5 Reasons why CPQ installs fail
Did you know most of the airplane accidents occur during takeoff and landing ? This is mainly because in both these stages airplane is changing its normal state. In the same way when you introduce change in your organization there is a risk that it would fail and not get implemented successfully. When you try to implement CPQ software, you have to focus on the successful implementation in the beginning.
Installing a Configure Price Quote (CPQ) software is much different from installing a Windows 10 on your computer. When an organization plans to implement CPQ, it has to realize that it won’t just be implemented overnight in the sales department but all the other components of your organization would also be using it to input data that would then eventually be used by the algorithm of CPQ software to generate optimal price of a certain product or service at a given point in time. In many organizations, CPQ installs fail and here we have identified five key reasons behind that failure.
1. Poor quality of data
In many organizations, most of the data regarding a product is not stored in one place on a system and is thus not shared with everyone on the network in the organization. Since the data is incomplete, it makes it unreliable for pricing a product or service. The data has to be transferred from all papers and documents to the software. The IT, engineering, marketing and operations departments all have to input the data from their end for the accurate pricing of a product.
2. Neglecting intangible products
Most of the time the employees tend to include all the tangible products into the system while the intangibles (like, services and extended warranties) are most often neglected. These intangibles mostly constitute the reason for a company losing deals. This means that the configuration of a product or service is not complete, both tangible and intangible products should be included in the system for pricing the product or service accurately.
3. Not including sales department in configuration phase
In most of the organizations, the configuration is done by all the departments except sales. Thus, the key reason for configuration is most often misunderstood. The reason for configuration is to help the sales department quickly generate a valid quote. It is recommended by many consultants that a representative from sales team should also be present during the process of configuration so that he is able to put forward the point of view of sales department.
4. Neglecting the competencies of IT department
If you plan to implement CPQ in your organization then you should also focus on the competencies of your IT department, because IT department is responsible for the maintenance and troubleshooting of the CPQ software. If any technological risk arises, your IT department would be the one that would be summoned. This makes the functions of whole organization dependent upon the IT department so it is wise to check whether your IT department has those competencies and human resources to deal with such a situation if it ever arises.
If the CPQ software due to some maintenance could not be used then the sales department would obviously move to other options or would resume the old methods of doing business, and thus the implementation of CPQ software would fail.
5. Not training the users of CPQ software
It is useless to implement CPQ software in your organization if the higher management has no training budgets for employees. To use this software all the employees that would be using it in their day to day work have to be trained for effective performance. Most of the organizations do not sufficiently train their employees and thus the CPQ install fails even before it gets completely implemented.
If you still have questions about CPQ implementations, contact a CPQ expert at CallidusCloud for more information.
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Configure Price Quote (CPQ) Basics
- How a sales organization benefits from a CPQ solution.
- Considerations for setting up and maintaining a CPQ solution.
- What to look for in a CPQ solution.
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