The Market Demand for ERP software and CRM Pertemuan 09-10

Matakuliah : M0594 / Enterprise SystemTahun : 2007

Bina Nusantara

The Market Demand for ERP software and CRM

Bina Nusantara

New facilities and costraints connected with ERP

• In theory, but only in theory, everything from customer orders to manufacturing schedules and inventory levels reside inside the ERP system and its databases. This is what user organizations hear from many vendor who present ERP as a state-of-the-art product with plenty to offer all its business customers, and as a way to make a quantum leap in the organization’s internal information using nothing more than browser-based workstation

• In practice, however, things are little different. True enough, salespeople can datamine to check production status or inventory level, inquire about deliveries, and handle orders directly. However, innovative companies have found that they need to extend their ERP applications to the Internet by means of Web-based Enterprise Management, making even small suppliers on the other side of the world their supply chain partners.

• These innovative companies also need to add CRM functionality, inventory planning chores, and other routines promoting proactive participation on behalf of business partners

Bina Nusantara

New facilities and costraints connected with ERP

• This has many analytical aspects, including:– As global transactions get increasingly competitive,

suppliers become responsible for monitoring their client’s inventory levels

– When the client is running low on a given product, the supplier must be able to find it immediately and replenish the stock

• This type of application offers competitive advantages to business partners up and down the supply chain.

Bina Nusantara

New facilities and costraints connected with ERP

• Because in the coming years Internet software will be used extensively for the Web range of ERP, the system must provide support for both advanced HTML (e.g. Cascading Style Sheets, Script) as well as dynamic HTML and XML

• The solution must also incorporate the ability to create sophisticated views such as master/detail and table views with grouping, sorting, restricting, and multimedia controls. These technically oriented references also apply to CRM software and other programming products

Bina Nusantara

Customer Relationship Management Software and Its Benefits

• Internet commerce needs much more than internal data handling software that can be provided through the more classical ERP off-the-shelf packages.

• An important add-on is the currently commercially available solutions for an effective CRM process.

• The sought after goal is that of:– Providing an effective front office like the customer– Understanding the customer better than ever before– Increasing the business the end user does with

one’s company

Bina Nusantara

Customer Relationship Management Software and Its Benefits

Bina Nusantara

Customer Relationship Management Software and Its Benefits

• Companies that have adopted and that use CRM software have made one of their targets better marketing campaign management across all channels.

• They do so by using customer intelligence to personalize the marketing effort.

• Another target is to efficiently disseminate valuable customer intelligence to all people and systems that need it.

• This assist in optimizing the supply chain based on demand uncovered by measuring penetration and sales and evaluating margins and other management-defined criteria of performance

Bina Nusantara

Customer Relationship Management Software and Its Benefits

• CRM solutions, and therefore CRM software, should track both incoming and outgoing customer communications, flash-out types of customer-initiated events, and register direct and indirect responses to business.

• Communication must be managed in a way that can effectively exploit business opportunities and provide a selective approach to channel integration.

• Essentially what is sought after through a CRM solution is the abilility to incrementally increase customer account visibility, linking front-desk transactions with back-office ERP information and its supporting software, as well as with the legacy transaction processing.

• This must be done in a way that allows one to get the most out of the supply chain.

Bina Nusantara

Customer Relationship Management Software and Its Benefits

• More difficulties are present when integrating CRM software with legacy systems.

• The problem typically encountered include:– Complexities in achieving a single customer view– Issues of data quality and data format– Multiple incompatible sources for the same data and what to do about

the differences– Often misaligned windows of timing and data availability– The lack of a methodology for a common approach to design for all

data needs• One of the emerging solutions is that of an information portal making it

feasible to subscribe, access, publish, and understand business information of heterogeneous backgrond.

• This portal is supposed to act as a single user interface to all information and applications as well as to business intelligence tools and analytics.

Bina Nusantara

Repairing the Damage of Disconnects by Paying Greater Attention to Detail

• Dr Henry Kaufman aptly remarks that there are “a growing number of disconnects in our personal relationships, these feelings of disconnect and restlessness are driven to an important extent by the rapidity of change and by a kind of depersonalization that envelopes aspects of our lives”

• One example is the depersonalization of relations between lenders and borrowers through securitization.

• Another between portfolio managers and investors through mutual funds.

Bina Nusantara

Repairing the Damage of Disconnects by Paying Greater Attention to Detail

• Can the implementation of CRM and ERP software improve the basis of intercompany collaboration?

• The answer is maybe if and only if, companies try hard• Paying attention to detail in all matters associated with

the customer and his or her business is in no way synonymous with automating marketing through networks and computers.

• Using customer intelligence to personalize the campaigns is a commendable enterprise, but it is not everything