other enterprise systems customer relationship management & supply chain management
Post on 22-Dec-2015
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Other Enterprise Systems
Customer Relationship Management &
Supply Chain Management
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A Supply Chain
The flow of materials, information, money and services from raw material suppliers, through factories and warehouses, to the end customers.
A network of facilities for procuring materials, transforming raw materials into finished products,' and distributing finished produce to customers.
S upplier M anufac turer D is tr ibutorRetailO utlet
Cus tom er
Capac ity , inventory level, delivery s c hedule, paym ent term s
O rders , return reques ts , repair and s erv ic e reques ts , paym ents
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Structure & Components of Supply Chains
A supply chain involves three segments: Upstream, where sourcing or procurement from external
suppliers occurs; Internal, where packaging, assembly or manufacturing takes
place; Downstream, where distribution takes place, frequently by
external distributors.
Tiers of suppliers Suppliers may have one or more subsuppliers, and the
subsupplier may have its own subsupplier(s) and so on.
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Structure & Components of Supply Chains
Material flows The physical products, raw materials, supplies and so forth that
flow along the chain. Reverse flows – returned products, recycled products and
disposal of materials or products. Information flows
All data related to demand, shipments, orders, returns and schedules as well as changes in any of these data.
Financial flows all transfers of money, payments and credit-related data.
A supply chain involves a product life cycle approach, from raw material to shop shelf.
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Supply Chain Management
A strategic objective for many firms The right products The right place The right time In the proper quantity At an acceptable cost = more happy customers = more profit
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Supply Chain Problems Types of problems
Poor customer service – not delivering products or services when and where the customers need them.
Poor quality product High inventory costs Loss of revenues Technology failure
Problems stem mainly from two sources: Uncertainties due to demand forecast, delivery times, quality problems in
materials and parts that can create production delays; The need to coordinate several activities, internal units and business
partners.
Supply chains are often chaotic systems: small changes amplify
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Supply Chain Management Systems
Supply chain management (SCM) The function of planning, organizing and optimizing the supply
chain’s activities.
A supply chain management system A cross-functional inter-enterprise system To help support and manage the links between a company’s key
business processes And those of its suppliers, customers & business partners
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Role of SCM
Supply chain management (SCM) provides capabilities at all levels of enterprise systems pyramid.
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SCM business benefits and blockers
Visibility Enhanced visibility - trading
partners have the info needed for planning (win/win)
Collaboration with Suppliers When supplies run low,
replenish message to supplier who sends goods directly to shelves bypassing warehousing costs
Trust Between trading partners is
NOT the norm Zero-sum game, like politics,
Resistance Competition from traditional
communication media, hunches, human to human interaction
Planning was naïve Sales force inertia
SCM technology benefits and blockers
Exercise
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SCM Architecture
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Large scale SCM systems
Interorganisational information system (IOS) involves information flows among two or more organizations.
Global information systems are interorganizational information systems that connect
companies located in two or more countries.
Typical problems Cultural differences Localization Economic and Political Differences Legal issues Cross-border data transfer which refers to the flow of corporate
data across nations’ borders.
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Customer Relationship Management
Move from a ‘transactional’ model of marketing to a ‘relationship’ model
An enterprise wide effort to acquire and retain customers. Includes a one-to-one relationship between a customer and a
seller. One simple idea “Treat different customers differently”. Helps keep profitable customers and maximizes lifetime revenue
from them. Identify/acquire/retain most profitable prospects 20/80 rule (20% customers generate 80% revenues) Acquisition is far more expensive that retention.
Integrating information from sales, customer service, marketing and any other service points
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Customer Relationship Management (CRM): Technology
Create a cross-functional enterprise system That integrates and automates many of the processes
in sales, marketing & customer service that interact with customers (Customer touchpoints) Customer touch point is any method of interaction with a
customer, such as telephone, e-mail, a customer service or help desk, conventional mail, Web site and store.
Create a framework of software & databases that integrate these processes with the rest of the company’s processes.
Provides analytic capabilities to optimise the customer relationship across all touchpoints
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CRM Functional Solutions Contract and Account Management
Helps sales, marketing & service professionals Capture & track data about past/planned contacts with
customers/prospects
Sales Force Automation Provides sales reps with software tools & data they need to
support & manage sales activities Cross-selling is trying to sell a customer of one product with a
related product Up-selling is trying to sell customer a better product than they
are currently seeking
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CRM Functional Solutions
Direct Marketing Help marketing professionals accomplish direct marketing
campaigns by tasks such as Qualifying leads for targeted marketing & scheduling & tracking
direct marketing mailings
Retention and Loyalty Programs Try to help a company identify, reward, & market to their most
loyal and profitable customers Data mining tools & analytical software Customer data warehouse
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CRM Functional Solutions
Customer Service and Support Provides sales reps with software tools & database access
to customer database shared by sales & marketing professions
Helps create, assign and manage requests for service Call center software routes calls to customer support agents
based upon their skills and type of call Help desk software provides relevant service data &
suggestions for resolving problems for customer service reps helping customers with problems
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CRM cycle Identify customer Analyse and differentiate
customer behaviour to identify propensity to buy specific products.
Customise customer plan to optimise revenue
Customise customer touchpoints to optimise revenue.
© HP
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Supports integrated & collaborative relationship between a business & it’s customers
CRM: The Business Architecture
CustomerLife Cycle
CRMFunctionalSolutions
CRMIntegratedSolution
The Internet
Acquire Enhance Retain
Direct Marketing Account management Retention and Loyalty Programmes
Sales Force Automation Customer Support
CollaborativeService
SharedCustomer Data
Partner Company Customer
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An example of a CRM technical architecture
N-tier architecture Database server hosting data
warehouse Application logic servers with
process models (multiple servers, distributed )
Integration server to integrate with external applications
Web/Internet server Presentation level
Browsers Mobile phones
© Sage
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CRM Benefits and risks
Benefits Single view of customer
data Immediate availability of
real-time information Better knowledge of
customers Better understanding of
customer needs Knowledge retention
improved
Risks Difficult implementation Expense Scalability No guarantee on
effectiveness– hard to prove that CRM works
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Alternative CRM architecture: Software as a Service (SaaS)
E.g. Salesforce.com
Provides complete CRM capabilities with limited customisation and integration.
Particularly suited to smaller organisations or organisations with simpler CRM capabilities
Charge on a monthly all-in fee.
© Salesforce.com
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Trends in Enterprise Computing: SaaS
Software as a Service (SaaS) is a model of Software Delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client
Examples:Salesforce.com – widely used sales force automation + CRM system
Oracle and SAP have web interfaces
Office Productivity: Google Writely and spreadsheet – not used in the enterprise
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Trends in Enterprise Computing: SaaS
Benefits No large upfront costs No install costs – low one-
time costs
Anywhere, anytime, anyone - mobility
Operating costs only; Usage can be easily
scaled up or down as needed
Weaknesses Core functionality out-
sourced Broadband risk Limited
personalisation/tailoring No competitive
uniqueness advantage Not suited to high volume
data entry.
SaaS most likely to be used in SME market