Product Catalog, in its simplest definition, is a listing of sellable products and services, and how they are configured and sold. A robust product catalog is absolutely crucial to a multi-channel, service-provider company's success, as it is one of the foundational blocks to building an efficient Quote to Cash system, and is particularly important within the CPQ environment.

A product catalog can look very different depending on the lens being used.


To a customer, a product catalog may be what is viewed on a website or in a brochure.

The products and services offered often are presented with a tremendous amount of style - nice photos of smiling people, flowery language to entice a purchase, and lots of associated marketing material to seduce customers into a quicker or larger purchase.

To a company's sales reps, a product catalog will have around bundling, discounting, and approvals baked in, as well as opportunities to up-sell and cross-sell their prospective customer.

To the company's service providers, the product catalog is a menu of products to provision or services to perform. Therefore, the product catalog needs to feed the company's delivery and fulfillment engine efficiently with a clean hand-off from how the item is sold and how it is delivered.

Finally, from a financial perspective, the product catalog is the primary ingredient to details understanding cost of goods and services sold and, ultimately, profitability. This is why there needs to be full financial tracking as the product or service purchase is pushed from order to fulfillment.

Product Catalog Maintenance

Why is a robust Product Catalog so important to service providers?
Multiple Business Lines
Often service providers have multiple lines of business - B2B, B2SMB, B2C, wholesale, and others.
Multiple Channels
Service providers may have multiple sales & support channels - kiosks, retail locations, call center (in/out), sales reps, e-commerce.
Long Billing Relationships
Typically, mature service provider organizations have long-running billing relationships with many of their customers.
Multiple Charge Types
Today, service providers utilize numerous charge types including usage, recurring, non-recurring, and others.
Service providers' products and services, as well as the relationship between the two, are complex.
Service providers often bundle their products and services.
Complex Selling Processes
With various types of discounts & promotions (percent off, dollars off, tiered pricing), and a sometimes-rigorous quote approval process, service providers' selling processes can become quite complex.
Complex Instance Processes
Service providers also have complex instance processes - for example, Cart, Order, Quote, and so forth.
Complex Tax Rules
Federal, state, county, and local taxes, combined with excise and other tariffs, make the whole tax issue very complex for any service providers' product catalog.

Billing Product Catalog Database

The product catalog, within the Billing and Collections Engine, documents the various products, pricing, discounting, and promotions that are needed to support the business.

The billing product catalog should demonstrate the billing view as it relates to product monetization strategies for a company. The billing product catalog typically works in coordination with ‘selling’ and ‘provisioning’ product catalogs to ensure products and services are sold properly, activated correctly, and billed accordingly. Coordination of these catalogs is a complex effort, but it is a cornerstone to a successful monetization architecture.

Billing & Rating Catalog Integrations


The product from the point of view of the provisioning, activation, and fulfillment systems required to manage a network service or fulfill a shipped product.


Information needs to be captured at order time to be delivered to the billing system(s). Typically requires integration of the selling & billing product catalogs.


Information required to be in sync between the billing system and network systems to ensure usage is properly accounted for and associated with the appropriate customer account.


All products/services billed at what they were quoted/ordered. All active services being billed appropriately. All usage has an identified owner. Credit adjustments are minimized. Trouble tickets are minimized.

Product Catalog Key Considerations

How is the product sold?

How many different quoting/ordering systems are there and what sort of User Interface is supported? What information do we need the User (sales rep, call center agent, retail clerk, end-user via e-commerce) to enter to create the order into the system? What sort of validation needs to occur at order time?

How will it look for Finance?

What sort of charge codes, GL entries, and revenue recognition characteristics should be available about financial impact of how the product was modeled. This is most apparent in decisions around associating charges at a bundle vs. line-item level.

How is the product billed?

What information is required by the billing system to ensure the product is billed appropriately including any usage, recurring non-recurring charges. Discounts, promotions, bundled pricing, and taxation must all be taken into consideration to ensure the billing engine has all the information it needs to bill and tax accurately.

How will it appear to Customer Care agents?

Will call center agents be able to clearly explain status of quotes/orders to customers including service turn up dates and impact on the first bill? Will they be able to articulate why charges appear as they do on an invoice? Will agents be able to efficiently maintain the product/service including potential up-selling and cross-selling?

How will it look on an Invoice or Statement?

How much information do we need to put on an invoice to make sure the customer understands what they are paying and to ensure prompt payment? Does a discount need to be displayed? What is marketing looking for demonstrating value, what does customer care say is needed to reduce churn, and minimize billing inquiry/credit requests?

How will it be for the Administrators?

Product catalog proliferation is a common challenge for service providers. What is the most appropriate modeling approach that allows for efficient maintenance of existing products and pricing/promotions as well as new market offerings?

Product Catalog Basic Steps


Identify all applicable product catalogs. Identify underlying database technology and any product versions if it is a COTS product catalog.


Identify all applicable selling & maintenance use cases. Be sure to include all channels (sales, inbound/outbound call center, kiosk, e-commerce, partner channels) & all activity (new orders, change orders, moves, deletes, suspend, others).


For each use case and channel, ensure a cohesive set of data ownership rules per catalog the maximizes efficiency and flow through while minimizing data redundancy.

Functional Validation

Vet the use cases and ownership strategy against the Product Catalog key consideration list.

Technical Validation

Validate the transactional integration between product catalog integrations. Pay particular attention to bundle use cases, maintenance use cases (MACD) and transactions originating via channel sales.


Identify who in your organization will be responsible for administration of the various product catalogs, including how this maintenance is synchronized, staged, and deployed.

metric creation

Identify key metrics that will objectively determine if your product catalog & transaction architecture is processing appropriately. Key indicators include:

  • Flow through & Fallout Percentage
  • Pricing errors at Quote, Order time
  • Credit percentage by volume & dollar amount
  • Trouble Ticket percentage by volume & dollar amount
  • Average Handle Time for quote/order scenarios


Identify strategies for ensuring all transaction source systems are in sync with each other. Ensure active monitoring to ensure all systems are reconciled and any inconsistencies are rooted out immediately:

  • Flow through percentage/Fallout percentage
  • Pricing errors at Quote/Order time

Product Catalog Components


Create Products

Product creation is adding a new tangible product to the product catalogs. Typically, a new product will have a unique identifier and include some or all of the following: standard pricing, promotional pricing, cost of goods, freight cost, category, subcategory, dimensions, weight, color, size, and other product parameters.

New product creation is most often done in the Billing & Rating catalog and should be the single source of truth that ties to the Customer-Facing Selling Catalog and the Provisioning & Fulfillment Catalog. The billing product catalog database is tied to the other systems’ product databases to tie images and written content, as well as inventory and channel availability.

The ability to create new products in the Billing & Rating catalog should be restricted to as few individuals within a company as possible because of the inherent risks that are present.

Create Services

Much like products creation, new services creation should live in the Billing & Rating catalog with supporting data residing in the other systems’ databases.

Services can be built using flat-rate or unit pricing, and can either be a one-time charge such as a connection fee, or a recurring source of revenue as with cellular service. A consistently communicated message, both with the sales team and the customer, must make the distinction whether the service being provided is a single charge, or a service being given at a unit rate (hourly labor charge, mileage, or GBs of data, for instance).

Product Phasing

Product phasing refers to the transition from one offer to another by a customer. For example, a company may provide a 30-day trial of their product and, at the end of the period, automatically upgrade the customer into their base pricing plan unless the customer specifically declines.

Product phasing is common in B2B service organizations as a means to put a product or service into the hands of potential customers using free or discounted introductory offers. The method employed by companies to transition users into new or full versions of their offerings can have a marked effect on customer satisfaction and brand perception if the transition is handled in a transparent manner.

Conversion metrics and customer satisfaction indices are important indicators that should be closely monitored with product phasing.

Create Pricing

Associating a price to a product or service is more than just a gross margin calculation. Standalone products and services have a base price but also often have tiered pricing based on methods of payment, terms and conditions, and a multitude of other potential parameters. Generally speaking, mature product catalog systems can use the data input during the quoting process to apply previously defined business rules to determine the net pricing.

Products and services pricing in large service-provider organization can be run through a decision framework consisting of dozens of potential factors to determine perceived worth.

Create Parameters

A product or service’s parameters are its conditions or selling rules spelled out in a database. These parameters define the product or service, give it distinction from those other available products and services, and lays the foundation for the business rules engine.

Parameters may define where geographically a product is available to sell, which other products and services it may be combined with, associated products and service available for cross-sell, and where in the up-sell hierarchy it lives.

Parameters are also key to business reporting, as selling performance is looked at from both a bottom-up and a top-down perspective. Parameters provide the granularity to allow for actionable reporting.

Up-Sell, Cross-Sell & Expansion

These sales processes are the central methods for increasing average revenue per user, an essential growth metric for most businesses using a recurring revenue business model. These businesses also focus heavily on annual contract value.

Up-selling is the process of selling more of a particular service. For example, moving from 6 MB internet speed for $25 per month to 18 MB for $45 per month is a typical up-sell.

Cross-selling is when a customer purchases a separate product or service in addition to what they had originally anticipated buying. For example, if the customer originally intended to buy internet service, but the sales representative convinced them to purchase phone and cable services too, the sales representative successfully performed cross-selling.

Expansion is the process of broadening the selling engagement with the customer to additional locations, business units, or channels. This process is not independent of up-selling and cross-selling, but it refers to specifically growing the size and buying power of the customer. For example, if a sales representative is selling software to the accounting group at John Deere in Missoula, MT, and they expand the sale to include the sales team plus two other locations, they have achieved expansion. A good CPQ application assists this process by allowing many child accounts, groups, and locations to be quoted at once.

The combination of up-selling and cross-selling is the primary method of driving more revenue within an existing customer base. Another common phrase is wallet share. Many service providers have a goal of increasing the wallet share from their customer base, which is often done through up-selling, cross-selling, or both. The concept of bundling or packaging is a method for accelerating an up-sell, cross-sell, or both.


The Product Catalog Problem

The product catalog is a simple concept – it is a list of a company’s products and pricing. However, the waters muddy quickly as companies grow and product data starts innocently scattering throughout a myriad of applications and databases.


Catalog Sync

Catalog Sync is an important part of enterprise data integrity, and paramount to maintaining a single source of truth in the Billing and Collection Product Catalog. How an enterprise syncs their catalog databases depends on whether the databases are cloud-based or on-premise.

If a company is syncing product catalogs (Billing & Rating, Customer-Facing Selling, and Provisioning & Fulfillment Catalogs) that are on-premise or on a physical machine the company owns at another location, generally log syncing is the choice. Having the access to the database logs are obviously a prerequisite.

The other type of catalog syncing that is commonly used is via a scheduled or triggered API. This is required when some or all of the data lives in the cloud. How often catalogs need to be synced is an internal business decision, but data critical to day-to-day business needs to be as real-time as possible.

Product Bundling

Product bundling occurs when one or more product or service is offered together at a rate lower than they would be available separately. The ability to seamlessly bundle is important to an organization for a number reasons, including increased wallet-share, a means to introduce new products and services with established ones, an ability to tell a savings story in its marketing collateral, and a way to differentiate the organization’s offerings from its competitors.

Bundling occurs in a number of different ways.

Sometimes a company will simply put together several products or services and discount the total price; other times, a free product may be allotted with the purchase of another product or service. Often tiered bundles are available in which a customer can get expanding value based on their initial spend. For instance, if they purchase the Silver Plan, they receive three months of HBO free; if they opt for the Gold Plan, they receive both HBO and Showtime free for three months.

Business Rules

Business rules are decision-based true/false statements that constrain or define some aspect of a business. They are utilized to assert business structure or assert control or influence on the behaviors of a business.

In the context of a product catalog, business rules use parameters to define who, what, where, when, and how products and services are offered. Business rules may determine pricing, availability, up-sell/cross-sell, qualification, and a myriad of other decisions. Automated business rules engines are crucial to narrowing the time gap between quoting and ordering.

Business rules should be well-thought out and carefully ordered to optimize the entire Quote-to-Cash spectrum.


Scripting allows an organization to add customized actions on top of their parameters and business rules, outside of the normal features offered by a billing solution. Since not all billing vendors offer scripting, this can be a tipping point for many companies searching for a new billing system.

An example of the benefit scripting offers would be the ability of a service provider to offer different products, services, and pricing across different selling channels or geographic regions. Essentially, with scripting, if it can be dreamed – and you have the supporting decisionable data – it can be done.

Menu Placement

Menu placement refers to the categorization and visibility of products and services. Again, using the business rules engine and parameters, the product catalog can include a product or service with other similarly grouped products and services, require certain qualifications for an item to be available, or only show certain items based on the results of triggered business rules.


Discounts are another business-rule driven sub-domain of the Product Catalog. An individual or group of products and/or services can be set to different tiered discounts based on the output of a business rules engine. Discounting may also be driven by actions taken by a potential customer (“Click here to save 10%”), inaction by a potential customer, and a host of other triggers.

The takeaway is that the discount rates/amounts are present in the product database and driven by the rules engine and the product or service parameters. Discounting can be a head-spinning activity as different layers of qualification, bundling, and stacking present a web of decisions within the business rules application.

A Closer Look at the People, Process & Technology of Product Catalog Maintenance


Product Catalog Maintenance is a pretty exclusive domain as far as the number of organizational units that interact with it regularly, and rightly so as many security concerns are presented when it comes to a company's product and services. Cost, price, discounting - all are part of the product catalog and access is necessarily controlled.

Obviously, the Product team calls this area home, and they are responsible for most of the tasks discussed in the above sub-domain paragraphs. Additionally, the Finance-Billing and I.T. organizations contribute processes to the Product Catalog Maintenance domain.


ATG maintains a set of 75 key business processes to support management of Customers and Revenue for Service Providers. Twelve of these processes originate, or are impacted by the Product Catalog function. Below are the key processes that are touched in Product Catalog, categorized by the Organizational Unit that owns the process:

Product Organization

New Product Introduction Process - Configuring attributes and introducing a new product or service to the product catalog.

New Product Introduction Process (Mobile) - Configure attributes and introduce new products and services made available on mobile devices.

New Product Monetization Process - The configuration of pricing for a new product or service.

Bundled Product Introduction Process - Configuring and introduction of a bundled product or service to the product catalog.

Promotion & Discount Introduction - The configuration of promotions and discounts of new products or services.

Finance - Billing Organization

Bill Run Operations - Tasks and functions associated with initiating the billing process.

IT Organization

Maintenance and Oversight of Monetization Ecosystem – processes around ensuring that all touch points and connections within the ecosystem are optimized to their fullest potential.

Vendor Management of Monetization Ecosystem – oversight and communication duties of ecosystem software components and their vendors, including management of vendor road map and change logs and general relationship nurturing.

Monitoring & Testing of Vendor Functional Releases – as ecosystem components release updates and patches, each is checked and tested to confirm all systems are working together as required by the business’ requirements.

Cross-Training of Monetization Ecosystem Components – process for training organizational resources on the appropriate software systems.

Security Oversight of Monetization Ecosystem – process for maintaining and controlling access and permissions to ecosystem components.

Data Stewardship Across Monetization Ecosystem
– process of assigning ownership and sources of truth for data within the organization.

All Organizations

Daily, Periodic, or Ad Hoc Reporting (Extraction, Load, Report, Dashboard) – movement of data between domains to create single source of truth for reporting and dash boarding.


Many of today's Billing solutions have a Product Catalog baked in, but rarely is it sufficient to meet an enterprise's needs out of the box. Some customization is almost always required to align a companies' depth of products and services detail to a billing system's one-size fits all product catalog architecture.

Stand-alone and suite-based product catalogs, both on-premise and cloud, are available via the vendors shown below.

Key Product Catalog Maintenance Vendors



Founded: 1977
HQ: Redwood Shores, CA
Company Type: Public
Delivery Method: Cloud


Oracle Siebel is a robust CRM software solution, available to companies in both on premise and on-demand (cloud) formats. While Siebel helps businesses generate more sales and pull in more revenue through customer experience management, the software provides further value through integration with Oracle’s full suite of IT solutions.


Some standout features of Oracle Siebel are:

  • Sales and Marketing Management – Heighten sales efficiency by optimizing the sales pipeline for success.
  • Customer Order Management – Create and manage customer accounts, and map relating products and orders efficiently.
  • Customer Relationship Management – Cut costs and increase customer satisfaction through the effective management and analysis of customer, product, and market information.


Oracle Siebel’s target market tends toward industry leaders and enterprise companies. Oracle tailors CRM aimed at specific industries such as the telecommunication, financial, high technology, and logistics industries.


  • Intuit
  • Ferrovial
  • National Instruments
  • National Oilwell Varco


Founded: 1993
HQ: Redwood City, CA
Company Type: Privately Held
Delivery Method: Cloud


Informatica is an independent provider of data integration software. They assist organizations around the world to realize their information potential and drive top business imperatives. Worldwide, over 5,000 enterprises depend on Informatica to leverage their information assets from devices to mobile to social to big data residing on-premise, in the Cloud, and across social networks.


  • Big Data Management
  • Cloud Integration
  • Data Integration
  • Data Quality
  • Data Security
  • Informatica Platform
  • Integration Platform as a Service
  • Master Data Management


Informatica tends to target customers on the Fortune 100 list within a broad mix of industries.


  • Citrix
  • EMC
  • GSK
  • Thrifty Car Rental


Founded: 2005
HQ: Redwood Shores, CA
Company Type: Privately held
Delivery Method: Cloud


Talend specializes in integration software. Through support of the latest big data platforms and innovations, Talend empowers organizations of any size to turn data into a strategic asset and competitive differentiator. Talend efficiently connects data and applications ranging from on-premise to cloud systems, from Hadoop to NoSQL and sensors. Working at the big data scale, five-times faster than the competition and at a fifth the cost, Talend enables companies to act with real-time insight about their business and customers.


  • Big Data Integration
  • Data Integration
  • Cloud Integration
  • Application Integration
  • Master Data Management


Talend targets organizations of all sizes across a wide range of sectors.


  • AOL
  • Groupon
  • Lenovo
  • Prime Numbers Technology
  • Sony


Founded: 1996
HQ: San Mateo, CA
Company Type: Public
Delivery Method: Cloud


Determine, formerly known as Selectica, rebranded in October, 2015. The company is a leading global provider of SaaS enterprise contract lifecycle management, strategic sourcing, supplier management and procedure-to-pay solutions. Determine’s four solutions are built into one unified platform that is easily implemented and highly scalable.


Determine offers solutions in several areas:

  • Strategic Sourcing - spend analysis, procurement analytics and eSourcing
  • Supplier Management - supplier information management, supplier performance management and supplier connection
  • Contract Management - contract lifecycle management, contract discovery and analytics
  • Procedure to Pay - eProcurement, catalog management, invoicing, budget management, travel and expense management


Determine targets companies that range from small and mid-sized businesses to global enterprises looking to manage their supply, contracts, sales cycles and product catalogs.


  • Nordstrom
  • Office Depot
  • AeroExchange
  • Aon


Founded: 1983
HQ: Dallas, TX
Company Type: Privately held
Delivery Method: Cloud


FPX offers CPQ (Configure Price Quote) solutions while delivering integration with major CRM systems including and Microsoft Dynamics. These solutions run across multiple platforms and are quick to implement. FPX’s key offering is FPX Predictive Applications, which combines structured database applications and predictive analytics tools to optimize complex business processes.


FPX Predictive Applications offerings includes:

  • Smart CPQ
  • Smart Renewal Management
  • Smart Contract Management


FPX tends to target high tech companies that range from mid-sized businesses to global enterprises. These companies vary from software providers to a global helicopter company.


  • Bell Helicopter
  • Genband
  • Interactive Intelligence


Founded: 1995
HQ: New York, NY
Company Type: Public
Delivery Method: Cloud


IBM InfoSphere is a master data-management platform intended to provide the foundational building blocks of trusted information, including:

  • Data integration
  • Data warehousing
  • Big data
  • Information governance

Additionally, the platform provides an enterprise-class foundation for information-intensive projects, providing performance, scalability, reliability, and acceleration needed to deliver trusted information and simplify difficult challenges. The IBM InfoSphere delivers market-leading solutions to our customers, allowing them to effectively use their information assets to achieve new levels of business innovation.


IBM supports businesses sizes ranging from small to midsize businesses to global enterprises from a variety of industries.


  • Logicalis US
  • Salesbox
  • Sony
  • Toys R Us

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