1. CRM with SAP solutions Prepared by: Elis Niyazieva FH Dortmund 2013Why Customer Relationship Management for industries?

2. Competitive advantage In the past we had 3 aspects of competition- time , costs and quality Less costly & more profitable to maintain a relationship with an existing customer CRM concepts allow the purchaser to offer additional services that are valued by the customer Customers can choose from many alternative manufacturers This increase in the number of products, models and types increases the pressure on companies to include greater flexibility & responsiveness in their internal processes and performance levels. 3. Software solutions for CRM 1. Operative CRM - improves and automates business processes in marketing, sales & service departments 2. Analytical CRM - prepare, support, optimize customeroriented decision processes based on a customer database 3. Cross-company CRM enables long-term cooperation between the company and its business partners (direct sales/ Channel Management) 4. One size does not fit all There is not only one CRM solution that can be applied to all industries Who is the customer? What does he want? What does the company want to achieve? 5. 1.Trends 1 Interaction channels-multi channel concepts(banks,insurance,utilities,TC) 2. Extended Sales Scenarios- usage based billing (UBB) 3. Extended after sales&customer service scenarios- warranty, subcontracting, rotables mgt 4.The influence of mobile devices-real-time connections are still not available 5. Service level monitoring- service level agreements (SLAs) 6. Real-time connection to customer installations- expensive scenario 7. Loyalty & Reward- systems for rewarding customer royalty (telephony, courier service, credit cards, airlines) 8. Future of CRM- more data for customer and his behavior 6. 2. Structuring of Industry solutions 2.1 Many of the goals of CRM are cross-industry(new customers or increasing loyalty) 2.2 Industry classification by NACE european mandatory statistical classification of economic activity. NACE segmentEconomic sectors containedExamplesA,BAgriculture & forestry,fisheries & fish farmingArable farming, fishingCMining,oil & gas, stone & earth quarryingCoal mining, oil recoveryDProcessing industries: Food industry, tobacco, textiles,, paper, chemicals industryWeaving, beverage manufacturing, instrument makingEEnergy & water supplyEnergy, water, gas suppliers 7. 2.3 Industry Sector Classification for Software solutions SAP Industry solutionsNACE Sectors ACross-industry mySAP CRMB XC XD XE XSAP for aerospaceXSAP AutomotiveXSAP BankingF XX X 8. 3. Software solutions for CRM in industries CRM software solutions must offer substantial analytical functions that enable the continual monitoring of all customer relationship measures It should be possible to structure sales areas hierarchically according to user-defined grouping criteria 3.1 Business partner Pan-Enterprise Partner Relationships using many different partners for various task groups 3.2 Industry specific products and services 3.2.1Industry specific business processes- Splitting work processes into smaller units provides benefits of specialization,but the tasks are no longer transparent. 9. Industry specific approaches to satisfying requirements of consumers along the hierarchy of needs Leisure industry, sport facility operators, universitiesSelfactualizationEsteem Car brands, high-tech gadgets, luxury goodsBelongingness Telecomm, postal system, publishers, printers,broadcastingSafety needs Public authorities, national defense, pension schemes, hospitalsPhysiological needs Consumer products, estate agents, clothing industry, utilities, construction industry 10. Customer related business progress with SAP 1. Each enterprise has individual requirements- basic solution from a respectable manufacturer 2. Structure of SAP industry solutions 23 Industry solutions SAP solution maps with example of the consumer products industry To provide a quick overview of the processes and functions of all industry business scenarios and display graphically the details 11. Solution map 12. 3.1 From industry specific to enterprise specific solutions SAP NETWeaver- provides prerequisites for the creation, composition and operation of company-specific solutions. SAP Enterprise Portal- offers each user a role-dependent central point of access for transactions SAP Mobile Business- enables mobile devices to access the applications of mySAP Business suite SAP Business Information Warehouse ( SAP BW)- analyzes structured business data,products,business transaction data. SAP Knowledge Management (KM) intgrated in the SAP EP- objects are indexed and classified and stored in various formats at various locations in the company. SAP Exchange Infrastructure (XI)-is the basis of the SAP MASTER DATA MANAGEMENT (MDM) enables the standards-based and open, processoriented integration of components (queuing, mapping, recipient determination, routing and monitoring of collaborative processes) SAP Solution Manager- supports implementation & operation of the solution made from the SAP components, offers tools for planning & execution of SAP implementation projects 13. Fine-Tuning of Business Processes by configuration The main functionality of SAP software solutions can be customized in 3 ways: 1 Customizing settings 2 Using interface configuration 3. Enhancement of business objects with additional attributes The CRM business objects can be enhanced by marketing attributes From a technical point of view marketing attributes are additional fields that are generated for the business partner object before being made available to mobile devices 14. 3.2 Flexible Enhancement with composite applications The goal of CA is to implement additional business processes quickly and flexibly by leveraging existing investments for the company. This is done by using the functionality of already existing applications. SAP Composite application framework(CAF)- offers an abstraction layer with an environment for development and execution of composite applications3.3 Outlook for the following chapters The industries are divided according to their CRM requirements Many demands made on CRM affect more than 1 industry 15. 4. Manufacturing industries 4.1 Automotive industry requirements Faultless vehicle, equipped and configured according to the needs Services such as after-sales services, breakdown services or mobility guarantees Financial service, installment purchase plans, credit,leasing A certain brand image,so that it represents a lifestyle Marketing- make sure the products stand out from the competition. Different customer,different expectation 4.1.1 Transition from Make-to-stock production to make-to-order production Make-to-stock production- common in the USA- the dealer checks if there is a suitable vehicle if not he if there is a planned configuration Make-to-order - 16. Individual object A product or model with a uniquely identifiable instance, for example,truck/car/motorcycle/tractor/bus which has a unique registration number. This enables to track vehicle-specific info The IB is not only used the automotive industry: washing machines with manufacturing info, buildings with their apartments and the location,size, number of roomsObject familyCategory Van Car TruckAttribute setBasic Technical DataAttributeType Engine Transmission 17. History of individual objects Event history shows who created the event, when it was created, what type it is Attribute history all changes made to the object itself Partner history- shows how the business partners for an individual object has changed throughout its lifetime Counter history displays counter readings (mileage) 18. Interaction center It is central interaction channel where business transactions are processed by phone, email, fax or web chat. Functions for automotive industry: Registration of customer requests & processing of chats,emails.. Checking all business-partner/vehicle relationships Customer interaction in service,sales or marketing activities Finding solutions in the solution database, to anser queries directly Forwarding inquiries to the responsible departments & areas Checking & updating vehicle-related warranty & contact info Entering,processing problem messages, complaints & orders Selling spare parts Updating customer relationships 19. Critical success factors for CRM implementation What is the goal of the project? To increase customer satisfaction? Do new customers need to be found or should the company identify valuable customer relationships? Companies should focus on integrating strategy, processes and technology. CRM software does not solve problems of badly organized CRM processes. 20. Selection of important customer-oriented business scenarios Business ScenarioShort DescriptionCampaign mgtOptimization of running a campaign form the market analisis to the results checkLead mgtAutomation of pre-sales steps Focus on most promising purchasers & sales possibilitesCustomer segmentationPersonalizing the range of products & services offeredService order processingSupport processes in the service area,taking account of inquiries & quotations, order creation, spare parts planningMgt of services on contractual & warranty basesSpecial requirements & extension of service orderSpare parts procurement Functions to sell spare parts based on service processing LeasingSupports the leasing process,contract mgt,changing current leasing agreementsInteraction center for the automotive industryGrouping info about customers,vehicles & parts, customer enquiries,claims, return calls 21. Relationship network 22. Marketing campaigns with effectiveness reviews It is important to target customers individually, existing customers are the easiest to target Email campaign done by the Marketing manager 1. planning the marketing campaign 2. Determining the target group- grouped by selected attributes 3. Executing the marketing campaing 4. Conducting the follow-up activities 5. Analyzing the campaign success- number of users upgraded, activities/revenue 23. Supply Supplier of Raw/ Packaging MaterialProductionDistribution Business to consumer (B2C) Business 2 Business (B2B)Consumer Products CompanyDistributorSupplier of services -Retail Grocery/ Mass Merchandiser7.1.1 Brand Products & the significance of Marketing The clever use of advertising & PR plays a major role Lack of transparency in Marketing & Sales Growing number of singles, graphic circumstances, Difficult to analyze the success of specific advertising measuresConsumer Products IndustryConsumer 24. SAP for consumer products Marketing- evaluations & analyses offer marketing mgrs an overview of market share,sales, familiarity of a brand compared to that of its competitors - Use this info to plan in advance retail promotions,marketing events etc Account mgt- access to all relevant customer info. Customers are assigned to representatives or sales employees to help to plan,start, log activities for the account,check order receipts,promotions,trade fairs Category mgt- planning & optimizing the presentation of their products on site, merchandise of product category. 25. SAP Trade promotion MGT Avarage 23% of the annual sales= marketing. -planning strategies & activities in M&S -analysis & evaluation tools for campaigns & trade promotions -mobile laptop solution -fully automatic & integrated mgt of all logistics processes -integration of mySAP ERP & SCM to plan & cover additional requirements for a promotion -role-based access using the SAP enterprise portal