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2018: Growth of the market by 12.4% to $1.2 billion
In October, 2019 the Gartner analytical company published results of a research of the world market of the software intended for optimization of sales (Configure, Price and Quote, CPQ).
In 2018 sales of such software on a global scale reached $1.2 billion that is 12.4% more concerning the 2017th. According to experts, the market remains highly competitive and fragmented: one producer has no share exceeding 15%. In a research 16 vendors were considered, and five companies are called leaders: Oracle, Apttus, SAP, Salesforce and Vlocity.
In Gartner terminology solutions which simplify all process steps of sales belong to CPQ. Software increases profitability of the transaction due to optimization price and discount the politician and also provides fast and convenient drawing up exact commercial offers, contracts and technical specifications.
The CPQ technology traditionally was considered only as the instrument of sales. However with growth of expectations of customers and requirements to the staff of sales departments which should achieve big results with smaller costs it turned into the key factor providing the improved consumer experience and high quality of customer service.
Among vendors which analysts of Gartner estimated in the magic quadrant according to the applications Configure, Price and Quote the spozitsionirovana in leaders was Oracle, proceeding from its capability to implement strategy, including such directions as:
- possibilities of the current products / services (Product or Service);
- assessment of a financial status of vendor in general (Overall Viability);
- capability to react to market demands for achievement of competitive success and providing customer needs (Market Responsiveness and Track Record);
- marketing effectiveness (Marketing Execution);
- efficiency of sales channels and pricing (Sales Execution/Pricing);
- responsiveness to requirements the market/a history of response to the previous requirements (Market Responsiveness and Track Record);
- client experience (Customer Experience) and operating activities (Operations);
- completeness of strategy, including understanding of the market (Market Understanding), marketing strategy (Marketing Strategy), sales strategy (Sales Strategy), strategy of the offer (products) (Offering (Product) Strategy), business model (Business Model), vertical/industry strategy (Vertical/Industry Strategy), innovations and geographical strategy (Geographic Strategy).
At the same time the company has a number of shortcomings among which — complexity of implementation and support of Oracle CPQ Cloud. The panel for administration became outdated and requires more costs of time for mastering in comparison with the competing systems on the Salesforce platform.
Besides, clients complain of unreasoned logic of pricing which demands from clients of use of formulas, scripts and own tables that is not really convenient to the companies.
CPQ solutions of Oracle are more ground under large customers. At the same time representatives of medium and small business point to several problems and important differences in account management. One of problems consists in big routine of the personnel among specialists in sales of Oracle who change approximately each 12-18 months, except for the departments specializing in the biggest customers.
SAP also has shortcomings, one of which is caused by limited functionality of the SAP solution CPQ regarding change, updating and cancellation of subscriptions. Support of workflows of the order of a subscription continues to remain a weak point: not intuitive interface for prolongation and the minimum support for changes and cancellings in the subscription scheme.
For support of the difficult rules unique for each organization, SAP provides the tool for creation of scenarios of IronPython. This rather advanced solution, but it can be unavailable to the users who are engaged in business administration.
The complaint is also caused by policy of digital access. At assessment of use of the platform of e-commerce potential clients should consider the policy of producers in the field of digital access. The policy of digital access of SAP turns into payments for use of digital access when clients use the CPQ program which is not relating to SAP in combination with the SAP ERP program.
At the same time SAP was called the leader in software development area for automation of sales, and the SAP product CallidusCloud of analytics was carried to leading in a segment of solutions for performance management of sales. Carried the following to advantages of the German vendor of analytics:
- Adaptation of software for a manufacturing sector;
- Expansibility and API;
- Advanced operating capabilities.
Gartner speaks, the vendors positioned as leaders "are capable to implement the strategy in products and services and also to show considerable business results in an income type and profit. Leaders have significant successful projects with clients from the different industries and the numerous confirmed successful projects of deployments for more, than 500 users. They show steadily high level of customer satisfaction. Also leaders often are vendors concerning which themselves estimated by other suppliers who are present at the market".[1]
You See Also
- Sales Performance Management - Performance management of sales
- Sales Force Management - Sales management
- Sales Force Automation - Automation system of sales
- Sales Force Management System (SFMS)
- Sales & Operation Planning is Sales planning and operating activities
Notes
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