INTERACTIVE SESSION: ORGANIZATIONS Fujitsu Selects a SaaS Solution to Simplify the Sales Process If you surf the web, stream video on your phone, or pricing and ensure that the parts being configured watch cable TV in North America, equipment from were all available Fujitsu Network Communications most likely keeps A rigorous selection process identified FIX's son you connected, Fujitsu Network Communications ware as a service (SaaS) CPQ quote solution as the Inc., based in Richardson, Texas, provides optical and best choice. FPX is a leading vendor of cloud-based wireless networking equipment, including servers, configure prionquote (CPU) software and a certified storage products, client computing devices, scanners, SAP Independent Software Vendor (18V) partner printers, and displays. It is a leading patent-holder in Only the FIX solution had the ability to integrate optical networking with Pujitsu's front-end Salesforce lead management Pujitsu network equipment provides optical trans and forecasting software and also with data from the port solutions to major telecommunications carrier company's back-end ERP system-and it ran on a across North America. There are more than 450,000 cloud computing platform. Pujitsu network elements, including shelves and FIX CPO automatically configures all sales orders, cards that house connectivity hardware, signaling even when they are based on extremely complex and routing setup, and management provisioning, business rules. The software validates all selec The company's numerous products contain thou tions of products and services to eliminate costly sands of parts and innumerable configuration scenar rework and helps preserve profit margins by require los. A single product, for example, might be priced ing approval for discounts that exceed preapproved differently for 600 separate comes because pric levels ing is determined by a customer's unique configura For Pujitsu, FPX CPQ automates all of the com tions concerning network sites, geographic locations, pany's complex pricing rules and requirements and and distances between sites. Additionally, each of Integrates them in nearly real time with the quoting the various sites in a network involves a multitude system so that quotes and orders are able to imme of setup configurations concerning power supply diately capture any change to product and materials labeling, and rules for communication. Just think master data. Pricing that used to take Pujitsu's sales how difficult the process of configuring pricing, and teams days to calculate now just takes seconds. And quoting orders for products and services might be for by centralizing this information, one does not have a 10-site network, which is not uncommon to pore through individual spreadsheets to see how For many years, Pujitsu sales teams had trouble pricing is being done. When a change is made, it no handling all this complexity in the sales and ordering longer is buried in one or a handful of spreadsheets processes. They had to use individual spreadsheets maintained by individual sales staff to configure, price, and quote (CP) solutions for FIX CPQ can also automatically recognize addi their customers. The company had no centralized tional opportunities based on changing the place repository for pro quotes, records of offerings, or ment of a product in a specific location. This feature capability for integrating quotes with the ordering eliminates the cumbersom manual process of cross process. Even though Paltsu had an ERP system checking a configuration against a promotion list and to maintain its enterprise-wide master pricing and eliminates the need to make postale concessions to materials master data, the CPQ process still took customers who did not initially receive the lowest days and resulted in quoting errors and countless cost option. Within six months of implementing FIX hours of corrections and rework CP, Mujitsu was already achieving business ben A system solution was in order, Dave Hawkins, eflis. A single cloud-based platform for CQ replaced Pujitsu's Vice President of Sales Engineering, Sales multiple quoting systems for configuring multishelf Operations, and Commercial Management, and his and multislot networking platform Pricing errors team issued a request for proposal (RPP) for a solu were reduced 80 percent, which in turn significantly tion that would produce quotes quickly and reduce reduced mework and write-downs (roductions in the quoting errors and rework. The most critical require value of an asset). The overall cycle time (total time ments were the ability to centralise and control all from beginning to end of a proces) decreased as of the quoting that was going on, ensure accurate well. Moreover, automating the Centerprise-wide 510 Part Four Building and Managing Systems The new CPQ system enables Fujitsu to stream line the sales process by placing a significant portion of the product data and configuration rules directly within the quoting application. The sales team is able to operate more independently and to focus on selling made it possible to see more important informa tion about sales, services, and what customers were requesting Every time a change is made, such as a new price, new product availability, or a change in a product description, all users can see that change as soon as they access the system and look at their quotes. If a quote is in the process of being generated, Fujitsu can also update that quote with such changes. End users can be out in the field with customers and show them real-time visual representations of solu tions, make changes to configurations, and instantly ohtain accurate-up-to-the-minute prices, Source: Kom Murphy, Untangles Sales Complete" SAP Insider, July 4, Xingle Application form for Multi Channel Manager.com, celebruary 29 2016; www.ip.com, Pary 20, 2016, and www.fi comed bruary 20, 2016 CASE STUDY QUESTIONS 1. What were Pujitsu's problems with its existing sys tems for the CPQ process? What was the business impact of these problem? 2. List and describe the most important information requirements you would expect to see in Fujitsu's REP 3. Why was the FPX CPO solution selected? Was it a good choice? Why or why not? 4. Why would software as a service be an appropriate solution for Fujitsu Should Fujitsu have built its own CPQ system in-house? 5. How much did FPX CPQ change the way Fujitsu ran its business