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Test Number : 1Z0-436
Test Name : Oracle BigMachines CPQ Cloud Service 2016 Implementation Essentials
Vendor Name : Oracle
: 80 Dumps Questions

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Oracle BigMachines CPQ Cloud Service 2016 Implementation Essentials book

Why has Quote-to-money (Q2C) become peculiarly tough and Why Salesforce and SAP are after it? | 1Z0-436 Dumps and Real exam Questions with VCE Practice Test

  • Transition to subscriptions,
  • ability to present new sales bundles in hours & no longer weeks turnaround, and
  • permit B2B self-provider eCommerce (suppose Amazon-like purchasing experience for business items).
  • regrettably, current items in Q2C workflow have failed to meet any of the above necessities for firms (for mid-market, there are some aspect solutions even though).

    here’s a quick summary on what’s broken in line with my conversations:

    summary of issues

  • outdated and incompatible product catalog across CRM/CPQ/Billing/ERP resulting in facts duplication and lot of complicated integration work throughout the stack
  • broken APIs
  • Sandbox to construction deployment is a nightmare
  • complicated approval workflows
  • Unfriendly UX throughout the board whether customer, channel or worker facing
  • No cellular-centric event
  • Inherent lack of scalability in both CPQ and Billing solutions
  • rigid and inextensible programs leading to longer implementation times (usually in a number of months, often couple of years).
  • utilization-based mostly billing doesn’t work
  • Hardware + subscription on same quote constantly doesn’t work
  • Subscription amendments and later renewals are challenging
  • Analytics/reporting is susceptible/complicated and non-actionable
  • considerations with multi-12 months contracts
  • Dynamic bundling is not supported
  • Dynamic pricing isn't supported
  • no person is presenting intelligence across the transaction facts (that goes via Q2C process) to aid in future earnings
  • No multiple language help … Salesforce requires APEX, Oracle CPQ has BML. side affect: Lack of availability of reasonably priced talent to retain such items
  • Assumption round “SKUs” (one-time sale)

    greatest change in remaining few years is across the consumer expectation to “subscribe” to products/functions as a substitute of right-out buy. This migration from one-time promoting of SKUs to subscriptions is the simple purpose at the back of why usual Q2C products are failing.

  • For SKUs, counsel move has generally been one-method i.e., from CRM to ERP with some reconciliation going on from ERP to CRM. Subscriptions have led to this flow to switch on its head as now orders aren't remaining; amendments are the brand new norm i.e., including/deleting/enhancing subscription post-purchase. This requires ERP and CRM to communicate closely and often. besides the fact that children, these techniques had been now not designed for such communication. Even primary statistics in/out is painful with each and every plenty less a neatly-oiled bi-directional records stream.
  • Underlying information mannequin for product / pricing catalog became not designed for SKUs and not subscriptions. SKUs fundamentally represent a “fixed” product/service, there is not any variability. even so, subscriptions by definition have a term linked (6 month, 12 month and many others.) and pricing / discounting will depend on the term. in addition, subscriptions are also priced in accordance with # clients which the conclusion consumer might also fluctuate over the liftetime of the subscription. ordinary product catalogs aren't designed to deal with this flexibility. To address this subject with latest systems, companies are compelled to create additional SKUs to address every permutation resulting in weird SKU proliferation (hundreds of SKUs) which unnecessarily complicates everyone’s existence (income adult, channel earnings, advertising, accounting, and even the customer)
  • altering ERP/CRM methods and product catalogs is a primary design change and is certainly not an add-on feature.

    Assumed natural / channel promoting most effective
  • CRMs were designed for 1000's of debts no longer thousands and thousands of accounts/statistics aspects; as a result even basic scaling/performance requirements are unmet. i used to be instructed that Salesforce CPQ cannot deal with costs of more than 200 lines so the quote has to be divided into multiple costs (Salesforce experts can consider dreaded “governor” limits. Now, any PaaS device can have checks and balances round useful resource consumption (e.g., right here is Google App Engine’s) nonetheless it appears that the way it is executed in Salesforce imposes primary restrictions e.g., one can simplest question 100 SQL information per transaction,.. no longer 1M, 100K or even 10K… it is 100!). a bigger element is that for brand spanking new-age firms like Airbnb, Lyft, Uber, DoorDash and so forth. which count number their valued clientele/merchants in thousands and thousands, not one of the existing CRMs (and even CPQ/Billing/ERP systems) will work and from what I have been informed every is engaged on their own edition of these techniques. truly, this opens a really entertaining startup chance to construct hugely scalable, consumer-friendly, cloud-based CRM and so forth. methods that will also be used with the aid of subsequent-gen firms. Even enhanced, why no longer construct a time-honored infrastructure commercial enterprise IT layer that may run on excellent of any public cloud on suitable of which apps like CRM, CPQ, Billing, ERP etc. can be run. Now, firms don’t need to retain a separate CRM/ERP or even HR IT stack… all enterprise elements (no matter if people or belongings) are represented during this one single stack as a way to make the job of IT massively simplified as no records transformations would be essential). greater on this in a later post.
  • Downstream CPQ techniques work off of a CRM “possibility” best. This potential if you're providing your items/services to be sold on-line at once, CPQ gained’t work because the web page user is not a CRM lead. This forces enterprises to construct and manipulate two parallel Q2C workflows (one for direct-sales and a different for self-serve).
  • Guided promoting is proscribed to guide mp;A in place of auto-context-pressure (consumer, country, vertical) or prior purchase historical past.
  • purchaser concepts of UX, cellular-centricity had been largely unnoticed.
  • Guts of the IT systems had been designed for low-volume/excessive-greenback (direct/channel income) and not for prime-volume/low-dollar transactions (self-serve) which is majority business for more and more gigantic number of SaaS agencies and lengthy tail for others.
  • Fixing these concerns isn't a bolt-on characteristic fix-it, as an alternative it requires a notion via application design from day 1.

    Mid-market focus
  • It looks that all CPQ/Subscription Billing companies took a mid-market method early on (startups commonly do this for rating early wins). right here’s the disastrous side-impact although — enterprise use-cases aren't accounted for in these designs leading to extraordinarily inflexible systems with bad scalability, dysfunctional APIs, damaged reporting and so on. this is one consistent comments I heard across all carriers — they aren't “enterprise-able”.
  • existing products were created greater than 10 years back (even Zuora is eleven yrs historical) and most, if not all, appear to be operating on an old-fashioned application architecture. Artifacts of historic structure are — lack of scaling/efficiency, weak APIs, statistics in/out hard, limit on programming language support, underlying methods that don’t scale (Salesforce and in view that virtually all CPQ methods run on drive.com platform they inherit the equal barriers). a few businesses mentioned that the cost of Salesforce sandbox environment is also very costly.
  • Re-architecting the core-engine is nearly developing a brand new product.

    In my interviews, constant comments become that Q2C products should supply 60–70% anticipated functionality out-of-the-box whereas the leisure (customization) could be completed through customer themselves as long as it can be executed without problems which looks to be now not feasible by using existing equipment.

    both adding bolt-on products or doing acquisitions — Apttus did CPQ first, Billing later. Zuora did Billing first, CPQ later (in process). SAP acquired Billing first then CPQ (CallidusCloud, $2.4B, Jan 2018). Salesforce obtained CPQ (Steelbrick, $360M, Dec 2015) which in flip had bought a billing dealer earlier.

    All of those techniques appear to failing because the fundamental concern is not inserting all items beneath one expense checklist however in proposing a true “built-in” product with commercial enterprise-class design round managing subscriptions. none of the vendors appear to have that.

    The diverse-product approach (no matter if in-apartment or via acquisition) introduces mammoth bottlenecks in data circulate requiring painful statistics translations resulting in brittle connections & not ever-ending protection.

    they are forced to do both of following:

  • purchase present items and appoint a military of device Integrators to someway make the products work together by accomplishing advanced integrations — roughly 10–20% of such implementations readily fail, others that prevail become creating brittle connections so that trade administration is an incredible ache (both time & $$$) and agility is fully misplaced. One business spent $300M (!) on CPQ transformation task with less than enough influence. well-known standard tends to be in 10s of tens of millions of greenbacks (this comprises license charge, implementation charge and ongoing renovation).
  • construct own equipment — everyone from the bigwigs to medium businesses recognize that it is not a long-time period method (creating and keeping methods like CPQ/Billing is a complex accomplishing and early advantages at once overtaken with the aid of lengthy-time period renovation prices, lack of product path, finances cuts and so forth.). In my conversations I came throughout 4 corporations who have undertaken these efforts and with all of them (apart from one where it was CTO’s idea) were compelled to do it — their factor became in the event that they will have to spend large money on SIs anyway, why not pour that money in inner building and manage their personal fate. There could be some kingdom constructing circumstance however as a remember of fact all of these equipment have been struggling and IT leaders were looking for a very good external choice (even though none is purchasable).
  • After having a few of these conversations, some patterns started emerging and listed here are my strategies on a product/equipment that I feel can potentially solve the problems:

  • First and ultimate, Pricing engine, Product catalog & Subscriptions should be in a single device. common approach of placing Pricing and Catalog in CPQ and Billing in ERP one after the other worked well for SKU-primarily based ordering or one-time orders. With subscriptions, “order” isn't a terminal entity, as a substitute it lives on with amendments. superior option to handle it really is by using combining subscription coping with (quoting, billing, amendments, renewals), product catalog and pricing in one system.
  • second, feel enterprise-structure Day 1. That means building a platform vs an utility. Make information in/out extremely handy, deliver domestic-grown rock-strong connectors to generic CRM/ERP solutions, focal point on UX, easy extensibility, cellular-centric, run on independent cloud as a substitute of drive.com (limits scalability, efficiency, even AI options).
  • Third, cater to self-serve — way forward for enterprise promoting: provide an Amazon/Atlassian like buying journey to other organisations whose clients are more and more wise buyers. this can release new and prior to now untapped income alternatives for businesses and will be a real game changer. in accordance with Forrester, seventy four% of B2B buyers prefer to buy on-line vs via channel.
  • Fourth, put information science / ML to decent use. Q2C workflow sees monetary / client / computing device information — perfect location to follow ML using up-sells, pass-sells, renewals. e.g., “60% shoppers like you purchased this”. also, how about tying product usage directly to consumer portal to drive auto-upsell notification — “you are equipped for an upgrade.”
  • Fifth, rethink consumer success: How about tying revenue to a a success implementation as a substitute of just preliminary sale. it may well appear like a harmful method, however in view that Q2C drives valued clientele’ earnings/profitability, if a lot of price is created for the consumer, it may be a tremendous a win-win proposition and a ton of money may also be made to the extent that’s by no means been viewed before in enterprise application.
  • advantage
  • No should purchase & control separate Billing and CPQ products (Do Subscription quoting, billing, renewals, amendments in a single Platform).
  • utilization-based Billing support
  • CPQ interface (internet + cell) that income will like to use. CPQ product fundamental goal is to help revenue folks shut deal as quick as possible but most, if not all, CPQ solutions just automate promoting procedure devoid of making it more straightforward/smarter. (i'm reminded of a publication “Don’t make me feel” by using Steve Krug).
  • Provision new earnings bundles in count number of hours no longer weeks
  • ability to create dynamic bundles (finally no SKU proliferation!)
  • combine hardware and utility on one quote
  • Subscription amendments are so handy that they may also be self-served as smartly!
  • Go-are living in < 1 month (publish necessities gathering)
  • traditional ERP and CRM programs that have been designed decades ago around concepts of one-time order, rigid catalogs, rigid pricing, direct/channel income best (not self-serve) and closed techniques are more and more fitting inappropriate for enterprises which are obsessed about being agile and consumer-centric.

    in short, current CRM and ERP programs are failing methods of data, unimpressive techniques of engagement & non-existing methods of intelligence.

    there is an excellent big chance around re-imagining & re-building these techniques & convey an event and never just a device.

    top of the line impartial writing I discovered on this subject:

    The way forward for Quote-to-cash (Q2C) and the Commerce Cloud: correct Ten suggestions for SaaS businesses by means of Anandan (AJ), 2016. (I even met AJ in grownup consequently).

    Analyst stories
  • Gartner MQ 2018 for CPQ (give data to obtain free replica from CloudSense)
  • Forrester Wave CPQ Q1 2017 (give info to down load free reproduction from Apttus)
  • Market

    CPQ/ Billing is a component of overall $forty two.14B CERM (customer adventure & Relationship administration) market. supply: Gartner.

    CPQ Market: $1.2B (est. 2018). CAGR 20% through 2020.

    Subscription Billing: $2.7B (est. 2018). CAGR 35% via 2022.

    I feel the market is an awful lot bigger on the grounds that penetration of knowledgeable CPQ/Billing solutions is low (vs home grown or aspect options). One proxy for this information is # of consumers for CPQ vendors (these are all in Gartner MQ)

    Apttus — 300, Oracle BigMachines — 500, FPX — 62, Accenture — 25, Vendavo — 60

    If they have been to extrapolate the numbers to lets 5x of above, they get 5000 consumers. through assessment, Salesforce CRM is deployed in additional than 150K corporations. moreover, commercial enterprise subscription market is awfully nascent at this stage and each markets will have a suit double digit boom via subsequent 5 years in order that common market probability is near $10B.

    M&A (by using date)
  • $1B-$2B estimated, Apttus majority stake by PE enterprise Thoma Bravo, Sep 2018
  • $2.4B SAP received CallidusCloud (CPQ), Jan 2018
  • $303M Salesforce received Steelbrick (CPQ), Dec 2015
  • $400M Oracle got BigMachines (CPQ), 2013

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