oktober 2004 core course information management ebusiness
TRANSCRIPT
Core Course Information Management2
Break-out sessie
Opdracht
• Beantwoord de vraag;
Welke eBusiness activiteit is het afgelopen (1 a2) jaar opgezet binnen jullie organisatie die heeft geleid tot substantieel anders zaken doen. Of aan de verkoopkant (opbrengsten) of aan de interne dan wel leverancierskant (kosten, besparingen)?
• Groepjes van 3 personen; 1 bedrijf ontleden.
• 15 min.
• 10 min. evaluatie
Core Course Information Management3
The issues today
• Know your customers
• Share your customers’ requirements throughout the value chain
• Collaborate with the partners in your extended enterprise
• Build a transparent enterprise for your employees
• Maintain an information system that evolves with you business processes
Core Course Information Management4
eBusiness today
• Internet technologies have been accepted –
is “e” still an important issue today?
• Enabler to reach new markets; customer
centric innovations; loyalty; reduce friction
cost; increase shareholder value
• Increased focus on ROI and “time-to-money”
• Shorter time-to-market
• New intermediation
• Need for community partnerships
• eCommerce failures? mCommerce disillusion?
Collaborative Business “en vogue”? U-Commerce?
The network as a commodity?
• SOAP – UDDI – XML / new standards, web services
Creation of new and Redefinition of existing Communities ...
Core Course Information Management5
Our Positioning
T R A N S F O R M I N G E N T R E P R I S E S I N
e C O M M U N I T I E S
Core Course Information Management6
A Solution Framework / Architecture
P o r t a l
Business Process Hub
C R
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Ente
rpris
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tions
Busin
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Inte
lligen
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Supp
ly Ch
ain
Mgt
. Sales Tracking
OrderManagement
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning &Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
Core Course Information Management11
Entreprise Intelligence
How can I best benefit from the Internet? Knowledge is the competitive issue I need information (KPI’s) not data Who are my partners in this new strategy How about my channel strategy?
Core Course Information Management12
Do you ask yourself ...
• We have the feeling that our business position is in danger because of e-business developments around us (business management)
• We are convinced that e-business can leverage our overall business, but do not know how to get this clear (business management)
• We are convinced that the recent capabilities of ICT can create new business opportunities, but do not know how to get this to the senior business management (IT-department)
• We have integrated our internal ICT systems and are looking for the next step (IT-department)
Core Course Information Management13
Do you have these issues?
• We have a huge amount of e-projects running, but– No one seems to be able to help us get this in control
– No one seems to be able to tell us what to do with it or provide us with unsatisfactory answers
– These projects do not seem to have any shared goal
– They cost a huge amount of money and time
– Their goals and objectives are unclear or it’s unclear how these goals contribute to the business goals
– The IT department is getting crazy because of the divergent, uncoordinated and conflicting requirements
– We need to prioritize resources but we do not know how
Core Course Information Management14
Are you just adding smart software, or are you building a competitive vision ?
The Inter-Networked Business
The Extended Enterprise
The Integrated Enterprise
The High Performance Team
The Effective Individual
1980 2010
Enabling Technology
‘The Net’
Chain Mnmgt
ERP
WFM
PC-Tools
Change
Value creation
External
relationships
Organizational
Transformation
BPR
Performance
improvement
Source: The digital economy by Don Tapscott
Core Course Information Management15
ContractorsContractors CompanyCompany CustomersCustomers
ComplementorsComplementors
CompetitorsCompetitors
Community
The Art of Doing eBusiness is the Art of Managing your Relationships Digitally
The 6C Network Model
Core Course Information Management16
Are You Sure Your eRelationship Focus Is Right?
Product innovationProduct innovation
OperationalexcellenceOperationalexcellence
CustomerintimacyCustomerintimacy
Source: Treacy & Wiersema, 1996 The discipline of market leaders
ContractorsContractors CompanyCompany CustomersCustomers
ComplementorsComplementors
CompetitorsCompetitors
ContractorsContractors CompanyCompany CustomersCustomers
ComplementorsComplementors
CompetitorsCompetitors
ContractorsContractors CompanyCompany CustomersCustomers
ComplementorsComplementors
CompetitorsCompetitors
Core Course Information Management17
Are you implementing the right eActions?
Price FightingMass MarketPrice FightingMass Market
OperationalExcellence
Low Price, Low CostStandard Products
One-way Media
Low Price, Low CostStandard Products
One-way Media
EfficiencyProduce & Sell
EfficiencyProduce & Sell
HierarchyNo Overhead
HierarchyNo Overhead
Budget ManagersLoyal Execution
Budget ManagersLoyal Execution
eSupply Chain MgteProcurement
Data: ERP Financials
eSupply Chain MgteProcurement
Data: ERP Financials
Added ValueSegmented Market
Added ValueSegmented Market
ProductInnovation
Being FirstHigh value products
Two-way Media
Being FirstHigh value products
Two-way Media
R&DInnovate & Sell
R&DInnovate & Sell
Free BrainsStrong Back-office
Free BrainsStrong Back-office
DevelopersDevelopers
eWorkforce
Data: Product
eWorkforce
Data: Product
CustomizationIndividualized Market
CustomizationIndividualized Market
CustomerIntimacy
Service&InteractionModular Products
1:1 Media
Service&InteractionModular Products
1:1 Media
Quality ManagementSense & Respond
Quality ManagementSense & Respond
Flat & FlexibleStrong Front-office
Flat & FlexibleStrong Front-office
CommunicatorsCommunicators
eCRM
Data: Customer
eCRM
Data: Customer
C C
C
C
C
Context
Strategy
Process
Structure
People
ICT
Core Course Information Management18
eStrategy Service Structure
Standard process:
Initiation Phase
eAssessment Phase
eStrategy Development Phase
Road mapping Phase
Completion Phase
Week 1 Week 2 Week 3
Action by Supplier Action by client
eStrategyDevelopment
Phase
eStrategyDevelopment
PhaseeAssessment
Phase
eAssessmentPhase
2. 3.
CompletionPhase
CompletionPhase
RoadMapping
Phase
RoadMapping
Phase
4. 5.
InitiationPhase
InitiationPhase
1.
Core Course Information Management19
Enterprise Solutions
Business Process HubC
R M
Ente
rpris
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tions
Busin
ess
Inte
lligen
ce
Supp
ly Ch
ain
Mgt
. Sales Tracking
OrderMgt.
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning&Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
P o r t a l
eStrategy eInnovation eTransformation eSolutions Business Intelligence
Core Course Information Management20
Customer
How should I approach my customers? What are communication channels ? How can I increase customer loyalty ? How to increase market share ? How to cross- and up-sell?
Core Course Information Management21
What is CRM?
Definition CRM (source: Gartner):
A business strategy that maximizes profitability, revenue and customer satisfaction by:
•Organizing around customer segments
•Fostering behavior that satisfies customers
•Implementing customer-centric processes
Core Course Information Management22
CRM moves towards Customer Centric
Focus of the organization
Transaction oriented Relation oriented
Low
High
Dependency on Information Technology
ERP
CRM
eCRM
ProductOrientation
ProductOrientation
MarketOrientation
MarketOrientation
CustomerOrientation
CustomerOrientation
NetworkOrientation
NetworkOrientation
Core Course Information Management23
CRM General Business Issues (1)
More demanding customersCustomers want to be treated well. They want to be served at one single point of contact not handed over from department to department. They want consistent high quality and they want fast responses.
Fiercer competitionCompetition is just one click away. Gross and net margin are under pressure. Customer churn is a serious threat.
GlobalizationCorporations operate on a global scale to find ways to obtain sustained growth. This implies even more competitors.
New EconomyInternet provides new opportunities for approaching customers.
Customer orientationOrganizations shift more and more from a product or market view to a customer view.
Mass customizationMarkets change fast. There is a high pace of technological change. A short time to market is required. Internet allows one-on-one customization even when there are ten million customers.
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70 %
20 %
10 %
15 %
25 %
60 %
45 %
35 %
20 %
Profitability Number of customers
Turnover
Market Share vs. Share of Wallet
• All customers are not equal
• The target of CRM is to keep and develop the business achieved with the best customers
Core Course Information Management25
CRM Benefits & Costs (1)
• Quick Wins– efficient work– opportunity management
• Increase of revenue– more sales to existing customers, more new customers, lower
customer churn– richer product / customer mix
• Higher transaction efficiency– more efficient customer contact– direct mail– lower advertising costs– effective sales support– shorter CRM cycle. Less interactions => lower costs, earlier profits
• “Soft” benefits– employee motivation– faster roll-out of organizational changes
Core Course Information Management26
1. Capture of customer contacts
@2. Analysis : OLAP, analytical application datamining, segmentation > customer capital
e-crme-crmBusiness Business intelligenceintelligence
5. Multi channel distribution
4. Communication personnalisation
6. InteractionCustomer oriented
Data warehouse
3. Marketing strategy
The CRM Cycle
Core Course Information Management27
Customer Management proces
The focus of Customer Relationship Management is:
optimising customer management
InteractInteract
DefineDefine
AnalyseAnalyse
CustomerCustomerManagementManagementCollectCollect
by improving the Customer Interaction Process
Core Course Information Management28
CRM activities
InteractInteract
DefineDefine
AnalyseAnalyse
CustomerCustomerManagementManagementCollectCollect
CustomerInteraction
Online processing
TriggerCustomer
Back officeprocessing
Data WarehouseCRM data marts
Data Sources
Marketing, salesand channelmanagement
Supportingproduct
information
Forecasting,planning, simulationmonitoring, control
Product development
Businessgoals
Channel
OrganiseSegment
Feedback
Core Course Information Management30
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management32
Customer Chain: an end to end CRM implementation approach
Operating ManagementNew
action
Data MiningLog analysis / Click Stream
Scores
Customer Value Marketing
studies
Business Plan
Strategic Marketing Positioning
Potential analysis and feasibility study
Enhance
Results
Adjust
Marketing Acquisition
QualificationCustomer
relation action
CRM vendor selection
Campaign Mgt system
Campaign Management
Pilot / Roll-out
Information systems
Data Flows
ProcessingAdministration
and security
Data Management
Core Course Information Management34
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management35
Startup & Planning
Change charter
Start-up workshop
Planning of:• change mgt,• training,• communication
Impact Determination
Risk scan
Fit/gap analyse
Key-user startup
Projectteam training
Development
Role mapping
Awarenesscommunication
Training preparation
Training development
On-line help development
Roll-Out
Train the trainer
End user training
End user impact communication
Support
On the job support
Helpdesk
Post-go live training
Post-go live communication
CRM Transition support, Communication & Training
Core Course Information Management36
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management37
Customer Interaction Centers - Principles
CICB2C
Clients
B2BClients
MarketingSalesAfter-salesNetwork
Information
Assistance
Customer service
Value added services
Telemarketing
Telesales and payment
Point of Sales Network
Back-office
Web Server
Call centre
ERP/Legacy System Datawarehouse
Core Course Information Management38
• New Interaction channels appear– Face to face, telephone, white mail, fax, minitel,
– Web self-care, co-browsing, e-mail, chat, VoIP, WAP, SMS, Interactive Television...
• The customer knowledge has to be shared– Consistency of actions across the channels,
– CRM’ life time value & real-time 1to1 marketing
CIC’s must be integrated within the whole Customer Value Chain
– Applications must communicate with each other...
– ...and be open for tomorrow’s channels
Challenges & Opportunities
Core Course Information Management39
Customer Interaction Centers
• Solutions– Telephony: Lucent, Alcatel, Nortel
– Middleware / CTI: Genesys, Cisco/Geotel
– Contact management: Siebel, Clarify, Coheris Conso +, Hermes pro
In the cross-channel evolution, the customer interaction center (CIC) becomes an increasingly important touchpoint in the customer relationship and the processes in place in the CIC need to ensure that multi-channel customers can be managed through the contact center profitably.
Core Course Information Management40
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management41
Sales Force Automation
• Context– In a highly competitive environment, sales forces need extended
applications to support their negotiations – Detailed and configurable reporting information must be accessible anytime
anywhere
• Solutions– Siebel, Oracle, Saratoga, Access
Core Course Information Management42
Loyalty schemes
• Context– As market environments are increasingly competitive, loyalty schemes are
used by companies to retain their customer– As a reliable source of customer information, it is a man component of a
CRM scheme
• Solutions– Oracle, 404 Found!, Poseidon CLS
"There's a very direct link between employee loyalty and customer loyalty," says Marc Drizin, Walker Information VP and loyalty specialist. "Happy employees lead to happy customers and, often, increased revenue."
Core Course Information Management43
Data flow Processing
• Context– Customer information is increasing as new channels appear – It becomes more and more complex for companies to manage their
information exchanges
Core Course Information Management44
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management45
Databases / Datawarehouse
• Context– New interaction channels increase the volume of customer information
collected
– For analysis purposes, customer data must be gathered in a central place and in a consistent way
• Solutions– NCR Teradata, Oracle, SAP
"Information should be considered part of the IT portfolio, and data quality solutions should be seen as a means to increase the value of that portfolio, in addition to reducing business risk and identifying business opportunity," says Doug Laney, vice president and director with Meta Group's Technology Research Services.
Core Course Information Management46
Campaign Management
• Context– Using new channels, companies are increasingly communicating
directly to their customers and prospects
– They need solutions to manage their campaigns and measure their efficiency and ROI
• Solutions– Prime@Vantage, AIMS, Marketic One, Oracle, e.piphany
Core Course Information Management47
Reporting - Geomarketing
• Context– Reporting information on customer activities is used by marketing
divisions to follow their actions and estimate their ROI
– This must be completed with geographic indicators
• Solutions– Business Objects, Microstrategy, ESRI, Oracle, SAP
Core Course Information Management48
Datamining
• Context– Profiling and segmentation require to analyze huge volume of data
from different sources
– Mathematical models and algorithms must be created and used, requiring specific skills
• Solutions– SAS, SPSS
"The Peppers and Rogers Viewpoint: Managing Customer Assets Through Analytics" Many companies fail to maximize the ROI of their CRM investments because they focus on operational initiatives without investing enough effort to develop a solid, quantitative understanding of customers' actual differences.
Core Course Information Management49
A few aspects of CRM
ConsultingConsulting
Customer Interaction CentersCustomer Interaction Centers
Operational CRMOperational CRM
Customer PortalsCustomer Portals
CRM ImplementationCRM Implementation
Analytical CRMAnalytical CRM
Core Course Information Management50
Context
• More and more internet users..– ..accessing bigger databases
• Web sites are becoming more complex– New interaction channels appear beside the Internet: Wap, 3G
phones, IVRs, interactive TV, PDAs...
– As web sites offer more services, it requires more interaction with back-office systems (ERPs, Datawarhouses, Call centers..)
• Solutions have to be modular, scalable and open to new channels
Core Course Information Management51
The Right Approach…
5-Operation
6-Corrective and Evolutive
Maintenance 1-Consultancy
2-Analysis andDesign
3-Development4-Integration
The right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitment
Core Course Information Management52
Customer Portals
• An end to end capability:– Complete management, from consulting to hosting - maintenance– Or a step by step approach:
• Consulting and vendor selection• Software integration• Hosting
• Solutions– BEA, Vignette, IBM Webshpere, Intershop, Broadvision, SAP, Oracle..
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Customer Solutions
Business Process HubC
R M
Ente
rpris
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Busin
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Inte
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Supp
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Mgt
. Sales Tracking
OrderMgt.
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning&Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
P o r t a l
CRM Solutions Implementation CCC Customer Chain for Loyalty Database Marketing Commercial Channel
Performance Oil&Gas Cards Electronic Invoicing Datawarehouse Geomarketing SVI CRM Outbound Customer Contacts eTrading&eBanking
Core Course Information Management54
Supplier
How to share the vision and the needs of the final customer?
How to reduce manufacturing lead time and supply
How to increase delivery efficiency andservice quality
How to collaborate with partners?
Core Course Information Management55
Optional bill payment
Approval cycle
Order sent to supplier
Supplier
Optional interface to AP systems
Route to recipient
Requisition
Item selection / create requisition
Internet Procurement
eProcurement – Simply, using the internet to manage your Procurement process
Core Course Information Management56
Scope
Scope
•Identify business opportunity hypotheses
•Review current procurement practices
•User requirements definition; outline solution specification;
•Commodity map; Category eProcurability;
•Organizational implications; eProcurement strategy;
•Existing technology readiness audit
•Business readiness audit
•Organizational readiness;
•Total cost model (including integration); Platform recommendation
•Initial ROI & Business Case
•Identify new venture options & strategy
• eBusiness vision & Strategy
• Processes• Technology• Sourcing• People • and organisation
Quick Scope
• Business benefits• ROI modeling
Business Value
• Pre-qualify suppliers• Invite proposals• Commercial & technical
appraisal• Negotiation campaign• Input costs to ROI
Select Platform
The Scope phase lays the foundation for a successful project
Core Course Information Management57
Understanding eProc Requirements
Understanding eProc Requirements
Package Functionality Comparison
Package Functionality Comparison
Strategy for eProcurementStrategy for
eProcurement
Savings / ROI ModelSavings / ROI Model
Operational Economic Model
Operational Economic Model
Supplier Engagement
Supplier Engagement
Vendor Catalogue Management
Vendor Catalogue Management
..which can be delivered through modular workshops
Core Course Information Management58
Supplier Solutions
Business Process HubC
R M
Ente
rpris
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tions
Busin
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Inte
lligen
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Supp
ly Ch
ain
Mgt
. Sales Tracking
OrderMgt.
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning&Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
P o r t a l
eProcurement Business Process Hub
Core Course Information Management59
Workforce
How to communicate the right information at the right time?
How to make the enterprise more transparent to employees?
How to benefit from individual intelligence on entreprise level?
How to increase Human Resources availability and efficiency
Core Course Information Management60
What is eWorkplace?
• Internal, employee-focused, applications
– Travel & Expense Management
– Human Resources Self Service (benefits, compensation)
– Time Sheet Completion/Approval
– Internal Procurement
– Knowledge Management
Core Course Information Management61
Why eWorkplace?
eWorkplace leverages Web-based technology for direct, bottom-line impact– Reduced operating and transaction costs
– Reduced re-working
– Eliminates re-keying of data
– Workflow can be managed
– Improved, flexible reporting
– Reduced rogue expenditures
– Integration with back office systems
– Increased negotiating power
– Improved supplier management
Core Course Information Management62
Why eWorkplace?
Visible Agent of Change:– Common workplace
– Single point of reference and communication
– Compliance with business rules
– Improved Manager/Employee workflow visibility
– Rapid deployment across the corporate intranet
– Helps reduce the paper burden on Employees ….
… thereby increasing time spent on productive work
Core Course Information Management63
eWorkplace Vision
• Efficient and effective Front Office which empowers the employee
• Linked to Back Office system(s) which empowers the company
• Speedy, agile, flexible, responsive … and cohesive
• Increase in customer and employee satisfaction and therefore shareholder value
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Key Benefits Summary
• Reduce transaction costs = Quick Return on Investment
• Increase expenditure controls and reporting capabilities
• Employee self-management and empowerment
• Adhere to company processes and practices
Core Course Information Management65
Business Benefit ManagementBusiness Benefit Management
Pro
cess Evo
lutio
n
Back O
ffice Integ
ration
Ed
ucatio
n &
Su
pp
ort
Kn
ow
ledg
e Mg
mt
En
gag
emen
t
Co
nten
t Mg
mt
Ben
efit Measu
remen
t
COMPLETE SOLUTION
60% of spend in the e.biz revolution will beon change management & related aspects
More than 75% of IT projects fail to deliver their expected business benefit
eWorkplace is more than just IT tools..
"There's a very direct link between employee loyalty and customer loyalty," says Marc Drizin, Walker Information VP and loyalty specialist. "Happy employees lead to happy customers and, often, increased revenue."
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Defining the Process
Managingthe
Individuals
Providing the Technology
BenefitsManagement
Process Mappingand Analysis
Managing resistanceto Change
CommunicationStrategy and Plan
Business Impact
Analysis
KPI setting
Systems Development/Customisation
IT, Processes and People must be in Alignment
Maximising the Benefits
Core Course Information Management67
Workforce Solutions
Business Process HubC
R M
Ente
rpris
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tions
Busin
ess
Inte
lligen
ce
Supp
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ain
Mgt
. Sales Tracking
OrderMgt.
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning&Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
P o r t a l
Intranet eLearning
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Enabling Infrastructure
How to have an upgradable information system available?
How to quickly integrate new eBusiness applications and change?
How to open, without security risks, our systems to customers and partners?
Core Course Information Management69
Infrastructure Solutions
C R
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Ente
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Busin
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Inte
lligen
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Supp
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Mgt
. Sales Tracking
OrderMgt.
MarketingCampaign
CustomerService
Strategy
Finance
HRM
Planning&Production
Learn
Develop
Collaborate
Analytics
Design
Forecast &Planning
Execution
Suppliers
Workforce
Customers
Enterprise
P o r t a l
EAI and B2B Integration Total Business Integration Web Hosting Outsourcing of Messaging Mediacert Internet Payments Virtual ID Universal Directory Services WCM Portals SMS EF3
Business Process Hub