Tag Archive | Configuration Project

Holding onto Market Share in the Retail Arena

Retailing is not the industry it used to be. The internet has changed the way that consumers buy goods and in turn how retailers sell to them. And the changes keep coming, such as Amazon.com’s recent release of an application enabling shoppers to instantly check prices on their own site, which means many consumers will window shop in-store, then buy online later if it is cheaper. In many cases, even if the price is the same or slightly higher they will choose to buy online as Amazon does not collect sales tax in most states. Even more troubling for brick-and-mortar stores, Amazon is offering discounts to users of the app and asking them to report the in-store prices of goods so the site can ensure it is offering the best deal to customers. What this means is increased direct competition for retailers who are already struggling.

Build vs Buy

“To build or not to build, that is the question!” That may not be an exact quote from Shakespeare, but it definitely brings up a very important point when deciding to implement a CPQ. Not all companies are equals, but depending on the industry or the size of the organization, the temptation to build an in-house CPQ might be strong.

Risk Number 10: Not Planning for User Acceptance of the New Product Configuration Processes

We all procrastinate sometimes, but waiting until late in the implementation cycle to plan user acceptance will only exacerbate the risks, already cited in our previous posts. Scrambling at the last minute in reaction to user sensitive problems may trigger even more resistance: fear of excessive work pressure and loss of control at the time of “going live.” In this unfortunate circumstance, the possible rewards of the new processes may no longer appear adequate or satisfying.

Risk Number 9: Not Adequately Defining New Processes for Maintaining and Publishing Models

In complex product-based companies, which face blistering competition in today’s marketplace, constant change is expected, usually at lightning speed and driven by customer demands.

Risk Number 8: Inadequate Testing of the Configurable Product Model

One of the biggest risks in product modeling is to have customers find errors in the product models after the models ”go live”. This type of mistake may not only result in an immediate lost sale, but also negatively impact your entire brand image as customers do not trust brands that make this type of mistake.

Risk Number 7: Not Selecting the Appropriate Product Family When Developing Product Models

Most companies will have a choice of which product family to select for their initial product modeling effort. There are often two extremes to evaluate, simple or complex – each with attendant risks. Starting with a complex family that promises greater benefits may be tempting, because of the desire to gain the greatest immediate benefits with improved product configurability.

Follow

Get every new post delivered to your Inbox.