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  • CPQ |
    September 17, 2018

How Committed is Your CPQ Vendor?

By Graham McInnes, Sr. Principal Product Manager

 “How committed is Oracle to CPQ?” is a logical question to ask, given the CPQ vendor market explosion in recent years.   Potential customers have to navigate through new unicorns, crumbling alliances, questionable partnerships and over-exaggerated, one-size-fits-all solutions. They want assurances the solution they select will serve their long-term needs.  Properly vetting a CPQ vendor is incredibly important because a CPQ project impacts many facets of an organization and a project failure could be be highly-visible and potentially career ending.

So, is Oracle committed to CPQ?

Yes! In fact, the largest known deployment of a CPQ solution is Oracle itself. As of early 2018, our CPQ solution is used by 41,000 Oracle staff for 90% of our total revenue, and about $34.2 Billion in revenue and counting. The solution supports thousands of offer variables with a global footprint that includes regional pricing and discounting rules. The organizational impact has been significant with KPI’s that include:

  • 9x increase in volume of self-service quoting by sales reps.
  • 10x improvement in order accuracy due to guided selling.
  • 2x increase in the average velocity of a deal moving through the system.
  • 8 weeks increase in sales time by eliminating quarterly blackout periods (less time pressure on more than $5.7 Billion of sales activity).
  • 4x reduction in time and effort it takes to introduce a new product by minimizing the needs for IT or infrastructure teams.
  • 2x improvement in customer satisfaction among CPQ users, including sales reps and channel managers.

As a company, we employ CPQ to improve the productivity of our sales organization and to liberate them from as much internal process complexity as possible. Judging by the positive impact on our business, CPQ has been a stunning success.

What are Oracle’s long-term CPQ Plans?

Our lead in the marketplace is no accident.  We continue to invest in CPQ development. Our primary roadmap goal is to further enable customers' success with functionality that drives sales efficiency, simplifies administration, enables greater flexibility and provides performance at an ever-increasing scale.  Specific developments are based on prioritizing and selecting customer feature requests, helping us lead the CPQ marketplace.

We’ve recently added Contract Lifecycle Management (CLM) and Subscription Management capabilities to the solution footprint. These additions to the engineering and product management teams serve to unite the Enterprise Contracts with the CPQ Development team.

As a company with a broad portfolio serving many different industry verticals, Oracle sees the opportunity to leverage CPQ to provide functionality not available elsewhere for a growing number of front office customer use cases. Recent examples:

  • Service Cloud + CPQ to enable guided selling through complex service scenarios. 
  • Commerce Cloud + CPQ to provide self-service portals enabling customers to navigate, configure, and quote complex offerings.
  • transportation logistics companies to configure, price, quote and plan a broad variety of intermodal, logistics and dedicated transportation solutions to customers.

Investing in Success

Most importantly, Oracle continues to invest in our customer’s long-term success. We realize that CPQ tooling is often employed as part of a wider transformational change within a company as organizations seek to evolve up the maturity scale. For that reason, Oracle makes significant investments to provide Breakthrough Opportunity Analysis (BOA) workshops that identify opportunities for improvements in your selling process. These comprehensive two-day workshops carefully map out quote to cash processes, including all supporting systems to provide a holistic understanding of the real business process flows.

BOA workshops are often the first time participants across the company map out the sales and quoting process.  They involve all parties and address system challenges, approval points, wild card dependencies and commonly accepted process disturbances that may be unique to your organization. Participants can accurately benchmark the value of potential changes CPQ may offer.  

Oracle CPQ is trusted by over 600 well-known brand names and used by more than 600,000 employees. Internally, we have over 41,000 users and more than $34 billion dollars of company revenue flows through the tool.

You can trust us. We’re here for the long term.

For more info, read - Financial Impact of Selecting the Wrong Configure Price Quote (CPQ) Solution Exec Paper

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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