Identify and give examples to illustrate the following aspects
of customer relationship management, enterprise resource
management, and supply chain management systems:
Business processes supported
Customer and business value provided
Potential challenges and trends
Learning Objectives
4. Why Study CustomerRelationship Management?
It is easier than ever for customers to comparison shop and,
with a click of the mouse, to switch companies.As a result,
customer relationships have become a companys most valued
asset.
5. Case #1:Implementing CRM Systems
Mitsubishi Motor Sales Goal:
Call center should provide one voice and one set of ears for
the customer
6. Case #1:Implementing CRM Systems
CRM Project Goals:
Choose best-of-breed CRM software components rather than
integrated CRM suites
Implement changes slowly.Must be simple, scalable, and satisfy
need.
7. Case #1:Implementing CRM Systems
CRM Project Challenges:
Keeping 18 vendors heading in the same direction
Dirty data had to be cleansed
8. Case #1:Implementing CRM Systems
What are the key application components of Mitsubishis CRM
system?What is the business purpose of each of them?
What are the benefits to a business and its customers of a CRM
system like Mitsubishis?
9. Case #1:Implementing CRM Systems
Do you approve of Mitsubishis approach to acquiring and
installing its CRM system?Why or why not?
Why have many CRM systems failed to provide promised benefits
like those generated by Mitsubishis system?
10. Customer Relationship Management (CRM)
Definition:
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 companys customers
11. CRM Application Clusters
12. CRM Application Components
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
13. CRM Application Components
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
14. CRM Application Components
Retention and Loyalty Programs help a company identify, reward,
and market to their most loyal and profitable customers
15. Three Phases of CRM
16. Three Phases of CRM
Acquirenew customers by doing a superior job of contact
management, sales prospecting, selling, direct marketing, and
fulfillment
Enhancerelationship with customer by supporting superior
service from a responsive networked team of sales and service
specialists and business partners
Retainand expand business with customers by proactively
identifying and rewarding the most loyal and profitable
customers
17. 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.
18. Benefits of CRM
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.
19. CRM Failures
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
20. Trends in CRM
Operational
Analytical
Collaborative
Portal-based
21. Operational CRM
Supports customer interaction with greater convenience through
a variety of channels.
Synchronizes customer interactions consistently across all
channels
Makes your company easier to do business with
22. Analytical CRM
Extracts in-depth customer history, preferences, and
profitability information from your data warehouse and other
databases
Allows you to analyze, predict, and derive customer value and
behavior and forecast demand
Lets you approach your customers with relevant information and
offers that are tailored to their needs
23. Collaborative CRM
Enables easy collaboration with customers, suppliers, and
partners
Improves efficiency and integration throughout the supply
chain
Allows greater responsiveness to customer needs through
sourcing of products and services outside of your enterprise
24. Portal-based CRM
Provides all users with the tools and information that fit
their individual roles and preferences
Empowers all employees to respond to customer demands more
quickly and become truly customer-focused
Provides the capability to instantly access, link, and use all
internal and external customer information
25. Partner Relationship Management (PRM)
Definition:
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
26. Case #2:Challenges of Implementing ERP
Enterprise resource planning (ERP) implementations are a lot
more than software packages.They are a fundamental transformation
of a companys business processes.People, processes, policies, the
companys culture are all factors that should be taken into
consideration when implementing a major enterprise system.
27. Case #2:Challenges of Implementing ERP
Reasons for ERP Failures:
Managements inability to spec out their own requirements
Implementers inability to implement specs
Undertake too much too quickly
28. Case #2:Challenges of Implementing ERP
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?Explain the reasons for your proposals.
29. Case #2:Challenges of Implementing ERP
Why do you think ERP systems in particular are often cited as
examples of failures in IT systems development, implementation, or
management?
30. Enterprise Resource Planning (ERP)
Definition:
A cross-functional enterprise system driven by an integrated
suite of software modules that supports the basic internal business
processes of a company
31. ERP Application Components
32. ERP Process & Information Flows
33. ERP Benefits
Quality and Efficiency ERP creates a framework for integrating
and improving a companys 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
34. ERP Benefits
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
35. Costs of ERP
36. Causes of ERP Failures
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
37. Trends in ERP
38. Case #3:Business Value of SCM
Benefits of SCM:
Reduces production and distribution costs
Improves timeliness of shipments
Reduces manufacturer inventory levels
39. Case #3:Business Value of SCM
Challenges of SCM:
Acquisition of secure extranet
Change company structure
Resistance from employees wedded to traditional processes
40. Case #3:Business Value of SCM
How could moving business information systems with suppliers
and distributors to the Web result in such dramatic business
benefits as experienced by TaylorMade Golf?
How does HON Industries new SCM system improve the efficiency
of their supply chain?
41. Case #3:Business Value of SCM
What other SCM initiatives would you recommend that TaylorMade
Golf or HON Industries implement to improve their supply chain
performance and business value?Explain the business value of your
proposals.
What are several ways a small business could use supply chain
management to improve the efficiency and business value of its
supply chain?Give several examples to illustrate your answer.
42. Supply Chain Management (SCM)
Definition:
A cross-functional interenterprise system that uses information
technology to help support and manage the links between some of a
companys key business processes and those of its suppliers,
customers, and business partners
43. SCM Life Cycle
44. Electronic Data Interchange (EDI)
Definition:
Involves the electronic exchange of business transaction
documents over the Internet and other networks between supply chain
trading partners
45. EDI Activities
46. Role of SCM
47. SCM Planning Functions
Supply Chain Design optimize network of suppliers, plants, and
distribution centers
Collaborative Demand and Supply Planning develop an accurate
forecast of customer demand by sharing demand and supply forecasts
instantaneously across multiple tiers
48. SCM Execution Functions
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
49. SCM Execution Functions
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
50. SCM Execution Functions
Supply Chain Performance Management report key measurements in
the supply chain, such as filling rates, order cycle times, and
capacity utilization
51. SCM Objectives
52. SCM Benefits
Faster, more accurate order processing
Reductions in inventory levels
Quicker times to market
Lower transaction and material costs
Strategic relationship with suppliers
53. Causes of SCM Failures
Lack of proper demand planning knowledge, tools and
guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production, inventory and other business data
provided by a companys 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
54. Trends in SCM
55. Case #4:Benefits & Challenges of SCM
Benefits of SCM:
Materials prices reduced
Fewer employees needed to manage supply chain
Order fulfillment time reduced
Increased sales by reducing inventory shortages
Enables new business partnerships
56. Case #4:Benefits & Challenges of SCM
Supplier reluctance:
Cost of hardware and software
Software can be confusing, contradictory and not sculpted to
their needs
Impenetrable technical jargon
57. Case #4:Benefits & Challenges of SCM
Why can both large and small businesses cut costs and increase
revenues by moving their supply chains online?Use the companies in
this case as examples.
What is the business value to Eastman Chemical and W. W.
Grainger of their initiatives to help their suppliers and customers
do business online?
58. Case #4:Benefits & Challenges of SCM
Why are many small suppliers reluctant to do business online
with their large customers?What can be done to encourage small
suppliers online?
59. Case #5:SCM Best Practices
Why is Wal-Marts IT infrastructure a key competitive
advantage?
Wal-Mart invested early and heavily in cutting-edge technology
to identify and track sales on the individual item level.
The company is still pushing the limits of supply chain
management, searching for and supporting better technology that
promises to make its IT infrastructure more efficient.
60. Case #5:SCM Best Practices
The Wal-Mart Example:
Opened sales and inventory databases to suppliers
Implemented a collaborative planning, forecasting, and
replenishment program
JIT inventory program that reduced carrying costs for Wal-Mart
and its suppliers
61. Case #5:SCM Best Practices
Do you agree that Wal-Mart is the best supply chain operator of
all time?Why or why not?
What has Mattel learned from Wal-Mart?How well are they
applying it to their own business?Explain your evaluation.
62. Case #5:SCM Best Practices
What can other businesses learn from the experiences of
Wal-Mart and Mattel that could improve their supply chain
performance?Use an example to illustrate your answer.
63. Summary
Customer relationship management is 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 companys customers.
64. Summary
Enterprise resource planning is a cross-functional enterprise
system that integrates and automates many of the internal business
processes of a company, particularly those within the
manufacturing, logistics, distribution, accounting, finance, and
human resource functions of the business.
65. Summary
Supply chain management is a cross-functional inter-enterprise
system that integrates and automates the network of business
processes and relationships between a company and its suppliers,
customers, distributors, and other business partners.