Sales Training Manual
Avg. Time to Achieve Quota
% Unsuccessful Hires
# CV/Resume Submissions
HRIS
Learning Management System
LinkedIn & Job Websites
Customer Support
Customer Service/Support
Identify Sales Opportunities
Customer Insight/Feedback
Helpdesk (phone support)
Email Support (case/ticket)
Online Community Requests
New Features/Ideas for R&D
Support Scripts
FAQs, SLA
Avg. Time to Resolution
% Escalations to Tier 2
Net Promoter Score (NPS)
Customer Support, Twitter
CRM, Order Management
Accounting/Billing/ERP
Figure 6: Sales Enablement Framework
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
the use of simple constraints (or pre-defined limits) on choices
to augment or replace traditional business rules.
 Technology Infrastructure. Most CPQ vendors today operate
as SaaS applications, in the cloud, with support for the range of
presentation devices, including mobile devices. A few also offer
on premise options.
 CRM/ERP Integration. Most CPQ vendors provide CRM
and/or ERP integration with vendors like Salesforce, SAP,
Microsoft, NetSuite and Oracle as well as small SMB players like
Sage and Selligent. Others also offer integration with
legacy/niche systems like CAD, CAM and product lifecycle
management (PLM) suites.
Key Niche Functionality
 Channel Management. CPQ for channel management is about
information dissemination and control for multi-tiered sales
environments. Solid solutions include channel level product &
price configuration options, support multiple price lists &
currencies, offer multi-tier discounting and provide product
catalog and pricing information by channel and user role.
 Contract and Order Management. Contract management
systems manage the contract and order process. Your contract
management solution should include a searchable contract
repository and authoring tools & templates. Choose a vendor
that offers lifecycle management from creation through
negotiation, approval, execution, auditing, reporting and renewal.
Automatic alerts embedded at key stages in the process is a plus.
 eSignatures. eSignature systems enable customers to sign
proposals and contracts from anywhere on any device. Beyond
that basic functionality, eSignature vendors provide templates for
document design, authentication functions, workflow
management, reporting features, legal/industry compliance. Two
vendors dominate this space: DocuSign and Adobe EchoSign.
Most CPQ vendors integrate with one of these two vendors.
 Business Rules and Constraints. Business rules drive CPQ
configuration and pricing engines. The sophistication of the
business rules has historically determined the inherent capability
of the CPQ functionality. In the drive toward ease of use and
away from legacy ERP systems, today vendors are working to
simplify the use of business rules. One option gaining ground is
13
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
 Value Pricing. Value pricing systems enable sales reps to
position themselves better in competitive selling situations.
Standard value pricing options are ROI/TOC calculators. More
advanced solutions offer value price modeling & value
proposition tools (benefit estimators & justification tools).
 Guided Selling. Guided Selling systems help sales reps to
quickly find the best configuration or bundle for each prospect.
As the name implies, guided selling systems use the CPQ system
augmented by searchable product catalogs to guide the rep to the
products/services that are best suited for each customer.
 Playbooks. CPQ-oriented sales playbooks that are focused on
sales support and include personalized sales presentations for
sales reps to quickly learn the company’s product lines and can
help onboard new reps faster.
Vendor Company Considerations
 Vendor Size and Maturity. The size, maturity and global reach
of your CPQ vendor is an important consideration. Vendors,
such as Cincom Acquire (owned by Cincom Inc.) and Big
14
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Machines (recently acquired by Oracle), can offer a product
breadth other vendors cannot. FPX, founded in 1983, offers a
high level of solution maturity and legacy system experience.
Newcomers like Paperless Proposal and LeveragePoint offer
advanced options for proposal management and value-based
pricing.
 Industry focus. Vendors specialize in different industries. Make
sure your vendor has experience in your industry.
 Customer Size and Type. As with industry focus, make sure
the vendor has experience with your size of company.
Deployment Stages
A typical CPQ deployment lifecycle begins with the basic CPQ
engine and advances as the organization expands in size, sales
channels and/or product/service complexity.
Figure 7 (on the next page) illustrates a typical CPQ Deployment
Lifecycle.
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Product Design,
Modeling & Catalogs
3D Visualization Tools
ROI/TOC Calculators
Quote-to-Cash
Functionality
eSignature Compatibility
Guided Selling
Sales Analytics
CRM, SAP and/or ERP
Integration
Contract & Order
Management
Proposal Management Workflow Approvals &
Authorization
15
Product Configurator
Pricing Engine
Quoting System
Business Rules &
Constraints
Cloud-based (SaaS)
Application
Channel Management
Value Pricing & Modeling
Benefit Estimators
Sales Playbooks
CAD, CAM & PLM Integration
eSignatures
ADVANCED CPQ SOLUTIONS FEATURES
STANDARD SOLUTION FEATURES
BASIC SOLUTION FEATURES
NICHE SOLUTIONS
Figure 7: CPQ Deployment Lifecycle
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Is CPQ For You?
Not all companies are ready to embrace a CPQ system. Your company should consider a CPQ system if you meet the following sales, marketing
or organizational conditions:
1. Your line of products and services is large, complex and growing. Managing the sheer number of products and managing product
changes has become a barrier to sales.
2. Your current system is no longer adequate to meet your organization’s customer and sales needs. It might be a too-simple
spreadsheet or a cobbled together set of processes or manual paperwork. Whatever the reason, the system is broken and beyond repair.
3. Your configuration, pricing and quoting systems and processes are silo’ed causing duplicate work, slow response times and quote and
order errors.
4. There’s a growing disconnect between field sales and operations that is creating customer, pricing or margin errors.
5. Sales cycles are too long. Sales teams are spending too much time trying to figure out the right product for the prospect and the proposal
process is bogged down.
6. Channels or distribution methods have changed. Your company has added new channels that need to be managed.
VENDOR SELECTION CRITERIA
16© 2014 Demand Metric Research Corporation. All Rights Reserved.
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
7. Global expansion. Your organization has expanded globally
and you need a process for handling multi-tiered, multi-cultural,
multi-currency sales.
8. Competitive pressure is heating up. Sales needs a better win
rate and/or needs to respond faster to competitive bidding
situations.
Choosing the right vendor for your CPQ requirements is an
important business decision. Demand Metric recommends using
the following criteria to evaluate the vendors and their solutions.
Figure 9 (on the next page) highlights key functionality according
to the level of complexity of their solution on the four tiers from
basic to cutting-edge.
To quickly and efficiently evaluate several CPQ vendors and their
solutions at one time, utilize Demand Metric’s CPQ Vendor
Evaluation Matrix.
17© 2014 Demand Metric Research Corporation. All Rights Reserved.
Download
Figure 8: CPQ Vendor Evaluation Matrix
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Component
Product
Configurator
PricingEngine
QuotingSystem
BusinessRules&
Constraints
Proposal&Order
Management
Channel
Management
eSignatures
ProductDesign&
Modeling
Metrics,Insights
Value-based
Pricing
Quote-to-Cash
System
GuidedSelling
Playbooks
Predictive
Analytics
SaaSInfrastructure
&CRM/ERP
Integration
Basic x x x x
Standard x x x x x x x x
Comprehensive x x x x x x x x x x
Cutting-Edge x x x x x x x x x x x x x x x
Figure 9: CPQ Vendor Selection Criteria by Functionality Tier
ACTION PLAN
1. Utilize our CPQ Readiness Assessment to evaluate if your
organization is ready for a CPQ initiative and system
implementation.
2. Evaluate the organizational impact of making the change from
your current systems and processes to a CPQ solution. Use our
Sales Enablement Framework to review the company roles,
responsibilities, processes and technology that may be impacted
by the change.
3. Develop a solid plan and goals for the next 12-18 months for
your CPQ initiative with our CPQ Strategy Scorecard.
4. Review our CPQ Vendors Matrix to learn about the key vendors
in the CPQ space and to understand which vendors may work
best for your organization.
19© 2014 Demand Metric Research Corporation. All Rights Reserved.
Download
Figure 8: CPQ Strategy Scorecard
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
5. Request proposals from potential vendors to gather information
on products/services. Use our CPQ System RFP Template to
create a standard proposal template for your organization.
6. After receiving RFPs from potential vendors, schedule and
attend product/service demos with 3-4 vendors to get an up-
close-and-personal view of their solutions.
7. Evaluate the 3-4 vendors at the top of your list with our CPQ
Vendor Evaluation Matrix in order to help you make your
selection.
8. Develop an implementation strategy and communication plan
to roll-out the initiative across the organization and through
your channels. Use our MarCom Plan Methodology to create
your plan.
9. Develop an education and training plan for all affected
personnel: sales, marketing, operations and channels.
10. Measure and track the progress and results of your CPQ
initiative with our CPQ Program Metrics Dashboard.
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Download
Figure 10: CPQ Program Metrics Dashboard
20
ANALYST BOTTOM LINE
CPQ systems are an important element of effective Sales Enablement. They offer new opportunities and benefits for organizations
looking to streamline the sales process, expand their markets and grow their sales channels.
CPQ systems that are properly implemented, carefully maintained and quickly adopted by a majority of the sales & marketing teams can:
 Reduce sales cycles and eliminate costly errors
 Ensure all marketing documents have accurate up to date pricing and product configuration information
 Standardize contract and proposal management
 Manage pricing, discounting and margins through sales channels
Companies with large and growing product inventories, expanding markets and new distribution channels are the best fit for a
CPQ solution.
21© 2014 Demand Metric Research Corporation. All Rights Reserved.
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
ABOUT THE RESEARCH ANALYSTS
© 2014 Demand Metric Research Corporation. All Rights Reserved. 22
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
Clare Price, VP Research – Demand Metric
Clare is an expert in marketing strategy, branding, strategic communications, sales enablement, social media marketing,
content marketing and leveraging marketing technologies. Clare is a former Gartner Research Director at and helped
build their Internet Strategies Services division with clients such as Microsoft, IBM, HP, Cisco, Proctor & Gamble and
Wells Fargo. Her specialties include: brand strategy, brand development, customer acquisition and relationship
development, content and digital marketing strategy, sales enablement and social media marketing.
Kristen Maida, Research Analyst – Demand Metric
Kristen has worked with Demand Metric for the past 4 years, learning about and gaining experience in all aspects of
the organization. She has developed job functions in almost every department to help with Demand Metric’s rapid
growth. Her specialties include: social media marketing, digital marketing, content marketing & management and
business process development.
OUR SOLUTION STUDY METHODOLOGY
© 2014 Demand Metric Research Corporation. All Rights Reserved. 23
Configure, Price, Quote: Insights, Landscape & Vendor Analysis
The Modern Marketing landscape is an ever changing, ever evolving environment in which new strategies, technologies, vendors and products
appear continually. Demand Metric Solution Studies provide marketers with a focus on a specific technology solution set or focus area so that
they are armed with the knowledge, information and tools they need to development effective strategies and action plans for their organizations.
Each Solution Study involves hours of analyst research, draws information from interviews with vendor executives and established vendor clients
for a specific technology solution and is usually accompanied by a mini Tool-kit of practical resources. Solution Study Tool-kits are designed to
provide marketers with the tools & templates they need to plan for an initiative in a given focus area, analyze the vendor landscape and select the
best vendor for their organization.
Our Sales Enablement report series includes Solution Studies on:
 Enablement Knowledge Management
 Configure, Price Quote (CPQ)
 Sales Intelligence
We provide a comprehensive overview of Sales Enablement in the companion report – Sales Enablement in 2013 Best Practices Report
 Customer Relationship Management (CRM)
 Marketing Automation (MA)
 Sales Communications Tools
© 2014 Demand Metric Research Corporation. All Rights Reserved.
Solution Study
ABOUT DEMAND METRIC
Demand Metric is a global marketing research & advisory firm serving a membership community of over 40,000 marketing professionals,
CEOs, and business owners with advisory services, custom research & benchmarking reports, vendor studies, consulting methodologies,
training, and a library of 500+ tools and templates.
Using Demand Metric resources, members complete projects faster and with greater confidence, boosting respect for the marketing team and
making it easier to justify needed resources. Our 1,000+ clients range from start-ups to members of the Global 1000.
TO LEARN MORE ABOUT DEMAND METRIC
To discover how Demand Metric can help you become more strategic, please visit us online at www.demandmetric.com
CLIENT SUPPORT
For information, inquiries and general support, please contact us toll-free at +1 866 947 7744, or info@demandmetric.com
We offer discounts for academic and nonprofit institutions, provide group memberships and license our content to associations and large
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CPQ Solution Study

  • 1. Configure, Price, Quote: Insights, Landscape & Vendor Analysis © 2014 Demand Metric Research Corporation. All Rights Reserved. Solution Study By: Clare Price, VP Research With: Kristen Maida, Research Analyst April 2014
  • 2. 3 4 6 8 11 16 Executive Summary What is Configure, Price, Quote? Benefits of CPQ The CPQ Solutions Landscape CPQ Deployment Lifecycle Vendor Selection Criteria 22 23 24 About the Research Analysts Our Solution Study Methodology About Demand Metric 19 21 Action Plan Analyst Bottom Line Table of Contents
  • 3. EXECUTIVE SUMMARY 3 Configure, Price, Quote: Insights, Landscape & Vendor Analysis © 2014 Demand Metric Research Corporation. All Rights Reserved. Effective Sales Enablement is a multi-stage process. In our Sales Enablement Solutions Study Series, we examine each key stage of Sales Enablement from initial marketing and sales alignment to the final deal close and revenue capture. In this report, we focus on the critical sales function of Configure, Price, Quote (CPQ) to provide marketers with a comprehensive understanding of the CPQ landscape. We will provide:  A Definition of the Solution  The Benefits of the Solution  The CPQ Solutions Landscape If your organization is considering CPQ software, currently using a CPQ system or providing a CPQ product or service, this report will provide you with fresh insights on the technology, strategies and vendor solutions.  CPQ Deployment Cycle  Vendor Selection Criteria  Action Plan & Toolkit
  • 4. 4 As the name implies, Configure, Price, Quote (CPQ) solutions provide functionality to support complex sales transactions. CPQ systems enable sales teams to custom design or configure a solution for a customer from different product sets, options or piece parts; price the solution appropriately and prepare a quote for the customer in a negotiated sales situation. At Demand Metric, we define CPQ as comprising the strategies, processes, technologies and tools that support the organization’s ability to effectively configure products/services from a set of options, price a customized solution based on relevant internal and external factors and provide a digitally generated quote for customer signature and payment. A typical CPQ system includes a design/configuration engine, pricing engine and quoting system driven by business rules or constraints, supported by a proposal management system and augmented by approval workflow systems. WHAT IS CONFIGURE, PRICE, QUOTE? © 2014 Demand Metric Research Corporation. All Rights Reserved. Classic CPQ Solutions Proposal Management System Quoting System Pricing Engine Product Configurator Approval Workflow Management Figure 1: Classic CPQ Solutions Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 5. 5 Primary industries that have heavily relied on CPQ systems include Manufacturing, Transportation, Telecom, High Tech, Healthcare, Retail, Insurance and Financial Services. Today, new solutions and cloud technology have enabled CPQ systems to be used by small and mid-size companies in various industries, including general Business Services, Real Estate and Media/Publishing. Modern CPQ systems have moved way beyond the classic model of “Configure, Price, Quote” to offer an array of advances, including:  Product design & modeling tools to extend configuration choices  Value pricing, modeling & communication tools to enhance pricing  ROI and TOC calculators to optimize quoting  Contract management and guided selling to improve operations and sales performance In short, these are not your father’s CPQ systems! We will detail the range of standard, advanced and specialized functions and features in the Vendor Selection Criteria section of this report. Modern CPQ Solutions Quote-to-Cash Functionality Guided Selling & Sales Playbooks ROI/TCO Calculators Value Pricing Tools Product Modeling, Design & Catalogues eSignature Compatibility Product Configurator, Pricing System & Quoting Contract, Order, Proposal & Workflow Management Figure 2: Modern CPQ Solutions Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 6. CPQ systems provide significant benefits to the organizations that employ them. Benefits for Sales On the frontlines, CPQ systems have multiple benefits for the sales organization, including:  Faster sales cycles from lead to close  Reduced sales complexity by giving reps pre-optimized solutions  Reduced prospect decision time  More opportunities to upsell products/services  Faster responses to market & competitive pricing pressures  Increased sales time by spending less time on proposal development Benefits for Marketing CPQ systems enable marketing teams to better enable sales with more accurate marketing materials and value-based sales tools. Key benefits of CPQ solutions for marketing include:  Providing branded proposal documents and contracts  Ensuring all marketing documents have accurate up-to-date pricing and product configuration information  Developing customer-facing product catalogs  Providing sales playbooks that increase win rates  Providing value-based sales tools like value propositions, white papers, ROI/TOC calculators and benefit estimators BENEFITS OF CPQ © 2014 Demand Metric Research Corporation. All Rights Reserved. 6 Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 7. Benefits to Channel Partners CPQ systems allow companies to support, promote and control the configuration and pricing through their distribution channels. This benefits the channel network by:  Improving cross-channel visibility and management  Enabling quick roll-outs of new products and pricing configurations locally and globally  Streamlining channel order flow from lead to close  Reducing errors by allowing users to centrally access, manage and control offer and document content  Tracking and measuring channel activity by product and price  Protecting channel margins and preventing unauthorized discounting Benefits for Marketing and Sales Operations CPQ systems enable operations to reduce errors, protect margins and effectively manage standardized contracts for profitability by:  Reducing pricing and quoting errors through managing constraints and rules  Formalizing change control processes  Viewing and managing commissions in real-time  Reducing risk and ensuring compliance  Standardizing proposal management  Building in process efficiencies with workflow authorization and approval process  Maintaining approved contract repository © 2014 Demand Metric Research Corporation. All Rights Reserved. 7 Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 8. History The market segment generally known as CPQ has grown rapidly since the introduction of CPQ functions associated with ERP systems for global enterprises in the late 1980s. Early CPQ systems focused primarily on the configuration aspect of the solution for industries like manufacturing. In the mid-1990s, companies like Selectica (1996) built “selection and configuration systems” focused on guiding sales teams to make better decisions during the sales process even with very complex and complicated product lines. In the 2000s, companies like Alinean (2001) and LeveragePoint (2009), extended the functionality of the CPQ segment with niche products like value-based selling systems and ROI and TCO applications. That evolution has accelerated in the last five-10 years with the explosion of the Sales Enablement market segment. Today CPQ systems are considered a critical link in the Sales Enablement value chain. THE CPQ SOLUTIONS LANDSCAPE Configure, Price, Quote: Insights, Landscape & Vendor Analysis Playing Field Vendors across the CPQ Landscape fall into four tiers based on the features and functionality of their offerings:  Basic: These solutions offer the pure Configuration, Price, Quote capability (configuration engine, pricing engine, quote generator) and little more. All of the vendors in this space except niche players offer the basic solution.  Standard: Standard solutions offer a CPQ solution (configuration engine, pricing engine, quoting system) that includes key supporting functionality ,such as contract, order & proposal management, workflow approval & authorization and eSignatures. Vendors in this tier include Altatl and FPX.  Comprehensive: These options extend the operational effectiveness of the core CPQ functionality. They include: product design & modeling, 3D visualization tools and integration with CRM, SAP and/or ERP systems Vendors in this tier include Apttus, Cincom, Cameleon Software. © 2014 Demand Metric Research Corporation. All Rights Reserved. 8
  • 9.  Cutting-Edge. These options extend the operational effectiveness of the core CPQ functionality into a full Sales Enablement Solution. Options include ROI/TOC calculators, Quote-to-Cash functions, guided selling and predictive sales analytics. Vendors in this tier include Selectica, Big Machines.  Niche. Within the CPQ segment are niche solutions that provide a specific functionality that enhances the value of a CPQ solution but is not central to its core effectiveness. These solutions include: eSignatures, channel management; value-based pricing and modeling systems; benefit estimators; proposal automation, sales playbooks. Integration with CAD, CAM and product lifecycle management (PLM) suites may be offered. Vendors in this tier include Alinean, Docusign, Adobe EchoSign, Paperless Proposal, Tinderbox, LeveragePoint, Qvidian. Deployment of a CPQ solution depends on the needs each organization. CPQ vendor solutions vary widely in feature/function depth and breath. It is critical to choose one that encompasses the entire scope of your organizational needs rather than just the first step or two. Figure 4 shows the progression of the vendors and their product/service offerings. Configure, Price, Quote: Insights, Landscape & Vendor Analysis © 2014 Demand Metric Research Corporation. All Rights Reserved. Stage/Tier Features Primary Use Vendor Basic Configuration engine, pricing engine, quote generator Configure, price, quote system Adobe Echosign, Alinean, Docusign, LeveragePoint, Paperless Proposal, Tinderbox, Qvidian Standard CPQ with key supporting functionality (contract, order & proposal management; workflow approval & authorization and eSignatures) CPQ extends to support distribution channels and value-based selling Altatl, FPX Comprehensive Standard functionality plus product design & modeling, product catalogs and 3D visualization tools CPQ to support configuration industries with heavy requirements, such as manufacturing, insurance and telecommunications Apttus, Cincom, Cameleon Software Cutting-Edge Comprehensive functionality plus ROI/TOC calculators, Quote-to-Cash functions, guided selling and predictive sales analytics CPQ extended with added Sales Enablement functionality Selectica, Big Machines Niche Options at this tier include channel management, value-based pricing, benefit estimators sales playbooks; can be standalone or integrated with CPQ systems Specialty products & services that extend the functionality of a CPQ solution Adobe Echosign, Alinean, Docusign, LeveragePoint, Paperless Proposal, Tinderbox, Qvidian Figure 4: CPQ Vendor Solutions Landscape
  • 10. Evolution of the Landscape Demand Metric expects the CPQ landscape to be characterized by increasing integration and consolidation. Demand Metric expects current niche functionality such as value based pricing and modeling, and sales playbooks to be integrated into core CPQ solutions. Acquisitions like Oracle’s buyout of Big Machines and PROS Holdings purchase of a controlling interest in Cameleon Software will accelerate as CPQ functionality becomes more integrated with CRM and Marketing Automation platforms. To get a more in-depth look at some of the key vendors within the CPQ landscape, download Demand Metric’s CPQ Vendors Matrix. This database identifies and describes a wide-range of vendors based on target industries, product/service offerings, key features, unique strengths and key customers. 10 Download Figure 5: CPQ Vendors Matrix Configure, Price, Quote: Insights, Landscape & Vendor Analysis © 2014 Demand Metric Research Corporation. All Rights Reserved.
  • 11. combinations of customer category, product classification, sales channel, deal size and volume are standard. When choosing a pricing engine, consider not only product inventories but channel and market needs. Make sure they can support all your sales channels and geo-market reach.  Quoting System. Quotes should be delivered immediately, accurately and with your company and/or channel partner brand embedded. Beyond that, consider vendors that offer Quote-to- Cash systems that automate each step of the process from pricing through negotiation, approval, contract signing, invoicing and payment receipt with tracking analytics and activity alerts.  Proposal Management. Proposal management systems manage the proposal process from creation to customer delivery. A solid proposal system should offer pre-built templates for fast proposal creation with company/channel branding options. It should manage the proposal lifecycle via workflow authorization & approval systems and integrate with an eSignature system for fast, accurate and legal signature-to-close. Role in Sales Enablement Demand Metric considers CPQ to be an integral part of Sales Enablement as illustrated by our Sales Enablement Framework in Figure 6. As you will see in Figure 6, CPQ products and services are associated with Sales Operations and Sales/Account Management, although many CPQ functions are used in collaboration with Marketing and Marketing Operations. Core Components  Product Configurator. Product configurator software can be as simple as controlling your existing inventory of products and parts for assembly or bundling or as complex as designing a new version of a product from scratch for a specific use case through design, modeling and 3-D visualization tools. Choose a vendor that matches the level of complexity of your product configuration needs.  Pricing Engine. The pricing engine automatically prices the chosen configuration based on rules or constraints set by operations to maintain profits and margins. Pricing by 11 Configure, Price, Quote: Insights, Landscape & Vendor Analysis CPQ DEPLOYMENT LIFECYCLE
  • 12. TECHNOLOGY Senior Management ROLES RESPONSIBILITIES PROCESSES TECHNOLOGY CONTENT METRICS Revenue Accountability Staffing & Channel Management Reporting to CEO/Board Budgeting & Planning Performance Reviews & QA Recruitment & Retention CRM Business Intelligence MRM Thought Leadership Blog Webinar Presentations Conference Keynotes Revenue by Channel Customer Lifetime Value, NPS Return on Customer (ROC) Product Management New Product Development Create Sales Tools/Guides Messaging & Positioning Product Launch Win/Loss Analysis Competitive Analysis Product Mgmt. System Enterprise Feedback/Survey Content Management Data Sheets, Whitepapers Case Studies/Testimonials Competitive Analysis Market Share, Profitability Brand Equity Content Usage Sales Operations Build Reports & Dashboards Monitor Sales Productivity Data Management Sales Forecasting Territory Management Sales Compensation CRM Proposal/CPQ Sales Content Portal Compensation Model TCO/ROI Calculators Sales Playbooks % Quota Achieved Sales Cost/Revenue Ratio Incentive vs. Quota Ratio Marketing Operations Build Reports & Dashboards Marketing Systems Admin Data Management Marketing Budgeting Campaign Analysis Lead Scoring & Nurturing Buyer Personas Customer Journey Map Proposals, Presentations Sales Qualified Leads Cost Per Lead (CPL) Cost of Acquisition (CAC) CRM & Marketing Automation Analytics & B.I. Asset Mgmt. & MRM Demand Generation Lead Generation & Events Branding & Social Media Content Marketing Advertising/Sponsorship Lead Generation & Appointments Tradeshows & Webinars Marketing Automation/Email Digital Asset Management Event/Survey Management How-To Guides Research Reports Webinars Campaign ROI, Email Metrics Marketing Qualified Leads Contribution to Pipeline Sales/Account Mgmt. Customer Acquisition Customer Retention Up-sell/Cross Sell Sales Process Opportunity Management Contact Management CRM Proposal/CPQ Sales Content Portal New Features/Ideas for R&D Objection Responses Sales Scripts % Quota Achieved Renewal Rate, Revenue Opportunity Metrics Human Resources Staffing for Sales Enablement Sales Training Performance Management Recruiting & Hiring New Rep Onboarding Performance & Firing Job Descriptions Quality Assurance/Coaching Sales Training Manual Avg. Time to Achieve Quota % Unsuccessful Hires # CV/Resume Submissions HRIS Learning Management System LinkedIn & Job Websites Customer Support Customer Service/Support Identify Sales Opportunities Customer Insight/Feedback Helpdesk (phone support) Email Support (case/ticket) Online Community Requests New Features/Ideas for R&D Support Scripts FAQs, SLA Avg. Time to Resolution % Escalations to Tier 2 Net Promoter Score (NPS) Customer Support, Twitter CRM, Order Management Accounting/Billing/ERP Figure 6: Sales Enablement Framework Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 13. the use of simple constraints (or pre-defined limits) on choices to augment or replace traditional business rules.  Technology Infrastructure. Most CPQ vendors today operate as SaaS applications, in the cloud, with support for the range of presentation devices, including mobile devices. A few also offer on premise options.  CRM/ERP Integration. Most CPQ vendors provide CRM and/or ERP integration with vendors like Salesforce, SAP, Microsoft, NetSuite and Oracle as well as small SMB players like Sage and Selligent. Others also offer integration with legacy/niche systems like CAD, CAM and product lifecycle management (PLM) suites. Key Niche Functionality  Channel Management. CPQ for channel management is about information dissemination and control for multi-tiered sales environments. Solid solutions include channel level product & price configuration options, support multiple price lists & currencies, offer multi-tier discounting and provide product catalog and pricing information by channel and user role.  Contract and Order Management. Contract management systems manage the contract and order process. Your contract management solution should include a searchable contract repository and authoring tools & templates. Choose a vendor that offers lifecycle management from creation through negotiation, approval, execution, auditing, reporting and renewal. Automatic alerts embedded at key stages in the process is a plus.  eSignatures. eSignature systems enable customers to sign proposals and contracts from anywhere on any device. Beyond that basic functionality, eSignature vendors provide templates for document design, authentication functions, workflow management, reporting features, legal/industry compliance. Two vendors dominate this space: DocuSign and Adobe EchoSign. Most CPQ vendors integrate with one of these two vendors.  Business Rules and Constraints. Business rules drive CPQ configuration and pricing engines. The sophistication of the business rules has historically determined the inherent capability of the CPQ functionality. In the drive toward ease of use and away from legacy ERP systems, today vendors are working to simplify the use of business rules. One option gaining ground is 13 Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 14.  Value Pricing. Value pricing systems enable sales reps to position themselves better in competitive selling situations. Standard value pricing options are ROI/TOC calculators. More advanced solutions offer value price modeling & value proposition tools (benefit estimators & justification tools).  Guided Selling. Guided Selling systems help sales reps to quickly find the best configuration or bundle for each prospect. As the name implies, guided selling systems use the CPQ system augmented by searchable product catalogs to guide the rep to the products/services that are best suited for each customer.  Playbooks. CPQ-oriented sales playbooks that are focused on sales support and include personalized sales presentations for sales reps to quickly learn the company’s product lines and can help onboard new reps faster. Vendor Company Considerations  Vendor Size and Maturity. The size, maturity and global reach of your CPQ vendor is an important consideration. Vendors, such as Cincom Acquire (owned by Cincom Inc.) and Big 14 Configure, Price, Quote: Insights, Landscape & Vendor Analysis Machines (recently acquired by Oracle), can offer a product breadth other vendors cannot. FPX, founded in 1983, offers a high level of solution maturity and legacy system experience. Newcomers like Paperless Proposal and LeveragePoint offer advanced options for proposal management and value-based pricing.  Industry focus. Vendors specialize in different industries. Make sure your vendor has experience in your industry.  Customer Size and Type. As with industry focus, make sure the vendor has experience with your size of company. Deployment Stages A typical CPQ deployment lifecycle begins with the basic CPQ engine and advances as the organization expands in size, sales channels and/or product/service complexity. Figure 7 (on the next page) illustrates a typical CPQ Deployment Lifecycle. © 2014 Demand Metric Research Corporation. All Rights Reserved.
  • 15. Product Design, Modeling & Catalogs 3D Visualization Tools ROI/TOC Calculators Quote-to-Cash Functionality eSignature Compatibility Guided Selling Sales Analytics CRM, SAP and/or ERP Integration Contract & Order Management Proposal Management Workflow Approvals & Authorization 15 Product Configurator Pricing Engine Quoting System Business Rules & Constraints Cloud-based (SaaS) Application Channel Management Value Pricing & Modeling Benefit Estimators Sales Playbooks CAD, CAM & PLM Integration eSignatures ADVANCED CPQ SOLUTIONS FEATURES STANDARD SOLUTION FEATURES BASIC SOLUTION FEATURES NICHE SOLUTIONS Figure 7: CPQ Deployment Lifecycle Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 16. Is CPQ For You? Not all companies are ready to embrace a CPQ system. Your company should consider a CPQ system if you meet the following sales, marketing or organizational conditions: 1. Your line of products and services is large, complex and growing. Managing the sheer number of products and managing product changes has become a barrier to sales. 2. Your current system is no longer adequate to meet your organization’s customer and sales needs. It might be a too-simple spreadsheet or a cobbled together set of processes or manual paperwork. Whatever the reason, the system is broken and beyond repair. 3. Your configuration, pricing and quoting systems and processes are silo’ed causing duplicate work, slow response times and quote and order errors. 4. There’s a growing disconnect between field sales and operations that is creating customer, pricing or margin errors. 5. Sales cycles are too long. Sales teams are spending too much time trying to figure out the right product for the prospect and the proposal process is bogged down. 6. Channels or distribution methods have changed. Your company has added new channels that need to be managed. VENDOR SELECTION CRITERIA 16© 2014 Demand Metric Research Corporation. All Rights Reserved. Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 17. 7. Global expansion. Your organization has expanded globally and you need a process for handling multi-tiered, multi-cultural, multi-currency sales. 8. Competitive pressure is heating up. Sales needs a better win rate and/or needs to respond faster to competitive bidding situations. Choosing the right vendor for your CPQ requirements is an important business decision. Demand Metric recommends using the following criteria to evaluate the vendors and their solutions. Figure 9 (on the next page) highlights key functionality according to the level of complexity of their solution on the four tiers from basic to cutting-edge. To quickly and efficiently evaluate several CPQ vendors and their solutions at one time, utilize Demand Metric’s CPQ Vendor Evaluation Matrix. 17© 2014 Demand Metric Research Corporation. All Rights Reserved. Download Figure 8: CPQ Vendor Evaluation Matrix Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 18. Configure, Price, Quote: Insights, Landscape & Vendor Analysis Component Product Configurator PricingEngine QuotingSystem BusinessRules& Constraints Proposal&Order Management Channel Management eSignatures ProductDesign& Modeling Metrics,Insights Value-based Pricing Quote-to-Cash System GuidedSelling Playbooks Predictive Analytics SaaSInfrastructure &CRM/ERP Integration Basic x x x x Standard x x x x x x x x Comprehensive x x x x x x x x x x Cutting-Edge x x x x x x x x x x x x x x x Figure 9: CPQ Vendor Selection Criteria by Functionality Tier
  • 19. ACTION PLAN 1. Utilize our CPQ Readiness Assessment to evaluate if your organization is ready for a CPQ initiative and system implementation. 2. Evaluate the organizational impact of making the change from your current systems and processes to a CPQ solution. Use our Sales Enablement Framework to review the company roles, responsibilities, processes and technology that may be impacted by the change. 3. Develop a solid plan and goals for the next 12-18 months for your CPQ initiative with our CPQ Strategy Scorecard. 4. Review our CPQ Vendors Matrix to learn about the key vendors in the CPQ space and to understand which vendors may work best for your organization. 19© 2014 Demand Metric Research Corporation. All Rights Reserved. Download Figure 8: CPQ Strategy Scorecard Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 20. 5. Request proposals from potential vendors to gather information on products/services. Use our CPQ System RFP Template to create a standard proposal template for your organization. 6. After receiving RFPs from potential vendors, schedule and attend product/service demos with 3-4 vendors to get an up- close-and-personal view of their solutions. 7. Evaluate the 3-4 vendors at the top of your list with our CPQ Vendor Evaluation Matrix in order to help you make your selection. 8. Develop an implementation strategy and communication plan to roll-out the initiative across the organization and through your channels. Use our MarCom Plan Methodology to create your plan. 9. Develop an education and training plan for all affected personnel: sales, marketing, operations and channels. 10. Measure and track the progress and results of your CPQ initiative with our CPQ Program Metrics Dashboard. Configure, Price, Quote: Insights, Landscape & Vendor Analysis Download Figure 10: CPQ Program Metrics Dashboard 20
  • 21. ANALYST BOTTOM LINE CPQ systems are an important element of effective Sales Enablement. They offer new opportunities and benefits for organizations looking to streamline the sales process, expand their markets and grow their sales channels. CPQ systems that are properly implemented, carefully maintained and quickly adopted by a majority of the sales & marketing teams can:  Reduce sales cycles and eliminate costly errors  Ensure all marketing documents have accurate up to date pricing and product configuration information  Standardize contract and proposal management  Manage pricing, discounting and margins through sales channels Companies with large and growing product inventories, expanding markets and new distribution channels are the best fit for a CPQ solution. 21© 2014 Demand Metric Research Corporation. All Rights Reserved. Configure, Price, Quote: Insights, Landscape & Vendor Analysis
  • 22. ABOUT THE RESEARCH ANALYSTS © 2014 Demand Metric Research Corporation. All Rights Reserved. 22 Configure, Price, Quote: Insights, Landscape & Vendor Analysis Clare Price, VP Research – Demand Metric Clare is an expert in marketing strategy, branding, strategic communications, sales enablement, social media marketing, content marketing and leveraging marketing technologies. Clare is a former Gartner Research Director at and helped build their Internet Strategies Services division with clients such as Microsoft, IBM, HP, Cisco, Proctor & Gamble and Wells Fargo. Her specialties include: brand strategy, brand development, customer acquisition and relationship development, content and digital marketing strategy, sales enablement and social media marketing. Kristen Maida, Research Analyst – Demand Metric Kristen has worked with Demand Metric for the past 4 years, learning about and gaining experience in all aspects of the organization. She has developed job functions in almost every department to help with Demand Metric’s rapid growth. Her specialties include: social media marketing, digital marketing, content marketing & management and business process development.
  • 23. OUR SOLUTION STUDY METHODOLOGY © 2014 Demand Metric Research Corporation. All Rights Reserved. 23 Configure, Price, Quote: Insights, Landscape & Vendor Analysis The Modern Marketing landscape is an ever changing, ever evolving environment in which new strategies, technologies, vendors and products appear continually. Demand Metric Solution Studies provide marketers with a focus on a specific technology solution set or focus area so that they are armed with the knowledge, information and tools they need to development effective strategies and action plans for their organizations. Each Solution Study involves hours of analyst research, draws information from interviews with vendor executives and established vendor clients for a specific technology solution and is usually accompanied by a mini Tool-kit of practical resources. Solution Study Tool-kits are designed to provide marketers with the tools & templates they need to plan for an initiative in a given focus area, analyze the vendor landscape and select the best vendor for their organization. Our Sales Enablement report series includes Solution Studies on:  Enablement Knowledge Management  Configure, Price Quote (CPQ)  Sales Intelligence We provide a comprehensive overview of Sales Enablement in the companion report – Sales Enablement in 2013 Best Practices Report  Customer Relationship Management (CRM)  Marketing Automation (MA)  Sales Communications Tools
  • 24. © 2014 Demand Metric Research Corporation. All Rights Reserved. Solution Study ABOUT DEMAND METRIC Demand Metric is a global marketing research & advisory firm serving a membership community of over 40,000 marketing professionals, CEOs, and business owners with advisory services, custom research & benchmarking reports, vendor studies, consulting methodologies, training, and a library of 500+ tools and templates. Using Demand Metric resources, members complete projects faster and with greater confidence, boosting respect for the marketing team and making it easier to justify needed resources. Our 1,000+ clients range from start-ups to members of the Global 1000. TO LEARN MORE ABOUT DEMAND METRIC To discover how Demand Metric can help you become more strategic, please visit us online at www.demandmetric.com CLIENT SUPPORT For information, inquiries and general support, please contact us toll-free at +1 866 947 7744, or info@demandmetric.com We offer discounts for academic and nonprofit institutions, provide group memberships and license our content to associations and large enterprises for use on corporate universities and intranets.