Enterprise Business Processes and Applications (IS 6006) Masters in Business Information Systems 20 th Jan 2009 Fergal Carton Business Information Systems

Last week Openings for graduates in ERP projects –Catch-22 of application experience –Business analysis role –Data analysis role Moving away from systems based decisions –Integration increases reliance on data –In reality data integrity difficult to ensure Single instance ERP systems Hardwiring processes Impact for subsidiaries –Finance and IS benefit –Operationally, ERP often seen as an imposition Data integrity issues –GSK / EMC / UCC

This week Data integrity –UCC revenue clarity –EMC price updates –GSK and uncertainty in demand and supply Scope definitions UCC Finance scope CRM

UCC revenue clarity

Examples of gaps virtual vs. reality See handout

SIT Ltd gap example Inventory accuracy Supplier component price updates What do you do with old parts How do you know when / how new price applies? … Other examples –Think also about price updates for customers? –Think also about forecasting based on average price? ERP systems handle the detail, but need the data to be maintained, which requires organisation

GSK and supply chain flexibility Supply side uncertainty –Batch failure –Technical problem –Yield –… 27 production sites Demand side uncertainty –Hurricane –Competitor goes off market –Avian flu epidemic –… 37 countries –600 commercial organisations 1200 products –36,000 SKU’s “so that’s an issue that we haven’t got satisfactory resolution to in terms of a data driven trigger for events as opposed to human intelligence just saying, we’ve got a problem here”

GAP analysis = setting the scope Reconciling technological necessities of the system with business needs ERP systems impose their own logic Balancing the way you want to work with the way the system will let you work 2 stage model for scope decisions –Choice of modules (Purchasing, AP, …) –Configuring the system to your way of working Davenport, 1998

Other scope definitions Number of modules Number of functional units affected Number of sites Extent of customisation Number of interfaces with legacy applications Bingi, 1999

UCC Finance – Phase 1 General Ledger Accounts Payable Accounts Receivable PurchasingCash Fixed Assets Budgeting and Forecasting Reporting

UCC Finance - modules General Ledger Accounts Payable/Creditors ledger including Tax Compliance Reporting Accounts Receivable/Debtors ledger/Invoicing Procurement Management Purchase Order Processing Cash Book, Cash Receipts, Cash Forecasting Capital Project Accounting Fixed Asset Register and Management Research Accounting Budgeting and Forecasting Tax Compliance & Reporting Costing Report Writers System Manager

What is CRM? Any Ideas? Bad Customer Service Stories Good Customer Service Stories

Bad Customer Service Stories What are the common themes? What are the common customer experiences? Underlying process issues? Underlying systems issues?

Good Customer Service Stories What are the common themes? What are the common customer experiences? Underlying processes? Underlying systems?

RFID scanner ordered from Tyco Equipment delivered late, incomplete and wrong Communication gave no details of reason for delay, just postponement Impact to customer : delay, frustration, cost Consequence : customer goes elsewhere How would good communication have helped?

Can you differentiate between a process and a system? Customer places order Receives commit date Customer reports product late (x n) Product ships (RFID scanner) Customer reports product incomplete Product ships (antenna) Customer reports product incomplete Product ships (cable) Customer reports product incompatible Customer pays?

Dell decentralisation of service Logic of strategy to provide service via WalMart? Draw this process? What are key issues surrounding customer service for computer / electronic equipment? What are other service models?

Chorus Broadband Customer service Event: router not working Report fault (call 1890 nnn) Resolve issue on phone if possible If not rep visits customer Notes from call transmitted to field rep Close ticket? Process characteristics: Cost, efficiency, accuracy of information, repeatability, scalability, …

A Customer Scenario You’re on holidays in Florida You go to the Avis desk to pick up your car before travelling to your hotel in Ft Lauderdale It’s your birthday What happens next? –What processes are involved here? –IS implications? –People implications?

A Customer Scenario Some D4 langer breaks your wing mirror and doesn’t stop to apologise You call the garage to get a quote You call Axa to check insurance –A customer care rep calls you back –Sends out someone to pick up your car –Loans you a replacement car –Repairs the damage –Delivers the car back to you, valeted –No impact on your no claims

What is CRM? The purpose of Customer Relationship Management (CRM) is: –To enable organizations to better serve its customers –Through the introduction of reliable processes and procedures for interacting with those customers. A successful CRM strategy is usually implemented through a software package designed to support these processes.

CRM Focus Service automated processes. Personal information gathering and processing. Self-service. It attempts to integrate and automate the various customer serving processes within a company.

CRM Business Areas Customer Service. Marketing Information. Sales force management.

Customer Service Service automated processes. Personal information gathering and processing. Self-service. It attempts to integrate and automate the various customer serving processes within a company.

Marketing Information Provides information about the business environment: –Competitors –Industry trends –Environmental variables.

Sales force Automation Automates some of the company's sales and sales force management functions. It keeps track of customer preferences Buying habits Demographics Sales staff performance

CRM General Principles Single point of contact for all customer information within the organisation –What does this mean? Covers the entire customer journey –What does this mean?

CRM General Principles Implications for IS? –Single point of contact for all customer information within the organisation –Covers the entire customer journey What sort of data? –When is it gathered? –How is it stored and organised? What sort of applications? –What processes must they support?

Customer Data A CRM Application Customer Service Marketing Sales force Automation

A CRM Application (Amdocs)

CRM and Call Centres Many call centres use Customer Relationship Management software to store all of their customer's details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information on a customer in one place, a company aims to make cost savings, and also encourage new customers.

Self-service CRM CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving you time.

Sales force Automation Scenario: Imagine you’re a salesperson selling servers for a living … –You’ve just called to your biggest customer in the hope of closing a large deal –One of their servers has broken down –What happens next?

Sales force Automation What happens next? –No sales force automation –With sales force automation What is sales force automation? What are the IS implications?

Customer Service Scenario: Imagine you’re a call centre agent … –A customer calls with a really tricky problem with their laptop –You tell them some things to try and ask them to call back later if the problem persists –What happens next?

Customer Service What happens next? –With a customer service system –Without a customer service system What is a customer service tracking? Implications for Information Systems?

Marketing Scenario: You’re a marketing executive tasked with selling a new household product in the Cork area. Your company has sold products in the same are for many years. –Who do you target? –What do you need to know about them? –Implications for Information Systems?