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1. Functional Process

Process Overview

The Opportunity management is a process that allows us to follow revenue forecasts and revenue recognition.

Why do we need to track forecasts?

• Visibility as to where we are in our Sales Process and how long we have been there.
• Documented insight as to what we can expect to close in the next five years and what are the chances of getting that business.

How do you track revenue recognition?

 Finally, opportunity Management is a common and simple Sales Process, allowing salesreps & managers:

• To understand what’s in their pipeline
• To understand where are the sales reps getting stuck in their opportunities and identify improvement areas in your sales process or business context. 

Definition & use cases 

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Transactional Pricing is split through the following stages:

-       Product manager defines in pVelocity whicg prices to apply to which Sold-To/Material

-       Sales Reps commits in Salesforce for the price they have negociated with their customer

-       Product Manager need to Approve or Reject the committed price if it is below the asked Target Price

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Commitments records are created by pVelocity directly in Salesforce from the scatterplots defined by the Product Manager.

Sales Reps commit for prices and Product Managers approve or reject commitments directly in Salesforce.

When a Commitment is updated in Salesforce, those modifications are sent back to pVelocity

3. Business rules & security

Business rules

Security

pVelocity administrators

GBU restricted, but can be admins for severals GBUs, in this case they need to belong to each GBU dedicated public group.
pVelocity admin right is granted throught the permission set pVelocity admin to allow user to Create and Delete records and edit all fields.
They also see all records of users below them according to their role in the role hierarchy.

M&S users can edit all commitment records, no matter the GBU.

Commitment creation

To create a commitment record, the Sales Rep and the Product Manager must be existing and active users in Salesforce.

Otherwise, if pVelocity tries to create and assign a commitment record to an inactive user, the interface will send back an error.

Commitment update

• When updating a commitment record, it is possible to do it no matter if the Sales Rep or the Product Manager is active or not.

This will be perform for adjustements in pVelocity and also to mark commitment records for deletion or to froze them (hide them from non pVelocity admins users).

• From the list views "Assigned & Rejected", you can use the button "Copy Target to Committed" to mass copy the 'Target Price' into 'Committed Price', Before clicking on the button you have to tick the lines for which you want to apply the copy. Once the prices are copied, status is automatically set to Approved.

pVelocity User right management

pVelocity user rights is managed through a dedicated field “Transational Pricing Tool Role” in the Salesforce User object.

pVelocity calls Salesforce to know which right to grant a user when he connects.

Hide and froze commitments from previous rounds

At the end of a round, commitment are no longer editable.

pVelocity sends a flag called Is Frozen to the commitments records in Salesforce and any other user than the admin can’t edit them if the checkbox is checked.

Commitments records deletion is managed manually, each end of the year commitments that are more than 4 years are marked for deletion in Salesforce.

Support future GBU rollout

As new GBUs will be deployed over time, there is a need to allow their admins to see and edit their own commitments.

So the sharing rules and public groups have to be created for those GBU.

4. Integration with Quote

Global process:

Data Model:

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Detailed process:

Quote Layout - Suggested price section

There is a dedicated section in quote to display committed price:

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This section will be automatically pre-filled if the quote (if a matching commitment is found):

• Is generated from an opportunity
• Is cloned from another quote

This section will be filled after clicking the save button if the quote (if a matching commitment is found):

• Is created from scratch

A message by GBU is be displayed to explain the committed price calculation.

Committed price will be filled by : Reviewed price GBU Currency or Reviewed price LTC depending on the algorithm described below:

The difference will be calculated in % : Difference = (Quote price – Committed price)/Quote price*100

• If the difference is less than 5% the flag  will be green.
• If the difference is higher  than 5% and less than 15% the flag  will be orange.
• If the difference is higher than 15% the flag  will be red.

New in Fall'18 :  News fields have been added to the layout on dilution information : Dilution Rate, Diluted Reviewed Price (GBU Currency) and Diluted Reviewed Price (LTC). In case of a diluted product, the system compares the pricing with the diluted price.

Rule : If pricing method = 100% or blank-> compare pricing with committed price
            else compare pricing with diluted price

Even if the flag is red there is no automatic approval workflow designed for the fall release. The account manager could submit the quote for approval if he wants to.

In this new section data appears only for GBU having Pvelocity in production, for others GBUs the section will appear with empty fields (Account managers will have to collapse the section).

Impact on current processes:

1. Quote Creation from opportunity

When the opportunity is won, account manager can generate a quote by clicking on a button “generate quote”.

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One quote line item is generated by each opportunity product records.
The commitment will be search a first time with the following parameters :
• GBU = opportunity GBU
• Account = opportunity sold to
• Product = Opportunity product
• UoM of the quote = Sh.T, T, or KG
• Last transaction Currency = Quote line item currency
• Commitment is not frozen
• Commitment Status : approved or pending review
If the corresponding commitment is found the committed price in the quote line will be filled with the field Reviewed price LTC.

If the commitment is not found, The commitment will be search a second time with the following parameters :
• GBU = opportunity GBU
• Account = opportunity sold to
• Product = Opportunity product
• UoM of the quote = Sh.T, T, or KG
• GBU Currency = Quote line item currency
• Commitment is not frozen
• Commitment Status : approved or pending review
If the corresponding commitment is founded the committed price will be pre-filled with the field Reviewed price GBU Currency.

The commitment price if found, would be automatically displayed in the quote line items

Lightning

Buttons

• Copy Target to Committed : For commitments with the status "Assigned or Rejected", business has the possibility to multi select commitments, click on the button to mass copy the 'Target Price' into the 'Committed Price', and thus validate the approval automatically.
  (The button appears in all list views since we cannot display it depending on the 

Flow

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2. Data Model & security

Main objects

1. Opportunity object is centralizing the information on the opportunity.
2. Opportunity product object is composed of:
   1. Opportunity Product Information: this section contains the general information like the product name, the opportunity link, the targeted first delivery date, etc.
   2. Product Information: this section includes the financial information, like the target unit price, the expected yearly volume, the contribution margin, etc. And also includes the manufacturing plant and shipping plant fields.
   3. Market Segment: this section indicates the market segment information filled in.
   4. Business Potential: this section includes the forecast table.
   5. Negotiation History: This section lists all the changes of target unit price and volume in order to give a history of the negotiations.
3. Product forecast/Business potential is used to fill 5 years of forecast.
4. Negotiation History is use to track the changes of Product information section.
5. Opportunity Team manages the visibility/right of the opportunity.

Related Objects

• Competitive Insights: to update.
• Cross BU lead: allow to link a cross BU lead to the opportunity.
• Involved Accounts: allow to link other accounts to a single opportunity.
• Involved Contacts: allow to link several contact to a single opportunity.
• Open Activities: allow to log activities (task, event).
• Visit Reports Links: allow to link several visit report to a single opportunity.
• Quotes: allow to see quotes generated from the opportunity, or linked to the opportunity.
• Cases: allow to link cases to the opportunity.
• Activity history: display all activities
• Stage History: track all status updates
• Google Docs, Notes & Attachments: allow to attach document to the opportunity.

Opportunity security model

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Who can create?

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Any sales user can create an opportunity

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Who can see?

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The visibility a user has on an opportunity depends of the value of the field “Visibility”:

• “Shared”: any sales rep can see the opportunity and all the opportunity product details
• “GBU restricted”: only the sales rep sharing the same GBU as the GBU defined on the product page can have visibility on the opportunity and opportunity product details
• “Confidential”: only opportunity owner and opportunity team member(s) can see the opportunity and opportunity product details

The visibility is then editable by the sales user having edit rights on the opportunity.

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Who can update?

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Only opportunity owner and opportunity team member(s) with edit rights can update the opportunity.

Users above the ones having edit rights (i.e. Managers, GBU presidents) in the role hierarchy will inherit the visibility/edit rights.

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Who can delete?

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Only System Administrators can delete an opportunity

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Opportunity buttons

"Add Product & Forecast"  button

This button triggers the same flow as during opportunity creation. It allows to add a new opportunity product in the same opportunity.

"Update Forecast" button

• Step 1: The users has to select the opportunity product forecast he wants to update.

• Step 2: The section Business potential of this opportunity product is displayed in edit mode.

In edit mode, the button mass copy copies the volume and the price of the 1st line in all lines

4. Specific rules & automation

Opportunity Creation 

Any sales rep can create an opportunity, even if not in the Account Team. Opportunity can only be linked to an SAP Customer or a Non SAP Customer . The sequence also includes adding product with details (target price, UoM, etc.), the market segmentation and the forecast. Some rules are implemented in the flow:

• The currency set by default correspond to user's preference.
• The unit of measure set by default correspond to the one of the product selected (formula).

Field History Related List on the Opportunity

Status Management

The following rules have been defined regarding the management of the status of an opportunity:

• At creation, the opportunity can be created in any stage of the process.
• The opportunity can by-pass one stage, (e.g. move from stage 1 to 3).
• The opportunity can move back in its stages (e.g. from industrial to lab testing).

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