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Without doubt, customer relationship is (or should be) part of anyone’s business strategy. But how does the recently launched SAP Business One License Validation Service (LVS) support SAP Business One Channel Partners’ customer relationship activities?

Customer Relationship is not only about generating, but also retaining customers

Let’s first clarify the definition of customer relationship: According to Wikipedia “Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. (…) The overall goals are to find, attract, and win new clients, nurture and retain those the company already has (…)”.

Happy customers generate more revenue

Why is it so important to retain customers? Let’s check Wikipedia again: “Customer retention is more than giving the customer what they expect, it’s about exceeding their expectations so that they become loyal advocates for your brand. (…) Research (…) indicates that engaged customers generate 1.7 times more revenue than normal customers, while having engaged employees and engaged customers returns a revenue gain of 3.4 times the norm”.

So now that we understood the value of customer retention, let’s have a look on the SAP Business One License Validation Service (available to SAP Business One Partners only).

What is the License Validation Service (LVS)?

The LVS assists you as a SAP Business One Channel Partner to identify and resolve unexpected license issues for any SAP Business One customer. At the same time, it helps you prepare to upgrade customers to SAP Business One 8.8.

How that? With SAP Business One 8.8, the Limited User concept is technically implemented. Customers who have overused the functionality of a Limited User might not be able to access the same functionality they used prior to upgrading.

Or in other words: upgrading a customer to SAP Business One 8.8 without having run the LVS before is a risk which can be easily avoided! Personally I think it is better to identify any possible license issues now and allowing you and your (so far hopefully satisfied) customer to rule out any issues in time.

At the same time, the license validation will identify if Named Users are used as collective users, i.e. one user ID is used by different persons, which is not covered by the SAP Business One licensing and usage terms.

In both cases we shouldn’t forget that using SAP Business One other than licensed is simply illegal.

What can I as a SAP Business One Channel Partner do?

First, understand the LVS (see link above).

Secondly, reach out to your SAP contact person and check if any promotion is available by end of the year.

Thirdly, reach out to your SAP Business One customers and run the LVS. You can download the LVS directly from SCN.

Finally, finalize the process by sharing the Summary License Requirement Report, and the agreed solution / agreement with your SAP Business One contact person.

Conclusion

Customer retention is key for any SAP Business One partner to succeed. The LVS helps you to avoid situations where customers are using SAP Business One other than licensed.

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6 Comments

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  1. Zal Parchem
    Some good points brought out in your letter also to the customer.  One question – scenario: a customer sets up a user of “manager” and purchases a license for “manager” with the purpose of having that user and license specifically for SAP B1 Partners and other consultants to use for enhancements, changes, etc.  Is that considered “multiple users” and does the customer need to buy additional licenses for partners and cosultants to do work in their system?  Regards – Zal
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    1. Markus Fuchs Post author
      Hi Zal,
      thanks for asking. Partner consultants can rotate the license. The Enduser License Agreemtent is geared towards the actual productive use of SAP Business One.
      Regards,
      Markus
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  2. Zal Parchem
    Markus – another question for you.  There are questions coming up about LVS in the forums.  Am I correct in my understanding that if anyone has problems with the new LVS (running, reports, etc), they are not supposed to contact SAP Support, but they are supposed to go into the SAP B1 forums and post their problem there?  I know SAP personnel go into the forums periodically, but why would there be no SAP Support for a new program where SAP might benefit indirectly?  Regards – Zal
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    1. Markus Fuchs Post author
      Hi Zal,
      the tool was developed by our SDK development team, allowing us to quickly react on any market requirements.
      We therefore use the forum, to collect requirements and to provide support. We have made good experiences with similar tools developed by the SDK team. And we preferred the same approach for the LVS.
      Having said this, if there is a broad request to use the standard SAP Support infrastrucutre, then for sure we will be open.
      Regards,
      Markus

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      1. Zal Parchem
        That approach is fine if that is SAP’s way but I would just suggest, IMHO, that the SDK team visit the forums a bit more to answer a few of these questions because there are some confused folks (and even the person who answers a lot of questions in the forums is not certain of what to say).  Thanks – Zal
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