1

Chapter - 8

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Learning Objectives
Identify

and give examples to illustrate the following aspects of customer relationship management, enterprise resource management, and supply chain management systems: Business processes supported Customer and business value provided Potential challenges and trends

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Section I

Customer Relationship Management:

The Business Focus

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Customer Relationship Management

Provides

customer-facing employees with a single, complete view of every customer at every touch point and across all channels

Provides

the customer with a single, complete view of the company and its extended channels

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Customer Relationship Management (continued)

CRM
Uses

information technology to create a crossfunctional enterprise system that integrates and automates many of the customer serving processes in sales, marketing, and customer services that interact with a companys customers. an IT framework of Web-enabled software & databases that integrates these processes with the rest of the companys business operations
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Creates

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Customer Relationship Management (continued)

Includes

software modules that provide tools that enable a business & its employees to provide fast, convenient, dependable, consistent service to its customers.

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Customer Relationship Management (continued)

Major Application Components of CRM

Contact
Helps

& Account Management

capture and track relevant data about past and planned contacts with prospects & customers. is captured from all customer touchpoints such as phone, fax, email, retail stores, company website etc. the data in a common customer database that integrates all customer account information and makes it available throughout the company via internet, intranet and other network links.
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Information

Stores

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Customer Relationship Management (continued)

Sales
Provides

sales reps with software tools & company data needed to support & manage their sales activities. optimize cross-selling & up-selling

Helps

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Customer Relationship Management (continued)

Marketing
Helps

& Fulfillment

accomplish direct marketing campaigns by automating tasks

Helps

capture & manage prospect & customer response data in CRM database
in the fulfillment of prospect and customer responses and requests by quickly scheduling sales contacts & providing appropriate information on products & services to them
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Helps

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Customer Relationship Management (continued)

Customer
Provides

Service and Support

service reps with software tools & realtime access to the common customer database shared by sales and marketing professionals customer service managers create, assign, & manage requests for service from customers
Call

Helps

center software Help desk software

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Customer Relationship Management (continued)

Retention

and Loyalty Programs

Helps

the company identify, reward, and market to their most loyal and profitable customers

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Customer Relationship Management (continued)

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Customer Relationship Management (continued)

Three

Phases of CRM
(new customers)

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, & fulfillment. goal of these CRM functions is to help customers perceive the value of a superior product offered by an outstanding company.
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The

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Customer Relationship Management (continued)

Enhance
By

(customer satisfaction)

supporting superior service from a responsive networked team of sales and service specialists.

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Customer Relationship Management (continued)

Retain
CRM

(your customers)

analytical software and databases help a company proactively identify and reward its most loyal, profitable customers to retain

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Customer Relationship Management (continued)

Benefits
Allows

and Challenges of CRM

a business to identify its best customers those who are the most profitable possible real-time customization & personalization of products & services based on customer wants, needs, buying habits, & life cycles

Makes

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Customer Relationship Management (continued)

Benefits

and Challenges (continued) Enables a company to provide a consistent customer service experience

Failures
Due

to lack of understanding & preparation. CRM is not a silver bullet

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Customer Relationship Management (continued)

Trends
Operational

CRM Supports customer interaction with greater convenience through a variety of channels, including phone, fax, email, chat, mobile devices CRM Extracts in-depth customer history, preferences and profitability information from your data warehouse and other databases
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Analytical

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Customer Relationship Management ( continued )

Collaborative

CRM Enables easy collaboration with customers, suppliers, and partners.

CRM Provides all users with the tools and information that fit their individual roles and preferences.

Portal-based

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Section II

Enterprise Resource Planning:

The Business Backbone

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Enterprise Resource Planning

Serves

as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems

Help

companies gain the efficiency, agility, & responsiveness needed to succeed today

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Enterprise Resource Planning (continued)

Gives

a company an integrated real-time view of its core business processes ERP software suites typically consist of integrated modules of Manufacturing Distribution Sales Accounting Human Resource Management
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Enterprise Resource Planning (continued)

Benefits

and Challenges

Quality
Helps

and efficiency

improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processes

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Enterprise Resource Planning (continued)

Decreased

Costs

Reductions

in transaction processing costs and hardware, software, and IT support staff

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Enterprise Resource Planning (continued)

Decision

Support

Provides

vital cross-functional information on business performance to assist managers in making better decisions

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Enterprise Resource Planning (continued)

Enterprise

agility

Results

in more flexible organizational structures, managerial responsibilities, and work roles

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Enterprise Resource Planning (continued)

Costs The

of ERP

costs and risks of failure in implementing a new ERP system are substantial.

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Enterprise Resource Planning (continued)

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Enterprise Resource Planning (continued)

Causes

of ERP failures

Underestimating

the complexity of the planning, development, and training required to involve affected employees in the planning & development phases and change management programs

Failure

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Enterprise Resource Planning (continued)

Trying

to do too much, too fast training

Insufficient

Believing

everything the software vendors and/or consultants say

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Enterprise Resource Planning (continued)

Trends Flexible

ERP Web-enabled ERP Interenterprise ERP E-Business Suites

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Section III

Supply Chain Management:

The Business Network

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Supply Chain Management

A

cross-functional interenterprise system that uses IT to help support & manage the links between some of a companys key business processes and those of its suppliers, customers, & business partners. is to create a fast, efficient, & low-cost network of business relationships.
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Goal

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Supply Chain Management (continued)

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Supply Chain Management (continued)

Electronic

data interchange Exchanging business transaction documents over the Internet & other networks between supply chain trading partners

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Supply Chain Management (continued)

The

Role of SCM

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Supply Chain Management (continued)

Benefits

and Challenges Can provide faster, more accurate order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliers

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Supply Chain Management (continued)

Problem

causes Lack of proper demand planning knowledge, tools, and guidelines Inaccurate or overoptimistic demand forecasts Inaccurate production, inventory, and other business data Lack of adequate collaboration

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Supply Chain Management (continued)

Trends

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