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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?
• Scorecards and reports that give you insights on the performance of your pipeline.
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
Definition
An Opportunity is any potential business able to generate sales revenues with existing customers or prospects.
There are two types of Opportunities:
- Growth - Product Qualified – to be used whenever the product is known to, approved by and possibly being used by the customer. Typically used for market penetration.
- Product Requiring Qualification – to be used whenever product testing (laboratory and/or industrial) and approval is needed before closing the deal. Typically used in innovation projects.
Use cases
• Recording all business related information and make it visible (if it’s not in SFDC it doesn’t exist).
• Involving people from your GBU and get collaboration (opportunity team) by leveraging expertise, and identifying a lead for others colleagues from other GBUs (cross-collaboration).
• Getting recognized for your achievements, for the closed deals and the steps you went through, the difficulties, the success factors, the reasons for lost deals, etc.
• Logging or discovering information on competitors.
• Enhancing your team’s opportunities insights – focus on the opportunities that matter the most.
• Optimizing opportunities pipeline workflow – standardize your sales process and keep your opportunities moving forward and see how time is spent throughout the process.
• Supporting pipeline management: giving visibility to all opportunities opened in SFDC and how can we move them efficiently to close the deals and how to use these cases to put in place for a similar customer.
Flow
2. Data Model & security
Main objects
- Opportunity object is centralizing the information on the opportunity.
- Opportunity product object is composed of:
- Opportunity Product Information: this section contains the general information like the product name, the opportunity link, the targeted first delivery date, etc.
- 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.
- Market Segment: this section indicates the market segment information filled in.
- Business Potential: this section includes the forecast table.
- Negotiation History: This section lists all the changes of target unit price and volume in order to give a history of the negotiations.
- Product forecast/Business potential is used to fill 5 years of forecast.
- Negotiation History is use to track the changes of Product information section.
- 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
Who can create? | Any sales user can create an opportunity |
Who can see? | 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. |
Who can update? | 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. |
Who can delete? | Only System Administrators can delete an opportunity |
Opportunity Product security model
Who can create? | Any sales rep with edit access to the opportunity can create an additional opportunity product |
Who can see? | Any sales with visibility on the opportunity can see the opportunity product details |
Who can update? | Any sales rep with edit access to the opportunity can edit the opportunity product |
Who can delete? | Any sales rep with edit access to the opportunity can delete an opportunity product |
Opportunity Team security model
Who can create? | Any sales rep with edit access to the opportunity can create a relationship in the Opportunity Team object |
Who can see? | Any sales with visibility on the opportunity can see a relationship in the Opportunity Team object |
Who can update? | Any sales rep with edit access to the opportunity can create a relationship in the Opportunity Team object |
Who can delete? | Any sales rep with edit access to the opportunity can delete a relationship in the Opportunity Team object |
3. Opportunity custom buttons & features
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
In edit mode, the button mass copy copies the volume and the price of the 1st line in all lines.
"Clone opportunity" button
The cloning functionality allows the opportunity owner and the opportunity team member(s) to clone the opportunity as-it-is, with same product information and opportunity team members. Note that the source opportunity ID is displayed in the field "cloned from".
"Get quotes from initial Opp"
This button works only for cloned opportunities. The user can clone one or several quotes linked to the source opportunity and linked them to the cloned opportunity. All the information of the quote and the quote line items are cloned.
"Create quote"
Generate a quote pre-filling all information of the opportunity and opportunity products.
Opportunity product buttons
"Update Product"
This button triggers the flow as during opportunity creation. It allows to update the opportunity product.
"Back to opportunity"
Redirect the user to the opportunity page.
"New End Use Request"
Allow to the user to request a new end use creation if he thinks the end use does not exist. This request must be approved by M&S.
"Synchronize with Commercial Roadmap"
Allow to synchronize your opportunity product with the commercial roadmap without waiting for the daily batch.
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
Fields tracked are:
- Cloned from
- Distributor
- GBU Classification
- Negotiation status
- Priority
- Product Description
- Product to be developed
- Source of opportunity
- Temp Product Family
- Visibility
- Wego ID
- Won/Lost Review
- Market Share
- New Market
- Priority Project
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).
Opportunity Closing Steps
Different steps must be completed when closing the opportunity:
- If the opportunity is WON, a Customer Service Representative must be defined in the Opportunity Team.
- When the user closes his/her opportunity as LOST, a screen appears and asks for:
- The Won/Lost review (mandatory), useful to give context and feedback on the opportunity.
- Competition Known? (Yes/No) (picklist – default value = None).
- If the Competition known is “No”, then the opportunity is saved with the won/Lost review.
- If the Competition known is “Yes”, then the flow moves to a second screen asking to create a Competitive Insight. Once the user saves the competitive insight, the opportunity is saved.
- Finally, after saving, the close date is automatically updated with the today date and opportunity cannot be edited anymore by the sales rep. Plus a notification is automatically sent to the CSR defined in the opportunity team (only if the opportunity is WON)
Dummy product Limitation
When the sales rep has selected a product with reference “Product not known yet”, he/she must update the product with a valid product reference before closing the Opportunity as “Closed WON”.Lost Opportunities do not require valid products before being closed. Note that it is impossible to select a dummy product when the opportunity record type is “Product Qualified”.
Contribution Margin
In product information section, 3 fields are used to manage the contribution margin (CM):
- CM Calculation Method: picklist defining in the master method for the CM is in % or in Amount.
- Contribution Margin (%).
- Contribution Margin (Amount).
When user defines the CM Calculation Method as “%”, on the field “Contribution Margin (%)” is available. After saving, the system will calculate the Contribution Margin in amount and fill in the field. When user defines the CM Calculation Method as “Amount”, similar behavior is expected. Finally, the CM Calculation Method defined in the Product Information screen will be copied in the business potential table.
Opportunity Product Level
At opportunity product selection, after having created the opportunity, user is able to select the product from level 4 or level 5.
Opportunity Team Member Creation
Opportunity Team member creation can be done by any sales having edit access to the opportunity. The CSR from the account team will be automatically put in the opportunity team. (only the CSR corresponding to the GBU handling the Opportunity is set if more than one exist).
There is no synchronization afterward (if the Account Team changes, no automatic modification on the Opportunity Teams).The 2 CSR Roles must be taken : "Customer Service Representative" and "Customer Service Representative (SAP)" and the role must remain the same (if it was SAP on Account, keep it on Opp).
Opportunity Team Management
Opportunity Team management can be executed from the Opportunity Team Related List, either by using the current User’s Default Account Team, or by adding the individuals to the Opportunity Team:
- Add (add users to the Opportunity Team)
- Add Default Team (add default Opportunity Team users)
- Display Access (only system admin can display the type of access the users have)
The user’s default Opportunity Team is a group of users defined by the user that helps the user quickly add multiple people at once.
5. History
Product information section on Opportunity product used to be a custom object because the visibility of the section was different of the visibility of the rest of the opportunity. Today visibility is the same so all fields have been re-created in opportunity product and all features plugged on the previous custom object are/will be plugged on opportunity product directly.
Until Spring17 release we had a third record type "recurrent business". This record type has been deactivated, and recurrent business is now handled with quotes.
