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Enterprise e-Business Systems
6 Enterprise e-Business Systems
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6 Learning Objectives 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
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6 Section I Customer Relationship Management: The Business Focus
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Customer Relationship Management
6 Customer Relationship Management Provides customer-facing employees with a single, complete view of every customer at every touch point and across all channels Provides the customer with a single, complete view of the company and its extended channels
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Customer Relationship Management (continued)
6 CRM.. Integrates and automates many of the customer serving processes Creates an IT framework of Web-enabled software & databases that integrates these processes with the rest of the company’s business operations
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Customer Relationship Management (continued)
6 Includes software modules that provide tools that enable a business & its employees to provide fast, convenient, dependable, consistent service.
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Major Application Components
Customer Relationship Management (continued) 6 Major Application Components Contact & Account Management Helps capture and track relevant data about past and planned contacts with prospects & customers.
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Customer Relationship Management (continued)
6 Sales Provides sales reps with software tools & company data needed to support & manage their sales activities. Helps optimize cross-selling & up-selling
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6 Marketing & Fulfillment
Customer Relationship Management (continued) 6 Marketing & Fulfillment Helps accomplish direct marketing campaigns by automating tasks Helps capture & manage prospect & customer response data Helps in fulfillment by quickly scheduling sales contacts & providing appropriate information on products & services to them
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6 Customer Service and Support
Customer Relationship Management (continued) 6 Customer Service and Support Provides software tools & real-time access to the common customer database Helps create, assign, & manage requests for service from customers Call center software Help desk software
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Retention and Loyalty Programs
Customer Relationship Management (continued) 6 Retention and Loyalty Programs Helps the company identify, reward, and market to their most loyal and profitable customers
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Customer Relationship Management (continued)
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6 Three Phases of CRM Acquire (new customers)
Customer Relationship Management (continued) 6 Three Phases of CRM Acquire (new customers) By doing a superior job of contact management, sales prospecting, selling, direct marketing, & fulfillment.
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6 Enhance (customer satisfaction) Retain (your customers)
Customer Relationship Management (continued) 6 Enhance (customer satisfaction) By supporting superior service from a responsive networked team of sales and service specialists. Retain (your customers) Help identify and reward your most loyal, profitable customers.
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Benefits and Challenges
Customer Relationship Management (continued) 6 Benefits and Challenges Allows a business to identify its best customers Makes possible real-time customization & personalization of products & services based on customer wants, needs, buying habits, & life cycles
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6 Benefits and Challenges (continued) Failures
Customer Relationship Management (continued) 6 Benefits and Challenges (continued) Enables a company to provide a consistent customer service experience Failures Due to lack of understanding & preparation. CRM is not a silver bullet
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6 Trends Operational CRM Analytical CRM Collaborative CRM
Customer Relationship Management (continued) 6 Trends Operational CRM Analytical CRM Collaborative CRM Portal-based CRM
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Enterprise Resource Planning: The Business Backbone
Orasa T. 6 Section II Enterprise Resource Planning: The Business Backbone
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Enterprise Resource Planning
6 Enterprise Resource Planning Serves as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems Helps companies gain the efficiency, agility, & responsiveness needed to succeed today
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Enterprise Resource Planning (continued)
6 Gives a company an integrated real-time view of its core business processes ERP software suites typically consist of integrated modules of… Manufacturing Distribution Sales Accounting Human Resource Management
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Enterprise Resource Planning (continued)
6 Benefits and Challenges Quality and efficiency Helps improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processes Decreased Costs Reductions in transaction processing costs and hardware, software, and IT support staff
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Enterprise Resource Planning (continued)
6 Decision support Provides cross-functional information on business performance to assist managers in making better decisions Enterprise agility Results in more flexible organizational structures, managerial responsibilities, and work roles
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Enterprise Resource Planning (continued)
6 Costs of ERP The costs and risks of failure in implementing a new ERP system are substantial.
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Enterprise Resource Planning (continued)
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Enterprise Resource Planning (continued)
6 Causes of ERP failures Underestimating the complexity of the planning, development, and training required Failure to involve affected employees in the planning & development phases and change management programs
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Enterprise Resource Planning (continued)
6 Trying to do too much, too fast Insufficient training Believing everything the software vendors and/or consultants say
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Enterprise Resource Planning (continued)
6 Trends Flexible ERP Web-enabled ERP Interenterprise ERP E-Business Suites
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Supply Chain Management: The Business Network
Section III 6 Supply Chain Management: The Business Network
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Supply Chain Management
6 Supply Chain Management A cross-functional interenterprise system that uses IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners. Goal is to create a fast, efficient, & low-cost network of business relationships.
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Supply Chain Management (continued)
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Supply Chain Management (continued)
6 Electronic data interchange Exchanging business transaction documents over the Internet & other networks between supply chain trading partners
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Supply Chain Management (continued)
6 The Role of SCM
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Supply Chain Management (continued)
6 Benefits and Challenges Can provide faster, more accurate order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliers
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Supply Chain Management (continued)
6 Problem causes Lack of proper demand planning knowledge, tools, and guidelines Inaccurate or overoptimistic demand forecasts Inaccurate production, inventory, and other business data Lack of adequate collaboration
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Supply Chain Management (continued)
6 Trends
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Discussion Questions 6 Should a company become a customer-focused business? Why would systems that enhance a company’s relationships with customers have such a high rate of failure?
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Discussion Questions (continued)
6 How could some of the spectacular failures of ERP systems have been avoided? Should companies continue to use EDI systems?
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Discussion Questions (continued)
6 How can the problem of overenthusiastic demand forecasts in supply chain planning be avoided? What challenges do you see for a company that wants to implement collaborative SCM systems?
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Discussion Questions (continued)
6 Should companies install e-business software suites or “best of breed” e-business software components?
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References 6 James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004
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