ENTERPRISE BUSINESS SYSTEMS ACM 312 MIS Week 8

Managing at Enterprise Level How do enterprise systems help businesses achieve operational excellence? How do supply chain management systems coordinate planning, production, and logistics with suppliers? How do customer relationship management systems help firms achieve customer intimacy? What are the challenges posed by enterprise applications? How are enterprise applications used in platforms for new cross-functional services?

Enterprise Systems Enterprise Systems Also called “enterprise resource planning (ERP) systems” Suite of integrated software modules and a common central database Collects data from many divisions of firm for use in nearly all of firm’s internal business activities (Accounting, Finance, HR, etc.) Information entered in one process is immediately available for other processes

Enterprise Software Enterprise Software Built around thousands of predefined business processes that reflect best practices Finance/accounting: General ledger, accounts payable, etc. Human resources: Personnel administration, payroll, etc. Manufacturing/production: Purchasing, shipping, etc. Sales/marketing: Order processing, billing, sales planning, etc. To implement, firms: Select functions of system they wish to use Map business processes to software processes Use software’s configuration tables for customizing

ERP Facilitates information flows Business Supplier Customer

The function of enterprise software to integrate and share data between the different business functions. One of the key ideas of enterprise solutions is that there’s “one company, one database” and not a collection of disconnected databases

Business Value of Enterprise Systems Increase operational efficiency Provide firm wide information to support decision making Enable rapid responses to customer requests for information or products Include analytical tools to evaluate overall organizational performance

Costs of Implementing a New ERP Reengineering, Hardware, Software, Training and Change Management, Data Conversions 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

ENTERPRISE SYSTEMS SYNERGY ERP systems are usually integrated with Customer Relationship Management systems (e-CRM) Supply Chain Management systems (e-SCM) Partner Relationship Management (PRM) CRM is IT intensive, mobile CRM applications is on the rise Designing Mobile Applications What are the common tasks What are the priorities What are the pain points Less is more

Three Phases of CRM

CRM; Knowing the Customer Capture and integrate customer data from all over the organization Consolidate and analyze customer data Distribute customer information to various systems and customer touch points across enterprise Provide single enterprise view of customers

CRM Sales Function A CRM system provides sales reps with the tools and data resources they need to support and manage their sales activities Optimize cross- and up-selling Cross-selling is an approach in which a customer of one product or service,-- auto insurance, might also be interested in purchasing a related product or service, say, homeowner’s insurance. Up-selling refers to the process of finding ways to sell a new or existing customer a better product than they are currently seeking. CRM also provides the means to check on a customer’s account status and history before scheduling a sales call

Customer retention evaluation report

Marketing and Fulfillment Customer Service & Support 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 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

Retention and Loyalty Programs Statistics Costs 6 times more to sell to a new customer Unhappy customer will tell 8-10 others Boosting customer retention by 5 percent can boost profits by 85 percent Odds of selling: Existing customer - 50 percent New - 15 percent 70 percent of customers will do business again if problems are quickly resolved. 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

CRM Software CRM packages range from niche tools to large-scale enterprise applications More comprehensive have modules for: Partner relationship management (PRM) Integrating lead generation, pricing, promotions, order configurations, and availability Tools to assess partners’ performances Employee relationship management (ERM) E.g. Setting objectives, employee performance management, performance-based compensation, employee training

CRM SOFTWARE CAPABILITIES The major CRM software products support business processes in sales, service, and marketing, integrating customer information from many different sources. Included are support for both the operational and analytical aspects of CRM.

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 Reduce churn rate Number of customers who stop using or purchasing products or services from a company. Indicator of growth or decline of firm’s customer base

CRM Failures 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