Keywords: Pentair, Tyco, HCL, IT Services, Microsoft CRM, SAP.
Previously, Pentair Valve and Controls EMEA employed a diverse set of applications to manage its sales and customer relationship management business processes, but many considered these business processes to be "broken." A major merger made solving this issue even more critical. Engaging HCL for IT services provided the needed resources, skills, and proven experience for a successful IT program. The new CRM and business process management have improved sales efficiency, enabling higher revenue per salesperson.
Pentair had $3.5 billion in revenue in 2011 spread across two major divisions, one for fluid processing solutions and another for technical products. Pentair's water and fluid processing products have a wide range of applications for fluid handling. These products range from energy-efficient pumps and point-of-use filtration, to highly engineered pumps and fluid processing systems. In 2011, revenue grew a robust 14 percent.
During 2012, Pentair, Inc. and the Flow Control business of Tyco International Ltd. merged to form Pentair Ltd. with combined 2011 revenues of more than $7 billion. The combination of the two companies better positions Pentair to participate in fast growth regions where rising GDP and urbanization are driving infrastructure, energy, and water demands. This report focuses on one of Pentair's critical regions and fast growth markets; Europe, Middle East, and Africa (EMEA).
Merger of Pentair and Tyco Flow Control
Pentair and Tyco's Flow Control businesses merged in 2012, bringing together two premier manufacturers of flow control products. With over 90 brands, the combined entity offers expertise and solutions to challenging flow control applications. The company's valve and control products move, control, and sample liquids, gases, powders, and other substances. The diverse set of product lines include: ball valves, butterfly valves, control valves, check valves, gate valves, globe valves, instrumentation valves, knife gate valves, pressure & safety relief valves, rotary process valves, sampling valves, electric actuators, pneumatic actuators, hydraulic actuators, actuator positioners, and actuator controls.
Complex Customer and Sales Management in EMEA
The EMEA region of Pentair Valve & Controls covers sixty-nine countries with a combination of direct sales and distributors. It has over 4,000 employees for the 40+ manufacturing plants and sales and distribution sites. The many local cultures involve a multitude of languages, currencies, and business practices. These factors, combined with over 90 brands and a wide variety of products, meant that Pentair Valve & Controls in EMEA faced an array of complexity and sales issues. Previous sales data-related issues included:
Poor visibility: The various sales applications and tools for salespeople to use to manage their sales activities were either not harmonized or not appropriate. The reporting tools in place were not "sales friendly."
Poor data entry: Salespeople prefer to devote their time to selling, rather than producing reports. With the awkward sales tools in place, many activities simply were not logged.
Bad data management: Users lacked standard rules or guidelines for data entry – where, how, and meaning. For example, what does a "90 percent probability of closing" mean? The resulting inconsistency compromised the usefulness of the reports.
Lost opportunities for sales efficiency: Data management issues prevented users from recognizing sales patterns for similar requests and responses. Previously completed work was often repeated and inconsistent.
Lack of sales team collaboration: Salespeople and their managers did not know what others were experiencing. They could not share issues, responses, and best practices.
Improved Customer Relationship Management
The solution to these back-office sales issues involved a new sales management application using Microsoft CRM across the region for this business. One global tool now provides a uniform means for users to acquire and present information in a way that benefits the sales engagement process.
Microsoft CRM was adapted to Pentair's Valves & Controls business needs with templates that define the sales process from lead to close. This involved rules, categories, prices, margin, discount approval process, and more. Within Microsoft CRM, the sales teams have access to sales leads and manage them consistently throughout the sales cycle. Managers see the opportunities and manage sales coverage.
How HCL Helped
HCL, a $6.2 billion global technology and IT enterprise services company, was founded in 1976. HCL has a range of offerings including product engineering, custom and package applications, business process outsourcing (BPO), IT infrastructure services, IT hardware, systems integration, and distributing information and communications technology products. The HCL team consists of over 90,000 professionals who operate from 31 countries including over 500 points of presence in India.
For this engagement, HCL helped Pentair Valve & Controls in EMEA with strategy development including liaising with IT and the business. For the Microsoft CRM project, HCL was involved in requirements gathering, systems architecture, design, implementation, and global roll-out to the user community. For implementation of SAP, HCL helped define the global blueprint. SharePoint and service management projects also involved HCL. By managing and implementing multiple projects, HCL helped provide a holistic IT solution to Pentair's business requirements.
Consistent CRM Benefits
A common sales management tool provided the basis to improve sales collaboration and harmonize sales processes. Specific functionalities include:
Central location to store and access customer communication
Closed-loop quotation tracking system, providing a clear understanding of sales opportunity, status, and final results
A sales lead tracking system that identifies wins, losses, and trends
For post-sales support, a case management system with follow through to conclusion for when a customer calls with an issue
Global project tracking system for marketing and sales campaigns
The tools and IT infrastructure for CRM and business process management have improved sales efficiency with higher revenue per salesperson.
Manufacturers in the discrete industries typically have a complex and dynamic set of business processes for design, procurement, assembly, sales, distribution, and accounting. Acquisitions add diversity with additional sets of applications and processes. Application rationalization and business process optimization can reduce costs measurably and improve overall business performance. Pentair Valve & Controls in EMEA provides a case example of this issue and the associated benefits.
A company's often-limited IT resources can be overwhelmed supporting existing applications. An IT services company like HCL can provide the needed resources, skills, and proven experience for a successful IT program.
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