e-business systems chapter 7 lecture-9/ t. nouf almujally 1
TRANSCRIPT
e-Business Systems
CHAPTER 7
Lecture-9/ T. Nouf Almujally
1
Outline
Section 1 (Enterprise Business Systems):• Cross-Functional Enterprise Applications• Getting All the Geese Lined Up: Managing at the Enterprise
Level• Customer Relationship Management: The Business Focus.• What is CRM?• The Three Phases of CRM• Benefits and Challenges of CRM (not required)
• CRM Failures (not required)• Enterprise Recourse Planning: The Business Backbone• What is ERP?• Benefits and Challenges of ERP
• Causes of ERP Failures (not required)
Outline
Section 1 (Enterprise Business Systems):• Supply Chain Management: The Business Network.• What is CRM?
• Electronic Data Interchange (not required)• The Role of SCM (not required)
• Benefits and Challenges of SCM (not required)• Enterprise Application Integration• Transaction Processing Systems.• Enterprise Collaboration Systems
Section 2:• Functional Business Systems summarized in Figure 7.24
(required only)
Learning Objectives
• Identify these cross-functional enterprise systems, and give examples of how they can provide business value to a company• Enterprise Resource planning• Customer Relationship Management• Supply chain management• Enterprise application integration• Transaction processing systems• Enterprise collaboration systems
Enterprise Business Systems
E-businessUsing the Internet, other networks, and IT to
support…
Electronic commerce
Enterprise communicationsand collaboration
Web-enabled business processes
E-commerce Buying, selling, and marketing of products, services, and information over the Internet and other networks
Both within a networked enterprise and with its customers and business partners.
Cross-Functional Enterprise Applications
• Business firms are using Internet technologies to help them reengineer and integrate the flow of information among their internal business processes and their customers and suppliers.
• Companies all across the globe are using the WWW and their intranets and extranets as a technology platforms for their cross-functional and interenterprise information systems.
Cross-Functional Enterprise Applications
• Companies today are using IT to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions to reengineer and improve business processes all across the enterprise.• To share information resources and improve
the efficiency and effectiveness of business processes.
• To develop strategic relationships with customers, suppliers, and business partners.
Enterprise Application Architecture
Major e-business cross-functional enterprise applications and their interrelationships are summarized in this architecture:
Internal production, distribution, ……. financial processes.
Acquiring and retaining profitable customers via marketing, sales, …..services.
Developing sourcing and procurement processes
Enterprise Application Architecture
• These applications include integrated cross-functional enterprise systems such as:
• Enterprise resource planning (ERP).• Customer relationship management (CRM)• Supply chain management (SCM).
• Focuses on accomplishing fundamental business processes in concert with:• Customers• Suppliers• Partners• Employees
Managing at the Enterprise Level
• Getting the whole business to fly in the same direction, as efficiently as possible:• Customer relationships• Back-office operations• Movement of raw materials & finished goods
Customer Relationship Management - CRM
The Business Focus
Customer Relationship Management
• A customer-centric focus• Customer relationships are a company’s most
valued asset.• Every company should find and retain the
most profitable customers possible.
What is CRM?
Managing the full range of the customer relationship involves two related objectives:
Managing the full range of the customer relationship involves two related objectives:
(2 )Providing the customer with a single, complete view of the company and
its extended channels
(1 )Providing customer-facing employees with a single, complete view of every customer,at every touch point, across all channels
What is CRM?
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 company's customers.
• Create an IT framework of Web-enabled software and databases that integrates these processes with the rest of a company’s business operations.
• Siebel Systems, Oracle, SAP AG, IBM are some of the leading vendors of CRM software.
Application Components of a CRM System
• CRM systems include a family of software modules that provides the tools that enable a business and its employees to provide fast, dependable, and consistent service to its customers.
1- Contact and Account Management
• CRM SW helps sales, marketing, and service professionals capture and track relevant data about:
• Every past and planned contact with customers.• Other customer business & life-cycle events.
• Data are captured through:• Telephone, fax, e-mail, Websites, Retail stores, personal
contact.
• CRM SW store the data in a common customer DB that integrates all customers account information and makes it available throughout the company via the Internet, intranet for sales, marketing, services and other CRM applications.
2- Sales
• A CRM system provides sales representatives with the SW tools and data resources they need to:• Support and manage sales activities.• Optimize cross- and up-selling.
• CRM also provides access enabling sales representatives to check on a customer’s account status and history before scheduling their sales calls.
3- Marketing and Fulfillment
CRM systems help marketing professionals accomplishmarketing campaigns by automating tasks
Qualifying leads for targeted marketing
Scheduling and tracking marketing mailings
Capturing and managing responses
Analyzing the business value of a campaign
Fulfilling responses & requests by quickly scheduling sales contracts & provide info about products
4- Customer Service and Support
• CRM system provide service representatives with SW tools and access to the customer DB shared by sales and marketing professionals.
• CRM helps customer service managers create, assign and manage customers’ requests for service.
• Call center software.
• Help desk software.
• Web-based self-service.
5- Retention and Loyalty Programs
Increasing customer
retention by 5% can increase
company profits 85%
It costs 6 times more to sell to
a new customer than
to sell to an existing one
An unhappy customer will
tell 8-10 others about his
experience
70% of complaining customers will do business with the
company again if it quickly fixes a
problem
5- Retention and Loyalty Programs
• Enhancing and optimizing customer retention and loyalty is a major business strategy and primary objective of CRM.
• CRM system help a company to Identify, reward, and market to their most loyal and profitable customers.
5- Retention and Loyalty Programs
CRM analytical software includes data mining tools
and other analytical marketing software.
CRM databases may consist of a
customer data warehouse and
data marts.
+ =
Used to identify profitable and
loyal customers
direct marketing programs
toward them
Three Phases of CRM
• All CRM application components aimed at helping a company acquire, enhance, and retain profitable relationships with its customers as a primary business goal.
Enterprise Resource Planning - ERP
The Business Backbone
What is ERP?
Enterprise resource planning:• is a cross-functional enterprise system that
integrates and automates many of the internal business processes and information systems of a company, particularly those within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business.
• Now, ERP serves as the vital backbone information system of the enterprise, helping a company achieve the efficiency, agility, and responsiveness required to succeed in a dynamic business environment.
What is ERP?
Facilitates business,supplier, and customer
information flows
Facilitates business,supplier, and customer
information flows
Supports basicinternal business
processes
Supports basicinternal business
processes
An integratedsuite of software
modules
An integratedsuite of software
modules
The backbone ofbusiness processesThe backbone of
business processes
A cross-functionalenterprise systemA cross-functionalenterprise system
ERP Application Components
• ERP software consists of integrated modules that give a company a real-time view of its core business processes, such as production, order processing, inventory management and sales tied together by the ERP application software and a common DB.
ERP Application Components
ERP Application Components
• ERP system ..• track business resources (such as cash,
raw materials, production capacity) • and track the status of commitments
made by the business (e.g. customer orders ,purchase orders, employee payroll)
• no matter which department (e.g. manufacturing, purchasing, sales, accounting) has entered the data into the system.
Benefits and Challenges of ERP
ERP Business Benefits
1. Quality & efficiency2. Decreased costs3. Decision support4. Enterprise agility
ERP Costs
1. High risk & cost2. Hardware and
software are a small part of overall project
3. Failure can cripple or kill a business
Costs of Implementing a New ERP
Read from Chapter 7 (Section 1)