1. Enterprise Business Systems Chapter 8 McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 8-2 Identify and give examples to illustrate the following aspects of customer relationship management, enterprise resource manage- ment, and supply chain management systems: –Business processes supported –Customer and business value provided –Potential challenges and trends Understand the importance of managing at the enterprise level to achieve maximum efficiencies and benefits. Learning Objectives

3. 8-3 Customer Relationship Management (CRM) Customer focused –Customer relationships – most valued asset –Find and retain most profitable customers possible Company has –Single, complete view of every customer Customers have –Single, complete view of the company Integrates and automates customer- serving processes

4. 8-4 Contact and Account Management Track relevant data about –Every past and planned contact with prospects and customers –Other business and life cycle events Data captured from touchpoints –Telephone, fax, e-mail –Websites, retail stores, kiosks –Personal contact

5. 8-5 Marketing and Fulfillment Automate direct marketing campaigns –Qualifying leads for targeted marketing –Scheduling and tracking mailings –Capturing and managing responses –Analyzing the business value of the campaign –Fulfilling responses and requests

6. 8-6 Customer Service and Support Shared database –Requests for service are created, assigned, and managed –Call center software routes calls to agents –Help desk software provides service data and suggestions for solving problems Personalized support information

7. 8-7 Primary objective - enhancing and optimizing customer retention and loyalty –Identify, reward, and market to the most loyal and profitable customers –Evaluate targeted marketing and relationship programs Retention and Loyalty Programs

8. 8-8 Benefits of CRM Identify and target the best customers Real-time customization and personalization of products and services Track when and how a customer contacts the company Provide a consistent customer experience Provide superior service and support

9. 8-9 CRM Failures Reasons for Failure –Lack of senior management sponsorship –Improper change management –Elongated projects that take on too much, too fast –Lack of or poor integration between CRM and core business systems –Lack of end-user incentives leading to poor user adoption rates –Lack of understanding and preparation -- # 1 –Not solving business process problems first –No participation on part of business stakeholders involved

10. 8-10 What is ERP? Cross-functional enterprise system –Integrated suite of software modules –Supports basic internal business processes Manufacturing Logistics Distribution Accounting Finance Human resources –Facilitates information flows Business Supplier Customer

11. 8-11 Causes of ERP Failures Most common causes of ERP failure –Under-estimating complexity Planning, development, training –Failure to involve affected employees –Too much too fast –Insufficient training –Insufficient data conversion and testing –Over-reliance on ERP vendor or consultants

12. 8-12 Supply Chain Management (SCM) Helps a company –Get the right products –To the right place –At the right time –In the proper quantity –At an acceptable cost Goal of SCM is to efficiently… –Forecast demand –Control inventory –Enhance relationships –Receive feedback

13. 8-13 Benefits of SCM Key Benefits –Faster, more accurate order processing –Reductions in inventory levels –Quicker times to market –Lower transaction and materials costs –Strategic relationships with supplier

14. 8-14 Challenges of SCM Key Challenges –Lack of knowledge, tools, and guidelines –Inaccurate data –Lack of collaboration –SCM tools are immature, incomplete, and hard to implement

15. 8-15 Trends in SCM CVS, McKesson –CVS leading drug retail chain –McKesson largest pharmaceutical distributor –Point-of-sale data –Agreed on service levels –Reduced replenishment time Modern Plastics, SupplySolution, Inc. –Upraded reactive system to proactive system