Chapter 8 Enterprise Business Systems Customer Relationship Management

Chapter 8 Enterprise Business Systems

Customer Relationship Management Focus- the customer • Customer relationships have become a company’s most valued asset • Strategy- find and retain the most profitable customers • Identify & Reward Start customers Managing customer relationship What is CRM? • 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 1 -

CRM Modules Cross-functional- Integrated and Automated 1 -

Contact and Account Management Module CRM helps sales, marketing, and service professionals capture and track relevant data about • Every past and planned contact with prospects and customers • Other business and life cycle events of customers • Special days Captured (interactions) in customer touchpoints • Telephone, fax, e-mail • Websites, retail stores, kiosks • Personal contact CRM Modules 1 -

Sales Module Provides sales reps with the tools • Support and manage their sales activities • Optimize cross- and up-selling CRM also provides the means to check on a customer’s account (tracked using a customer ID) status and history before scheduling a sales call • Agora Priyojon Card to track customer • Reward you for your purhases CRM Modules 1 -

Marketing and Fulfillment Module Automating tasks- Sales Force Automation • Qualifying leads for targeted marketing • Scheduling and tracking mailings • Capturing and managing responses • Analyzing the business value of the campaign • Fulfilling responses and requests CRM Modules 1 -

Customer Service Module Real-time access- all employees (reps/support staff) • Requests for service are created, assigned, and managed • Call center software/module routes calls to agents • Help desk software (knowledgebase) provides service data and suggestions Web-based self-service enables customers to access personalized support information CRM Modules 1 -

Retention and Loyalty Module Enhancing/optimizing retention and loyalty • Identify, reward, and market to the most loyal and profitable customers • Evaluate targeted marketing and relationship programs It costs 6 times more to sell to a new customer An unhappy customer will tell 8 -10 others A happy customer will tell _____ others CRM Modules 1 -

The Three Phases of CRM Modules 1 -

Categorization/activity Analytical CRM (Middle Mgt) • • Extracts in-depth customer history, preferences, and profitability Allows prediction of customer value (wants) and behavior Allows forecast of demand Helps tailor information to customer needs Operational CRM (Line Employees) • Supports customer interaction across channels • Greater convenience • Makes the company easier to do business with Collaborative! 1 -

Enterprise Application CRM Benefits CRM Failure • Identify/target the best customers • Real-time customization/personalization of products and services • Tracking customers • Provide superior service and support across all customer contact points 1 - Not guarantee • Some did not produce promised results • Some damaged customer relationships Reasons for failure • Lack of understanding and preparation • Business process problems first • Non participation

Trends in CRM … Portal-based 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 • Provides users with tools and information that fit their needs • Empowers employees to respond to customer demands more quickly • Helps reps become truly customerfaced • Provides instant access to all internal and external customer information NSU Portal (Applicaions) ● ● 1 - Attendance Advising Gmail Google Classroom

ERP: The Business Backbone Integrates and automates processes using modules • Manufacturing • Logistics • Distribution • Accounting, Finance, Human resources What is? It is a cross-functional enterprise system • An integrated suite of software modules • Supports basic internal business processes • Facilitates business, supplier, and customer information 1 flows

ERP- Components/Modules 1 - The Sales module here has limited features No cross sell capabilities

Integration- Process and Information Flows 1 -

ERP Business Benefits • Quality and efficiency • Decreased costs • Decision support • Enterprise agility • Demand change Why failure? • Under-estimating the complexity of planning, development, training • Employee engagement • Trying to do too much too fast • Insufficient testing, training. . . 1 • Over-reliance vendors ERP Costs • Risks and costs are high • Hardware and software a small part of total costs • Failure can cripple or kill a business

Trends in ERP 2010 2005 2000 1980 1 -

What is a Supply Chain? Value chain? 1 -

What is a Supply Chain? • The interrelationships • suppliers, customers, distributors, others. . . • Needed to • design, build, and sell a product value chain? 1 -

Supply Chain Life Cycle Modules? 1 -

Electronic Data Interchange Automation? • Predates internet for SCM Technology • Electronic transaction between trading partners • Now uses Internet and VPN 1 -25

Roles and Activities of SCM Planning • Supply chain design • Collaborative demand supply planning Execution • • Materials management Collaborative manufacturing Collaborative fulfillment Supply chain event management • Supply chain performance management 1 -

Goals and Objectives 1 - • Right • products • place • time • quantity • cost

Benefits ● Faster, more accurate order processing ● Reductions in inventory levels ● Quicker times to market ● Lower transaction and materials costs ● Strategic relationships with supplier 1 - Challenges ● Lack of planning knowledge, tools, and guidelines ● Inaccurate data ● Lack of collaboration ● SCM tools are immature, incomplete, and hard to implement

Trends in SCM ++

Consumer Delivery/Logistics ++ in SCM

Some Shared Features. . .

Case 1: Business Benefits of CRM Forex Capital Markets trades $20 billion worth of currency per month • 12, 000 clients in 70 countries Tracking sales leads and prospects • Began with Excel spreadsheets • Switched to Access database • Volume forced move to CRM system Access controlled through data security and information sharing privileges 1 -

Case 1: Business Benefits of CRM Wyse Technology • World leader in thin-client computing • Revenues in excess of $180 million • Doubled sales within 12 months of installing CRM system • No additional staff needed 1 -

Case Study Questions Why can’t Microsoft Excel spreadsheets and Access database software handle the customer relationship needs of companies like FXCM? • What functions do CRM systems like Salesforce provide to a company that these software packages do not? What business benefits has the Salesforce CRM system provided to FXCM? • To Wyse Technology? 1 -

Case Study Questions Salesforce. com is an example of an ASP (application service provider), which was discussed in Chapter 4. • What benefits do you see in this case for that method of providing a CRM system to a company versus installing a CRM software package? • What disadvantages might arise? • Which method would you prefer? 1 -

Case 2: Business Value of ERP Autosystems produces headlamps for major automobile manufacturers • Until a few years ago, the manufacturing process was managed with paper documents • An ERP system was installed, but did not extend to the shop floor • Significant research was done before deciding to add the shop floor reporting module 1 -

Case 2: Business Value of ERP Installing PCs and ERP software on the shop floor allows Autosystems to • Enter timely, accurate information • Plan more efficiently • Make production changes in order to avoid labor or scrap problems • Discuss these issues with employees while they are still current and meaningful 1 -

Case Study Questions Why did Autosystems decide to install the Activ. Entry system? • Why did they feel it necessary to integrate it with their TRANS 4 M ERP system? Which three business benefits of the use of Activ. Entry provided the most business value? What changes are already being planned to improve the use of Activ. Entry? • What other improvements should the company consider? 1 -

Case 3: Applying Lean Logistics to SCM The Tesco supermarket chain is a pioneer in retailing • Used SCM to overcome disadvantage of weak supplier leverage and expensive logistics • Changed product distribution methods to reduce labor costs and inventory levels • Got suppliers to ship in smaller quantities, preconfigured for sales display • Reduced total product “touches” from 150 to 50 • Reduced throughput time from 20 days to 5 1 -

Case Study Questions What key insights of Tesco’s SCM direction Graham Booth helped revolutionize Tesco’s supply chain and range of retail store formats? • Can these insights be applied to any kind of retail business? How did Dan Jones and the Cardiff Business School of Wales demonstrate the inefficiencies of the Tesco and Britvic supply chains? • Can this methodology be applied to the supply chain of any kind of business? 1 -

Case Study Questions What are the major business and competitive benefits gained by Tesco as the result of its supply chain initiatives? • Can other retail chains and retail stores achieve some or all of the same results? • Defend your position with examples of actual retail chains and stores you know. 1 -

Case 4: Consequences of ERP Failure The goal Agilent Technologies Inc. specializes in measurement and technology • Its goal is to enable customers to speed their time to market • Achieve volume production • Obtain high-quality precision manufacturing Consequences of a new ERP system • One year to stabilize system • $105 million in lost revenue • $70 million in lost profits 1 -

Case 4: Consequences of ERP Failure Lessons Learned • • Disruptions can be more extensive than expected Enterprise resource planning is very complex ERP implementations are more than software People, process, policies, the company’s culture should all be taken into consideration According to Enterprise Applications Consulting • 99 percent of rollout fiascoes are caused by management’s inability to spec requirements, and the implementer’s inability to implement specs 1 -

Case 4: Consequences of ERP Failure Russ Berrie and Company • First ERP implementation attempt took three years and cost $10. 3 million • Litigation is pending between Russ Berrie and SAP Second attempt • Uses new applications • Is being implement department by department • Uses stand-alone systems 1 -

Case Study Questions What are the main reasons companies experience failures in implementing ERP systems? What are several key things companies should do to avoid ERP systems failures? Why do you think ERP system in particular are often cited as examples of failures in IT systems development, implementation, or management? 1 -

Learning Objectives Identify and give examples to illustrate the following aspects of customer relationship, enterprise research, and supply chain management systems • Business processes supported • Customer and business value provided • Potential challenges and trends 1 -