SlideShare ist ein Scribd-Unternehmen logo
1 von 53
Downloaden Sie, um offline zu lesen
McGraw-Hill/Irwin
McGraw-Hill/Irwin    Copyright ©© 2008, The McGraw-Hill Companies, Inc. All rights reserved.
                      Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter

                    8
                        Enterprise Business Systems




McGraw-Hill/Irwin            Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
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
Customer Relationship Management

• A customer-centric focus
  • Customer relationships have become a company’s
    most valued asset
  • Every company’s strategy should be to
    find and retain the most profitable
    customers possible
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
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
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?
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?
What is CRM?

• Managing the full range of the customer
  relationship involves
  • 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
• CRM uses IT to create a cross-functional
  enterprise system that integrates and automates
  many of the customer-serving processes
Application Clusters in CRM
Contact and Account Management

• 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
• Data are captured through customer touchpoints
  • Telephone, fax, e-mail
  • Websites, retail stores, kiosks
  • Personal contact
Sales

• A CRM system provides sales reps with the
  tools and data resources they need to
  • Support and manage their sales activities
  • Optimize cross- and up-selling
• CRM also provides the means to check on a
  customer’s account status and history before
  scheduling a sales call
Marketing and Fulfillment

• CRM systems help with direct marketing
  campaigns by automatic such tasks as
  •   Qualifying leads for targeted marketing
  •   Scheduling and tracking mailings
  •   Capturing and managing responses
  •   Analyzing the business value of the campaign
  •   Fulfilling responses and requests
Customer Service and Support

• A CRM system gives service reps real-time
  access to the same database used by sales
  and marketing
  • Requests for service are created, assigned,
    and managed
  • Call center software routes calls to agents
  • Help desk software provides service data
    and suggestions for solving problems
• Web-based self-service enables customers
  to access personalized support information
Retention and Loyalty Programs

• It costs 6 times more to sell to a new customer
• An unhappy customer will tell 8-10 others
• Boosting customer retention by 5 percent can
  boost profits by 85 percent
• The odds of selling to an existing customer are
  50 percent; a new one 15 percent
• About 70 percent of customers will do business
  with the company again if a problem is quickly
  taken care of
Retention and Loyalty Programs

• Enhancing and optimizing customer retention
  and loyalty is a primary objective of CRM
  • Identify, reward, and market to the most loyal
    and profitable customers
  • Evaluate targeted marketing and relationship
    programs
The Three Phases of CRM
Benefits of CRM

• Benefits of CRM
  • Identify and target the best customers
  • Real-time customization and personalization
    of products and services
  • Track when and how a customer contacts
    the company
  • Provide a consistent customer experience
  • Provide superior service and support across
    all customer contact points
CRM Failures

• Business benefits of CRM are not guaranteed
  • 50 percent of CRM projects did not produce
    promised results
  • 20 percent damaged customer relationships
• Reasons for failure
  • Lack of understanding and preparation
  • Not solving business process problems first
  • No participation on part of business stakeholders
    involved
Trends in CRM

• Operational CRM
  • Supports customer interaction with greater
    convenience through a variety of channels
  • Synchronizes customer interactions consistently
    across all channels
  • Makes the company easier to do business with
Trends in CRM

• Analytical CRM
  • Extracts in-depth customer history, preferences,
    and profitability from databases
  • Allows prediction of customer value
    and behavior
  • Allows forecast of demand
  • Helps tailor information and offers to
    customer needs
Trends in 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
Trends in CRM

• Portal-based CRM
  • Provides users with tools and information
    that fit their needs
  • Empowers employees to respond to
    customer demands more quickly
  • Helps reps become truly customer-faced
  • Provides instant access to all internal and
    external customer information
ERP: The Business Backbone

• ERP is a cross-functional enterprise backbone
  that integrates and automates processes within
  •   Manufacturing
  •   Logistics
  •   Distribution
  •   Accounting
  •   Finance
  •   Human resources
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
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
Case Study Questions

• Why did Autosystems decide to install the
  ActivEntry system?
  • Why did they feel it necessary to integrate
    it with their TRANS4M ERP system?
• Which three business benefits of the use of
  ActivEntry provided the most business value?
• What changes are already being planned to
  improve the use of ActivEntry?
  • What other improvements should the
    company consider?
What is ERP?

• Enterprise resource planning is a cross-functional
  enterprise system
   • An integrated suite of software modules
   • Supports basic internal business processes
   • Facilitates business, supplier, and customer
     information flows
ERP Application Components
ERP Process and Information Flows
Benefits and Challenges of ERP

• ERP Business Benefits
  •   Quality and efficiency
  •   Decreased costs
  •   Decision support
  •   Enterprise agility
• ERP Costs
  • Risks and costs are considerable
  • Hardware and software are a small part
    of total costs
  • Failure can cripple or kill a business
Costs of Implementing a New ERP
Causes of ERP Failures

• Most common causes of ERP failure
  • Under-estimating the complexity of planning,
    development, training
  • Failure to involve affected employees in
    planning and development
  • Trying to do too much too fast
  • Insufficient training
  • Insufficient data conversion and testing
  • Over-reliance on ERP vendor or consultants
Trends in ERP
Supply Chain Management (SCM)

• Fundamentally, supply chain management
  helps a company
  •   Get the right products
  •   To the right place
  •   At the right time
  •   In the proper quantity
  •   At an acceptable cost
Goals of SCM

• The goal of SCM is to efficiently
  • Forecast demand
  • Control inventory
  • Enhance relationships with customers, suppliers,
    distributors, and others
  • Receive feedback on the status of every link in
    the supply chain
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
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?
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.
What is a Supply Chain?

• The interrelationships
  • With suppliers, customers, distributors, and
    other businesses
  • Needed to design, build, and sell a product
• Each supply chain process should add value to
  the products or services a company produces
  • Frequently called a value chain
Supply Chain Life Cycle
Electronic Data Interchange

• EDI
  • One of the earliest uses of information technology
    for supply chain management
  • The electronic exchange of business transaction
    documents between supply chain trading partners
  • The almost complete automation of an e-
    commerce supply chain process
  • Many transactions occur over the Internet, using
    secure virtual private networks
Typical EDI Activities
Roles and Activities of SCM in Business
Planning & Execution Functions of SCM

• Planning
  • Supply chain design
  • Collaborative demand and supply planning
• Execution
  •   Materials management
  •   Collaborative manufacturing
  •   Collaborative fulfillment
  •   Supply chain event management
  •   Supply chain performance management
Benefits and Challenges of SCM

• Key Benefits
  •   Faster, more accurate order processing
  •   Reductions in inventory levels
  •   Quicker times to market
  •   Lower transaction and materials costs
  •   Strategic relationships with supplier
Goals and Objectives of SCM
Benefits and Challenges of SCM

• Key Challenges
  • Lack of demand planning knowledge, tools,
    and guidelines
  • Inaccurate data provided by other information
    systems
  • Lack of collaboration among marketing,
    production, and inventory management
  • SCM tools are immature, incomplete, and
    hard to implement
Trends in SCM
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
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
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
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?

Weitere ähnliche Inhalte

Was ist angesagt?

Create and Simplify Flexible Order Management with IBM OMS
Create and Simplify Flexible Order Management with IBM OMSCreate and Simplify Flexible Order Management with IBM OMS
Create and Simplify Flexible Order Management with IBM OMSPerficient, Inc.
 
Mis and erp
Mis and erpMis and erp
Mis and erpsumit235
 
Customer profitability - IBANK
Customer profitability - IBANKCustomer profitability - IBANK
Customer profitability - IBANKibankuk
 
Predictive Maintenance
Predictive MaintenancePredictive Maintenance
Predictive MaintenanceBearingPoint
 
ERP- Functional & Business Process Review
ERP- Functional & Business Process ReviewERP- Functional & Business Process Review
ERP- Functional & Business Process ReviewPreeti Aggarwal
 
Enterprise Service Management: Improving Service Delivery Across the Business
Enterprise Service Management: Improving Service Delivery Across the BusinessEnterprise Service Management: Improving Service Delivery Across the Business
Enterprise Service Management: Improving Service Delivery Across the BusinessIvanti
 
Future of Indirect Purchasing - Shifting to New Process and Technology
Future of Indirect Purchasing - Shifting to New Process and Technology Future of Indirect Purchasing - Shifting to New Process and Technology
Future of Indirect Purchasing - Shifting to New Process and Technology Bill Kohnen
 
Critical Look At AP And Dynamics
Critical Look At AP And DynamicsCritical Look At AP And Dynamics
Critical Look At AP And Dynamicsnsprau
 
Business Process Management Software
Business Process Management SoftwareBusiness Process Management Software
Business Process Management SoftwareBista Solutions
 
Wings. The better way to run your business.
Wings. The better way to run your business. Wings. The better way to run your business.
Wings. The better way to run your business. Wings Infonet Pvt Ltd
 
October 2010 - Marketing Roundtable - Todd Smithee
October 2010 - Marketing Roundtable - Todd SmitheeOctober 2010 - Marketing Roundtable - Todd Smithee
October 2010 - Marketing Roundtable - Todd SmitheeAnnArborSPARK
 

Was ist angesagt? (20)

ERP
ERPERP
ERP
 
Create and Simplify Flexible Order Management with IBM OMS
Create and Simplify Flexible Order Management with IBM OMSCreate and Simplify Flexible Order Management with IBM OMS
Create and Simplify Flexible Order Management with IBM OMS
 
Mis and erp
Mis and erpMis and erp
Mis and erp
 
Customer profitability - IBANK
Customer profitability - IBANKCustomer profitability - IBANK
Customer profitability - IBANK
 
What is erp
What is erpWhat is erp
What is erp
 
final proposal group 5
final proposal group 5final proposal group 5
final proposal group 5
 
Predictive Maintenance
Predictive MaintenancePredictive Maintenance
Predictive Maintenance
 
Wings ERP
Wings ERPWings ERP
Wings ERP
 
Big bazaar-mis-influence
Big bazaar-mis-influenceBig bazaar-mis-influence
Big bazaar-mis-influence
 
Lab Optimizer
Lab OptimizerLab Optimizer
Lab Optimizer
 
ERP- Functional & Business Process Review
ERP- Functional & Business Process ReviewERP- Functional & Business Process Review
ERP- Functional & Business Process Review
 
Enterprise Service Management: Improving Service Delivery Across the Business
Enterprise Service Management: Improving Service Delivery Across the BusinessEnterprise Service Management: Improving Service Delivery Across the Business
Enterprise Service Management: Improving Service Delivery Across the Business
 
Future of Indirect Purchasing - Shifting to New Process and Technology
Future of Indirect Purchasing - Shifting to New Process and Technology Future of Indirect Purchasing - Shifting to New Process and Technology
Future of Indirect Purchasing - Shifting to New Process and Technology
 
Payment Factory
Payment FactoryPayment Factory
Payment Factory
 
Critical Look At AP And Dynamics
Critical Look At AP And DynamicsCritical Look At AP And Dynamics
Critical Look At AP And Dynamics
 
Wings Auto DMS
Wings Auto DMSWings Auto DMS
Wings Auto DMS
 
Wings ERP Auto Dealers
Wings ERP Auto DealersWings ERP Auto Dealers
Wings ERP Auto Dealers
 
Business Process Management Software
Business Process Management SoftwareBusiness Process Management Software
Business Process Management Software
 
Wings. The better way to run your business.
Wings. The better way to run your business. Wings. The better way to run your business.
Wings. The better way to run your business.
 
October 2010 - Marketing Roundtable - Todd Smithee
October 2010 - Marketing Roundtable - Todd SmitheeOctober 2010 - Marketing Roundtable - Todd Smithee
October 2010 - Marketing Roundtable - Todd Smithee
 

Ähnlich wie Chap008

Crm implementation in insurance sector
Crm implementation in insurance sectorCrm implementation in insurance sector
Crm implementation in insurance sectorRahul Gupta
 
mba Customer Relationship Management ppt.pptx
mba Customer Relationship Management ppt.pptxmba Customer Relationship Management ppt.pptx
mba Customer Relationship Management ppt.pptxmohitkumar100691
 
How to write a CRM scope document - the key to a successful solution
How to write a CRM scope document - the key to a successful solutionHow to write a CRM scope document - the key to a successful solution
How to write a CRM scope document - the key to a successful solutionGill Walker
 
Must-Know Features of CRM Systems you should know
Must-Know Features of CRM Systems you should knowMust-Know Features of CRM Systems you should know
Must-Know Features of CRM Systems you should knowitsolutionssolved
 
Enterprise business systems - Information technology
Enterprise business systems - Information technologyEnterprise business systems - Information technology
Enterprise business systems - Information technologyHallelujah Kasimbazi
 
5 Enterprise Business Systems Conti.pptx
5 Enterprise Business Systems Conti.pptx5 Enterprise Business Systems Conti.pptx
5 Enterprise Business Systems Conti.pptxFrancisKwarteng3
 
Use of CRM for Business Industry
Use of CRM for Business IndustryUse of CRM for Business Industry
Use of CRM for Business Industryjuliawitz
 
Emerging concerts in crm
Emerging concerts in crmEmerging concerts in crm
Emerging concerts in crmAnkit Lakhotia
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship managementAglaia Connect
 
ch03 Strategic CRM.ppt
ch03 Strategic CRM.pptch03 Strategic CRM.ppt
ch03 Strategic CRM.pptSrikantKapoor1
 
Customer Experience Strategy & Operations Transformation
Customer Experience Strategy & Operations TransformationCustomer Experience Strategy & Operations Transformation
Customer Experience Strategy & Operations TransformationMarcel Barrera
 
Misha sulpovar - Customer Relationship Managment Application
Misha sulpovar - Customer Relationship Managment ApplicationMisha sulpovar - Customer Relationship Managment Application
Misha sulpovar - Customer Relationship Managment ApplicationADP
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship managementSukesh R
 
Customer Experience & Vendor Optimization
Customer Experience & Vendor OptimizationCustomer Experience & Vendor Optimization
Customer Experience & Vendor OptimizationMarcel Barrera
 
An Insight Into E- CRM
An Insight Into E- CRMAn Insight Into E- CRM
An Insight Into E- CRMitsvineeth209
 

Ähnlich wie Chap008 (20)

CRM-1.pptx
CRM-1.pptxCRM-1.pptx
CRM-1.pptx
 
Crm implementation in insurance sector
Crm implementation in insurance sectorCrm implementation in insurance sector
Crm implementation in insurance sector
 
Achieving operational excellence and customer intimacy enterprise applications
Achieving operational excellence and customer intimacy enterprise applicationsAchieving operational excellence and customer intimacy enterprise applications
Achieving operational excellence and customer intimacy enterprise applications
 
mba Customer Relationship Management ppt.pptx
mba Customer Relationship Management ppt.pptxmba Customer Relationship Management ppt.pptx
mba Customer Relationship Management ppt.pptx
 
How to write a CRM scope document - the key to a successful solution
How to write a CRM scope document - the key to a successful solutionHow to write a CRM scope document - the key to a successful solution
How to write a CRM scope document - the key to a successful solution
 
Must-Know Features of CRM Systems you should know
Must-Know Features of CRM Systems you should knowMust-Know Features of CRM Systems you should know
Must-Know Features of CRM Systems you should know
 
Enterprise business systems - Information technology
Enterprise business systems - Information technologyEnterprise business systems - Information technology
Enterprise business systems - Information technology
 
Module ii
Module iiModule ii
Module ii
 
5 Enterprise Business Systems Conti.pptx
5 Enterprise Business Systems Conti.pptx5 Enterprise Business Systems Conti.pptx
5 Enterprise Business Systems Conti.pptx
 
Use of CRM for Business Industry
Use of CRM for Business IndustryUse of CRM for Business Industry
Use of CRM for Business Industry
 
Emerging concerts in crm
Emerging concerts in crmEmerging concerts in crm
Emerging concerts in crm
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship management
 
ch03 Strategic CRM.ppt
ch03 Strategic CRM.pptch03 Strategic CRM.ppt
ch03 Strategic CRM.ppt
 
Customer Experience Strategy & Operations Transformation
Customer Experience Strategy & Operations TransformationCustomer Experience Strategy & Operations Transformation
Customer Experience Strategy & Operations Transformation
 
Misha sulpovar - Customer Relationship Managment Application
Misha sulpovar - Customer Relationship Managment ApplicationMisha sulpovar - Customer Relationship Managment Application
Misha sulpovar - Customer Relationship Managment Application
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship management
 
Customer Experience & Vendor Optimization
Customer Experience & Vendor OptimizationCustomer Experience & Vendor Optimization
Customer Experience & Vendor Optimization
 
An Insight Into E- CRM
An Insight Into E- CRMAn Insight Into E- CRM
An Insight Into E- CRM
 
Crm
CrmCrm
Crm
 
Crm (2)
Crm (2)Crm (2)
Crm (2)
 

Mehr von Arshian Siddiqui (17)

Cdc final
Cdc finalCdc final
Cdc final
 
Chap009
Chap009Chap009
Chap009
 
Chap007
Chap007Chap007
Chap007
 
Chap006
Chap006Chap006
Chap006
 
Chap005
Chap005Chap005
Chap005
 
Chap004
Chap004Chap004
Chap004
 
Chap003
Chap003Chap003
Chap003
 
Chap002
Chap002Chap002
Chap002
 
Chap001
Chap001Chap001
Chap001
 
Index numbers
Index numbersIndex numbers
Index numbers
 
ERP
ERPERP
ERP
 
Marketing Management report
Marketing Management reportMarketing Management report
Marketing Management report
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
Cmmi model – capabilities maturity model integration
Cmmi model – capabilities maturity model integrationCmmi model – capabilities maturity model integration
Cmmi model – capabilities maturity model integration
 
Stress management
Stress managementStress management
Stress management
 
C.g report final
C.g report finalC.g report final
C.g report final
 
Corporate governance presentation
Corporate governance presentationCorporate governance presentation
Corporate governance presentation
 

Kürzlich hochgeladen

DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational PhilosophyShuvankar Madhu
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapitolTechU
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxKatherine Villaluna
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxEduSkills OECD
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...raviapr7
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxMYDA ANGELICA SUAN
 

Kürzlich hochgeladen (20)

DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational Philosophy
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptx
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptx
 

Chap008

  • 1. McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright ©© 2008, The McGraw-Hill Companies, Inc. All rights reserved. Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Chapter 8 Enterprise Business Systems McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
  • 3. 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
  • 4. Customer Relationship Management • A customer-centric focus • Customer relationships have become a company’s most valued asset • Every company’s strategy should be to find and retain the most profitable customers possible
  • 5. 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
  • 6. 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
  • 7. 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?
  • 8. 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?
  • 9. What is CRM? • Managing the full range of the customer relationship involves • 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 • CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes
  • 11. Contact and Account Management • 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 • Data are captured through customer touchpoints • Telephone, fax, e-mail • Websites, retail stores, kiosks • Personal contact
  • 12. Sales • A CRM system provides sales reps with the tools and data resources they need to • Support and manage their sales activities • Optimize cross- and up-selling • CRM also provides the means to check on a customer’s account status and history before scheduling a sales call
  • 13. Marketing and Fulfillment • CRM systems help with direct marketing campaigns by automatic such tasks as • Qualifying leads for targeted marketing • Scheduling and tracking mailings • Capturing and managing responses • Analyzing the business value of the campaign • Fulfilling responses and requests
  • 14. Customer Service and Support • A CRM system gives service reps real-time access to the same database used by sales and marketing • Requests for service are created, assigned, and managed • Call center software routes calls to agents • Help desk software provides service data and suggestions for solving problems • Web-based self-service enables customers to access personalized support information
  • 15. Retention and Loyalty Programs • It costs 6 times more to sell to a new customer • An unhappy customer will tell 8-10 others • Boosting customer retention by 5 percent can boost profits by 85 percent • The odds of selling to an existing customer are 50 percent; a new one 15 percent • About 70 percent of customers will do business with the company again if a problem is quickly taken care of
  • 16. Retention and Loyalty Programs • Enhancing and optimizing customer retention and loyalty is a primary objective of CRM • Identify, reward, and market to the most loyal and profitable customers • Evaluate targeted marketing and relationship programs
  • 18. Benefits of CRM • Benefits of CRM • Identify and target the best customers • Real-time customization and personalization of products and services • Track when and how a customer contacts the company • Provide a consistent customer experience • Provide superior service and support across all customer contact points
  • 19. CRM Failures • Business benefits of CRM are not guaranteed • 50 percent of CRM projects did not produce promised results • 20 percent damaged customer relationships • Reasons for failure • Lack of understanding and preparation • Not solving business process problems first • No participation on part of business stakeholders involved
  • 20. Trends in CRM • Operational CRM • Supports customer interaction with greater convenience through a variety of channels • Synchronizes customer interactions consistently across all channels • Makes the company easier to do business with
  • 21. Trends in CRM • Analytical CRM • Extracts in-depth customer history, preferences, and profitability from databases • Allows prediction of customer value and behavior • Allows forecast of demand • Helps tailor information and offers to customer needs
  • 22. Trends in 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
  • 23. Trends in CRM • Portal-based CRM • Provides users with tools and information that fit their needs • Empowers employees to respond to customer demands more quickly • Helps reps become truly customer-faced • Provides instant access to all internal and external customer information
  • 24. ERP: The Business Backbone • ERP is a cross-functional enterprise backbone that integrates and automates processes within • Manufacturing • Logistics • Distribution • Accounting • Finance • Human resources
  • 25. 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
  • 26. 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
  • 27. Case Study Questions • Why did Autosystems decide to install the ActivEntry system? • Why did they feel it necessary to integrate it with their TRANS4M ERP system? • Which three business benefits of the use of ActivEntry provided the most business value? • What changes are already being planned to improve the use of ActivEntry? • What other improvements should the company consider?
  • 28. What is ERP? • Enterprise resource planning is a cross-functional enterprise system • An integrated suite of software modules • Supports basic internal business processes • Facilitates business, supplier, and customer information flows
  • 30. ERP Process and Information Flows
  • 31. Benefits and Challenges of ERP • ERP Business Benefits • Quality and efficiency • Decreased costs • Decision support • Enterprise agility • ERP Costs • Risks and costs are considerable • Hardware and software are a small part of total costs • Failure can cripple or kill a business
  • 33. Causes of ERP Failures • Most common causes of ERP failure • Under-estimating the complexity of planning, development, training • Failure to involve affected employees in planning and development • Trying to do too much too fast • Insufficient training • Insufficient data conversion and testing • Over-reliance on ERP vendor or consultants
  • 35. Supply Chain Management (SCM) • Fundamentally, supply chain management helps a company • Get the right products • To the right place • At the right time • In the proper quantity • At an acceptable cost
  • 36. Goals of SCM • The goal of SCM is to efficiently • Forecast demand • Control inventory • Enhance relationships with customers, suppliers, distributors, and others • Receive feedback on the status of every link in the supply chain
  • 37. 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
  • 38. 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?
  • 39. 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.
  • 40. What is a Supply Chain? • The interrelationships • With suppliers, customers, distributors, and other businesses • Needed to design, build, and sell a product • Each supply chain process should add value to the products or services a company produces • Frequently called a value chain
  • 42. Electronic Data Interchange • EDI • One of the earliest uses of information technology for supply chain management • The electronic exchange of business transaction documents between supply chain trading partners • The almost complete automation of an e- commerce supply chain process • Many transactions occur over the Internet, using secure virtual private networks
  • 44. Roles and Activities of SCM in Business
  • 45. Planning & Execution Functions of SCM • Planning • Supply chain design • Collaborative demand and supply planning • Execution • Materials management • Collaborative manufacturing • Collaborative fulfillment • Supply chain event management • Supply chain performance management
  • 46. Benefits and Challenges of SCM • Key Benefits • Faster, more accurate order processing • Reductions in inventory levels • Quicker times to market • Lower transaction and materials costs • Strategic relationships with supplier
  • 48. Benefits and Challenges of SCM • Key Challenges • Lack of demand planning knowledge, tools, and guidelines • Inaccurate data provided by other information systems • Lack of collaboration among marketing, production, and inventory management • SCM tools are immature, incomplete, and hard to implement
  • 50. 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
  • 51. 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
  • 52. 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
  • 53. 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?