IZZI is a Mexican telecommunications service operator that offers telephony, internet and cable television services to people and businesses, with coverage in Mexico City and its metropolitan area and expanding throughout the rest of the country through its subsidiaries.
The project: Why is incentive compensation management so important to Izzi Telecom?
The pillar of the company is the sales area and being able to give a visibility of what we are paying and retributing our sales force motivate the right behaviors and results.
In the telecommunications industry there are constant changes in offers and for the success of these changes it is vital that the sales force see those changes reflected in their pockets. Companies today live in a highly competitive environment and need agility and accuracy in this variable compensation process, so they have sought a solution to automate this process.
“SAP Commissions has simplified everything we do today to calculate commissions and allows us to react quickly and efficiently to our sales force.”
Jesús López
Deputy Director of Variable Compensation at Izzi Telecom
The Challenges
The main challenge was using Microsoft Excel to calculate variable payments and commissions, which sometimes result in overpayments or underpayments due to manual capture errors. The lack of transparency with these payments led some employees to leave the company. On the other hand, different areas of the company were providing information for the calculation of payments, making their process more complex.
Grupo Televisa acquired many companies in Mexico (Cablemás, Cablevisión, Cable Com) and little by little new services were acquired (internet, telephony, mobile telephony). That led to the variable compensation scheme they had would begin to increase and management becoming difficult.
Finally, the Telecommunications Industry presents several challenges when it comes to encouraging sales. The plans must be adjusted by profiles, by region, services, offer and not only is the sale but the renewals. On the other hand, it is also necessary to consider cancellations to ensure error-free commission calculations. That is why the calculation of variable compensation becomes a long and complex process.
Evaluation process: Why did Izzi select SAP Commissions platform?
Izzi Telecom made the decision to contract the SAP Commissions solution because it is named in the Gartner quadrant and has demonstrated results in the Telco industry.
It is an excellent platform to manage the company’s compensation and incentive programs, it helps calculate payments and offers flexibility in handling different variables as needed. Another benefit that Izzi found was the integration of existing software, such as SAP SuccessFactors® and SAP S/4HANA solutions.
Why did Izzi choose Outliers Consulting to implement SAP Commissions?
Izzi realized that for this type of project it is not enough to go to a renowned consulting company, but to “partners” really committed to the solutions it implements.
This is what Izzi found in Outliers Consulting, because they have a team of experts in what was previously Callidus Cloud (now SAP Commissions) based in Mexico, and that has differentiated them from other consulting houses.
“Thanks to their experience in the Telco industry, and as experts in Variable compensation processes, Outliers Consulting supported us in presenting a very successful use case.”
Jesús López
Deputy Director of Variable Compensation at Izzi Telecom
What are the benefits of using a incentive compensation management solution?
There are 6 benefits that we have identified with SAP Commissions
- Unified system.
- More visibility into payments.
- Increased staff retention.
- Better incentive strategies.
- Flexibility and agility in incentive plans.
- Integration with other systems.
“Using SAP Commissions gives our sales force peace of mind that they are being paid the right amount, that there is no reduction in their revenue, and that we have eliminated many payment inquiries.”
Jesús López
Deputy Director of Variable Compensation at Izzi Telecom
What was the biggest benefit of implementing SAP Commissions with Outliers Consulting?
The whole implementation process was a learning experience and thanks to Outliers Consulting we know how to adjust our compensation plans ourselves, as knowledge transfer work was carried out to give us this flexibility on a day-to-day.
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