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 

Flow

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

Opportunity Product security model

Opportunity Team security model

3. 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)

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)

Opportunity Cloning

The cloning functionality has been enabled, allowing the opportunity owner and the opportunity team member(s) to clone the opportunity as-it-is, with same product information and opportunity team members.

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. (oly 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.

4. 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.

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