Magic Quadrant for Configure, Price and Quote Applications
Gartner defines configure, price and quote (CPQ) applications as software that enables sales organizations to automate and optimize the creation of quotes and capture of orders. A CPQ application is a sales tool that captures the new goods and services a customer wants to buy or the changes a customer wants to make to existing goods and services. While generally focused on assisted sales channels, CPQ capabilities such as product configuration and pricing must be shared with the self-service commerce channel. The new purchases and changes must be priced, and a binding contract must be formed with the customer before sending an order to downstream fulfillment systems.
No strategic planning assumptions provided.
Vendors must, among other requirements:
A: This research evaluates 15 cloud-based configure, price and quote (CPQ) application vendors across multiple criteria including their ability to execute and completeness of vision. The evaluation is based on extensive vendor surveys, standardized software demonstrations, publicly available financial data, Gartner Peer Insights reviews, and Gartner inquiry calls. The report includes detailed vendor strengths and cautions, market definitions, mandatory and common features, inclusion/exclusion criteria, and evaluation criteria for both ability to execute and completeness of vision.
A: This research should be used by organizations seeking to evaluate and select CPQ solutions. It is intended to help buyers create vendor shortlists based on the complexity and scale of their requirements. The Magic Quadrant should be used in conjunction with the companion Critical Capabilities report and discussions with Gartner analysts as part of due diligence. It is particularly valuable for organizations seeking cloud/SaaS CPQ solutions that support omnichannel selling, complex product configuration, subscription services, and enterprise-scale deployments.
A: Vendors must provide out-of-the-box support for: sales user support with CRM integration, product/service search and selection, product configuration (options and features selection), automatic pricing, negotiation of terms and proposal generation, order placement, and an extensibility framework for customizing processes, products and services. Products must score at least 1.5 out of 5 for Configuration, 1.5 out of 5 for Pricing, and 2.0 out of 5 for Propose and Negotiate capabilities.
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A: Ability to Execute focuses on the vendor's current capabilities and performance, including product quality, viability, sales execution, market responsiveness, customer experience, and operations. It emphasizes demonstrated results and execution track record. Completeness of Vision evaluates the vendor's strategic direction and future potential, including market understanding, product strategy, innovation, and geographic strategy. It assesses the vendor's ability to anticipate market needs and influence future direction. The heaviest weighting for Ability to Execute is on Product/Service, while for Completeness of Vision, the heaviest weightings are on past execution of product roadmap/vision and level of innovation in current product.