SAP CRM 7.

0
RKT Live Expert Presentation

RTOM 7.0 Part I

Dr. Shuki Idan

Head of Technology
and Product
Management

Maya Kidron
Product Manager

Workshop Objectives

Learn about the business need and value proposition of RTOM

Get in depth knowledge of the product functionality
Understand the delta functionality in 7.0 release
Review the technical architecture and implementation considerations
Learn how to present RTOM and create a customer specific demo
Learn the available sales tools and how to find additional support
Get a first insight into our roadmap plans

SAP 2008 / Page 2

Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]

Tomorrow - Part 2 [2 hours]

RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]

It is RTOM Time!

RTOM is a key CRM investment area

RTOM is a key CRM investment area (EIU SEP 07)

... Real-Time Offer Management can improve your

customer response rates as much as 10 times direct
marketing.
Gartner, September 2007
Customer data mining and inbound marketing remain popular
because they can deliver higher campaign response rates, despite the
steady, 10-year growth in spending on these technologies.
Gartner, March 2008
... the desire to enrich the experience of each
interaction, a captive and attentive audience, and the
opportunity to reinforce the brand all make inbound
marketing a compelling solution.
Forrester, January 2007

What's 'Hot' in CRM in 2008 ( Gartner MAR 08)

RTOM is hot CRM Service topic ( Gartner JUN 08)

Background
RTOM is a real-time recommendation technology that was acquired by
SAP from Ingeneo at the end of 2006
RTOM is part of SAP CRM Marketing offering and is integrated with CRM
master data and Interaction Center (2006s/5.2 and on)
RTOM is also available as a standalone product
RTOM pricing model is value based proportional to the number of
recommendations

SAP Real-Time Offer Management (RTOM)

RTOM enables organizations to conduct
intelligent interactions
RTOM recommends best offers during interactions
Offers are products or next best actions driven by business goals
RTOM learns from response and improves its recommendation strategy

Our Taxonomy
Product(s) recommendation
Typically related to sales and/or contract modification (e.g. upgrade handset)
Success is measured and is used for self learning

Next best action recommendation

Guiding to next action (e.g. schedule a safety check)
Success can be measured but is not used for self-learning
SAP 2008 / Page 6

SAP Real-Time Offer Management (RTOM)

RTOM Foundations
Offer Management
Environment

Real-Time
Decisioning Engine

Self Learning
and Analytics

Major Design Concerns

Business users oriented
Multi channel
High performance and scalable, from technical perspective
Manageable / scalable, from business perspective

SAP 2008 / Page 7

Offer Definition

Offers
Offers

Productsand
and
Products
NextBest
BestAction
Action
Next

[optional] Downstream / batch activities

Real Time Offer Management in Action

Make the right offer at the right time

Design Time

Business User
Who: target profiles
When: triggering events
What: offers
Where: interaction channels

Real time customer information

RTOM

Interaction events & data

Current level of service
Agent skills, external info, etc.

Current customer profile

Previous customers responses

Optimal recommendation

Interaction Time

Other real time information

Cross/up sell offers

Retention offers
Marketing messages
Next best action

Interaction channels

RTOM in the Interaction Center

RTOM Recommendations

Integration with product data and relevant

processes e.g. drag offer into a Sales/Service Order

Why RTOM?

Sample Use Cases and Expected Value

Use case

Expected Benefits

Enhance cross/up sell and retention during

inbound and outbound interactions

Increase revenues while keeping service

productivity; Increase customers lifetime
value

Guide interactions and recommend next best

actions

Empower customer facing personnel;

Streamline self service channels; Reduce
handling time; Increase customer and agent
satisfaction

Synchronize and improve offering across all

interaction channels

Increase customer satisfaction; Boost online

sales; Decrease costs; Strengthen branding

Enable business users to run an agile business

test, deploy, measure and improve

Decrease Marketing spending ; Shorten

Time-To-Market

SAP 2007 / Page 11

RTOM Process and Landscape

Create & manage

offers portfolio
Intuitive offer definition
and management
environment

Design
RTO
M
Business Logic Studio

Recommend best
offers
Prioritized real-time
recommendations

Learn and adapt

Automatic learning to
improve subsequent
recommendations

Insights for business users

on offers, agents, channels
and responders

Interaction

Analysis

RTOM Administration Cockpit

Real-Time Offer Management server

Configuration Manager (recommendation & data services)

CRM & other data sources

Measure and
provide insights

Interaction Channels (e.g. IC, e-com)

RTOM
Analytics
BW / DWH

How does it work?

Main components and flow

1. Offers are defined in BLS and
saved in the RTOM engine

Customer Interaction Channels

2. Interaction application event

triggers RTOM

2. Events

5. Recommendations

RTOM Recommendation Services

3. RTOM retrieves the relevant

data from data sources
4. The recommendation engine
detects the optimal offers

RTOM
Business
Logic
Studio
(BLS)

5. Recommendation is provided
to the application
6. Recommendation result is fed
back to RTOM for self-learning
7. [optional] RTOM triggers other
relevant activities

6. feedback

RTOM Recommendation
Engine

Offers

Experienc
e

3. Info retrieval

Product Catalog

7. Activities
(optional)

downstream
processes

RTOM Data Integration Services

8. Experience based Analytics is

provided

RTOM
Online
Cockpit

CRM Master
data

XML /http,
ODBC, WS

8. Analytics

DWH / BW

RTOM Cockpit

Business Logic Studio (targeting)

BLS : Add Logical Expression

SAP 2007 / Page 16

RTOM Analytics Example - Offer Performance

Offer performance breakdown into target profiles and events

RTOM Analytics Example - Agent Performance

How often the agent
promote RTOM offers?

How successful was the agent in

selling RTOM offers?

RTOM 2007 to 7.0 Delta

Technical

Enhanced Globalization and Accessibility

Supports all 30 SAP standard data entry languages including
double byte languages and Unicode
Support more languages in the offer design UI (BLS) Japanese, Italian and Portuguese added to English, German,
French and Spanish
Support multi user locale settings (UI language, date/number
format, time zone)
Enahncements for "mega scale" deployments
Distributed high performance architecture & 64 bits
Multi locale /time-zones deployments
Part of SAP landscape and tools (e.g. CCMS, SLD)
RTOM
Analyzer

RTOM
Engine

RTOM recommendation
services
Events
RTOM Router

RTOM
Engine

Experience base
SAP 2007 / Page 19

RTOM
Engine

RTOM
Controller

RTOM 2007 to 7.0 Delta

Functional and other
Multi Channel support (beyond IC)
Personalized Next Best Action recommendations in addition to products
New value based pricing model for all types of channels
RTOM is also available as standalone without SAP CRM (as of 2007 SP02)

SAP 2007 / Page 20

Multichannel RTOM

Demo

How does it work?

Main components and flow

1. Offers are defined in BLS and
saved in the RTOM engine

Customer Interaction Channels

2. Interaction application event

triggers RTOM

2. Events

5. Recommendations

RTOM Recommendation Services

3. RTOM retrieves the relevant

data from data sources
4. The recommendation engine
detects the optimal offers

RTOM
Business
Logic
Studio
(BLS)

5. Recommendation is provided
to the application
6. Recommendation result is fed
back to RTOM for self-learning
7. [optional] RTOM triggers other
relevant activities

6. feedback

RTOM Recommendation
Engine

Offers

Experienc
e

3. Info retrieval

Product Catalog

7. Activities
(optional)

downstream
processes

RTOM Data Integration Services

8. Experience based Analytics is

provided

RTOM
Online
Cockpit

CRM Master
data

XML /http,
ODBC, WS

8. Analytics

DWH / BW

RTOM Analytics
Create & manage
offers portfolio

Recommend best
offers

Learn and adapt

Measure and
provide insights

Enhance the ability to manage and optimize the efficiency of online offering,
allowing control over offers effectiveness and agents performance
Offer performance analytics analyzes the performance of offers along with
customer profiles, and interaction events over time
Agent performance analytics analyzes the utilization of RTOM and the success
of offering by different agents, as well as the impact on productivity over time
Customer analytics analyzes the response profiles of the various offers
Channel analytics provides insights about the offer performance in different
channels as well as channel specific offering profitability

RTOM Recommendation Strategy

Key capabilities

Create & manage

offers portfolio

Recommend best
offers

Learn and adapt

Measure and
provide insights

Relevant - recommendation considers the context of the interaction, real-time results,

agents skills, workload, and more
Optimal - prioritizes all valid offers according to their expected value contribution
Adaptive - learns from responses and improves the recommendation strategy along time.
Also, validates marketing hypothesis and adapts recommendation strategy, if justified
Intuitive recommendations are accompanied with suitability reasoning and behavior
along time is explained to business users by a set of offline analytics

Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]

Tomorrow - Part 2 [2 hours]

RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]

The RTOM wiki page

Table of Contents
1 - RTOM Go-To-Market Essentials
2 - More Go-To-Market Tools
3 - RTOM Competition
4 - Industry Specific Materials
5 - Architecture and Implementation
6 - Customer Handouts

1
GTM
Essentials
6

Customer
Handouts

More GTM
Tools

This briefcase is on the RTOM Wiki Page at

RTOM

https://wiki.wdf.sap.corp/display/SAPCRMHub/SAP+RTOM

Architecture &
Implementatio
n

Competition
4
Industry
Specific

SAP 2008 / Page 27

1. RTOM GTM Essentials

FAQ

The comprehensive FAQ contains almost everything you need to know

in order to position RTOM. Take an hour and you are done
The overview presentation will enable you to present RTOM in 7 slides.
It contains extensive speaker notes

GTM
Essentials
6

Customer
Handouts

More GTM
Tools

RTOM

If you just want to understand What s In It For Me read the one pager
5

Architectur
e&
Implement.

Competition
4
Industry
Specific
SAP 2008 / Page 28

2. More GTM Tools

1
GTM
Essentials
6

Customer
Handouts

More GTM
Tools

RTOM

Learn more about the Market and RTOM functionality via e-books, recorded
and narrated demos, presentation and more.
Calculate and demonstrate the value of RTOM for your prospect using
Case studies
Pricing information
Return On Investment (ROI) calculator

Architectur
e&
Implement.

Competition
4
Industry
Specific
SAP 2008 / Page 29

Banking Case Study

Introduced 35 new cross/up sell and retention offers within a month

One of the top 10 banks in

the United States

Business Challenges
Complex offering the bank manages a comprehensive offering environment :
banking, brokerage, insurance, investment, mortgage, trust and payment
services
Wish to create and manage a multitude of cross line of business offers (e.g.
mortgage + insurance)
All product should be available over all channels
CRM Strategy and Objectives
We are always here for you (all services and bankers available 24 hours a day,
7 days a week) need to empower agents and provide on stop-shop for sales
and service on all channels.
We have the product you need and if not we will create it need to facilitate
offer management and ensure short TTM
We will bring down the walls among our Marketing, Service and Sales
departments to create a customer focused ecosystem
Results with RTOM
18% positive response to RTOM offers ; additional 12% requested follow up
5 hours to launch a new offer from idea to production
3 hours to train new agents
Agents using RTOM made 52-60% better than agents not using RTOM ;
agents offering effectiveness improves month to month (see graph)
Up and running in call center within 2 months
ROI within 6 months

Offers
Checking Offers

Retention Offers

Free Checking

Certificate of Deposit

Interest Plus Checking

Savings Account

Elite Checking

Checking Account

Mesa Checking

Elite Checking Account

Student Checking

Loans and Lines

Upgrade to Interest Plus Checking

Home Equity Loan/Line

Upgrade to Elite Checking

Home Equity Line Utilization

Visa Check Card

Maturing Home Equity Line

Save Checking with Checking That Pays

Visa Platinum

Save Checking with Visa Check Card

Cash Rewards Visa

Savings & Certificate of Deposit Offers

College Visa

Goal Savings

Credit Line

Money Market

Reserve Line

Indexed Money Market

Other Products

High Impact Money Market

Internet Bill Pay

Maturing CD

Auto Pay

Promotional CD

Visa Bucks Card

High Value CD Maturity

Overdraft Protection

RTOM Pricing and Quote Process

SAP RTOM is a separately priced line item. RTOM licenses are
purchased in addition to SAPs application user licenses
RTOM price do not appear yet on the price list since RTOM is under
controlled shipment
From a revenue recognition perspective, RTOM is like any SAP standard
product but it requires a separate contract
RTOM revenues are recognized as CRM revenues
In order to sell RTOM you need
To contact Beni Basel (beni.basel@sap.com) to discuss the prospect and the
price to quote
When the deal approaches signature you will need to notify your contracting
agent to prepare the contract

SAP RTOM Pricing

Agent Assisted Channel (material code: 7008709)
For n RTOM
recommendations
Number of Recommendations

SAP Real-Time Offer

Management

Price per unit

(EUR)

Price formula
(EUR)

.30

n *.30

Self-Service Channel (material code: 7008710)

For n RTOM
recommendations
Number of Recommendations

Price per unit

(EUR)

Price formula
(EUR)

.15

n* .15

Definition of Metric: Number of recommendations created by the RTOM system in a calendar year.
If usage is exceeded, minimum purchase is in blocks of 20,000 recommendations.
Minimum Quantity for agent assisted channel 200,000 recommendations (60K EUR)
Minimum Quantity for self-service channel 400,000 recommendations (60K EUR)
Guidelines
Licenses for RTOM are perpetual licenses
Metric is based on number of recommendations created by RTOM in a calendar year
Linear price based on total number of recommendations by channel
Minimum quantity varies per channel
Customers who exceed usage must pay for any additional recommendations (sold in blocks of
20,000 recommendations)
Standard regional uplifts apply
Database license fees apply

Simplified ROI Model

Guidelines, spreadsheet and example with benchmark

The simplified model takes into account two major revenue contributions
Revenue from increased sales
Every agent will sell more products
and services with RTOMs
recommendations than without it

Estimated by the additional

products/services each agent can
sell during one shift times the
number of shifts per month times
the average revenue per product

Reduction of attrition loss

RTOM provides passive and
proactive optimal retention offers
that suits the customer needs and
comply with retention policy

Estimated as the number of

additional saves times half average
lifetime contribution (simplified by
neglecting retention overheads and
discounting of future revenues

Real non-simplified banking models and ROI calculations are also available

3. Competition

1
GTM
Essentials

The Competitive Positioning presentation name of those RTOM may

compete with, what to fear and where are their weak points
Key competitors weaknesses are further detailed in additional one page
positioning documents
The Forrester report provides numbers on competitors, such as: prices,
pricing model, # of customers, etc.
The Gartner report mentions Ingeneo (now SAP RTOM) as a best -inbreed solution.

Customer
Handouts

More GTM
Tools

RTOM
5

Architectur
e&
Implement.

Competition
4
Industry
Specific
SAP 2008 / Page 35

RTOM Competition Landscape

(Real Competitors and Claim to be)

Vendor specific battlecard exist on wiki

Competitors, Product Names, Origin and

Potential Risk in RTOM Opportunities

37

RTOM Key Competitors

From How Technology Enables Inbound Marketing, Forrester JAN 2007

Not 100% accurate but still informative

SAP 2007 / Page 38

Weak Points Some Mud to Use

39

Strengths What to Fear?

40

Positioning Tips
Real time offer management competitors are mainly in the FS and Telcos, the early adopters
of this technology . SAP can be lead the 2nd wave that starts now in its strong verticals like
Utilities and Retail
Ingeneo was considered to be best-of-breed: Best-of-breed solutions are available
from:Chordiant (Recommendation Advisor), Epiphany (Interaction Advisor), Ingeneo, SAS
Institute (Interaction Management), SPSS (Predictive Call Center) and Unica (Affinium
Interact) How to Achieve Real-Time CRM, Gartner May 2005
Wherever SAP CRM is the main CRM system RTOM should not loose to a competitor
product the cost of integration and TCO should eliminate such option
RTOM standalone can be a wedge into SAP CRM Greenfields and in large Orcale/Siebel
installations where Oracle offering cannot scale
RTOM standalone can be a wedge into Amdocs/Clarify customers since Telco are looking
for such technology and Amdocs does not have an offering for that
RTOM can also be positioned in web-shops and service scenarios where the mentioned
competitors are not present
RTOM is always conceived as the better tool by business users. It their eyes, it is easier to
use and its recommendation more intuitive than our competition (not some black-box
analytics). Marketing / Sales / Service managers should be targeted.
SAP 2007 / Page 41

4. Industry Specific Materials

1
GTM
Essentials
6

Customer
Handouts

More GTM
Tools

RTOM

There are industry specific recorded demos, storyboards, screenshots and

access guidelines to the demo environment for: communications, utilities,
banking, insurance, retail, postal and hi-tech.

Architectur
e&
Implement.

Competition
4
Industry
Specific

We will upload to this session customized presentations for key industries

SAP 2008 / Page 42

5. Architecture and Implementation

1
GTM
Essentials

This will be covered tomorrow

The Implementation approach and efforts presentation will give you

understanding how long does it take to integrate and rollout RTOM and
what type of activities/efforts are involved (focused on RTOM standalone)
The integration whitepaper depicts the simplified RTOM integration
pattern (focused on RTOM standalone)

Customer
Handouts

More GTM
Tools

RTOM
5

Architectur
e&
Implement.

Competition
4
Industry
Specific
SAP 2008 / Page 43

6. Customer Handouts

These documents can be handed to customers

New Communications whitepaper on how Business Objects and Real
Time Offer Management enable CSP achieving their business goals by
turning analytics into optimal offers. Executive flash demo also exists.
The CRM Thought Leadership whitepaper gives an understanding of the
market needs, challenges and best practice for deploying such
technology
The Solution Brief explains RTOM functionality and value proposition
RTOM Roadmap describes RTOM 7.0 (NOV 2008) key features

GTM
Essentials
6

Customer
Handouts

More GTM
Tools

RTOM
5

Architectur
e&
Implement.

Competition
4
Industry
Specific
SAP 2008 / Page 44

RTOM Go To Market Summary

Who?

Who is the ideal client?

Focus industries: Telco, Banking, Insurance,
Utilities, Retail, High-Tech, CP
Profile: Customer interaction intensive
organization with rich product offering and
multitude of interaction points
Buying Center: Typically functional owners
from Marketing, Sales or Service; IT plays a
gating role

WIIFM?

Whats in it for the Field and Partners

A wedge into SAP CRM greenfileds (inc. B2C)
An advatage in relevant industries (e.g. Utilities)
Oppurtunity to leverage backoffice information
into business action
Source for business expertise build-up of
consulting services for variuos functional areas
Quick path to value in divers business issues

Why?

Typical pains of RTOM target clients Why?

Challenging customer loyalty
Need to launch frequently new offers and
respond to competition with a short TTM
Need to promote and syncronize offering over
multiple interaction channels
Complex offering and service interactions

What RTOM can do for them?

What?

Recommend optimal retention plans

Empower business users to drive an agile
organization
Increase revenues & margins by up/cross sales
Enhence the relevancy and effectivess of
interactions

Agenda
Today - Part 1 [2 hours]
Introduction [45 min] product overview, new 7.0 functionality, demo and value proposition
Go To Market [45 min] positioning, competition, available sales tools.
Demo basics [15 min] overview of demonstration environments and available demo
recordings
Q&A [15 min]

Tomorrow - Part 2 [2 hours]

RTOM Applications [45 min] - in depth demo and presentation of the different modules (BLS,
Cockpit, Analytics)
Technical overview [25 min] insider view about how RTOM works in SAP and 3rd party
landscapes
From theory to practice [35 min] presentation of a typical RTOM implementation, prerequisites, activities, timeline, roles and responsibilities
Roadmap and Q&A [15 min]

Thank You!

Q&A