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Chapter
8 Enterprise Business Systems
Slide 1
Good Question!!
What are enterprise business systems?
The term Enterprise Content Management (ECM) refers to the technologies used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM tools & strategies allow the management of an organization's unstructured information, wherever that information exists.
So is that what we will be studying?
Not really. We will look at:
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP)
Supply Chain Management (SCM)
Chapter
8 Enterprise Business Systems
Slide 2
What is Customer Relationship Management (CRM)?
The use of information technology 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
Chapter
8 Enterprise Business Systems
Slide 3
What is Customer Relationship Management (CRM)?
• Contact and Account Management: 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
• Sales: provides sales reps with tools and
company data sources needed to support and
manage sales activities, and optimize cross-
selling and up-selling
Chapter
8 Enterprise Business Systems
Slide 4
What is Customer Relationship Management (CRM)?
• Marketing Fulfillment: help marketing
professionals accomplish direct marketing
campaigns by automating such tasks as
qualifying leads for targeted marketing, and
scheduling and tracking direct marketing
mailings
• Customer Service and Support: provides
service reps with software tools and real-time
access to the common customer database
shared by sales and marketing professionals
Chapter
8 Enterprise Business Systems
Slide 5
What is Customer Relationship Management (CRM)?
• Retention and Loyalty Programs: help a company identify,
reward, and market to their most loyal and profitable customers
Chapter
8 Enterprise Business Systems
Slide 6
What is Customer Relationship Management (CRM)?
• Retention and Loyalty Programs:
Consider the following:
It costs six times more to sell to a new customer than to sell to an existing customer
A dissatisfied customer will tell 8 – 10 people about their unpleasant experience
A company can boost profits 85% by increasing annual customer retention by 5%
The odds of selling a product to a new customer are 15%; the odds of selling a product to an existing customer are 50%
70% of complaining customers will do business with the company again if it quickly takes care of a service problem
Chapter
8 Enterprise Business Systems
Slide 7
What are the phases of CRM?
Chapter
8 Enterprise Business Systems
Slide 8
What are the phases of CRM?
• Acquire new customers by doing a superior job of contact man-
agement, sales prospecting, selling, direct marketing, and fulfillment
Direct Marketing Targeted Marketing
Interactive Marketing Promotions
• Enhance relationship with customer by supporting superior service
from a responsive networked team of sales and service specialists
and business partners
Cross/Up-Sell Improved customer support
• Retain and expand business with customers by proactively
identifying and rewarding the most loyal and profitable customers
Proactive Services
Chapter
8 Enterprise Business Systems
Slide 9
What are the benefits of CRM?
CRM allows a business to identify and target their best
customers so they can be retained as lifelong customers for
greater and more profitable services.
CRM makes possible real-time customization and
personalization of products and services based on customer
wants, needs, buying habits, and life cycles.
CRM can keep track of when a customer contacts the company,
regardless of the contact point.
CRM systems can enable a company to provide a consistent
customer experience and superior service and support across
all the contact points a customer chooses
Chapter
8 Enterprise Business Systems
Slide 10
Lack of understanding and preparation.
Rely on CRM to solve business problem without first developing the business process changes and change management programs that are required.
CRM projects implemented without the participation of the business stakeholders involved.
Why do CRMs Fail?
Chapter
8 Enterprise Business Systems
Slide 11
What are the trends in CRM?
Operational CRM:
Support convenient customer interaction through a variety of media, including phone, fax, e-mail, chat, cell phone
Synchronize customer interactions across all media
Make your company easier to do business with
Analytical CRM:
Extract in-depth customer history, preferences and profitability information from various databases
Encourage analysis, prediction and definition of customer values, behaviors and demands
Approach customers with relevant information and offer products and services tailored to their needs
Chapter
8 Enterprise Business Systems
Slide 12
What are the trends in CRM?
Collaborative CRM:
Enable easy collaboration with customers, suppliers and partners
Improve efficiency and integration through the supply chain
Improve responsiveness to customer needs through sourcing of products and services outside your enterprise
Portal-based CRM:
Provide users with tools and information that fit their individual roles and preferences
Empower employees to respond to customer demands ,ore quickly and become customer-focused
Provide instant access and linkage and use all internal and external customer information
Chapter
8 Enterprise Business Systems
Slide 13
What is Partner Relationship Management (PRM)?
Applications that apply many of the same tools used in CRM systems to enhance collaboration between a company and its business partners, such as distributors and dealers, to better coordinate and optimize sales and service to customers across all marketing channels
Chapter
8 Enterprise Business Systems
Slide 14
What is Enterprise Resource Planning (ERP)?
A cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company
Chapter
8 Enterprise Business Systems
Slide 15
What ERP Process & Information Flows are needed?
Chapter
8 Enterprise Business Systems
Slide 16
What are the benefits of ERP?
• Quality and Efficiency: 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
• Decreased Costs: Significant reductions in transaction
processing costs and hardware, software, and IT support staff
• Decision Support: Provides vital cross-functional information on
business performance quickly to managers to significantly
improve their ability to make better decisions in a timely manner
• Enterprise Agility: ERP breaks down many former departmental
and functional walls of business processes, information systems,
and information resources
Chapter
8 Enterprise Business Systems
Slide 17
What are the costs of ERP?
Chapter
8 Enterprise Business Systems
Slide 18
What are the trends in ERP?
Chapter
8 Enterprise Business Systems
Slide 19
Why do ERPs fail?
Business mangers and IT professionals underestimate the complexity of the planning, development, and training needed
Failure to involve affected employees in the planning and development phases
Trying to do too much too fast in the conversion process
Failure to do enough data conversion and testing
Chapter
8 Enterprise Business Systems
Slide 20
What is Supply Chain Management (SCM)?
A cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners
Chapter
8 Enterprise Business Systems
Slide 21
What are the objectives of SCM?
Chapter
8 Enterprise Business Systems
Slide 22
What is the role of SCM?
Chapter
8 Enterprise Business Systems
Slide 23
What does a SCM do?
• Materials Management: share accurate
inventory and procurement order
information, ensure materials required for
production are available in the right place
at the right time, and reduce raw material
spending, procurement costs, safety
stocks, and raw material and finished
goods inventory
• Collaborative Manufacturing: optimize
plans and schedules while considering
resource, material, and dependency
constraints
Chapter
8 Enterprise Business Systems
Slide 24
What does a SCM do?
• Collaborative Fulfillment: commit to
delivery dates in real time, fulfill orders
from all channels on time with order
management, transportation planning,
and vehicle scheduling, and support the
entire logistics process, including picking,
packing, shipping, and delivery in foreign
countries
• Supply Chain Event Management:
monitor every stage of the supply chain
process, from price quotation to the
moment the customer receives the
product, and receive alerts when
problems arise
Chapter
8 Enterprise Business Systems
Slide 25
What does a SCM do?
• Supply Chain Performance Management: report key
measurements in the supply chain, such as filling rates, order
cycle times, and capacity utilization
Chapter
8 Enterprise Business Systems
Slide 26
What are the trends in SCM?
Chapter
8 Enterprise Business Systems
Slide 27
What are the benefits of SCM?
Faster, more accurate order processing.
Reductions in inventory levels.
Quicker times to market.
Lower transaction and material costs.
Strategic relationship with suppliers.
Chapter
8 Enterprise Business Systems
Slide 28
Why do SCMs fail?
Lack of proper demand planning knowledge, tools and guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production, inventory and other business data provided by a company’s other information systems
Lack of adequate collaboration among marketing, production, and inventory management departments within a company
Immature, incomplete or hard to implement SCM software tools
Chapter
8 Enterprise Business Systems
Slide 29
What is Electronic Data Interchange (EDI)?
The electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners
Chapter
8 Enterprise Business Systems
Slide 30
What is it, really???
A set of standards for structuring information to be electronically exchanged between and within businesses, organizations, government entities and other groups
The standards describe structures that emulate documents, for example purchase orders to automate purchasing.
The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents.
Chapter
8 Enterprise Business Systems
Slide 31
What activities are involved?
Chapter
8 Enterprise Business Systems
Slide 32
Are there any Questions???