chapter 8 enterprise business systems slide 1 well, sort-of

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8 Enterprise Business SystemsEnterprise Business SystemsEnterprise Business SystemsEnterprise Business Systems

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Good Question!!

What are enterprise business systems?What are enterprise business systems?

The term Enterprise Content Management (ECM) refers to the technologies used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM tools & strategies allow the management of an organization's unstructured information, wherever that information exists.

So is that what we will be studying?So is that what we will be studying? Not really. We will look at:

Customer Relationship Management (CRM)

Enterprise Resource Planning (ERP)

Supply Chain Management (SCM)

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What is Customer Relationship Management What is Customer Relationship Management (CRM)?(CRM)? 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 company’s customers

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What is Customer Relationship Management What is Customer Relationship Management (CRM)?(CRM)?

• 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

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• 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

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• Retention and Loyalty Programs: help a company identify, reward, and market to their most loyal and profitable customers

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• Retention and Loyalty Programs: Consider the following:

It costs six times more to sell to a new customer than to sell to an existing customer

A dissatisfied customer will tell 8 – 10 people about their unpleasant experience

A company can boost profits 85% by increasing annual customer retention by 5%

The odds of selling a product to a new customer are 15%; the odds of selling a product to an existing customer are 50%

70% of complaining customers will do business with the company again if it quickly takes care of a service problem

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What are the phases of CRM?What are the phases of CRM?

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What are the phases of CRM?What are the phases of CRM?

• Acquire new customers by doing a superior job of contact man-agement, sales prospecting, selling, direct marketing, and fulfillment

Direct Marketing Targeted Marketing Interactive Marketing Promotions

• Enhance relationship with customer by supporting superior service from a responsive networked team of sales and service specialists and business partners Cross/Up-Sell Improved customer support

• Retain and expand business with customers by proactively identifying and rewarding the most loyal and profitable customers

Proactive Services

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What are the benefits of CRM?What are the 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.

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

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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.

Why do CRMs Fail?Why do CRMs Fail?

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What are the trends in CRM?What are the trends in CRM? Operational CRM:

Support convenient customer interaction through a variety of media, including phone, fax, e-mail, chat, cell phone

Synchronize customer interactions across all media Make your company easier to do business with

Analytical CRM: Extract in-depth customer history, preferences and profitability

information from various databases Encourage analysis, prediction and definition of customer

values, behaviors and demands

Approach customers with relevant information and offer products and services tailored to their needs

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What are the trends in CRM?What are the trends in CRM? Collaborative CRM:

Enable easy collaboration with customers, suppliers and partners

Improve efficiency and integration through the supply chain Improve responsiveness to customer needs through sourcing

of products and services outside your enterprise Portal-based CRM:

Provide users with tools and information that fit their individual roles and preferences

Empower employees to respond to customer demands ,ore quickly and become customer-focused

Provide instant access and linkage and use all internal and external customer information

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What is Partner Relationship Management What is Partner Relationship Management (PRM)?(PRM)?

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

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What is Enterprise Resource Planning What is Enterprise Resource Planning (ERP)?(ERP)?

A cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company

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What ERP Process & Information Flows are What ERP Process & Information Flows are needed?needed?

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What are the benefits of ERP?What are the benefits of ERP?• Quality and Efficiency: ERP creates a framework for integrating

and improving a company’s 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

• 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

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What are the costs of ERP?What are the costs of ERP?

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What are the trends in ERP?What are the trends in ERP?

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Why do ERPs fail?Why do ERPs fail?

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

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What is Supply Chain Management (SCM)?What is Supply Chain Management (SCM)? A cross-functional inter-enterprise system

that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners

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What are the objectives of SCM?What are the objectives of SCM?

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What is the role of SCM?What is the role of SCM?

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What does a SCM do?What does a SCM do?• 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

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What does a SCM do?What does a SCM do?• 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

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What does a SCM do?What does a SCM do?• Supply Chain Performance Management: report key

measurements in the supply chain, such as filling rates, order cycle times, and capacity utilization

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What are the trends in SCM?What are the trends in SCM?

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What are the benefits of SCM?What are the benefits of SCM? Faster, more accurate order processing.

Reductions in inventory levels.

Quicker times to market.

Lower transaction and material costs.

Strategic relationship with suppliers.

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Why do SCMs fail?Why do SCMs fail? Lack of proper demand planning knowledge, tools and

guidelines Inaccurate or overoptimistic demand forecasts

Inaccurate production, inventory and other business data provided by a company’s 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

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What is Electronic Data Interchange (EDI)?What is Electronic Data Interchange (EDI)?

The electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners

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What is it, really???What is it, really??? A set of standards for structuring

information to be electronically exchanged between and within businesses, organizations, government entities and other groups

The standards describe structures that emulate documents, for example purchase orders to automate purchasing.

The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents.

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What activities are involved?What activities are involved?

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Are there any Questions???Are there any Questions???

chapter 8 enterprise business systems slide 1 well, sort-of

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