The 10 Biggest Pitfalls In CPQ Trajectories

The 10 Biggest Pitfalls In CPQ Trajectories

Success of a CPQ implementation

Several elements affect the ultimate success of a CPQ implementation. In conversation with Maudy van Eldik about the 10 common pitfalls in CPQ projects. Good news: you can avoid them relatively easily.

1. Failure to establish clear and measurable CPQ goals and KPIs

"Avoid not properly defining as an organization what you want to achieve with the CPQ implementation. It's about optimizing your quotation and sales processes by removing 'waste.' In doing so, make sure you have clear and measurable objectives. These depend on the organization. Examples of KPIs are 'increasing the success rate for sales opportunities from 40% to 50%' or 'reducing the lead time for issuing a quotation from one week to two working days'. An additional advantage of clear and measurable CPQ goals and KPIs is the ability to make timely adjustments in the process."

2. Paying insufficient attention to proper preparation

"Availability of stakeholders within the process is important from the very beginning. A CPQ implementation involves various roles, such as product owners, sales colleagues, developers and IT architects. Administrators, integration and solution architects are also involved. The knowledge of colleagues - for example, on sales processes - must end up in the systems. Good preparation has a great impact on the success of the CPQ implementation. Finally, also don't forget to involve the future end users in the process from the beginning. That way you ensure the right level of involvement."

"Good preparation has a major impact on the success of CPQ implementation."

3. Failure to properly manage change and expectations in CPQ implementation

"As already briefly addressed in the previous pitfall, the success of the CPQ implementation is also determined by end-user involvement. You create support by involving that group at an early stage as well. Also strive to have part of the team consist of experts who are also responsible for maintenance and management of the CPQ environment after implementation."

4. Wanting to do everything at once

"In a CPQ implementation, avoid doing everything at once. Focus on getting one flow running smoothly. If that one is in order, then you can expand. A phased rollout also gives you an overview and avoids unnecessary risks that occur when you 'change the engine on the fly.

5. Expecting technology to solve everything

"Keep in mind that a CPQ solution is a toolbox, but not a turnkey solution. Each organization has its own environment and processes. In addition, there is often legacy in the organization. It is important to take these variables into account. A successful CPQ implementation brings everything together and takes into account the organization's environment and systems."

"A successful CPQ implementation brings everything together and takes into account the organization's environment and systems."

6. Rebuilding the same system

"Change requires effort from all involved. There is a risk that the organization ends up building the same system that they initially wanted to part with. Fortunately, you can significantly reduce that risk by first outlining the ideal scenario in terms of the desired objective. For example, optimal flexibility, increased turnover or reduced quotation lead time. In doing so, don't be limited by current working methods and take the end user as your starting point."

7. Unconsidered choice between standard solutions and customization in CPQ implementation

"It is important to test the extent to which the existing landscape of processes can be captured in CPQ and whether this requires customization. To answer this question, first make sure you have the right understanding. A chain landscape map can help with this. This tool gives you insight into existing processes and landscapes. Moreover, the map ensures a high level of involvement: you produce the KLP with the entire team and thus gain joint insight into the chain of quotation and order processes."

8. Not providing space for POCs and an MVP.

"The starting point is to get the organization used to the new way of working quickly. Making the first version available is a requirement for this. With a Proof-of-Concept (POC) you can test whether the direction taken is correct. POCs can be large or small: they give a good picture and allow you to make timely adjustments. With a Minimum Viable Product (MVP) you provide a first concrete form of the product. An MVP shows the rest of the organization what is being worked on and helps create trust."

9. Insufficient research on the right supplier

"Realize well that in most cases a CPQ project is a business-critical process. This works its way into choosing the right vendor. Choose a proven solution, find out which customers are already using the solution and ask which organizations the supplier has experience with. Continuity plays an important role: after all, this is a long-term investment. Things like annual sales, number of employees and growth are good indicators."

10. Too little attention to the human factor in CPQ implementation

"Ultimately, people make the difference in the success and success of CPQ implementation. Gather the right people around you, both within the organization and outside. When it comes to the supplier: choose a party that has the knowledge at both a global and local level. That way you ensure a team you can actually build on and trust."

Maudy van Eldik

CEO & Founder

Maudy van Eldik is founder of CaseNine and CEO of the organization. In this capacity he is responsible for the overall processes, but also closely involved in the various customer projects.