SAP AG 2003

Requirements analysis

Arguments for SAP Business One

Handling objections

How to order SAP Business One

Contents:

The Sales Negotiation

SAP AG 2003

Carry out a requirements analysis of your customer

List arguments for SAP Business One and turn them into benefits for your customer

Address objections raised by your customer

Describe how to order SAP Business One

At the conclusion of this unit, you will be able to:

The Sales Negotiation: Unit Objectives

SAP AG 2003

List and define the types of questions used in the requirements analysis

Explain the Iceberg Theory

List general motives and buying reasons

List important facts for the requirements analysis

Describe how to perform the requirements analysis

At the conclusion of this topic, you will be able to:

Requirements Analysis: Topic Objectives

SAP AG 2003

1. Open question:

Elicits a lot of information

Cannot be answered with "yes" or "no"

Is a W-question (who, what, where, when or why)

2. Closed question:

Elicits detail information

Can be answered with "yes" or "no"

3. Alternative question:

Good for arranging dates

Good for concluding negotiations(partial decisions)

Questions for the Requirements Analysis

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Also consider the emotional reasons behind the decision to buy.

The Iceberg Theory (also known as Pareto's Principle)

Every decision to buy consists of rational and emotional reasons.

Rational percentage: ~20%

Emotional percentage: ~80%

However 80% of time is spent discussing 20%of the reasons for deciding to buy.

Small and midsize business customers expect software vendors to offer the following characteristics to help them face the problems common to the SMB market:

Knowledge of business environment

Ability to offer guidance

Solutions

The Iceberg Theory

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Motives and Reasons for Buying

Safety, security, respect from others

Power, influence, recognition, prestige, status

Ownership, income, profit

Convenience, maintaining thestatus quo

Curiosity

What motive is most important for your customer?

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Facts for the Requirements Analysis

Scope of business (regional/national) Existing hardware Management structure Number of users up to now Reaction to Basel II E-business, B2B interfaces CRM experience Consultants involved Special features of your company Management active in sales Service specification document available Expectations of a new solution Project trigger – Core problem Interfaces Quantity structure Time frame (decision and implementation) Project aims Special features of project Evaluation criteria of management External influencing factors

Budget Business strategy Market and competitive situation Company objectives (short-term and long-term) Competitors Buying motivation (rational/emotional) Core business process (current/planned) Strengths and weaknesses of the company Financing type Company data and facts Joint decision makers Opinion makers Actual situation DP/IT Hardware/software/personal/networks Current problem areas Previous ERP Continuity (system changed often?) Type of controlling tool Special instructions, regulations, certificates Type of financial accounting Type of business (sales, production,

purchasing)

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Requirements Analysis Process

1. Project business

Procedure for requirements analysis:

2. Solution sales

Consulting Actual data analysis Feasibility study Process analysis Service specification document Connectivity Add-ons

Preliminary study is financed

Consultants carry out study

Costs for each person/day

Might not want to pay No consultants before

decision Possible structured

query? Hence free

requirements analysis

Partner decides

3. Product sales

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List arguments for SAP Business One and turn them into benefits for your customer

At the conclusion of this topic, you will be able to:

Arguments for SAP Business One: Topic Objectives

SAP AG 2003

"First kindle the flame within you,in order to kindle it in others" (Translation)

(Saint Aurelius Augustinus) Born 13.11. 354, † 28.8. 430, church father of the West.A teacher of rhetoric in Tagaste, Carthage, Rome and Milan

Quotation

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Arguments (1)

Look and feel of Microsoft

Simple transfer of data to Microsoft Wordor Microsoft Excel

Clear contact management

Physical inventory support

Simple administration

Dense partner network

Forward-looking

Multilingual capability

Client capability

Multi-currency

Internet sales

Batch and batch management

Open database standard

Illustrations in applications

One packet with all features

SAP stands for quality.

Over 1,600 installations worldwide

High security of investment

Development in C++ (standard programming language)

Projects can be mapped

Accepted by end users

Documents (Microsoft Word) can be attached to contacts

Authorization management

Low infrastructure demands

Rapid Return on Investment (by avoiding non-profit quotations)

Available worldwide

HR interface

Standard letters from SAP Business One

Internal communication directly fromSAP Business One

Up-to-date information – No batch processing

User-defined fields

Good value

Microsoft-SQL database

Fast

Easy to master – Minimal training requirement

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All functions and documents accessible from every section (drilldown arrows)

Saves money because no extra programming required for Customizing

Setting additional fields uncomplicated

Greater flexibility than systems from competitors

Attractive standard software (budget/security)

Support given when creating documents for the bank (Basel II)

Numerous reporting options (Drag&Relate)

More information on opportunities and their development

Learning from lost opportunities is made easy

More information on the performance of salespersons

Instant information on all the prices that the customer has already received

Gross profit at the touch of a button at any stage of the sales process

Bill of materials in bill of materials (multilevel bills of materials)

Numerous analysis and comparison reports

Export and import functions

Uncomplicated transfer of legacy data

Integrated communication solutions (fax/e-mail/internal/SMS)

Extensive service + support contract tool

Employee administration tool

Dunning letters – 10 different letters possible

Software development kit – for further demands

Arguments (2)

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Minimal hardware requirements – No additional hardware necessary

Immediate update of invoices in Financial Accounting

Query wizard

Integration of SAP Business One in SAP R/3

All company-relevant data at the touch of a button

Frees up time for employees to concentrate on other tasks

Drilldown function to accelerate the availability of more up-to-date additional information

Numerous possibilities of sorting and arranging data using Drag&Relate

Posting sessions (parking)

Interface connection to SAP Business Suite

Quick implementation

Simple Customizing by end users

API interface allows easy link up of other applications

Business partner concept (customers, vendors, and leads can be called via codes)

Range of reports and information on the company easy to call up (also in graphical form)

Range of alerts – Available online

Release procedure – Online

Document template generator – Simple form layout

Arguments (3)

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Above all collect strong arguments for all occasions.

Identify with your arguments. Present arguments from both sides. Base your arguments on the problems,

requirements or wishes identified during the

requirements analysis. Refer to good experiences with other

customers. Keep It short and simple (KISS). Present clear reasons for buying. Repeat the key arguments. Summarize the main points.

What are Your Options?

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!

You should always remember...

An effective sales argument must be believable. One persuasive argument is better than many feeble arguments. !

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Exercise 2: Group Solution

2. Advantages

3. Customer benefits

1. Facts

Select ten arguments from the lists.

Try to put them into practice as discussed.

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Address objections raised by your customer

Use the techniques for handling objections

At the conclusion of this topic, you will be able to:

Handling Objections: Topic Objectives

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Handling Objections

Objections are: Show stoppers (if you cannot cope with them) The last open issues to clarify Counter arguments of the customer (maybe heard from

the competitor?) But also a sign of interest (it lengthens the conversation)

Therefore: Show understanding Listen Keep a good atmosphere Don‘t disagree

There is no need for disagreements in sales! Disagreement means conflict.Rephrase your words and keep the atmosphere in mind!!

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Rules for Handling Objections

The salesperson must have a positive attitude.

Show you are listening.

Find out the main motive.

Allow for a short pause beforeanswering.

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Express conditional agreement("I understand what you are saying").

and also

Ask about the motive.

Offer to provide references.

Keep back objections.

Anticipate objections.

Provide hypothetical scenariosor "If" questions.

Techniques for Handling Objections

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Possible Objections

No “undo" tool for changing price lists

Missing features and functions

New system (tried and tested?)

Only a few partners

No point of sale application

Why is payment extra for CRM?

Not production-orientated

Not an SAP product

I would rather negotiate withSAP directly!

Few references (outside of Israel)

I don't want to be a pilot customer

I work with Lotus Notes

No e-mail integration (Microsoft Outlook)

Not many developers for the product

Why is there no Industry Business Solution?

Why only compatible with Microsoft?

Why not on Oracle?

Why is there no development environment?

Why is there no production planning and control?

Why is it so expensive?

Why is there no payroll?

Why is there no future strategy?

Why only as of two licenses?

Why all modules and not parts?

Why only partner sales?

SAP does not have a serious concept

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Exercise 3: Group Solution

Select eight possible objectionsfrom the list.

Try to find a promising way of counteracting the objectionsin the group.

Have a group member presentthe results!

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Explain how to order SAP Business One

At the conclusion of this topic, you will be able to:

How to Order SAP Business One: Topic Objectives

SAP AG 2003

Waiting for response

The Order Process via the SAP Service Marketplace

SBO - Partner on SAP Service Marketplace

SAP Service Marketplace Inbox - status tracking

A

Place order on SAP Service Marketplace

Sent to SAP Sent to SAP

Check order

Rejected Rejected

Reject order

Change order

B1

B2

Send order to SAP

B C D

In Process In Process

Approve order

Book order

Completed Completed

Software delivery

SAP

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Quick Link Used for Ordering

SAP Service Marketplace

Address: http://service.sap.com/sbo-order

SAP AG 2003

You are now able to:

The Sales Negotiation: Unit Summary

Carry out a requirements analysis of your customer

List arguments for SAP Business One and turn them into benefits for your customer

Address objections raised by your customer

Describe how to order SAP Business One