Case Study: My SAP Implementation at the Associated Press

1. Case Study: My SAP Implementation at the Associated Press Fernando Ferre Director of Finance & Operations Newspaper & New Media Markets The Associated Press

2. Company Overview • Founded in 1848, The Associated Press is the oldest and largest news organization in the world, serving as a source of news, photos, graphics, audio and video to the media market and corporations.

3. About The AP • 1,700 U.S. newspapers • 5,000 U.S. radio/TV outlets • 8,500 international media customers • 500 new media and corporate customers • 121 countries served by AP • Total 242 bureaus worldwide • 3,700 employees worldwide

4. SAP CRM Initiatives at AP • Live Sept. 2002 for AP Digital, new media division of AP. • Enhancements to AP Digital implementation in 2003 • Project organized for Newspaper implementation beginning of 2004. • Go live November 2004 • By then, CRM will support substantial revenue base for AP.

5. New Media Market (AP Digital) CRM Implementation

6. Landscape Pre-CRM • Systems: • Excel – prospect, sales activity and contract management • Filemaker – order processing, trials and customer database • SMART – service management and billing • PA Billing – invoicing • Manual entry, redundant data between systems • No integration of systems • No standardized reporting from a central system • No reporting flexibility for analysis

7. Centralize account, contact, order, opportunity, and contract management Support customer interaction cycle – from customer acquisition, order fulfillment to billing and support Provide a single customer view Deploy reporting tools for business analysis Align systems with corporate direction CRM Objectives End Goal: Better customer and business management

8. Software Selection Process • SAP HR implemented • SAP CRM had the required functionality • SAP provided a platform: • phase in functionality as we were ready • ride SAP’s product development curve

9. SAP Production Versions • SAP R/3 Release 4.6C: Live with SAP HR Master data, Org Data & Benefits, Payroll • CRM Release 3.0, Upgraded to 4.0 • Business Warehouse 3.0B

10. Business Process

11. Functionality Implemented • Campaign Management • Customer Interaction Center • Order Processing • Product Management • Opportunity Management • Service Contract Management • Business Warehouse

12. Implementation Timeline • Total implementation time – 5 Months • Project Started on April 2002 • Live on September 2002 • Staffing Internal : 3 External: 4

13. Campaign Management • Two types of Campaigns • E-mail and phone campaigns • Target Groups are created based on: • CRM Master Data (Marketing Attributes, SIC Codes, Est.Rev, # of employees, Address information etc) • Information from BW

14. Call Lists in CIC

15. Customer Interaction Center • Used to track customer interaction history • Used to create/modify all the transactions e.g.: • Activities, Opportunities, Service Contracts, Business Partners, etc from a single screen. • Configuration Flexibility based on user requirements

16. Customer Interaction Center

17. Business Activities • Used for Order Processing • Trial Order Notifications • Service Order Notifications

18. Activity Screen

19. Activity Monitor • The ActivityMonitor is used to call up lists of all the activities that have been created in the system, according to various criteria such as date and completion status

20. Activity Monitor • The output can be sorted by any column • Layout can be customized for each user

21. BW:Order Fulfillment Report

22. Product Management • Product hierarchies • Flexibility of reassigning product categories • Product pricing • Customer & Product • Product • Billing frequencies • Monthly • Quarterly • Yearly • One Time Fees

23. Opportunity Management • Logs sales prospects, requested products, sales prospect’s budget, potential sales size , estimated sales probability and expected closing date • Information is used in sales pipeline

24. Opportunity Management

25. BW:- Sales Pipeline report

26. BW: Lost Opportunities Report

27. Service Contract Management • Represents relationships with customers. • Contains detailed information about contract with customer: • Contract Start Date, End Date, Renewal Date • Terms, Services, Delivery methods • Billing Frequency, Billing Plan for Services, Royalty Information

28. BW Reports: Service Contracts • Contracts signed in the current year • Contracts terminated in the current year • Contracts renewed in the current year • Contract to be renewed for a given period • List of contracts based on sales reps, royalty information, territories & other criteria

29. Business Warehouse • Used for reporting & data analysis • Used for creating target groups for campaign management based on complex queries • Generate ad hoc reports for managerial decisions

30. CRM Billing • Billing through CRM application, which is integrated with current non-SAP invoicing and financial application • Contracts have billing documents • Billing Due Lists • Processing of incorrect billing due lists • Cancellation of Billing Documents • Credit Memos/Debit Memos • Much work went into mid-period billing rate changes

31. CRM 4.0 Upgrade • Territory management • Alerts for contracts • Customer hierarchies • External list management • Workflow functionality • Web client – not yet implemented • Royalties and sales commissions – not yet implemented

32. Benefits of SAP CRM • “Orders don’t get lost” • Interaction History for future reference, with ability to store customer, product, transaction information • No Redundant data entry – resources redeployed • Eliminated costs of - $130K • Standardized reporting from a Central System

33. Benefits - CRM Data Sharing Campaign Management Opportunity Management Trial Contracts Service Contract Billing • Enhanced coordination of the various functions • Better information about our customers and business Marketing Sales Client Relations Customer Support / Management / Entitlements Billing

34. Newspaper Market CRM Implementation

35. CRM Objectives in Newspapers • Improve customers’ experience with the AP • Produce efficiencies in ordering and fulfillment processes • Provide analytic tools to assess customer relationships and behavior • Improve Sales

36. Market/ Advertise Promote/ Campaign Sell Entitle Provide Up-sell/ Cross-sell Corporate Marketing Account Specific Marketing Sales Support Contract Mgmt Order Fulfillment, Billing Customer Support • NNMM Customer Hierarchy • NNMM Product Hierarchy • Marketing Collateral • (external visit report application and sales support site will be available) • Contact Management • Sales pipeline reporting • Workflows to route trials and orders to actors and approvers • Workflows to alert sales & support of pending trial and contract terminations • PA Billing integration for APDigital • NNMM view of customers Capture Customer Interaction History Robustbusiness analytics and reporting Newspapers CRM Deployment Customer-facing AP Activities Back-office Execution

37. Customer Hierarchy

38. CRM Functionality • Order processing • Opportunity management • CRM Pricing • Contract management • Workflow functionality

39. Get Organized • Right team with clear accountability • Project management and tools • Communication and teamwork • Have a good grasp of the big picture, but no detail is too small

40. Lessons Learned • Set realistic expectations • Don’t underestimate data migration • Involve users from start – requirements, testing, data migration, training • Phase in CRM – with sight on the future, new modules, other business units (scalability) • If you encounter errors, check the SAP notes, then create a OSS message