9 Mistakes to Avoid When Implementing a CPQ System

Configure, Price, Quote (CPQ) systems have become vital in bridging the gap between Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) solutions.

These systems not only streamline the sales process but also enhance accuracy and efficiency in quoting and pricing. However, as with any complex implementation, there are pitfalls to avoid.

This article delves into nine common mistakes companies make when implementing CPQ systems and why steering clear of these errors is crucial for a successful integration.

Mistake 1: Lack of Transformative Thinking and Requirements

A successful CPQ implementation starts with a transformative mindset. It's not just about transferring existing processes into a new system; it's about reimagining these processes for optimal efficiency and effectiveness. Companies often falter by not fully understanding or preparing the specific requirements needed for CPQ implementation. A thorough analysis of current processes, coupled with a vision for transformation, sets the stage for a CPQ system that not only fits but also enhances business operations.

Mistake 2: Over-Engineering the Solution and Failing to Standardize

Simplicity is key in CPQ implementation. Over-complicating the system can lead to inefficiencies and user frustration. The goal should be to standardize and simplify processes wherever possible. This approach helps in creating a CPQ system that is user-friendly and efficient, avoiding unnecessary complexities that can bog down both the system and its users.

Mistake 3: Losing Sight of UI/UX

User interface (UI) and user experience (UX) are crucial in the adoption and effectiveness of a CPQ system. A complicated or unintuitive interface can deter users, leading to lower productivity and adoption rates. Investing in a well-designed UI/UX ensures that the CPQ system is not only functional but also enjoyable and easy to use, which is essential for maximizing its benefits.

Mistake 4: Failing to Recognize the Need to Iteratively Build

Implementing a CPQ system is not a one-off task; it's an evolving process. An iterative approach allows for adjustments and improvements based on user feedback and changing business needs. Rushing the implementation or expecting a perfect system at the outset can lead to missed opportunities for refinement and optimization.

Mistake 5: Inadequate Engagement with All Impacted Business Areas

CPQ systems impact multiple departments within an organization. Inadequate engagement with all these areas can lead to a system that does not fully address the needs of each department. It is vital to involve stakeholders from sales, IT, finance, and any other impacted areas in the planning and implementation process to ensure the system supports the entire organization effectively.

Mistake 6: Poor Data Management

The effectiveness of a CPQ system heavily relies on the accuracy and currency of the data it uses. Inaccurate or outdated data can lead to errors in pricing and quoting, damaging customer trust and business reputation. Ensuring the integrity and reliability of data within the CPQ system is a critical aspect of its success.

Mistake 7: Ignoring Compatibility Issues

A CPQ system should seamlessly integrate with existing CRM, ERP, and other business systems. Ignoring compatibility issues can lead to disruptions in business processes and data flow. Ensuring that the CPQ system aligns with and complements existing technologies is essential for a smooth and efficient operation.

Mistake 8: Neglecting Sufficient Training

A CPQ system, no matter how well-designed, is only as effective as the people using it. Providing adequate training ensures that the sales team and other users can utilize the system to its fullest potential. Ongoing training and support are crucial for maintaining efficiency and keeping up with system updates and changes.

Mistake 9: Overlooking Continued Support and System Optimization

CPQ implementation is not a set-it-and-forget-it solution. Continuous support and regular system optimization are necessary to adapt to evolving business needs and technological advancements. Regularly assessing and tweaking the system helps maintain its relevance and effectiveness over time.

Avoiding these nine mistakes can significantly increase the chances of a quick and successful CPQ system implementation. Remember, it's about creating a system that not only fits your current needs but also adapts to future changes and growth.

For those seeking to embark on this journey, it's advisable to seek professional guidance and stay informed about best practices in CPQ implementation. With the right approach, a CPQ system can become a powerful tool in streamlining your sales processes and driving business success. Take the first step and book an introduction meeting below.

You can also continue reading how we would typically mitigate these common mistakes below.

How we work

CPQ solutions can deliver considerable improvements to your business. Implementing CPQ involves the whole company, and to unleash the benefits of CPQ you need more than just a great software.

We have been running CPQ analysis workshops since the 2001 and we know how to prioritize to quickly get going. We will guide you to where to start, what to prioritize and what to leave for another day.

Mistake #1

Lack of Transformative Thinking and Requirements

Implementing a CPQ system is an opportunity for transformative change, not just a technology shift. Failing to prepare specific, forward-thinking requirements can lead to a system that simply mimics old processes.

cpq.se’s Approach: At CPQ.se, we initiate each project with an analysis workshop, focusing on understanding and redefining your business processes to leverage the full potential of CPQ. Our team helps in crafting a visionary yet practical set of requirements that align with your business goals, ensuring a transformative impact on your operations.

Mistake #2

Over-Engineering the Solution and Failing to Standardize

Over-complicating a CPQ system can create inefficiencies. The aim should be to simplify and standardize processes.

cpq.se’s Simplification Strategy: Our experts at CPQ.se are adept at breaking down complex processes into simpler, more manageable steps. We emphasize standardizing procedures, ensuring that the CPQ system is efficient, user-friendly, and tailored to your business needs, avoiding the pitfalls of over-engineering.

Mistake #3

Losing Sight of UI/UX

An intuitive user interface (UI) and user experience (UX) are crucial for the adoption and effectiveness of a CPQ system. Neglecting this can lead to a system that is difficult to navigate and use.

Enhancing User Experience with cpq.se: At CPQ.se, we prioritize UI/UX design in our CPQ solutions. It start already when we define the logic representing your product offering. Our team ensures the interface is not only functional but also user-friendly, facilitating smooth adoption and efficient usage across your organization.

Mistake #4

Failing to Recognize the Need to Iteratively Build

An effective CPQ implementation requires an evolving, iterative approach rather than a one-off, set-in-stone deployment.

Iterative Development with cpq.se: We at CPQ.se embrace an iterative development approach. Starting with a core implementation, we continuously evolve the system based on user feedback and changing business needs, ensuring a CPQ solution that grows with your company. We always run coaching project making sure you'll take ownership of your CPQ solution and we are there to guide to find an optimal solution.

Mistake #5

Inadequate Engagement with All Impacted Business Areas

Involving all relevant departments in the CPQ implementation process is critical for a cohesive and effective system.

cpq.se’s Collaborative Approach: Our methodology involves inclusive workshops that bring together stakeholders from various departments. This ensures the CPQ system we develop is well-aligned with the diverse needs and processes of your entire organization.

Mistake #6

Poor Data Management

Reliable data is the backbone of an effective CPQ system. Inaccuracies can lead to flawed proposals and customer dissatisfaction.

Data Integrity with cpq.se: At CPQ.se, we emphasize the importance of accurate, up-to-date data. Our team works closely with you to establish robust data management practices, ensuring the information feeding into your CPQ system is reliable and precise. For this we would typically use modelbot - our automation tool for efficient master-data management.

Mistake #7

Ignoring Compatibility Issues

Compatibility with existing CRM, ERP, and other business systems is essential for a seamless CPQ integration.

Seamless Integration by cpq.se: Our experts ensure that the CPQ solution integrates flawlessly with your existing systems, preserving the integrity and flow of your business processes. We focus on compatibility to enhance, not disrupt, your existing operations. We have standard solutions making sure that everything from master-data sync to full ERP order integration.

Mistake #8

Neglecting Sufficient Training

Proper training is essential for maximizing the benefits of a CPQ system. Lack of training can hinder effective usage.

Comprehensive Training Solutions from cpq.se: CPQ.se provides extensive training and support to ensure your team is well-equipped to use the CPQ system efficiently. Our training programs are tailored to your specific needs and are designed to enhance user adoption and proficiency. Learn all you need to know about configuration, pricing, quotation as well as the overall adoption of the CPQ system.

Mistake #9:

Overlooking Continued Support and System Optimization

Continuous support and regular optimization are crucial for maintaining the relevance and effectiveness of a CPQ system.

Ongoing Support from cpq.se: Our commitment extends beyond initial implementation. CPQ.se provides continuous support and system enhancements, ensuring your CPQ system remains aligned with evolving business needs and technology advancements.

HMF produces truck mounted cranes. Everything is produced in Aarhus in Denmark and sold in 35 countries around the world. The turnover is around 1 billion Danish crowns.

In Denmark HMF sell directly to customers, and in all other countries they work with distributors who have the exclusivity of their products.

- We work with complex products. When you buy a crane, you must make some choices. If you choose A, you will not be able to choose B.

A big challenge is that when a distributor needs to offer a crane they might make mistake, make a quote with options that are not compatible. In the worst situation a crane is offered that cannot be produced.

- That’s a big challenge, and that’s were CPQ and cpq.se was a great help for us.

Swift Lifts is a manufacturer of home elevators - lifts made especially for private homes and villas. Swift have developed a very quiet and safe elevator made to fit in any type of interior design style.

- Our customers range from elderly people with an immediate need to move easier between floors - all the way to modern families that just want home luxury and home comfort.

Today Swift is geographically represented in Asia, meaning China, Thailand and Malaysia. Swift also sell to the Middle East and in Europe.

- We mostly work with distributors but we also work with direct sales, says John Löwbäck - founders and CSO of Swift Lifts.

- Just looking at the product, I would say that our product is complicated, because there are so many combinations. If you add color, travel height and doors and all that, it quickly adds up to billions of combinations.

We have one goal

At cpq.se, our main objective with a new customer is to get them up and running as soon as possible.

Achieving this goal can be quite challenging, considering the multitude of options available. It can be difficult to determine which actions should be prioritized and which ones can be saved for future improvements.

That's why we always strive to transition swiftly from discussing to implementing.

The aim is to answer the question of what is truly necessary for going live and how we can make the most of the functionality already established in our standard CPQ setup.

Putting it into practice

Once we have a roadmap for the project, we can set a date for the day we go live with the first version of CPQ.

Let's say we start on January 7, 2024. This means that by March 10, 2024, we can allow the first real user to access the system. By this time, we will already have a working first version of online CAD, which will help the user understand the product during configuration and generate quotes with precise details for sales.

Perhaps we'll make some updates to the quote branding at the beginning of March, and then we'll be fully prepared for the official go-live on May 12, 2024.

How we run projects

We typically run the project online, starting with short and effective training sessions.

As the configuration progresses, we transition into more of a coaching role. We believe it is crucial for the customer, who truly understands the product, to describe and maintain the sales logic.

However, it is also important to correctly describe the product logic from the beginning. That's why the guidance from one of our principal consultants is equally important, especially at the start of the project.