Case%20Study:%20My%20SAP%20Implementation%20at%20the%20Associated%20Press

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Case Study My SAP Implementation at the
Associated Press

• Fernando Ferre
• Director of Finance Operations
• Newspaper New Media Markets
• The Associated Press

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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.

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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

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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.

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New Media Market (AP Digital) CRM Implementation
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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

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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
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Software Selection Process

• SAP HR implemented
• SAP CRM had the required functionality
• SAP provided a platform
• phase in functionality as we were ready
• ride SAPs product development curve

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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

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Business Process
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Functionality Implemented

• Campaign Management
• Customer Interaction Center
• Order Processing
• Product Management
• Opportunity Management
• Service Contract Management
• Business Warehouse

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Implementation Timeline

• Total implementation time 5 Months
• Project Started on April 2002
• Live on September 2002
• Staffing
• Internal 3
• External 4

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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

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Call Lists in CIC
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Customer Interaction Center

• Used to track customer interaction history
• Used to create/modify all the transactions e.g.
• Activities, Opportunities, Service Contracts,
  Business Partners, etc from a single screen.
• Configuration Flexibility based on user
  requirements

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Customer Interaction Center
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Business Activities

• Used for Order Processing
• Trial Order Notifications
• Service Order Notifications

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Activity Screen
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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

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Activity Monitor

• The output can be sorted by any column
• Layout can be customized for each user

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BWOrder Fulfillment Report
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Product Management

• Product hierarchies
• Flexibility of reassigning product categories
• Product pricing
• Customer Product
• Product
• Billing frequencies
• Monthly
• Quarterly
• Yearly
• One Time Fees

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Opportunity Management

• Logs sales prospects, requested products, sales
  prospects budget, potential sales size ,
  estimated sales probability and expected closing
  date
• Information is used in sales pipeline

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Opportunity Management
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BW- Sales Pipeline report
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BW Lost Opportunities Report
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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

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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

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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

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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

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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

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Benefits of SAP CRM

• Orders dont 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

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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

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Newspaper Market CRM Implementation
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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

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Newspapers CRM Deployment
Customer-facing AP Activities
Back-office Execution
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Customer Hierarchy
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CRM Functionality

• Order processing
• Opportunity management
• CRM Pricing
• Contract management
• Workflow functionality

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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

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Lessons Learned

• Set realistic expectations
• Dont 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