The term SAP Idea to Offering (ITO, also known as Idea to Market) essentially refers to the new product development business process framework. It encompasses the entire lifecycle of a product or service, from the initial conception of an idea to the final, market-ready product, service, or offering available to customers.
ITO in SAP involves activities like idea generation, evaluation, concept development, design, manufacturing or development, marketing and sales, customer feedback collection, and continuous improvement. The main goal of the business process is to effectively transform innovative product ideas into successful market offerings.
Practically speaking, a business generates product or feature ideas either internally or through an external feedback mechanism, i.e., from customers or business partners. For example, A product or feature improvement idea could come from a technician who shares his request for product improvement via the idea to offering process in SAP. Engineers then translate this idea into product requirements and concepts for a new or redesigned product. They also evaluate the financial and statutory, legal, or compliance impact of the changes they made to create a business case, and viable product designs, before passing on all the information gathered for the manufacturing or production process to kick in.
How does the Idea to Offering process in SAP work?
Here’s a stepwise analysis of how the idea to offering cycle in SAP operates:
1) Idea Generation: This is the phase where new product or service ideas are created brainstormed, researched, and evaluated. It might involve internal collaboration among different teams or stakeholders, or it might also have been generated externally from feedback given by customers and/or business partners.
2) Concept Development: Once promising ideas are identified, they are developed into more detailed concepts. This could involve outlining the product requirements, product features, benefits, and potential market for the offering.
3) Business Case Creation: In this stage, a comprehensive business case is created. This would include estimates of costs, potential revenue, market analysis, competitive landscape, and a feasibility assessment, which also includes a legal, statutory, and compliance check.
4) Product Design, Redesign, and Development: The chosen concept then moves into the product design. redesign and development phase. This consists of various activities, such as creating prototypes, designing the user experience, developing the actual product or service, and conducting testing.
5) Manufacturing or Implementation: If the offering is a physical product, this stage involves manufacturing and quality control. For software products or services, it could involve implementation, customization, and integration.
6) Marketing and Sales: Once the offering is ready, marketing strategies are developed to create product awareness in the target market and attract customers. Sales teams are trained and equipped to promote, sell, and cross-sell the product or service.
7) Launch and Commercialization: The official launch of the offering takes place, making it available to customers. This involves events, promotions, and communication campaigns.
8) Customer Support: After launch, ongoing real-time customer support and maintenance for the newly launched product or service are crucial. This could involve handling inquiries, addressing issues or concerns, and releasing periodic updates.
9) Monitoring and Improvement: Data is collected post-launch to monitor performance, gather feedback, and identify areas for improvement. This information is then used to refine the product or service offering, as it evolves amidst changing market conditions.
10) End-of-Life or Upgrade: Eventually, the product reaches the end of its lifecycle, at which point decisions about its discontinuation, replacement, or upgrades are made.
The SAP idea to offering process generally involves various modules and functionalities from the existing SAP suite of software solutions, namely product lifecycle management (PLM), enterprise resource planning (ERP), customer relationship management (CRM), and sometimes even project or program management tools.
Below is a diagram explaining the SAP ITO or new product development process:
BPX in a nutshell
Headquartered in the metro city of Pune India, Business Process Experts (BPX) is a pioneer in the SAP ITO solutions space, a specialist providing unique, customized implementation pathways for the idea to offering cycle in SAP. With prominent offices in UAE and other major cities in India and the world, the company was established more than a decade back in 2012. Since then, it has grown from strength to strength to become a key enabler in the ITO in SAP business process landscape.
Helmed by a crack team of engineers, management and finance experts, and SAP consultants, BPX and its well-known sister concern YRC are key strategic, transformational partners for prominent clients worldwide. BPX clientele belongs to leading industrial sectors like engineering, automobiles, banks, chemicals, garments and apparel, retail & hospitality, manufacturing, pharmaceuticals, mining, and ITeS.
If you are an entrepreneur or business owner looking to craft your very own SAP ITO success story, your search ends here, please connect with BPX now. We will thoroughly understand the business rationale behind your organization’s ITO cycle in SAP before planning and customizing your entire implementation journey. Tapping into the multi-pronged advantages of the ITO process in SAP with us will help you realize your true business potential and stay well ahead of the curve!
SAP Idea to Offering (ITO, or Idea to Market) essentially refers to a business process framework aligned to the new product development business process framework. It covers within its ambit the entire product or service offering lifecycle, right from the initial generation of an idea to the final, market-ready product, service, or offering for the end customers.
A business generates product or feature ideas either internally or through an external feedback mechanism, i.e., from customers or business partners. For example, A product or feature improvement idea could come from a technician who shares his product improvement request via the SAP system. Engineers then translate this idea into suitable product requirements and concepts for a new or redesigned product. They also evaluate the financial and statutory, legal, or compliance impact of the changes they made to create a business case, and viable product designs, before handing over all the information for final manufacturing or production to take place.
The various steps and phases in the idea to offering cycle in SAP can be explained in detail as under:
1)Idea Generation and Capture:
- Ideas for new products, services, or improvements are generated and captured.
- SAP process solutions provide a platform to capture, evaluate, and categorize these ideas.
2)Idea Evaluation and Prioritization:
- Ideas are assessed based on criteria like feasibility, potential market value, cost, and alignment with business goals.
- SAP tools can assist in creating evaluation criteria and assigning scores to different ideas.
3)Concept Development and Business Case Creation:
- Chosen ideas are developed into detailed concepts.
- Business cases are created to outline potential costs, benefits, revenue projections, and market analysis.
- SAP solutions could assist in creating, recording, and storing business case documents and financial projections.
4)Design and Development:
- Once approved, concepts move to the design and development phase.
- SAP PLM (Product Lifecycle Management) modules might be used to manage design, prototyping, and development processes.
5)Marketing and Launch Planning:
- Marketing strategies are devised to introduce the new offering to the market.
- SAP CRM (Customer Relationship Management) modules could be used for marketing campaign management.
6)Customer Feedback and Improvement:
- Feedback from customers is collected and used to improve the offering.
- SAP CRM or SAP C/4HANA (Customer Experience Suite) might be used to manage customer feedback and interactions.
7)Manufacturing or Implementation:
- For physical products, manufacturing and quality control processes are managed.
- For services or software, implementation and testing are done.
- SAP PP (Production Planning) or SAP SD (Sales and Distribution) modules are generally involved here.
8)Launch & Commercialization:
- The offering is officially launched and made available to customers.
- SAP tools might help manage inventory, pricing, and distribution during the launch.
- Ongoing customer support is provided post-launch.
- SAP solutions could track customer inquiries, support tickets, and resolution processes.
10)Monitoring and Improvement:
- Performance data is collected to monitor how well the offering is doing.
- SAP BI (Business Intelligence) tools might help analyze data and generate reports for decision-making.
11)End-of-Life or Upgrade:
- Eventually, the offering might be retired or replaced.
- SAP solutions might be used to manage the end-of-life process or the introduction of upgrades.
Implementing the Idea to Offering (ITO) process in SAP offers several benefits and advantages to organizations. Here are the key benefits of the ITO process:
- Streamlined Innovation Management
- Centralized Information stored in an integrated platform
- Efficient Resource Allocation
- Better Data-Driven Insights and Decision Making
- Enhanced Collaboration through a tool-based approach
- Optimized Time-to-Market
- Consistent Documentation
- Compliance and Governance
- Improved Customer Experience
- Reduced Risks and Challenges
While implementing the ITO process in SAP offers numerous benefits, successful implementation requires careful planning, user training, change management, and ongoing support. Organizations should align their processes and strategies with SAP’s integrated capabilities to fully leverage these advantages.
Idea to Offering (ITO) and Plan to Produce (PTP) are two different business processes within SAP that focus on different stages of the product lifecycle. ITO encompasses the entire journey from idea to market launch and offering, while PTP focuses on the production planning and execution aspects.
Here are the key differences for both processes:
1)ITO covers the entire product lifecycle, from idea generation to market launch and beyond. On the other hand, PTP focuses specifically on the manufacturing and production aspects of the product lifecycle.
2)ITO involves activities related to idea management, concept development, marketing, and customer feedback. PTP involves activities related to production planning, material procurement, production execution, quality control, and distribution.
3)ITO is a broader and long-term process encompassing the entire lifecycle of bringing an offering to market. PTP is more focused on short to medium-term production planning and execution.
4)The primary goal of ITO is to successfully market innovative product ideas and continuously improve upon them based on customer feedback. PTP aims to efficiently produce and deliver products according to demand while optimizing resources and minimizing costs.
5)ITO involves cross-functional collaboration across various departments, including marketing, design, development, and customer support. PTP involves collaboration between production, procurement, inventory management, and quality control teams.
6)SAP Modules: In SAP, ITO-related activities involve modules like PLM (Product Lifecycle Management), CRM (Customer Relationship Management), and others. In SAP, PTP-related activities are typically managed using modules like PP (Production Planning), MM (Materials Management), QM (Quality Management), and others.