Sap Crm Pipeline Performance Management 2n5c4w

100000 APRA 100000 H10 < person> < person of the sold-to party selected above> SALES_DIR <SALES MANAGER> SALES_MAN

2.2 Preceding Process The scenario described in this Business Process Documentation is part of a bigger chain of integrated scenarios. So, as an option, you first have completed the following business processes and conditions before you start any activities in this scenario: Business condition

Scenario

You have created and processed opportunities within scenario C63 - Opportunity Management.

Opportunity Management (C63)

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SAP Best Practices 2.3

Pipeline Performance Management (C67): BPD

Roles

Use The following roles must have been created in order to test this scenario using the SAP CRM WebClient UI. The roles in this Business Process Documentation need to be assigned to the system (s) testing this scenario. Log on the CRM WebClient UI with the following s: Business Role Bus. Role ID System Employee Director of Sales

BP_SLS_MAN

sales_dir

Peter Seller

welcome

Sales Manager

BP_SLS_MAN

sales_man

Jennifer Stone

welcome

2.4

Preliminary Steps

2.4.1

Log on to CRM WebClient UI

Use The purpose of this activity is to describe how the director of sales or sales manager gets first access to the SAP CRM WebClient UI. There are two options: Access from SAPGUI or via URL. Prerequisites The appropriate SAP CRM WebClient role has been assigned to the director of sales / sales manager (sales_dir / sales_man) in the CRM system. Procedure 1. Close all open browser windows. 2. Access the SAP CRM WebClient UI: Option 1: Access from SAP GUI via Transaction: 1. In the input field for transactions, enter transaction CRM_UI and press Enter. Option 2: Access from SAP GUI via BSP Application: 1. 2. 3. 4.

Log on to the CRM system with the for the BP Director of Sales / Sales Manager. From the SAP menu choose Favorites. From the context menu choose Add Other Objects. Select URL type BSP Application. Enter the following data: action and values Field name BSP Applicat. Description Start Page

CRM_UI_START CRM WebClient UI default.htm

5. Choose Continue. 6. Choose CRM WebClient UI from the Favorites. 7. In the dialog box Connect to enter the following data and choose OK: Field name

action and values

name

sales_dir or sales_man

welcome

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SAP Best Practices


Option 3: Access via URL: The CRM WebClient UI can also be accessed using a Uniform Resource Locator (URL). The URL of the CRM WebClient UI has the following structure (default configuration): http:// . .<Extension>: /sap/crm_logon?sapclient= For example: http://uxcirsz.wdf.sap.corp:50028/sap/crm_logon?sap-client=100 Host Name, Domain Name, and Extension can be derived from the message server of the underlying CRM system. The port can be determined as follows: 1. Call transaction SMICM. 2. Choose Goto  Services. 3. From the Active Services list choose the port for the HTTP service. Result You have entered the SAP CRM WebClient interface as BP Director of Sales (or Sales Manager) with sales_dir (sales_man).

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SAP Best Practices

3


PROCESS OVERVIEW TABLE

Process step

Business role

Expected results

Maintain General Settings

Sales Manager

General settings adjusted to business needs

Maintain Opportunity Churn Rates

Sales Manager

Opportunity churn rates specified

Maintain Individual Opportunity Churn Rates

Sales Manager

Opportunity churn rates specified individually

Check and Maintain Sales Quotas

Director of Sales or Sales Manager

Sales quotas maintained

Sales Manager

Status analyzed, further actions initiated

Analyze Target to Date

Sales Manager

Sales results analyzed

Analyze Closing Date

Sales Manager

Analysis of expected sales volumes compared with targets

Identify and Monitor Opportunity Changes (Simulate)

Sales Manager

Changes simulated to find out effect and draw conclusions

Identify and Monitor Opportunity Changes (Sales Pipeline Change)

Sales Manager

Opportunities’ progress checked, critical opportunities identified

Analyze Sales Pipeline

Business condition

Opportunities in different phases exist

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SAP Best Practices

4


PROCESS STEPS

4.1

Maintain Basic Settings

Make sure you have installed CRM Best Practices Opportunity Management before starting with Pipeline Performance Management. Otherwise the scenario will not work, because of missing data and incomplete settings. You can find the Configuration Guide in document C32 and the Business Process Documentation in document C63. Prerequisites Make sure that you are logged on as Sales Manager ( sales_man). 4.1.1

General Settings

Use The following steps are prepared to adjust the settings according to your business needs. The sales manager can thereby make sure that he/she will see the required data in the appropriate way. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu Pipeline Performance  Target to Date  More  Options 2. In this view, many options can be adjusted. The following table gives a brief description of the field meanings. Adjust the values according to your business needs. Option Description Progress Status Settings - Level of progress New The setting indicates that the opportunity was created recently. Slow The setting indicates that the opportunity is not progressing at a reasonable speed. The movement of the opportunity’s progress is measured in days. Stalled The setting indicates that the opportunity is progressing at a slow rate over a specified number of days. This time period is longer than the number of days for the Slow setting. Ok The setting indicates that the opportunity is progressing at an average rate. Speed Status Setting Speed Status The speed status setting allows you to fix the minimum length of time that an opportunity should stay in one specific sales stage. This enables you to determine whether some of your sales employees are skipping out specific sales stages or rushing them through the sales pipeline. If the length of a sales stage period of an opportunity lies below this minimum length of time, it is assigned the status Fast automatically. The Fast status indicates whether the opportunity has progressed very quickly through the previous sales stage or even skipped out the last sales stage. 3. Choose Save and go back. Result The settings for Pipeline Performance Management are maintained according to your business needs.

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SAP Best Practices 4.1.2


Maintain Opportunity Churn Rates

Use Generally, a percentage of your total number of sales opportunities is lost from one sales stage to the next. When an opportunity fails to become a sale, it is considered to have "churned". You need to take your churned opportunities or your sales team's and individual sales employee’s churned opportunities into consideration when planning sales quotas and total sales targets. The rate at which opportunities churn is measured is a percentage value of the total number of opportunities. You can manage the opportunity churn rates by entering them as percentage values for each sales stage and each sales employee.

Opportunity churn rates are independent of the chance-of-success factor in opportunities.

Opportunity churn rates cannot be calculated automatically from previous sales histories. Due to the dynamic nature of sales organizations you cannot use historical data to calculate opportunity churn rates for each sales employee. Therefore, you need to base your opportunity churn rates on your strategic planning and knowledge of the business. Procedure 1. Access the activity choosing the following navigation option: SAP CRM WebClient menu Pipeline Performance  Target to Date  More  Options 2. In this view, maintain the settings for the opportunity churn rates. The options are described below. Option Description Default Opportunity Churn Rates Default Sales Cycle Duration Time value that indicates how long a sales cycle lasts from the (Months) first sales stage to the final sales stage inclusive. This is a general value used for all opportunities for the complete sales cycle. Planned Growth (%) The increase in revenue your company or organizational unit is aiming for. It is calculated as a percentage value of the previous year's results and is used for making sales figure forecasts for the next fiscal year. Opportunity Churn Rates for Each Analysis Stage Qualification (%) Percentage of opportunities that in average drop within the qualification stage. Quotation (%) Percentage of opportunities that in average drop within the quotation stage. Decision (%) Percentage of opportunities that in average drop within the decision stage. 3. Choose Save and go back. Result You have maintained the settings for the opportunity churn rates. 4.1.3

Individual Opportunity Churn Rate

Use Under Individual Opportunity Churn Rates, enter the expected opportunity churn rates for each of your sales employees for each sales stage. This enables you to focus on each sales employee’s individual performance.

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SAP Best Practices


Procedure 1. Access the activity choosing the following navigation option: SAP CRM WebClient menu Pipeline Performance  Quick Links: Opportunity Churn Rate 2. In the upper view you see the organizational hierarchy and in the lower part the opportunity churn rates. As a sales manager you can maintain your own individual opportunity churn rates and those of your team by selecting the specific field and changing the value. 3. To set the churn rates back to default, choose Reset to Default. The settings will be reset without any other dialog screen. 4. If you want to export your data to Microsoft Excel, choose Excel. 5. Choose Save and go back.

Export Data to Microsoft

Result All opportunity churn rates are maintained.

4.2

Check and Maintain Sales Quotas

Use If you are a sales manager or director of sales, access Quota Planning via the Target to Date page. On the Quota Planning page, you can enter the sales quotas for your teams and employees for the next planning period. You can then define the quotas for the lower organizational levels and also transfer the planning to the responsible person on the lower levels of the organizational hierarchy. On the following pages, these sales quotas are shown as target lines:  Target to Date  Closing Date  Sales Pipeline On these pages, you can compare the actual sales with the planned sales in the bar charts and tables. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Target to Date  More  Quota Planning

2. The Quota Planning Management page is displayed. 3. From the dropdown box Year, select the year you want to check and maintain. 4. The Organizational Hierarchy is automatically expanded to your level. You can view and change the planning list at the bottom of the page for the level you belong to and the lower levels. 5. In the Quota Planning view you see the list of all organizational units and all employees in your chosen organizational unit. The first line shows the quota for the chosen organizational unit. This quota is entered in the planning list by the responsible sales manager/director. This can be you or your superior. 6. In the second line (Total) you see the total of quotas distributed in the following lines. 7. In the following lines, you plan the organizational units and employees assigned to you by distributing the quotas from the first line. The responsible person on the next lower level does the same for his/her organizational unit.

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SAP Best Practices


8. To export your data to Microsoft Excel, choose

Export Data to Microsoft Excel.

9. Choose Save and go back. Result The sales quotas are maintained and can be used in Pipeline Performance Management.

4.3

Analyze the Sales Pipeline

Use The Sales Pipeline page shows the expected sales volume for each analysis stage compared with the actual sales volume. The sales pipeline is a form of analysis that displays potential sales revenue by giving you an overview of your current and future sales situation. You can use sales pipelines to track quantities of sales, compare expected and actual values, or as a basis for planning future sales processes. As a sales manager, you can view your own and your sales team's expected and actual sales volumes for each stage of analysis. You can also view the total value of expected deals and sales targets in your sales pipeline. The Sales Pipeline report provides a snapshot of the current state of the pipeline. Since this report is a snapshot in time, the sales quota, which is typically set for a time period like a year (or any other defined sales cycle time period), needs to be converted in to a target. Therefore, a calculation is done to transform the sales quota for a specific time frame (for example a year) into a sales target for the sales pipeline. The target for the sales pipeline is displayed as a black line in the sales pipeline bar chart. It is referred to as the target line. This target line, which is calculated for each analysis stage, is then used as a basis for assessing the health of the pipeline. The Target line is calculated based on the: 

Average sales cycle duration It is important to have a specific time frame for the sales pipeline. For example, if the opportunity sales cycle is very long, the sales representative has to have a larger number of potential deals in the sales pipeline.



Growth factor The growth factor also forms a basis for calculating the target line. If the opportunities sales cycle is very long, the opportunities will probably close in another calendar year in which a higher target may be relevant.



Opportunity churn rate factor Every sales representative has an individual opportunity churn rate factor for each sales stage as not all opportunities transition from one stage to next. The opportunity churn rate factor takes this into . The Target line can be calculated as Weighted or Unweighted. Unweighted target line: For the Unweighted Target line, the total quota for the sales cycle is divided equally across all analysis stages (the churn rates are not taken into ). For example, if the quota for one year is 2,000,000, the sales cycle duration is 6 month and there are two analysis stages, the target line for each analysis stage is 500,000 (the annual quota of 2,000,000 converts to a quota of 1,000,000 for the six month cycle, which is then divided by the two analysis stages). Since the Sales Pipeline report is assessing future opportunities, it is important to compare it to the appropriate quota baseline. Hence, any annual growth rate is automatically applied (assumed to be zero in this illustration). It is important to note that when the Weighted Target box is not checked, the target line is unweighted, but the opportunity values displayed in the bar graph are weighted by their probability of success. Weighted target line: The weighted target line calculation takes into the churn rate for each analysis stage. This calculation reflects the reality that not all opportunities move from one sales stage to the next, and that this churn rate of opportunities per stage may be different for each sales representative. The higher the churn rate for the sales stage, the higher the weighted target has to be in order to achieve a quota. In the above example, let’s assume the churn rate for stage 1

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SAP Best Practices


and stage 2 is 20% and 60%, respectively. This means that from stage 1, 80% of opportunities will to stage 2, and from there, 40% of opportunities will . Please recall that the unweighted target for stage 2 was 500,000, but since only 40% of opportunities close from stage 2, the weighted target for stage 2 is 1,250,000 (=500,000/0.4). And the corresponding weighted target for stage 1 is 1,562,500 (=1,250,000/0.8). Lastly, it should be noted that if the Weighted Target box is checked, then the target line is weighted by the churn rate as shown in the example above, but opportunity values are NOT weighted by their probability of success.

Note that only the opportunities that are relevant for the target are taken into for the simulation of the sales pipeline. The filter field 'Relevant for Target' is used to indicate that the filter result shall only contain opportunities that are relevant for the target achievement. An opportunity is target-relevant for a sales team if this sales team or one of the sales teams that is located below that team in the organizational model is set as the organizational unit of this opportunity. An opportunity is targetrelevant for a sales representative if he/she is the owner of this opportunity, and his sales team is the organizational unit of that opportunity. These rules ensure that opportunities for target achievements are not counted more than once. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Sales Pipeline

2. The Sales Pipeline Analysis page is displayed.

Here you can compare your team's expected sales volume for each sales stage with the actual sales volume using the chart below. You can also see the values for the individual closing months in each sales stage in the quick info. 3. Choose My Team’s Pipeline in the field My Filters. In the Sales Pipeline chart you can check whether you have reached your targets in each analysis stage. To make orientation easier, the following table shows how the analysis stages are mapped to the opportunity status by default. Opportunity Status Analysis Status Identify Opportunity Qualification Qualification Quotation Quotation Decision Decision Close 4. To change your filter options, choose Show Filters in the Sales Pipeline view. From the Filter By field, choose your filter criteria. To add more filters, choose Copy Line. Select Weighted Target in order to use estimated sales targets. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Now your new filter is also available in the My Filters dropdown list.

It is important to note that when the Weighted Target box is not checked, the target line is unweighted, but the opportunity values displayed in the bar graph are weighted by their probability of success. 5. When you move your cursor over a bar or a colored block in a bar of the bar chart, the quick info shows the exact figure in of expected, target sales volume, or the difference between the expected and target sales volumes for that analysis stage. 6. You can easily filter the opportunity list by clicking on a row of data or the analytic stage number in the chart. To enter the filter criteria manually, choose the Show Filter link in the

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SAP Best Practices


Opportunities view and choose your filter criteria from the fields Filter By. To add more filters, choose Copy Line. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list. 7. To view information on a particular opportunity, you can also open the briefing card of an opportunity by clicking the arrow in front of a row. In the briefing card, you can view the most relevant information on the opportunity. 8. You can change the columns displayed in the opportunities’ list by clicking the Personalization button and choosing the columns you want to display from the Available Columns table. Click the right arrow to move it into the Displayed Columns table. Choose Apply. 9. For further data analysis in Microsoft Excel, choose


Result You analyzed each single analysis stage and can draw conclusions for further actions from the results.

4.4

Analyze the Target to Date

Use The Target to Date page shows the revenue that you have achieved up until and including today's date in the form of a bar chart and table. You also see a list of opportunities that make up the deals figures. You can manage your sales pipeline by changing information on these opportunities directly in the list and viewing the results immediately in the bar chart and table at the top of the page. Sales managers can monitor their sales team's targets. The Target to Date page is an important part of your pipeline performance management for tracking of:   

Won deals Expected deals Sales targets



The remaining difference between won and expected deals and sales targets

Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Target to Date

2. The Target to Date view is displayed. 3. To change your filter options, choose Show Filters in the Target to Date view. From the Filter By field choose your filter criteria. To add more filters, choose Copy Line. To use the nominal non-weighted values of the expected sales volumes of the opportunities, deselect the checkbox Weighted. To use their estimated values, this is each expected sales volume weighted by the chance of success of its opportunity, select the checkbox Weighted. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list.

You can use the bar chart on the Target to Date page to see the Sales Pipeline Analysis results at a glance and then use the table to obtain a more detailed view of your quarterly figures. 4. You can easily filter the opportunity list by clicking in the chart on a row of data or a quarter. To enter the filter criteria manually, choose the Show Filter link in the Opportunities view and choose your filter criteria from the fields Filter By. To add more filters, choose Copy Line.

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Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list. 5. To view information on a particular opportunity, you can also open the briefing card of an opportunity by clicking the arrow in front of a row. In the briefing card, you can view the most relevant information on the opportunity. 6. For further data analysis in Microsoft Excel, choose


7. You can change the columns displayed in the opportunities’ list by clicking the Personalization button and choosing the columns you want to display from the Available Columns table. Click the right arrow to move it into the Displayed Columns table. Choose Apply. Result You can use the bar chart on the Target to Date page to see the sales pipeline analysis results at a glance and then use the table to obtain a more detailed view of your quarterly figures. At the bottom of the Target to Date page, you can also see a list of opportunities that make up the deals figures.

4.5

Analyze the Closing Date

Use The closing date is the estimated date on which you plan to have brought an opportunity to completion through a successful sale. The Closing Date page shows your expected sales volumes compared with your own targets on a month by month and sales stage basis. Sales managers can view their sales team's expected sales volume compared with their target. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Closing Date

2. To change your filter options, choose Show Filters in the Closing Date view. From the Filter By field, choose your filter criteria. To add more filters, choose Copy Line. To use the nominal non-weighted values of the expected sales volumes of the opportunities, deselect the checkbox Weighted. To use their estimated values, this is each expected sales volume weighted by the chance of success of its opportunity, select the checkbox Weighted. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list.

Here you can compare your team's expected sales volume for each closing month and sales stage using the chart below. You can also see the value for won opportunities in any given month in the quick info.

Note that only the opportunities that are relevant for the target are taken into for the closing date analysis. The filter field 'Relevant for Target' is used to indicate that the filter result shall only contain opportunities that are relevant for the target achievement. An opportunity is target-relevant for a sales team if this sales team or one of the sales teams that is located below that team in the organizational model is set as the organizational unit of this opportunity. An opportunity is target relevant for a sales representative if he/she is the owner of this opportunity, and his sales team is the organizational unit of that opportunity. These rules ensure that opportunities for target achievements are not counted more than once.

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SAP Best Practices


3. You can easily filter the opportunity list by clicking on the chart or the labels for each month or by entering the filter criteria manually. Therefore choose the Show Filter link in the Opportunities view and choose your filter criteria from the fields Filter By. To add more filters, choose Copy Line. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list. 4. To view information on a particular opportunity, you can open the briefing card of an opportunity by clicking the arrow in front of a row. In the briefing card you can view the most relevant information on the opportunity. 5. For further data analysis in Microsoft Excel, choose


6. You can change the columns displayed in the opportunities’ list by clicking the Personalization button and choosing the columns you want to display from the Available Columns table. Click the right arrow to move it into the Displayed Columns table. Choose Apply. Result You can view your sales team's expected sales volume compared with their target on a month by month and sales stage basis.

4.6

Identify and Monitor Opportunity Changes (Simulate)

Use You can simulate changes of the Target to Date or Closing Date figures. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Target to Date/Closing Date

2. To change your filter options, choose Show Filters in the upper view. From the Filter By field choose your filter criteria. To add more filters, choose Copy Line. To use the nominal nonweighted values of the expected sales volumes of the opportunities, deselect the checkbox Weighted. To use their estimated values, this is each expected sales volume weighted by the chance of success of its opportunity, select the checkbox Weighted. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list. 3. Choose Simulate. 4. You can easily filter the opportunity list below by entering the filter criteria manually. Therefore choose the Show Filter link in the Opportunities view and choose your filter criteria from the fields Filter By. To add more filters, choose Copy Line. Choose Apply.

Note that only opportunities that are relevant for the target are taken into for the simulation. An opportunity is target-relevant for a sales team if this sales team or one of the sales teams that is located below that team in the organizational model is set as the organizational unit of this opportunity. An opportunity is target-relevant for a sales representative if he/she is the owner of this opportunity, and his sales team is the organizational unit of that opportunity. These rules ensure that opportunities for target achievements are not counted more than once. 5. You have the option of making changes to your opportunities without saving them. In the opportunity list, you can make changes to the following information: Expected sales volume, Sales Stage, Closing Date and Status. Besides, you can select or deselect the Weighted checkbox.

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SAP Best Practices


6. Once you have made changes to the information on an individual opportunity or several opportunities, the bar chart displays the result. 7. If you make changes to the information on individual opportunities and you decide to save these changes, you still have the chance to review these changes on the next page. A result list of changed opportunities allows you to see and adopt them. If you still want the changes, choose Save. Only then your changes become permanent. 8. For further data analysis in Microsoft Excel, choose


9. You can change the columns displayed in the opportunities’ list by clicking the Personalization button, choosing the columns you want to display from the Available Columns table, and clicking the right arrow to move it into the Displayed Columns table. Choose Apply. Result The sales manager simulated changes in the opportunities, knowing the effect they have on the figures. From the results they can draw conclusions for further necessary actions.

4.7

Identify and Monitor Opportunity Changes (Sales Pipeline Change)

Use Sales Pipeline Change is an interactive report that helps you to do the following: 

Analyze your sales pipeline.

 

Identify gaps and critical opportunities. Identify and monitor changes in the pipeline.

You can monitor changes to the sales stage, expected sales volume, closing date, and progress. In Sales Pipeline Change, you can display all the opportunities in your sales pipeline that have changed. The opportunities are listed with the most relevant details, such as the prospect name, the sales stage in which the opportunity can be found currently and the opportunity’s progress. You can monitor opportunities either with weighted or unweighted expected sales volumes. In addition, you can filter data and refine the results in many different ways. The report contains the opportunities that match your filter criteria, depending on whether you want to monitor and analyze opportunities that, for example, are high priority, closing soon, or have the status Open. Procedure 1. Access the activity by choosing the following navigation option: SAP CRM WebClient menu

Pipeline Performance  Sales Pipeline Change

2. To change your filter options, choose Show Filters in the Sales Pipeline Change view. From the Filter By field choose your filter criteria. To add more filters, choose Copy Line. Choose Apply. Enter a name in the Save to My Filters field and choose Save. Your new filter is now also available in the My Filters dropdown list. 3. You can see the opportunities that match your criteria. In the column Progress, you can see how the opportunities developed in a specific period. 4. Choose the respective link in the opportunity list to get more information about a specific opportunity or prospect. You can also open the briefing card of an opportunity by clicking the arrow in front of a row. In the briefing card you can view the most relevant information on the opportunity. 5. For further data analysis in Microsoft Excel, choose


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SAP Best Practices


6. You can change the columns displayed in the opportunities’ list by clicking the Personalization button and choosing the columns you want to display from the Available Columns table. Click the right arrow to move it into the Displayed Columns table. Choose Apply. Result The opportunities’ progress in the sales pipeline is clear and critical opportunities are identified.

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