Hosted by
Case Study: My SAP
Implementation at the
Associated Press
Fernando Ferre
Director of Finance & Operations
Newspaper & New Media Markets
The Associated Press
Hosted by
Company Overview
 Founded in 1848, The Associated Press is
the oldest and largest news organization
in the world, serving as a source of news,
photos, graphics, audio and video to the
media market and corporations.
Hosted by
About The AP
 1,700 U.S. newspapers
 5,000 U.S. radio/TV outlets
 8,500 international media customers
 500 new media and corporate customers
 121 countries served by AP
 Total 242 bureaus worldwide
 3,700 employees worldwide
Hosted by
SAP CRM Initiatives at AP
 Live Sept. 2002 for AP Digital, new media
division of AP.
•
Enhancements to AP Digital implementation in 2003
 Project organized for Newspaper
implementation beginning of 2004.
•
Go live November 2004
 By then, CRM will support substantial revenue
base for AP.
Hosted by
New Media Market (AP
Digital) CRM Implementation
Hosted by
Landscape Pre-CRM
 Systems:
•
Excel – prospect, sales activity and contract
management
•
Filemaker – order processing, trials and customer
database
•
•
SMART – service management and billing
PA Billing – invoicing
 Manual entry, redundant data between systems
 No integration of systems
 No standardized reporting from a central system
•
No reporting flexibility for analysis
Hosted by
CRM Objectives
 Centralize account, contact, order,
opportunity, and contract management
 Support customer interaction cycle – from
customer acquisition, order fulfillment to
billing and support
 Provide a single customer view
 Deploy reporting tools for business analysis
 Align systems with corporate direction
End Goal: Better customer and business
management
Hosted by
Software Selection Process
 SAP HR implemented
 SAP CRM had the required functionality
 SAP provided a platform:
•
•
phase in functionality as we were ready
ride SAP’s product development curve
Hosted by
SAP Production Versions
 SAP R/3 Release 4.6C: Live with SAP HR
Master data, Org Data & Benefits, Payroll
 CRM Release 3.0, Upgraded to 4.0
 Business Warehouse 3.0B
Hosted by
Business Process
Lead Generation, Opportunity and Customer Management
Third party
Research
Website
Phone call
(e.g. D&B)
Marketing
Lead generation
0%
Sales
Sales
Qualified Lead
25%
Opportunity Mgmt
75 % or >
Order Fulfillment
Customer Support
Finance
Lead Qualification
Customer,
Contract and
Service
Management
Customer Maint.
Billing
Hosted by
Functionality Implemented
 Campaign Management
 Customer Interaction Center
 Order Processing
 Product Management
 Opportunity Management
 Service Contract Management
 Business Warehouse
Hosted by
Implementation Timeline
 Total implementation time – 5 Months
 Project Started on April 2002
 Live on September 2002
 Staffing
Internal : 3
External: 4
Hosted by
Campaign Management
 Two types of Campaigns
•
E-mail and phone campaigns
 Target Groups are created based on:
•
CRM Master Data (Marketing Attributes, SIC
Codes, Est.Rev, # of employees, Address
information etc)
•
Information from BW
Hosted by
Call Lists in CIC
Hosted by
Customer Interaction Center
 Used to track customer interaction history
 Used to create/modify all the transactions
e.g.:
•
Activities, Opportunities, Service Contracts,
Business Partners, etc from a single screen.
 Configuration Flexibility based on user
requirements
Hosted by
Customer Interaction Center
Hosted by
Business Activities
 Used for Order Processing
•
•
Trial Order Notifications
Service Order Notifications
Hosted by
Activity Screen
Hosted by
Activity Monitor
 The Activity Monitor is
used to call up lists
of all the activities
that have been
created in the
system, according to
various criteria such
as date and
completion status
Hosted by
Activity Monitor
 The output can be sorted by any column
 Layout can be customized for each user
Hosted by
BW:Order Fulfillment Report
Hosted by
Product Management

Product hierarchies

Flexibility of reassigning product categories

Product pricing
• Customer & Product
• Product

Billing frequencies
• Monthly
• Quarterly
• Yearly
• One Time Fees
Hosted by
Opportunity Management
Logs sales prospects, requested
products, sales prospect’s budget,
potential sales size , estimated sales
probability and expected closing date
Information is used in sales pipeline
Hosted by
Opportunity Management
Hosted by
BW:- Sales Pipeline report
Hosted by
BW: Lost Opportunities Report
Hosted by
Service Contract Management
 Represents relationships with customers.
 Contains detailed information about contract
with customer:
•
Contract Start Date, End Date, Renewal
Date
•
•
Terms, Services, Delivery methods
Billing Frequency, Billing Plan for
Services, Royalty Information
Hosted by
BW Reports: Service Contracts
 Contracts signed in the current year
 Contracts terminated in the current year
 Contracts renewed in the current year
 Contract to be renewed for a given period
 List of contracts based on sales reps, royalty
information, territories & other criteria
Hosted by
Business Warehouse
 Used for reporting & data analysis
 Used for creating target groups for campaign
management based on complex queries
 Generate ad hoc reports for managerial
decisions
Hosted by
CRM Billing
 Billing through CRM application, which is
integrated with current non-SAP invoicing
and financial application
 Contracts have billing documents
•
•
•
•
•
Billing Due Lists
Processing of incorrect billing due lists
Cancellation of Billing Documents
Credit Memos/Debit Memos
Much work went into mid-period billing rate
changes
Hosted by
CRM 4.0 Upgrade
 Territory management
 Alerts for contracts
 Customer hierarchies
 External list management
 Workflow functionality
 Web client – not yet implemented
 Royalties and sales commissions – not
yet implemented
Hosted by
Benefits of SAP CRM
 “Orders don’t get lost”
 Interaction History for future reference, with
ability to store customer, product, transaction
information
 No Redundant data entry – resources
redeployed
•
Eliminated costs of - $130K
 Standardized reporting from a Central System
Hosted by
Benefits - CRM Data Sharing
Campaign
Management
Opportunity
Management
Trial
Contracts
Service
Contract
Billing
Marketing
Sales
Client Relations
Customer Support / Management / Entitlements
Billing
 Enhanced coordination of the various functions
 Better information about our customers and
business
Hosted by
Newspaper Market CRM
Implementation
Hosted by
CRM Objectives in Newspapers
 Improve customers’ experience with the AP
 Produce efficiencies in ordering and
fulfillment processes
 Provide analytic tools to assess customer
relationships and behavior
 Improve Sales
Newspapers CRM Deployment
Customerfacing AP
Activities
Hosted by
Market/
Advertise
Promote/
Campaign
Sell
Entitle
Provide
Up-sell/
Cross-sell
Corporate
Marketing
Account
Specific
Marketing
Sales
Support
Contract
Mgmt
Order
Fulfillment,
Billing
Customer
Support
Back-office
Execution
•NNMM
Customer
Hierarchy
•NNMM
Product
Hierarchy
•Marketing
Collateral
(external
visit report
application
and sales
support site
will be
available)
•Contact
Management
•Sales
pipeline
reporting
•Workflows
to route
trials and
orders to
actors and
approvers
•PA Billing
integration for
APDigital
•Workflows
to alert sales
& support of
pending trial
and contract
terminations
Capture Customer Interaction History
Robust business analytics and reporting
•NNMM view
of customers
Hosted by
Customer Hierarchy
Knight Ridder
Inc.
Knight Ridder Newspapers
Knight Ridder Digital
RealCities
Network
Dailies
Non-Dailies
Other Subsidiaries
- Knight Ridder Washington Bureau
- Knight Ridder/Tribune Information Services
- Knight Ridder Shared Services
Internet
Properties of
Knight Ridder
Special
Interest Sites
Career Builder Network
- CareerBuilder.com
Classified Ventures Network
- Cars.com
- Apartments.com
- Homescape.com
Hosted by
CRM Functionality
 Order processing
 Opportunity management
 CRM Pricing
 Contract management
 Workflow functionality
Hosted by
Get Organized
 Right team with clear accountability
 Project management and tools
 Communication and teamwork
 Have a good grasp of the big picture, but
no detail is too small
Hosted by
Lessons Learned
 Set realistic expectations
 Don’t underestimate data migration
 Involve users from start – requirements,
testing, data migration, training
 Phase in CRM – with sight on the future, new
modules, other business units (scalability)
 If you encounter errors, check the SAP
notes, then create a OSS message