Case Study (PDF) - Update Software AG

Medically-valuable CRM
update CRM solution in use at PAUL HARMANN AG
Ever more complex customer relationship networks, constantlyincreasing
quantities of regulations that vary per insurance company,
country, state, federal land or province: today the life science sector is
among the most complex and dynamic markets. In order to face these
challenges as flexibly as possible, the medical products producer PAUL
HARTMANN AG uses the CRM system update.seven. The implementation
is completed in Germany; currently the international roll-out for
approximately 2,500 users is underway.
“Health isn’t everything, but everything is nothing without health,” said Arthur
Schopenhauer. PAUL HARTMANN AG specializes in medical supplies, disinfectants,
and other products for hospitals and health care facilities. Worldwide, this
Heidenheim company, which achieved sales of EUR 1.38 billion in 2008, employs
approximately 9,500 people. The company’s roots go back to 1818 and a textile
factory founded by Ludwig von Hartmann.
www.update.com
Case Study | Quick Check
Areas of application
Sales | Marketing | Service
Number of users
650; 2,500 planned
Installations
Germany, Austria, Czech Republic,
Slovakia, Russia, Australia
Start
2008
Solution
update.seven web
Result
» Simpler and faster reporting
» Contract management (individual
contracts and those of competitors)
with scheduled workflows
» Event management
» Many manual processes with Excel files
have been eliminated
» Network management
» Mapping of complex customer
relationship networks
» Knowledge management
» Integration with ERP system (SAP)
» Savings in licensing costs
» Transnational CRM strategy
“Marketing, Sales, and Service work hand-in-hand.
Here, update.seven is the connecting element for a superior
strategy.”
Stefan Eder, Consultant Business Process Management at PAUL HARTMANN AG
Case Study | PAUL HARTMANN AG

Today, this medical products specialist
also regards itself as a process consultant
for its customers. Not only products are
a concern, but also system solutions that
provide professional facilities for medicine
and health care with the added value
HARTMANN’s process expertise has to
offer. For example, this producer supplies
hospitals with customized, processoptimizing
sets of materials for operations.
Doctors and nursing homes are able
to order all of their medical supplies,
products for incontinence care, and other
consumables. The Baden-Württemberg
company offers customer-specific
solutions for vendor-managed inventory
and is also responsible for the operation
of a central warehouse and the restocking
of the goods. In addition, HARTMANN
supports customers with specific
controlling solutions.
Dynamic market, dynamic CRM
“A significant challenge for us is the
ongoing implementation of the specifications
of the health care sector and the
corresponding adaptation of the products
in order to meet the legal specifications
at all times,” says Stefan Eder, Consultant
Business Process Management at PAUL
HARTMANN AG. In addition, there are
varying health insurance specifications,
and the differences between the
health care systems in the different
countries in which the internationallyactive
HARTMANN GROUP is involved,
are enormous. “The CRM strategy must
be equal to the task of such a dynamic
market so that we can act flexibly,” says
Eder. Fluctuation is part of the industry;
the employees at the customer change
and, for the producer, knowledge of the
relationship networks is a significant factor
for business success. “The complexity of
the relationship networks is increasing,
as there is an observable trend towards
concentration. update.seven provides a
clear visual map of these structures that
is completely integrated,” explains Eder.
In the course of knowledge management,
the employees’ own knowledge should
also be made available permanently and
in a structured form for the good of the
company.
Flexibility as the measure of things
Therefore, in 2008, the Heidenheim
company evaluated three CRM systems
already familiar to the company: update,
salesforce.com, and SAP CRM. Three
subsidiaries were already using SAP
mobile sales, for which the maintenance
contract was to expire in 2010. Three other
countries were using salesforce.com.
The greatest degree of flexibility was
desired for the company-wide CRM
software. So that the users would support
the solution chosen, key users were
incorporated from the very beginning.
After the supplier workshops, the decision
was made in favor of the update.seven web
system from the CRM producer update.
“Changes can be made quickly and easily in
update.seven – the subsidiaries can make
many of their country-specific adaptations
themselves and they do not have to take
the long way via central IT. Cost factors
with respect to maintenance and licenses
also contributed to the making of this
decision, as did the positive reactions of
reference customers such as ratiopharm,“
Stefan Eder remembers. Also important to
the medical product producer was that,
“update was really able to shine in the supplier workshop. Changes can be implemented
with minimal effort in update. Cost factors regarding maintenance
and licensing also influenced the decision.”
Case Study | PAUL HARTMANN AG
in contrast to the SAP solution, which
only allowed retrograde reporting via
Business Warehouse, ad-hoc reporting
could be established. In addition, the CRM
system had to be a web application that
was nevertheless offline-capable without
additional programming effort, as there is
currently only limited network coverage
in a few countries such as the Czech
Republic.
Custom-tailored
for individual sales processes
PAUL HARTMANN AG uses the update
life science industry solution into which
opportunity management has been
integrated flexibly in order to identify
and pursue sales opportunities. The
Heidenheim company also collects
information about competitors in the new
CRM system. While previously information
about customers‘ contracts with
competitors and the competitors‘ product
prices had to be managed with great effort
in Excel files, this data is now maintained
in the CRM and is therefore easy to use.
The company’s own and competitors’

contracts are mapped in an easy contract
management, which can be broken down
to individual items. For tenders, selected
positions of an extensive agreement
can be mapped. Flows remind people of
appointments and deadlines. External
market data about doctors and pharmacies
also flows into analyses and reports. In the
long term, transnational evaluations will
also be available. “Marketing, Sales, and
Service work hand-in-hand. Here, the CRM
is the connecting element for a superior
strategy,” says Stefan Eder. A guideline
ensures that a uniform CRM is maintained,
even if the countries have some freedom
when it comes to the design. “Essentially
the user interfaces may be adapted; the
data model and the application interfaces,
by contrast, remain untouched,” says Eder.
Data quality as prerequisite
“In addition to traditional goals such
as sales, other topics increasingly move
into the foreground in the course of the
CRM strategy: the quality of the data
is the basis for solid evaluations and
a qualitative customer segmentation.
Therefore, data maintenance is extremely
important today,“ says the CRM specialist.
A learning process among the employees
and practical examples are required in
order to make the purpose and benefits
of data quality tangible. While, according
to Stefan Eder, CRM was previously almost
completely a sales force tool, the new
system will be used more widely. Thus,
among other things, supervisors have
access to the full degree of reporting so
that they can better evaluate the quality
of contact data, for example.
There are interfaces especially to the
ERP system SAP, to the human resources
module (HR), to the SAP Business
Warehouse, as well as the Lotus Notes
groupware. The address and sales data
come from SAP. “Since we absorb the
data into update.seven, the employees
can make evaluations much more quickly.
Previously, this was handled by in-house
sales, which generated Excel files and sent
them out each month,” states Stefan Eder.
The sales force records activities, absences,
and expenses directly in update.seven
and the data is then transferred to the HR
system. And the sales force employees
now plan their calls in advance directly in
the CRM system.
Marketing has also optimized its processes.
Campaigns that would previously have
been run manually in Excel and with the
support of external agencies now run
through the new CRM system. This applies,
for example, to the distribution of the
newsletter and the maintenance of profile
characteristics, including the information
channel requested by the customer such
as mail or e-mail. In addition, contacts
made at events are recorded in CRM
and pursued right away with individual
follow-up processes for Sales.
Expansion and summary
In Germany, approximately 400 employees
in Marketing, Sales, and Service are now
working with the new CRM solution. The
subsidiaries in Austria and the Czech
Republic have also gone live with update.
seven. “We are now converting the
subsidiaries one by one. For 2010, Russia,
Holland, England, Australia, and Poland
are planned. In the last stage of expansion,
a total of 2,500 update workplaces are
planned,” explains Eder. There is no forced
conversion; rather, only countries that
want to update their CRM are participating
in the roll-out. “The introduction process is
being accompanied by key users. After the
end of the pilot phase, the IT department
will practically be relieved of its responsibilities
and will only play a supporting
role. Later on, there will be an adaptation
project, which will be the responsibility of
“The complexity of the relationship networks is increasing, as there is an observable
trend towards concentration. update.seven provides a clear visual
map of these structures that is completely integrated.”
the sales organization in question. When
there is commitment in the ranks of the
users, projects are much more sustainable
than projects that are handed down by
the IT department,“ says Eder. As a project
management method, the Heidenheim
company believes in PRINCE2 – which also
means no project without a business case.
In addition to the time savings of at least
one hour per week per employee due to
the elimination of manual processes,
Eder sees advantages especially in the
greater explanatory powers of analyses
and reports, as well as in the structuring of
(customer) knowledge, which previously
existed only in the heads and drawers of
the employees.
Case Study | PAUL HARTMANN AG

Headquarters
update software AG
Operngasse 17-21 tel.: +43/1/878 55-0
A-1040 Vienna fax: +43/1/878 55-220
Austria mail: info@update.com
copyright 2010 | update software AG
All company and product names contained in this document
might be protected trademarks of the respective entities. All
information contained herein may be changed at any time
if required, without any prior notification and may not be
reproduced or circulated in any form without the prior written
approval of update software AG. In no event shall update
software AG be liable for the completeness of the information
contained in this document.
About PAUL HARTMANN AG
PAUL HARTMANN AG is an international company working in the field of mecial and
hygiene products. The basis for the success of PAUL HARTMANN AG are years of medical
competence and a continuous dialogue with its customers. Its activities are focused
on customers requiring professional system solutions. More than 9,600 employees in
35 countries plan their actions according to these principles.
The core of HARTMANN‘s portfolio as an established label is composed of professional
system solutions in the areas of wound care, incontinence hygiene and OR risk
protection. Additional assortments, for example compression and support stockings
as well as Tensoval blood pressure monitors, complete the wide range of offerings.
www.hartmann.info