16 Oct Profitability reinforced: What is deal management and why should you care?
by John Pora
In a fast-moving and demanding marketplace, your organization needs to contribute more profitability and needs to do it effectively to remain competitive. To maximize earnings and provide customers with a better experience, organizations need insight and analytics about customer buying decisions. How do they get the insights they need to sell better? That is where deal management comes in!
In this three-part blog series, I’ll be covering everything from the basic elements of deal management to the in-depth measures of organizational readiness for deal management. To start, let’s look at what exactly deal management is and the impacts it has on different areas of business.
Defining deal management
Deal management is an analytical feature that is part of Oracle CPQ that helps a company define and standardize deal parameters and increase decision making across the organization to maximize profit, market share, and client experience. An effective deal management solution helps provide more information and more transparency for faster, easier deal optimization using less resources. Deals in an organization can involve list pricing, volume discounting, special pricing, and anything that has a direct impact on profitability. There’s no single approach to meet various customers’ demands, but deal management provides specific insights and enables you to put intelligent guidance in place to close opportunities faster and with maximum profit. Ultimately, deal management helps your organization eliminate rough estimates, multiple passes through finance for approvals, eroding margins, and competitor disruption.
Other than manual approaches, organizations often use executive deal desks which can be composed of sales, sales operations, and legal. A complete analysis of these data sources determines what kind of deal is to be approved, restructured, or eliminated. The main idea of the deal desk is to represent the strategy of the business within the sales process and balance profitability with the relationship. Utilizing deal management intelligence allows organizations to add more automation to this process with more data and information to enhance transparency.
The sole benefit of deal management is to make the sales process faster and easier, with only minimal involvement from operations while maximizing pricing. All while improving your ability to respond to customers quickly.
What is the impact on different areas of the business?
Let’s look at an overview of deal management and its impact on different aspects of the business.
Artificial Intelligence (AI) Integration
For some years, AI has been a buzzword in the industry—an idea that carries a lot of promise and often more complications. Some organizations have been able to embrace AI and effective use of data science and big data stores, but many are stuck in how to manage and implement effective use within their organization. Artificial intelligence within the OCPQ deal management solution is streamlined to a level that eliminates the need of data scientists and gives a better insight into pricing. The data is compiled in the CPQ data residence to ensure easy access and is part of your normal selling process.
Increases Organizational Effectiveness
With deal management, you’re still incorporating decision making into the sales process, but you’re getting more done at an efficient rate. You save time when these processes are tied to a dynamic operation. The financial expertise and insight is folded into the deal intelligence and offers sales cultivated advice and support.
When you know the right price for your product, you can negotiate and sell confidently. Advances over the traditional data input and analysis give better sales intelligence on suggested pricing and required discounting that helps close deals faster and eliminate unnecessary markdowns and giveaways.
Effective deal management allows you to re-engineer processes and protocols to define the client’s experience and boost insights. CPQ lifts the market’s growth rate, but a more significant part of this deal is done by reducing costs and streamlining the approval process. It can also lead to tighter forecasting that can be used to negotiate with your own suppliers.
Better Decision Making and Monetization
When every other feature is effectively enhanced, decision making is decisive, and margins are maximized as part of your CPQ sales process.
Deal management is an essential part of streamlining and empowering your organization’s sales process by utilizing AI, driving profitability and effectiveness, lowering costs, and encouraging overall better decision making. With deal management properly established, your organization can reach greater success with less hassle.
In the next blog, we’ll look at exactly who in an organization is affected by deal management and how.
John is the VP of Oracle Professional Services here at Simplus. He’s an accomplished business leader with more than 20 years of experience in developing and maintaining rigorous deployment and customer service practices for high-growth enterprise software companies.