IBsolution Blog

How to make Lead-to-Cash a true end-to-end process

Written by Jana Murrweiss | Jan 4, 2023

Lead-to-Cash is one of four fundamental business processes that SAP defines for intelligent enterprises. The challenge for companies is to map these processes end-to-end using the appropriate software solutions and technologies. The Lead-to-Cash process encompasses all touch points between a company and its customers – from a customer’s intention or interest to buy a product to the realization of revenue by the company based on the product sale. The focus is always on the customer throughout the entire process flow – with the aim of providing them with an optimum customer experience, thereby achieving a high level of customer satisfaction and retaining the customer in the long term.

 

 

Learn how to use Lead-to-Cash for fast pricing in variant manufacturing

 

 

The sub-processes of Lead-to-Cash

The Lead-to-Cash process is designed as an end-to-end template process based on best practices and common scenarios that can be adapted or extended to meet companies’ specific requirements. It consists of five sub-processes that are run through in sequence:

  • Contact-to-Lead

  • Lead-to-Opportunity

  • Opportunity-to-Quote

  • Quote-to-Order

  • Order-to-Cash

 

How to avoid inefficiencies

Different departments such as marketing, sales, customer service and accounting are involved in the Lead-to-Cash process. Due to the numerous interfaces between the areas involved, manual activities harbor considerable potential for error and lead to inefficient processes, for example through duplication of effort. In the worst-case scenario, missing information or inconsistent data can run through the entire process chain. In addition, data silos in the individual departments increase inefficiencies in the processes. Another disadvantage is the lack of transparency across the entire process, which may result in longer lead times.

 

Time savings and higher productivity

The ideal Lead-to-Cash process provides for a smooth flow of information across the various areas of the company. The highest possible degree of automation and integration is a prerequisite for achieving optimum results. This is because automation and integration not only bring significant time savings, but also increase productivity. At the same time, the Lead-to-Cash process can be flexibly adapted to new customer requirements and expectations to ensure a consistent customer experience.

 

SAP BTP: Platform for process integration

The SAP CX suite enables companies to holistically map their customer-related processes by providing solutions for all affected departments – from marketing and sales to service and the back office (in interaction with the ERP system) – as well as integrating data, processes and applications. SAP Business Technology Platform (BTP) also plays a crucial role in the seamless integration of Lead-to-Cash. With its help, processes can be designed end-to-end and extended individually to generate maximum competitive advantages.

 

Improved customer experience and higher sales opportunities

SAP Business Technology Platform’s out-of-the-box integration scenarios for the different SAP CX cloud solutions can be customized. Standard integration for the backend (SAP S/4HANA) is also available. The optional connection of further solutions such as SAP Master Data Governance (MDG), SAP Analytics Cloud and SAP Data Warehouse Cloud ensures true end-to-end processes that are secured with consistent access and authorization management. The added value: a functioning Lead-to-Cash process improves customer experience, increases sales opportunities and overall strengthens the relationship between the company and its customers.