A Thought Process Change in Manufacturers For CPQ Implementation

[KBMax]

CPQ has been nothing less than a gamechanger for complex manufacturers. It automates the complete engineer-to-order workflow–from complex product configuration through complete manufacturing, connecting and engaging customers, sales teams, engineers, as well as the staff on the factory floor through the data flow. Unlike the other tools focusing on improving a single department or process, CPQ software delivers a comprehensive digital transformation.

Manufacturers implementing a robust CPQ solution can automate a major chunk of the most time-consuming and tiring tasks that keep sales reps and engineering teams. They can take down errors, reduce sales cycles and also reduce costs through improved efficiency and empowering customers to configure, price, and quote products for themselves by e-commerce. The impact of CPQ software brings more profitability and also a great customer experience.

The benefits are there for all to see. The CPQ market is expected to grow by $1.65 billion from 2021 to 2026. Still, a lot of manufacturers get bowed down in old software like Excel, and as these products become more advanced with changing customer behavior and expectations, these digital laggards get left behind.

So, what's keeping these manufacturers back?

In reality, there are always multiple factors. Lack of resources, knowledge, and experience, as well as an aging and complacent leadership team, play their part. For others, it's also the fear of the unknown and change resistance.

Creating a cross-functional, vibrant, as well as cohesive implementation team assists, sort out these issues. The implementation team is the binding force to the success of CPQ implementation success, but without careful consideration, you will end up with a team doomed from the beginning. The following advice will bring you on the perfect path.

A CPQ Tool Needs a Potent Implementation Team Too

An advanced CPQ tool with effective implementation touches every department, from sales to engineering as well as the shop floor. Integrating with core systems like ERP means that both front, as well as a back office, get impacted positively.

Digital transformation is so vast that a single individual cannot take all responsibility for this implementation alone, as the inertia and resistance will be a little too strong. What manufacturers require is an implementation team.

The most effective implementation teams take cues from every department. They're made up of technical and non-technical individuals. They're led by an executive sponsor that has a direct line of communication with the C-Suite, and they also know the customer intimately.

Ensure that your CPQ implementation team has:

Sales: They craft the strongest customer relationships

Sales reps deal with their customers consistently and craft the most potent intimacy with them. It's their job to know what customers wish to have from the sales process, how and why they drop off, how their buyer journey can be rendered more engaging, and what features of the CPQ implementation will unnecessarily increase the complexity.

Customer Support: They are aware of the larger issues

Customer support reps clearly understand customers' pain points better than anybody else. They know where the common problems come to the fore and which automation areas will have the most significant and positive impact. Post-implementation, the input from customer support is very invaluable to identifying what's not working effectively and what elements need tweaking.

Engineering: Understanding automated responses

CAD and design automation is one of the fundamental benefits of CPQ implementation. By automating the CAD file creation, sales sketches, as well as BOMs, engineers can liberate themselves from some of their most time-consuming activities and get back to R&D. Achieving this requires diligent consultation with at least one senior within the engineering department.

Manufacturing: They are aware of the product requirements

With their knowledge of product needs, processes, as well as lead times, manufacturing leads are aware of what data is needed to be received, in what format, and when to ship products quicker. Manufacturing input is pretty crucial in companies scaling up for the configuration of their products as a response to CPQ implementation.

Things to Keep In Mind When Creating An Implementation Team

Experience is good, but so is exuberance (more so when it is about CPQ for e-commerce).

You should not include the most experienced people in your implementation team through default. People who have been at your organization for decades might be the most blinkered. They might also be too habitual in doing things the old-fashioned way. You might have surely respected the leaders in your team for the buy-in, but you also require enthusiastic new hires for a fresh perspective.

Millennials growing up on the internet are often the best to drive CPQ for e-commerce, more so in manufacturing organizations relying on in-person sales in the past.

Manage the expectations carefully.

Being part of a successful CPQ implementation team has benefits:

• You get to play a great role in ensuring the perfect trajectory of your company.

• You get time away from your core duties.

• You can work closely with individuals from different departments.

• It looks good on your resume.

But the responsibility is real. It can be stressful. It might mean working additional hours and falling behind on work. Managing expectations of an integration team member's requirements at the outset are vital for preventing dropout.

Your team shouldn't be too huge (or too small)

How big is too big when it is about your implementation team? You want every department to be represented, surely. And it would be better if you had a blend of technical as well as non-technical people, plus also a mix of leaders and fresh-faced upstarts. However, what you don't want is a bloated team where only the loudest voices get heard.

Diversity is crucial

A diverse CPQ implementation team is crucial if you need more ideas, perspectives, as well as creativity for better solutions. A diverse group is also much better at taking care of the cultural shift needed to bring lasting digital change.

For successful implementation of configure price quote solutions, invest early.

Your implementation team is fully sold on the idea of CPQ, which is fantastic. They've done the research, watched the stats, and even participated in demos. Organization-wide digital transformation feels near. Implementing CPQ seems like such a no-brainer that it's hard to imagine anybody doubting its value. But they will.

Ultimately, the power lies with senior management, who can terminate CPQ implementation at the drop of a hat. So keep management well-informed. Ensure they understand what constitutes success, how long implementation will take, and the resources required before doing anything else. And once implementation is in progress, update them on your progress as you hit milestones.