`
`To:
`cc:
`Subject: More SC Pricer
`
`It keeps getting better! 18 month lead predicted by Gartner!!
`
`Basically says "you need SC pricer if you can't do pricing in an excel worksheet."
`
`----------------------Forwarded by Joe LiemandVTrilogy on 11/26/97 09:41AM---------------------------
`
`November 24, 1997
`Sales Leadership Strategies (SLS)
`Research Note
`Products
`R. DeSisto
`
`Product Profile: Trilogy's Selling Chain Pricer
`
`For enterprises challenged with deploying complex pricing to the point of sale, the options are
`few. Here, we profile one of the more compelling solutions, Trilogy's SC Pricer.
`
`Core Topic
`Business Applications: Field Sales Automation
`
`Key Issue
`Through 2002, which vendors will deliver an integrated field sales solution and emerge as leaders?
`
`Strategic Planning Assumption
`Because organizations can receive a high return on investment with pricing configuration, by 2H98,
`additional TES vendors will expand their sales configuration capabilities to pricing configuration (0.7
`probability).
`
`Traditionally, enterprises have deployed sales configurators into the hands of salespeople to
`shorten sales cycles, decrease order errors and make it easier to sell complex products.
`However, at the heart of a successful sales configuration system deployment is an
`organization's ability to manage complex pricing scenarios, such as when pricing involves more(cid:173)
`complex strategies such as tiered customer hierarchies, multiple distribution channels, varying
`product lines, "effectivity" dates, and authorization ranges. As a result, product configurators
`quickly become difficult and expensive to maintain. Because of these and many more issues, a
`new sales configuration type has emerged, pricing configuration (see SLS Research Note SPA-
`580-353, Oct. 21, 1997). Pricing configuration helps enterprises that sell configurable or
`nonconfigurable products to develop, manage and deploy complex pricing to their selling
`channels. Here, we review Trilogy Development Group's SC Pricer, the first product to provide
`the majority of features that selling organizations require for pricing configuration.
`
`Trilogy Development Group
`Headquarters:
`Austin, Texas
`http://www.trilogy.com
`Web Location:
`
`VERSATA EXHIBIT 2015
`SAP v. VERSATA
`CASE CBM2012-00001
`
`
`
`Founded:
`1989
`private
`Ownership:
`380 (does not include pcOrder.com)
`Employees:
`Clients/Users:
`60 to 80 clients/10,000 to 30,000 users*
`Installed base by industry: 35 percent computer; 35 percent telecommunications; 5 percent automotive; 1
`percent retail; and 24 percent other (health care, financial services, oil and gas, and aerospace)
`Revenue*: 1996 - $40 million; 1997 - $55 million; 1998 - $77 million
`External Services Providers: Deloitte & Touche, Tech Resource Group and Cambridge Technology
`Partners
`Resellers: GELS, Symix
`Products: SalesBuilder, SC PowerPak, SC Configurator, SC Pricer, SC Catalog, SC Proposal, SC Quote,
`SC Order, SC Web, SC Commission and SC Explorer
`*Gartner Group estimates
`
`Product Strategy: Because many enterprises consider pricing a back-office order fulfillment
`function, a considerable gap exists between where the pricing is executed and the customer.
`Trilogy’s SC Pricer enables an enterprise to bring pricing closer to the customer by moving price
`administration and execution to the sales and marketing organization. SC Pricer is a flexible and
`maintainable pricing configurator that can be deployed to direct sales forces, channel partners,
`telesales, order entry or directly to customers over the World Wide Web. SC Pricer’s two value
`propositions are: 1) timely and accurate distribution of price changes to the enterprise; and 2)
`lower cost of ownership for pricing maintenance. Trilogy customers achieve these objectives
`through SC Pricer’s graphical administration environment, pricing impact analysis and flexible
`pricing modeling paradigm. To support its enterprise deployment strategy, Trilogy has strong
`integration with major ERP applications such as Oracle Applications and SAP R/3. The strength
`of the integration is demonstrated by many Trilogy customers turning off the pricing functionality
`in their ERP systems and deciding to use SC Pricer as the sole pricing repository for their
`enterprise.
`
`Consider This Product When:
`The organization has complex pricing and discounting structures and suffers from high customer
`adjustment claim rates in industries such as:
`o consumer packaged and durable goods, where promotional pricing and customer deductions must be
`reconciled;
`o healthcare, where pricing will vary by customer contract and bill-backs, and where rebates must be
`reconciled;
`o retail, where pricing may change frequently and is flexible by market areas; and
`o manufacturing - when manufacturers sell through distribution - channel or trading partners pricing
`may vary.
`
`In addition, the organization is plagued by expensive pricing maintenance costs, or untimely pricing
`distribution.
`
`Consider Alternatives When:
`The organization follows simple pricing procedures with infrequent updates (i.e., biannually) which could
`be easily modeled and distributed in an office suite application such as Microsoft Excel.
`
`Strengths: 1) Deep understanding of the pricing configuration problem; 2) majority of required
`
`
`
`pricing configuration features; 3) strong enterprise resource planning (ERP) integration; 4)
`graphical administration environment; 5) flexible pricing modeling paradigm; 6) 18-month market
`lead; and 7) experience with key users.
`
`Challenges: 1) Distributed international price maintenance - pricing administration environment
`is currently English only with "no local-language support." 2) Improved system administration
`tools for pricing distribution - Trilogy provides the transport mechanism to communicate updates
`but no graphical environment to model the distribution of those updates (e.g., sales territories
`and distribution channels). 3) Release management coordination with ERP application upgrades
`- Trilogy will have a heavy burden making sure releases of SC Pricers are compatible with old
`and new releases of an ERP system (e.g., SAP/R3 3.0, SAP/R3 3.1, SAP/R3 4.0 on various
`platforms). 4) Lowering cost of implementation - SC Pricer software is expensive, and because
`it can support an entire enterprise, installation costs can be high. 5) International deployments -
`Trilogy has North American customers who have European subsidiaries but who have yet to
`successfully deploy SC Pricer to an Asian- or European-based organization.
`
`Note 1
`Sample of SC Pricer Customers
`Allegiance Healthcare Corp.
`VVhirlpool Corp.
`Bridgestone/Firestone Inc.
`Raychem Corp.
`BMC Software Inc.
`Thomas and Betts Corp.
`Norand Corp.
`
`Acronym Key
`ERP Enterprise resource planning
`TES Technology-enabled selling
`
`Bottom Line: Trilogy’s SC Pricer will enable organizations to provide more-flexible pricing,
`reduce maintenance expenses, and improve profitability at the point of sale. Therefore, North
`American Type A (early adopters) enterprises should be evaluating this product now. North
`American Type B (mainstream) enterprises should begin to explore how pricing configuration
`can benefit their organization. Multinational enterprises requiring global pricing strategies and
`European-based selling organizations should evaluate SC Pricer with caution, since most of
`Trilogy’s early customers (see Note 1) have been based in North America and Trilogy’s ability to
`provide full international support (e.g., dual pricing, international roll-ups, European Monetary
`Unit support, and distributed international price maintenance) is yet to be proven. Because
`organizations can receive a high return on investment with pricing configuration, by 2H98,
`additional TES vendors will expand their sales configuration capabilities to pricing configuration
`(0.7 probability).
`
`SLS: P-912-357
`
`
`
`Entire contents, Copyright (C) 1997 Gartner Group, Inc. All rights reserved. Reproduction of this publication in any form
`withoul prior written permission is forbidden. The information contained herein has been obtained from sources believed
`to be reliable. Gartner Group disclaims all warranties as to the accuracy, completeness or adequacy of such information.
`Gartner Group shall have no liability for errors, omissions or inadequacies in the information contained herein or for
`interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended
`results. The opinions expressed herein are subject to change without notice.
`
`
`
` VER'Eooo18461989 Y HIGHLYCONFIDENTIA - TTORNEYS EYES ONLY
`
`