SAP CRM 7.
0
RKT Live Expert Presentation
RTOM 7.0 Part I
Dr. Shuki Idan
Head of Technology
and Product
Management
Maya Kidron
Product Manager
Workshop Objectives
Learn about the business need and value proposition of RTOM
Get in depth knowledge of the product functionality
Understand the delta functionality in 7.0 release
Review the technical architecture and implementation considerations
Learn how to present RTOM and create a customer specific demo
Learn the available sales tools and how to find additional support
Get a first insight into our roadmap plans
SAP 2008 / Page 2
Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]
Tomorrow - Part 2 [2 hours]
RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]
It is RTOM Time!
RTOM is a key CRM investment area
RTOM is a key CRM investment area (EIU SEP 07)
... Real-Time Offer Management can improve your
customer response rates as much as 10 times direct
marketing.
Gartner, September 2007
Customer data mining and inbound marketing remain popular
because they can deliver higher campaign response rates, despite the
steady, 10-year growth in spending on these technologies.
Gartner, March 2008
... the desire to enrich the experience of each
interaction, a captive and attentive audience, and the
opportunity to reinforce the brand all make inbound
marketing a compelling solution.
Forrester, January 2007
What's 'Hot' in CRM in 2008 ( Gartner MAR 08)
RTOM is hot CRM Service topic ( Gartner JUN 08)
Background
RTOM is a real-time recommendation technology that was acquired by
SAP from Ingeneo at the end of 2006
RTOM is part of SAP CRM Marketing offering and is integrated with CRM
master data and Interaction Center (2006s/5.2 and on)
RTOM is also available as a standalone product
RTOM pricing model is value based proportional to the number of
recommendations
SAP Real-Time Offer Management (RTOM)
RTOM enables organizations to conduct
intelligent interactions
RTOM recommends best offers during interactions
Offers are products or next best actions driven by business goals
RTOM learns from response and improves its recommendation strategy
Our Taxonomy
Product(s) recommendation
Typically related to sales and/or contract modification (e.g. upgrade handset)
Success is measured and is used for self learning
Next best action recommendation
Guiding to next action (e.g. schedule a safety check)
Success can be measured but is not used for self-learning
SAP 2008 / Page 6
SAP Real-Time Offer Management (RTOM)
RTOM Foundations
Offer Management
Environment
Real-Time
Decisioning Engine
Self Learning
and Analytics
Major Design Concerns
Business users oriented
Multi channel
High performance and scalable, from technical perspective
Manageable / scalable, from business perspective
SAP 2008 / Page 7
Offer Definition
Offers
Offers
Productsand
and
Products
NextBest
BestAction
Action
Next
[optional] Downstream / batch activities
Real Time Offer Management in Action
Make the right offer at the right time
Design Time
Business User
Who: target profiles
When: triggering events
What: offers
Where: interaction channels
Real time customer information
RTOM
Interaction events & data
Current level of service
Agent skills, external info, etc.
Current customer profile
Previous customers responses
Optimal recommendation
Interaction Time
Other real time information
Cross/up sell offers
Retention offers
Marketing messages
Next best action
Interaction channels
RTOM in the Interaction Center
RTOM Recommendations
Integration with product data and relevant
processes e.g. drag offer into a Sales/Service Order
Why RTOM?
Sample Use Cases and Expected Value
Use case
Expected Benefits
Enhance cross/up sell and retention during
inbound and outbound interactions
Increase revenues while keeping service
productivity; Increase customers lifetime
value
Guide interactions and recommend next best
actions
Empower customer facing personnel;
Streamline self service channels; Reduce
handling time; Increase customer and agent
satisfaction
Synchronize and improve offering across all
interaction channels
Increase customer satisfaction; Boost online
sales; Decrease costs; Strengthen branding
Enable business users to run an agile business
test, deploy, measure and improve
Decrease Marketing spending ; Shorten
Time-To-Market
SAP 2007 / Page 11
RTOM Process and Landscape
Create & manage
offers portfolio
Intuitive offer definition
and management
environment
Design
RTO
M
Business Logic Studio
Recommend best
offers
Prioritized real-time
recommendations
Learn and adapt
Automatic learning to
improve subsequent
recommendations
Insights for business users
on offers, agents, channels
and responders
Interaction
Analysis
RTOM Administration Cockpit
Real-Time Offer Management server
Configuration Manager (recommendation & data services)
CRM & other data sources
Measure and
provide insights
Interaction Channels (e.g. IC, e-com)
RTOM
Analytics
BW / DWH
How does it work?
Main components and flow
1. Offers are defined in BLS and
saved in the RTOM engine
Customer Interaction Channels
2. Interaction application event
triggers RTOM
2. Events
5. Recommendations
RTOM Recommendation Services
3. RTOM retrieves the relevant
data from data sources
4. The recommendation engine
detects the optimal offers
RTOM
Business
Logic
Studio
(BLS)
5. Recommendation is provided
to the application
6. Recommendation result is fed
back to RTOM for self-learning
7. [optional] RTOM triggers other
relevant activities
6. feedback
RTOM Recommendation
Engine
Offers
Experienc
e
3. Info retrieval
Product Catalog
7. Activities
(optional)
downstream
processes
RTOM Data Integration Services
8. Experience based Analytics is
provided
RTOM
Online
Cockpit
CRM Master
data
XML /http,
ODBC, WS
8. Analytics
DWH / BW
RTOM Cockpit
Business Logic Studio (targeting)
BLS : Add Logical Expression
SAP 2007 / Page 16
RTOM Analytics Example - Offer Performance
Offer performance breakdown into target profiles and events
RTOM Analytics Example - Agent Performance
How often the agent
promote RTOM offers?
How successful was the agent in
selling RTOM offers?
RTOM 2007 to 7.0 Delta
Technical
Enhanced Globalization and Accessibility
Supports all 30 SAP standard data entry languages including
double byte languages and Unicode
Support more languages in the offer design UI (BLS) Japanese, Italian and Portuguese added to English, German,
French and Spanish
Support multi user locale settings (UI language, date/number
format, time zone)
Enahncements for "mega scale" deployments
Distributed high performance architecture & 64 bits
Multi locale /time-zones deployments
Part of SAP landscape and tools (e.g. CCMS, SLD)
RTOM
Analyzer
RTOM
Engine
RTOM recommendation
services
Events
RTOM Router
RTOM
Engine
Experience base
SAP 2007 / Page 19
RTOM
Engine
RTOM
Controller
RTOM 2007 to 7.0 Delta
Functional and other
Multi Channel support (beyond IC)
Personalized Next Best Action recommendations in addition to products
New value based pricing model for all types of channels
RTOM is also available as standalone without SAP CRM (as of 2007 SP02)
SAP 2007 / Page 20
Multichannel RTOM
Demo
How does it work?
Main components and flow
1. Offers are defined in BLS and
saved in the RTOM engine
Customer Interaction Channels
2. Interaction application event
triggers RTOM
2. Events
5. Recommendations
RTOM Recommendation Services
3. RTOM retrieves the relevant
data from data sources
4. The recommendation engine
detects the optimal offers
RTOM
Business
Logic
Studio
(BLS)
5. Recommendation is provided
to the application
6. Recommendation result is fed
back to RTOM for self-learning
7. [optional] RTOM triggers other
relevant activities
6. feedback
RTOM Recommendation
Engine
Offers
Experienc
e
3. Info retrieval
Product Catalog
7. Activities
(optional)
downstream
processes
RTOM Data Integration Services
8. Experience based Analytics is
provided
RTOM
Online
Cockpit
CRM Master
data
XML /http,
ODBC, WS
8. Analytics
DWH / BW
RTOM Analytics
Create & manage
offers portfolio
Recommend best
offers
Learn and adapt
Measure and
provide insights
Enhance the ability to manage and optimize the efficiency of online offering,
allowing control over offers effectiveness and agents performance
Offer performance analytics analyzes the performance of offers along with
customer profiles, and interaction events over time
Agent performance analytics analyzes the utilization of RTOM and the success
of offering by different agents, as well as the impact on productivity over time
Customer analytics analyzes the response profiles of the various offers
Channel analytics provides insights about the offer performance in different
channels as well as channel specific offering profitability
RTOM Recommendation Strategy
Key capabilities
Create & manage
offers portfolio
Recommend best
offers
Learn and adapt
Measure and
provide insights
Relevant - recommendation considers the context of the interaction, real-time results,
agents skills, workload, and more
Optimal - prioritizes all valid offers according to their expected value contribution
Adaptive - learns from responses and improves the recommendation strategy along time.
Also, validates marketing hypothesis and adapts recommendation strategy, if justified
Intuitive recommendations are accompanied with suitability reasoning and behavior
along time is explained to business users by a set of offline analytics
Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]
Tomorrow - Part 2 [2 hours]
RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]
The RTOM wiki page
Table of Contents
1 - RTOM Go-To-Market Essentials
2 - More Go-To-Market Tools
3 - RTOM Competition
4 - Industry Specific Materials
5 - Architecture and Implementation
6 - Customer Handouts
1
GTM
Essentials
6
Customer
Handouts
More GTM
Tools
This briefcase is on the RTOM Wiki Page at
RTOM
https://wiki.wdf.sap.corp/display/SAPCRMHub/SAP+RTOM
Architecture &
Implementatio
n
Competition
4
Industry
Specific
SAP 2008 / Page 27
1. RTOM GTM Essentials
FAQ
The comprehensive FAQ contains almost everything you need to know
in order to position RTOM. Take an hour and you are done
The overview presentation will enable you to present RTOM in 7 slides.
It contains extensive speaker notes
GTM
Essentials
6
Customer
Handouts
More GTM
Tools
RTOM
If you just want to understand What s In It For Me read the one pager
5
Architectur
e&
Implement.
Competition
4
Industry
Specific
SAP 2008 / Page 28
2. More GTM Tools
1
GTM
Essentials
6
Customer
Handouts
More GTM
Tools
RTOM
Learn more about the Market and RTOM functionality via e-books, recorded
and narrated demos, presentation and more.
Calculate and demonstrate the value of RTOM for your prospect using
Case studies
Pricing information
Return On Investment (ROI) calculator
Architectur
e&
Implement.
Competition
4
Industry
Specific
SAP 2008 / Page 29
Banking Case Study
Introduced 35 new cross/up sell and retention offers within a month
One of the top 10 banks in
the United States
Business Challenges
Complex offering the bank manages a comprehensive offering environment :
banking, brokerage, insurance, investment, mortgage, trust and payment
services
Wish to create and manage a multitude of cross line of business offers (e.g.
mortgage + insurance)
All product should be available over all channels
CRM Strategy and Objectives
We are always here for you (all services and bankers available 24 hours a day,
7 days a week) need to empower agents and provide on stop-shop for sales
and service on all channels.
We have the product you need and if not we will create it need to facilitate
offer management and ensure short TTM
We will bring down the walls among our Marketing, Service and Sales
departments to create a customer focused ecosystem
Results with RTOM
18% positive response to RTOM offers ; additional 12% requested follow up
5 hours to launch a new offer from idea to production
3 hours to train new agents
Agents using RTOM made 52-60% better than agents not using RTOM ;
agents offering effectiveness improves month to month (see graph)
Up and running in call center within 2 months
ROI within 6 months
Offers
Checking Offers
Retention Offers
Free Checking
Certificate of Deposit
Interest Plus Checking
Savings Account
Elite Checking
Checking Account
Mesa Checking
Elite Checking Account
Student Checking
Loans and Lines
Upgrade to Interest Plus Checking
Home Equity Loan/Line
Upgrade to Elite Checking
Home Equity Line Utilization
Visa Check Card
Maturing Home Equity Line
Save Checking with Checking That Pays
Visa Platinum
Save Checking with Visa Check Card
Cash Rewards Visa
Savings & Certificate of Deposit Offers
College Visa
Goal Savings
Credit Line
Money Market
Reserve Line
Indexed Money Market
Other Products
High Impact Money Market
Internet Bill Pay
Maturing CD
Auto Pay
Promotional CD
Visa Bucks Card
High Value CD Maturity
Overdraft Protection
RTOM Pricing and Quote Process
SAP RTOM is a separately priced line item. RTOM licenses are
purchased in addition to SAPs application user licenses
RTOM price do not appear yet on the price list since RTOM is under
controlled shipment
From a revenue recognition perspective, RTOM is like any SAP standard
product but it requires a separate contract
RTOM revenues are recognized as CRM revenues
In order to sell RTOM you need
To contact Beni Basel (
[email protected]) to discuss the prospect and the
price to quote
When the deal approaches signature you will need to notify your contracting
agent to prepare the contract
SAP RTOM Pricing
Agent Assisted Channel (material code: 7008709)
For n RTOM
recommendations
Number of Recommendations
SAP Real-Time Offer
Management
Price per unit
(EUR)
Price formula
(EUR)
.30
n *.30
Self-Service Channel (material code: 7008710)
For n RTOM
recommendations
Number of Recommendations
Price per unit
(EUR)
Price formula
(EUR)
.15
n* .15
Definition of Metric: Number of recommendations created by the RTOM system in a calendar year.
If usage is exceeded, minimum purchase is in blocks of 20,000 recommendations.
Minimum Quantity for agent assisted channel 200,000 recommendations (60K EUR)
Minimum Quantity for self-service channel 400,000 recommendations (60K EUR)
Guidelines
Licenses for RTOM are perpetual licenses
Metric is based on number of recommendations created by RTOM in a calendar year
Linear price based on total number of recommendations by channel
Minimum quantity varies per channel
Customers who exceed usage must pay for any additional recommendations (sold in blocks of
20,000 recommendations)
Standard regional uplifts apply
Database license fees apply
Simplified ROI Model
Guidelines, spreadsheet and example with benchmark
The simplified model takes into account two major revenue contributions
Revenue from increased sales
Every agent will sell more products
and services with RTOMs
recommendations than without it
Estimated by the additional
products/services each agent can
sell during one shift times the
number of shifts per month times
the average revenue per product
Reduction of attrition loss
RTOM provides passive and
proactive optimal retention offers
that suits the customer needs and
comply with retention policy
Estimated as the number of
additional saves times half average
lifetime contribution (simplified by
neglecting retention overheads and
discounting of future revenues
Real non-simplified banking models and ROI calculations are also available
3. Competition
1
GTM
Essentials
The Competitive Positioning presentation name of those RTOM may
compete with, what to fear and where are their weak points
Key competitors weaknesses are further detailed in additional one page
positioning documents
The Forrester report provides numbers on competitors, such as: prices,
pricing model, # of customers, etc.
The Gartner report mentions Ingeneo (now SAP RTOM) as a best -inbreed solution.
Customer
Handouts
More GTM
Tools
RTOM
5
Architectur
e&
Implement.
Competition
4
Industry
Specific
SAP 2008 / Page 35
RTOM Competition Landscape
(Real Competitors and Claim to be)
Vendor specific battlecard exist on wiki
Competitors, Product Names, Origin and
Potential Risk in RTOM Opportunities
37
RTOM Key Competitors
From How Technology Enables Inbound Marketing, Forrester JAN 2007
Not 100% accurate but still informative
SAP 2007 / Page 38
Weak Points Some Mud to Use
39
Strengths What to Fear?
40
Positioning Tips
Real time offer management competitors are mainly in the FS and Telcos, the early adopters
of this technology . SAP can be lead the 2nd wave that starts now in its strong verticals like
Utilities and Retail
Ingeneo was considered to be best-of-breed: Best-of-breed solutions are available
from:Chordiant (Recommendation Advisor), Epiphany (Interaction Advisor), Ingeneo, SAS
Institute (Interaction Management), SPSS (Predictive Call Center) and Unica (Affinium
Interact) How to Achieve Real-Time CRM, Gartner May 2005
Wherever SAP CRM is the main CRM system RTOM should not loose to a competitor
product the cost of integration and TCO should eliminate such option
RTOM standalone can be a wedge into SAP CRM Greenfields and in large Orcale/Siebel
installations where Oracle offering cannot scale
RTOM standalone can be a wedge into Amdocs/Clarify customers since Telco are looking
for such technology and Amdocs does not have an offering for that
RTOM can also be positioned in web-shops and service scenarios where the mentioned
competitors are not present
RTOM is always conceived as the better tool by business users. It their eyes, it is easier to
use and its recommendation more intuitive than our competition (not some black-box
analytics). Marketing / Sales / Service managers should be targeted.
SAP 2007 / Page 41
4. Industry Specific Materials
1
GTM
Essentials
6
Customer
Handouts
More GTM
Tools
RTOM
There are industry specific recorded demos, storyboards, screenshots and
access guidelines to the demo environment for: communications, utilities,
banking, insurance, retail, postal and hi-tech.
Architectur
e&
Implement.
Competition
4
Industry
Specific
We will upload to this session customized presentations for key industries
SAP 2008 / Page 42
5. Architecture and Implementation
1
GTM
Essentials
This will be covered tomorrow
The Implementation approach and efforts presentation will give you
understanding how long does it take to integrate and rollout RTOM and
what type of activities/efforts are involved (focused on RTOM standalone)
The integration whitepaper depicts the simplified RTOM integration
pattern (focused on RTOM standalone)
Customer
Handouts
More GTM
Tools
RTOM
5
Architectur
e&
Implement.
Competition
4
Industry
Specific
SAP 2008 / Page 43
6. Customer Handouts
These documents can be handed to customers
New Communications whitepaper on how Business Objects and Real
Time Offer Management enable CSP achieving their business goals by
turning analytics into optimal offers. Executive flash demo also exists.
The CRM Thought Leadership whitepaper gives an understanding of the
market needs, challenges and best practice for deploying such
technology
The Solution Brief explains RTOM functionality and value proposition
RTOM Roadmap describes RTOM 7.0 (NOV 2008) key features
GTM
Essentials
6
Customer
Handouts
More GTM
Tools
RTOM
5
Architectur
e&
Implement.
Competition
4
Industry
Specific
SAP 2008 / Page 44
RTOM Go To Market Summary
Who?
Who is the ideal client?
Focus industries: Telco, Banking, Insurance,
Utilities, Retail, High-Tech, CP
Profile: Customer interaction intensive
organization with rich product offering and
multitude of interaction points
Buying Center: Typically functional owners
from Marketing, Sales or Service; IT plays a
gating role
WIIFM?
Whats in it for the Field and Partners
A wedge into SAP CRM greenfileds (inc. B2C)
An advatage in relevant industries (e.g. Utilities)
Oppurtunity to leverage backoffice information
into business action
Source for business expertise build-up of
consulting services for variuos functional areas
Quick path to value in divers business issues
Why?
Typical pains of RTOM target clients Why?
Challenging customer loyalty
Need to launch frequently new offers and
respond to competition with a short TTM
Need to promote and syncronize offering over
multiple interaction channels
Complex offering and service interactions
What RTOM can do for them?
What?
Recommend optimal retention plans
Empower business users to drive an agile
organization
Increase revenues & margins by up/cross sales
Enhence the relevancy and effectivess of
interactions
Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]
Tomorrow - Part 2 [2 hours]
RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]
Thank You!
Q&A
