What is CRM?

CRM is is a cross- functional enterprise system that

integrates and auto- mates many of the customer-serving
processes in sales, marketing, and customer services that
interact with a company’s customers.
It uses IT to create a cross-functional enterprise system that
integrates and automates many of the customer-serving
processes in sales, marketing, and customer services that
interact with a company’s customers.
Application / Benefits of CRM
 Application / Benefits of CRM

Contact and Account Management:

CRM software helps sales, marketing, and service
professionals capture and track relevant data about every
past and planned contact with prospects and customers, as
well as other business and life cycle events of customers.
 Application / Benefits of CRM

Sales:
A CRM system provides sales representatives with the
software tools and company data sources they need to
support and manage their sales activities and optimize
cross-selling and up-selling
Up-sell: To sell something of higher value by persuasion
Cross-sell: To sell something different to existing customer
 Application / Benefits of CRM

Marketing and Fulfillment:

CRM systems help marketing professionals accomplish
direct marketing campaigns by automating such tasks as
qualifying leads for targeted marketing, and scheduling and
tracking direct marketing mailings. Then the CRM software
helps marketing professionals capture and manage prospect
and customer response data in the CRM database, and
analyze the customer and business value of a company’s
direct marketing campaigns.
 Application / Benefits of CRM

Customer Service and Support:

RM helps customer service managers create, assign, and
manage requests for service by customers.
Eg. Call center software routes calls to customer support
agents based on their skills and authority to handle specific
kinds of service requests
 Application / Benefits of CRM

Retention and Loyalty Programs:

Fact 1: It costs six times more to sell to a new customer than to sell to an existing
one.

Fact 2: A typical dissatisfied customer will tell 8 to 10 people about his or her
experience.

That’s why enhancing and optimizing customer retention and loyalty is a

major business strategy and primary objective of customer relationship
management. CRM systems try to help a company identify, reward, and
market to their most loyal and profitable customers.
Three Phases of CRM
 Acquire

A business relies on CRM software tools and databases to

help it acquire new customers by doing a superior job of
contact management, sales prospecting, selling, direct
marketing, and fulfillment.
 Enhance

CRM sales force automation and direct marketing and

fulfillment tools help companies cross-sell and up-sell to
their customers, thus increasing their profitability to the
business. The value the customers perceive is the
convenience of one-stop shopping at attractive prices.
 Retain

CRM analytical software and databases help a company

proactively identify and reward its most loyal and profitable
customers to retain and expand their business via targeted
marketing and relationship marketing programs.
 Challenges in CRM

- Lack of capital to build it and implement it

- Improper change management
- Building CRM can take too much time
- Lack of proper integration with other business systems
- Poor adoption rate among customers
 Trends in CRM

Operational CRM:
- Supports customer interaction with greater convenience
through a variety of channels, including phone, fax, e-mail,
chat, and mobile devices
- Synchronizes customer interactions consistently across
all channels
- Makes your company easier to do business with
 Trends in CRM

Analytical CRM:
- Extracts in-depth customer history, preferences, and
profitability information from your data warehouse and
other databases
- Allows you to analyze, predict, and derive customer value
and behavior and forecast demand
- Lets you approach your customers with relevant
information and offers that are tailored to their needs
 Trends in CRM

Collaborative CRM:
- Enables easy collaboration with customers, suppliers,
and partners
- Improves efficiency and integration throughout the supply
chain
- Allows greater responsiveness to customer needs
through sourcing of products and services outside of
your enterprises
 Trends in CRM

Portal-Based CRM:
- Provides all users with the tools and information that fit
their individual roles and preferences
- Empowers all employees to respond to customer
demands more quickly and become truly
customer-focused
- Provides the capability to instantly access, link, and use
all internal and external customer information
 What is ERP

Enterprise resource planning is a cross- functional enterprise

system that integrates and auto- mates many of the internal
business processes of a company, particularly those within
the manufacturing, logistics, distribution, accounting, finance,
and human resource functions of the business.
For example, ERP software for a manufacturing company will
typically process the data from and track the status of sales,
inventory, shipping, and invoicing, as well as forecast raw
material and human resource requirements.
Major Application Components of ERP
 Benefits of ERP

Quality and Efficiency: (improves quality and speed)

ERP creates a framework for integrating and improving a
company’s internal business processes that results in
significant improvements in the quality and efficiency of
customer service, production, and distribution.
 Benefits of ERP

Decreased Costs: (lowers cost of production and operation)

Many companies report significant reductions in transaction
processing costs and hardware, software, and IT support
staff compared to the nonintegrated legacy systems that
were replaced by their new ERP systems.
 Benefits of ERP

Decision Support: (helps in decision making)

ERP provides vital cross-functional information on business
performance to managers quickly to significantly improve
their ability to make better decisions in a timely manner
across the entire business enterprise.
 Benefits of ERP

Enterprise Agility: (makes work easier and smoother)

Implementing ERP systems breaks down many former
departmental and functional walls or “silos” of business
processes, information systems, and information resources.
This results in more flexible organizational structures,
managerial responsibilities, and work roles, and therefore a
more agile and adaptive organization and workforce that can
more easily capitalize on new business opportunities.
Trends in ERP
 Trends in ERP

Enterprise Agility: (makes work easier and smoother)

Implementing ERP systems breaks down many former
departmental and functional walls or “silos” of business
processes, information systems, and information resources.
This results in more flexible organizational structures,
managerial responsibilities, and work roles, and therefore a
more agile and adaptive organization and workforce that can
more easily capitalize on new business opportunities.
 What is SCM?

SCM is a cross-functional inter- enterprise system that

integrates and automates the network of business processes
and relationships between a company and its suppliers,
customers, distributors, and other business partners.
The goal of SCM is to create a fast, efficient, and low-cost
network of business relationships, or supply chain, to get a
company’s products from concept to market.
Objectives and Outcomes of SCM
Trends/Stages in SCM
 Trends / Stages in SCP

In the first stage, a company concentrates on making

improvements to its internal supply chain processes and its
external processes and relationships with suppliers and
customers. Its e-commerce Web site and those of some of
its trading partners provide access to online catalogs and
useful supply chain information as they support limited
online transactions.
 Trends / Stages in SCP

In the second stage, a company accomplishes substantial

supply chain management applications by using selected
SCM software programs internally, as well as externally via
intranet and extranet links among suppliers, distributors,
customers, and other trading partners.
 Trends / Stages in SCP

In the third stage, a company begins to develop and

implement cutting-edge collaborative supply chain
management applications using advanced SCM software,
full-service extranet links, and private and public e-commerce
exchanges.
 CRM, ERP and SCM in nutshell

CRM is the business focus. A cross-functional enterprise

system.
ERP is the business backbone. A cross-functional enterprise
system.
SCP is the business network. A cross-functional
inter-enterprise system.
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