Enterprise Business Systems

Customer Relationship
Management
 A customer-centric focus
 Customer relationships have become a
company’s most valued asset
 Every company’s strategy should be to
find and retain the most profitable
customers possible

2
What is CRM?
 Managing the full range of the customer
relationship involves
 Providing customer-facing employees with a
single, complete view of every customer at
every touch point and across all channels
 Providing the customer with a single, complete
view of the company and its extended
channels
 CRM uses IT to create a cross-functional
enterprise system that integrates and automates
many of the customer-serving processes

Chapter 8 Enterprise Business Systems 3

Chapter 8 Enterprise Business Systems 4

5
Sales
 A CRM system provides sales reps with the tools
and data resources they need to
 Support and manage their sales activities
 Optimize cross- and up-selling
 CRM also provides the means to check on a
customer’s account status and history before
scheduling a sales call

6
Marketing and Fulfillment
 CRM systems help with direct marketing
campaigns by automatic such tasks as
 Qualifying leads for targeted marketing
 Scheduling and tracking mailings
 Capturing and managing responses
 Analyzing the business value of the campaign
 Fulfilling responses and requests

7
Customer Service and Support
 A CRM system gives service reps real-time
access to the same database used by sales and
marketing
 Requests for service are created, assigned,
and managed
 Call center software routes calls to agents
 Help desk software provides service data
and suggestions for solving problems
 Web-based self-service enables customers to
access personalized support information

8
Retention and Loyalty Programs
 It costs 6 times more to sell to a new customer
 An unhappy customer will tell 8-10 others
 Boosting customer retention by 5 percent can boost profits
by 85 percent
 The odds of selling to an existing customer are 50 percent;
a new one 15 percent
 About 70 percent of customers will do business with the
company again if a problem is quickly taken care of
 Enhancing and optimizing customer retention and loyalty
is a primary objective of CRM
 Identify, reward, and market to the most loyal
and profitable customers
 Evaluate targeted marketing and relationship programs

9
The Three Phases of CRM

10
Benefits of CRM
 Benefits of CRM
 Identify and target the best customers
 Real-time customization and personalization
of products and services
 Track when and how a customer contacts
the company
 Provide a consistent customer experience
 Provide superior service and support across
all customer contact points

11
CRM Failures
 Business benefits of CRM are not guaranteed
 50 percent of CRM projects did not produce
promised results
 20 percent damaged customer relationships
 Reasons for failure
 Lack of understanding and preparation
 Not solving business process problems first
 No participation on part of business
stakeholders involved

12
Trends in CRM
 Operational CRM
 Supports customer interaction with greater
convenience through a variety of channels
 Synchronizes customer interactions consistently
across all channels
 Makes the company easier to do business with
 Analytical CRM
 Extracts in-depth customer history, preferences, and
profitability from databases
 Allows prediction of customer value and behavior
 Allows forecast of demand
 Helps tailor information and offers to customer needs

13
Trends in CRM
 Collaborative CRM
 Easy collaboration with customers, suppliers, and partners
 Improves efficiency and integration throughout supply
chain
 Greater responsiveness to customer needs through
outside sourcing of products
and services
 Portal-based CRM
 Provides users with tools and information that fit their
needs
 Empowers employees to respond to customer demands
more quickly
 Helps reps become truly customer-faced
 Provides instant access to all internal and external
customer information
14
ERP: The Business Backbone
 ERP is a cross-functional enterprise backbone
that integrates and automates processes within
 Manufacturing
 Logistics
 Distribution
 Accounting
 Finance
 Human resources

15
What is ERP?
 Enterprise resource planning is a cross-
functional enterprise system
 An integrated suite of software modules
 Supports basic internal business processes
 Facilitates business, supplier, and customer
information flows

16
ERP Application Components

17
ERP Process and Information
Flows

18
Benefits and Challenges of ERP
 ERP Business Benefits
 Quality and efficiency
 Decreased costs
 Decision support
 Enterprise agility
 ERP Costs
 Risks and costs are considerable
 Hardware and software are a small part
of total costs
 Failure can cripple or kill a business

19
Costs of Implementing a New ERP

20
Causes of ERP Failures
 Most common causes of ERP failure
 Under-estimating the complexity of planning,
development, training
 Failure to involve affected employees in
planning and development
 Trying to do too much too fast
 Insufficient training
 Insufficient data conversion and testing
 Over-reliance on ERP vendor or consultants

21
Trends in ERP

22
Supply Chain Management (SCM)
 Fundamentally, supply chain management
helps a company
 Get the right products
 To the right place
 At the right time
 In the proper quantity
 At an acceptable cost

23
Goals of SCM
 The goal of SCM is to efficiently
 Forecast demand
 Control inventory
 Enhance relationships with customers,
suppliers, distributors, and others
 Receive feedback on the status of every link
in the supply chain

24
What is a Supply Chain?
 The interrelationships
 With suppliers, customers, distributors, and
other businesses
 Needed to design, build, and sell a product
 Each supply chain process should add value to
the products or services a company produces
 Frequently called a value chain

25
Supply Chain Life Cycle

26
Electronic Data Interchange
 One of the earliest uses of information
technology for supply chain management
 The electronic exchange of business transaction
documents between supply chain trading
partners
 The almost complete automation of an e-
commerce supply chain process
 Many transactions occur over the Internet, using
secure virtual private networks

27
Typical EDI Activities

28
Roles and Activities of SCM in
Business

29
Planning & Execution Functions
of SCM
 Planning
 Supply chain design
 Collaborative demand and supply planning
 Execution
 Materials management
 Collaborative manufacturing
 Collaborative fulfillment
 Supply chain event management
 Supply chain performance management

30
Benefits and Challenges of SCM
 Key Benefits
 Faster, more accurate order processing
 Reductions in inventory levels
 Quicker times to market
 Lower transaction and materials costs
 Strategic relationships with supplier

31
Goals and Objectives of SCM

32
Benefits and Challenges of SCM
 Key Challenges
 Lack of demand planning knowledge, tools,
and guidelines
 Inaccurate data provided by other information
systems
 Lack of collaboration among marketing,
production, and inventory management
 SCM tools are immature, incomplete, and
hard to implement

33
Trends in SCM

34