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Showing posts with label blog. Show all posts
Showing posts with label blog. Show all posts

Top 5 things you should read or listen to before starting your CPQ project

Posted On Saturday, July 20, 2019


Ok, so you're planning to implement CPQ at your business. You figured you should maybe do some reading to learn some tips and tricks. Where should you start?

We've collected the 5 most important things you should read or listen to about CPQ before starting your project.

1. Gartner's Magic Quadrant

Gartner publishes a research paper once a year in the form of a Magic Quadrant. The latest version was released in November 2018. The document can usually be downloaded for free from some of the vendor's web sites (CloudSense).

2. Knowledge-Based Configuration: From Research to Business Cases by Alexander Felfernig, Lothar Hotz, Claire Bagley, Juha Tiihonen

This is an academic-styled book about configuration. We don't recommend you to read the whole thing, as it will gain you limited value for actually implementing CPQ. We do recommend chapter 2 for a brief history of configuration, chapter 6 for understanding of different technologies for CPQ and chapter 16-19 for valuable insights into implementations at different companies.

3. Product Customization by Lars Hvam
This is a really good book for preparing your company for a CPQ implementation, how to document your CPQ data before the implementation.

4. The CPQ Podcast

Novus CPQ is an independent CPQ analyst firm. Their podcast is focused on CPQ tools and processes, and will provide you with useful insights. They conduct interviews with many CPQ leaders and analysts.

5. Top 10 reasons why CPQ projects fail

Don't miss this blog post describing the top 10 pitfalls when implementing CPQ. Learn from mistakes made in other CPQ project, and avoid doing them in your project.

A brief history of product description models

Posted On Wednesday, April 3, 2019

In the early days of manufacturing, products were not very complex and it was sufficient to provide a simple parts list, in order to define the product content. With time, the product complexity grew and the number of variants that some companies were offering the market increased; therefore product description models and tools had to be developed.

The next step in product description models was to introduce a hierarchical structure to the parts list to keep control over the evolving number of parts. But during the 70’s and 80’s products in some industries started having so many variants that it became too tedious to update each variant of each model as a separate hierarchical product structure. Companies started using labels to describe the usage of sub-assemblies that were alternatively used in different variants of the product.

In modern product description the whole structure is parametric hence configurable. The elements are abstract representations of design solutions and will only represent physical parts or assemblies when they are configured through assignment of values to the necessary parameters. The driver for the change from a parts hierarchy with variants to configurable structures is usually attributed to mass customization.

Publicly available CPQ examples

Posted On Saturday, February 2, 2019


Configurators built using CPQ software :

Bennington Marine (Verenia)
B├╝rkert (Tacton)
Demag (Camos)
Ebara (Intelliquip)
Festo (Camos)
Grundfos (Configit)
John Deere (FPX in the old version, Configit in the new version)
Maxon motor (Camos)
Mercedes-Benz Trucks (CAS Software / SAP)
Piab (Tacton)
Scania (Tacton)
Tuff Shed (KBmax)

Demos by vendors:

8-queens problem (Configit)
Bike/Lawn Mower/Etc (e-Con Solutions)
Cabinet Configurator (Configure1st)
Hi-tech, SaaS and IT/Managed Services (CallidusCloud CPQ)
Scissor lift/Cupboard/Etc (DriveWorks)
Sudoku (Tacton)

Notable configurators built in-house:

Aritco
DAF Trucks
International Trucks
MAN Trucks
Montech AG
Renault Trucks
Schindler
Siemens AG
Volkswagen


Other configurators may be found in the configurator database, however most of them are very simple B2C (Business to Consumer) products.

How CPQ analytics can improve product development

Posted On Friday, August 18, 2017


One interesting aspect of an implemented CPQ solution is the possibility to analyze sales in a new way.

Traditional sales statistics answers the question what has been sold. This is somewhat interesting but normally it doesn’t bring very much new insight to the table.

With clever BI-tools (like Tableau or QlikView) it’s possible to slice the data in a way that will give you a better understanding on what’s tending and who is really doing profitable sales. But this still doesn’t answer the big question… With ordinary sales statistics one can tell WHAT is selling, but it doesn’t answer the question WHY?

A CPQ solution makes it possible to keep track of all quotations. This opens up for analysis where one can compare successful quotes with the less successful. This type of analysis will give concrete measures on what products that has been offered and make it possible to compare it what has actually been sold.

The analysis gives the possibility to reduce the product portfolio based on what has been part of actual quotations and if it has been sold. This gives a rating per sub-component whether a certain product is providing adequate value on the market.

The analysis also answers the question where there is possibility for new business. By understanding the type of deals that are refused by customers gives great input for product development.

This video (found on the Tacton Youtube-channel) introduces the concept of CPQ analysis.

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