1. Enterprise e-Business Systems

2. Learning Objectives
Identify the following aspects of customer relationship management (CRM), enterprise resource management (ERP), and supply chain (SCM) mgt systems:
Business processes supported
Customer and business value provided
Potential challenges and trends

3. Customer Relationship Management (CRM): The Business Focus

4. A customer focused business was one of the top business strategies that can be supported by IT.
Thus many Companies are implementing CRM business initiatives and information systems as part of a customer-focused or customer centric strategy to improve their chance for success in today’s competitive environment.

5. Mitsubishi Motor Sales
They realized their business lacked a customer focus and decided to change through a CRM initiative.
CRM project involved acquiring and installing the hardware, software, network and data resources from 18 vendors needed to create and support one central call center system that would provide superior service to all customers, prospects, and other callers.

6. The team of sales, marketing, finance, and IT professionals who directed the project decided to install individual CRM software components using a slow, phased development approach so employees could be properly trained in each new application.

7. The new system has produced increased customer satisfaction, major cost savings, improved employee morals, etc for Mitsubishi management.

8. 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

9. Customer Relationship Management (continued)
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

10. CRM include a family of software modules that provides the tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to its customers.
Siebel systems, Oracle, PeoppleSoft, SAP are some leaders of CRM.

11. Customer Relationship Management (continued)

12. Contact and Accountant Mgt
Information is captured from all customer touchpoints such as telephone, fax, , etc.
CRM systems store the data in a common customer database that integrate all customer account information and makes it available throughout the company via internet, intranet, etc for sales, marketing, service, and other CRM applications.

13. Sales
It provides sales representative with the software tools and company data sources they need to support and manage their sales activities and optimize cross selling and up selling.

14. Marketing and Fulfillment
CRM helps marketing professionals accomplish direct marketing campaigns by automating tasks like qualifying leads for targeted marketing, scheduling and tracking direct marketing mailings.
Then CRM software helps marketing professionals capture and manage prospects and customer response data in CRM database and analyze the customer and business value of a company’s direct marketing campaigns.

15. Customer service and support
It provides service representative with software tools and real time access to the common customer database shared by sales and marketing professionals.
It helps customer service managers create, assign and manage requests for service by customers.

16. Call center software routes calls to customer support agents based on their skills and authority to handle specific kinds of service requests.
Help desk software assists customer service reps in helping customers who are having problems with a product or service by providing relevant service data and suggestions for resolving problems.

17. Retention and Loyalty Programs
It costs 6 times more to sell a new customer than to sell to an existing one.
A typical dissatisfied customer will tell 8 to 10 people about his or her experience.
A company can boost its profits 85% by increasing its annual customer retention by only 5%.
70% of complaining customers will do business with the company again if it quickly takes care of a service.

18. CRM try to help a company identify, reward, and market to their most loyal and profitable customers.
CRM analytical software includes data mining tools and other analytical marketing software while CRM databases may consist of a customer data warehouse and CRM data marts.

19. 3 Phases of relationship between a business and customers

20. Customer Relationship Management (continued)
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

21. Customer Relationship Management (continued)
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

22. Monster. com rolled out a CRM in 1998
Monster.com rolled out a CRM in The company had invested over $1 million in customized software and integrated all its computer systems in an attempt to boost the efficiency of its sales force.
However the new system proved to be so slow that sales people in the field found themselves unable to download customer information from the company database on to their laptops. Every time they tried, their machine froze.
Eventually the company was forced to rebuild the entire system and lost millions of dollars and goodwill of customers and employees.

23. Customer Relationship Management (continued)
Trends
Operational CRM
Analytical CRM
Collaborative CRM
Portal-based CRM

24. Operational CRM
Supports customer interaction with greater convenience through a variety of channels including phone, fax, , chat and mobile.
Synchronize customer interactions consistently across all channels.
Makes your company easier to do business with

25. Analytical CRM
Extracts in-depth customer history, preferences and profitability information from your data warehouse and other database.
Allows to analyze, predict and derive customer value and behavior and forecast demand.

26. 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.

27. 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

28. Enterprise Resource Planning (ERP): The Business Backbone

29. 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

30. Enterprise Resource Planning (continued)
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

31. Enterprise Resource Planning (continued)
Benefits
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

32. Enterprise Resource Planning (continued)
Benefits
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

33. Enterprise Resource Planning (continued)
Challenges
Costs of ERP
The costs and risks of failure in implementing a new ERP system are substantial.

34. Enterprise Resource Planning (continued)

35. Enterprise Resource Planning (continued)
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
Trying to do too much, too fast
Insufficient training
Believing everything the software vendors and/or consultants say

36. Enterprise Resource Planning (continued)
Trends
Flexible ERP
SAP AG, Oracle, PeopleSoft, etc
Web-enabled ERP
Interenterprise ERP
ERP with web enabled links between company, its customers, suppliers, distributors and others.
E-Business Suites
Integrate ERP, CRM, SCM, procurement, decision support and other business functions.
Oracle’s e-Business Suit and SAP’s mySAP

37. Supply Chain Management: The Business Network

38. 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.

39. The inter relationships with suppliers, customers, distributers and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a supply chain.
And since each supply chain process should add value to the products or services a company produces, a supply chain is frequently called a value chain.

40. Supply Chain Management (continued)

41. What do supply chain management (SCM) tools do?
SCM - x
What do supply chain management (SCM) tools do?
Supply chain management tools enable managers to make informed business decisions about the operation of their supply chain
Supply Chain
Management Definition
Supply chain management tools facilitate planning and production scheduling based on known business constraints
Supply Chain
Management
Overview

42. SCM capacity constraints
SCM - x
SCM capacity constraints
Managing a supply chain would be easy if we had unlimited resources
“How do I decide what to do
on which piece of equipment,
and when?”
Can only drill
one piece of metal
at a time
-- OR --
Computer processing
and storage capacity
not infinite
Supply Chain Manager

43. Transportation Management
SCM - x
SCM Tools levels
Supply Chain Elements
Supply Chain Planning services configure operations to best meet projected demand levels
The planning horizon ranges from developing a long term strategic outlook to developing a short term tactical production schedule
SCM Service Offering
Strategic
Planning
Network Design
Demand Planning
Supply Planning
Production Planning
Tactical
Planning
Warehouse Management
Transportation Management
Order Management
Operational
Planning
Inventory Management
Supply Chain Execution services monitor and control production operations
They provide real time tracking and alert notification
Event Management
Real time /
Minutes
Hours /
Days
Weeks /
Months
Quarters
Years
Supply Chain Planning Tools
Supply Chain Execution Tools
Source: BAH

44. Supply Chain Planning Process
SCM - x
Supply Chain Planning Process
Demand Planning
Anticipate demand based on historical trends and current conditions
Perform what if analysis - highlight the impact of changing demand drivers
Network Design
Design where to place production facilities and optimize the end to end chain
Construct alternate flow scenarios that incorporate associated constraints
Production Planning
Production Scheduling
Decompose the supply plan into sub assembly / production needs by site
Balance production capacity across sites
Optimize processing flows, sequence, and timing
Produce a finite capacity production schedule
Supply Planning
Balances unconstrained demand against high level supply chain constraints
Reflect order priority and due dates
Planning
Horizon
Weeks /
Months
Hours /
Days
Years
Quarters

45. Supply Chain Execution Process
SCM - x
Supply Chain Execution Process
Order Management
Inventory Management
Warehouse Management
Transportation Management
Record customer orders and track status from receipt to final delivery
Direct efficient response to orders with dynamic cost / benefit analysis of options
Streamline information movement and provide tight inventory control
Inventories replenished using kanban, min-max, or reorder point
Optimization and management of warehouse processes
Optimize and track outbound and inbound shipping
Event Management
Monitor and manage critical planning and event information
Broadcast alert notification and present response alternatives based on pre determined business rules

46. I2 >master production schedule
SCM - x
I2 >master production schedule
Source: i2 Technologies

47. SCM vendors Leading SCM Vendors
SCM - x
SCM vendors
Leading SCM Vendors
ERP Focused
Oracle
SAP
JD Edwards
Peoplesoft
Invensys / Baan
SCM Focused i2
Manugistics
Aspentech
Logility
Although each of the vendors claim to provide an end to end solution, they actually fall into two distinct camps
First are the ERP vendors who provide a strong solution for integrating the data environment and providing visibility
Second are the SCM vendors who provide robust optimization solutions
In combination, with an ERP vendor providing the data environment and a SCM vendor providing the optimization solution, you can achieve a very elegant solution
Source: Gartner

48. Supply Chain Management (continued)
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

49. Supply Chain Management (continued)
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

50. Supply Chain Management (continued)
Trends