Lecture-9/ T. Nouf Almujally e-Business Systems Chapter 7 Lecture-9/ T. Nouf Almujally 1

Outline Section 1 (Enterprise Business Systems): Cross-Functional Enterprise Applications Getting All the Geese Lined Up: Managing at the Enterprise Level Customer Relationship Management: The Business Focus. What is CRM? The Three Phases of CRM Benefits and Challenges of CRM (not required) CRM Failures (not required) Enterprise Recourse Planning: The Business Backbone What is ERP? Benefits and Challenges of ERP Causes of ERP Failures (not required)

Outline Section 1 (Enterprise Business Systems): Supply Chain Management: The Business Network. What is CRM? Electronic Data Interchange (not required) The Role of SCM (not required) Benefits and Challenges of SCM (not required) Enterprise Application Integration Transaction Processing Systems. Enterprise Collaboration Systems Section 2: Functional Business Systems summarized in Figure 7.24 (required only)

Learning Objectives Identify these cross-functional enterprise systems, and give examples of how they can provide business value to a company Enterprise Resource planning Customer Relationship Management Supply chain management Enterprise application integration Transaction processing systems Enterprise collaboration systems

Enterprise Business Systems Using the Internet, other networks, and IT to support… Electronic commerce Enterprise communications and collaboration Web-enabled business processes Both within a networked enterprise and with its customers and business partners. E-commerce Buying, selling, and marketing of products, services, and information over the Internet and other networks

Cross-Functional Enterprise Applications Business firms are using Internet technologies to help them reengineer and integrate the flow of information among their internal business processes and their customers and suppliers. Companies all across the globe are using the WWW and their intranets and extranets as a technology platforms for their cross-functional and interenterprise information systems.

Cross-Functional Enterprise Applications Companies today are using IT to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions to reengineer and improve business processes all across the enterprise. To share information resources and improve the efficiency and effectiveness of business processes. To develop strategic relationships with customers, suppliers, and business partners.

Enterprise Application Architecture Major e-business cross-functional enterprise applications and their interrelationships are summarized in this architecture: Developing sourcing and procurement processes Internal production, distribution, ……. financial processes. Acquiring and retaining profitable customers via marketing, sales, …..services.

Enterprise Application Architecture These applications include integrated cross- functional enterprise systems such as: Enterprise resource planning (ERP). Customer relationship management (CRM) Supply chain management (SCM). Focuses on accomplishing fundamental business processes in concert with: Customers Suppliers Partners Employees

Managing at the Enterprise Level Getting the whole business to fly in the same direction, as efficiently as possible: Customer relationships Back-office operations Movement of raw materials & finished goods

Customer Relationship Management - CRM The Business Focus

Customer Relationship Management A customer-centric focus Customer relationships are a company’s most valued asset. Every company should find and retain the most profitable customers possible.

What is CRM? Managing the full range of the customer relationship involves two related objectives: (1) Providing customer-facing employees with a single, complete view of every customer, at every touch point, across all channels (2) Providing the customer with a single, complete view of the company and its extended channels

What is CRM? Customer relationship management: is a cross-functional enterprise system that: integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company's customers. Create an IT framework of Web-enabled software and databases that integrates these processes with the rest of a company’s business operations. Siebel Systems, Oracle, SAP AG, IBM are some of the leading vendors of CRM software.

Application Components of a CRM System CRM systems include a family of software modules that provides the tools that enable a business and its employees to provide fast, dependable, and consistent service to its customers.

1- Contact and Account Management CRM SW helps sales, marketing, and service professionals capture and track relevant data about: Every past and planned contact with customers. Other customer business & life-cycle events. Data are captured through: Telephone, fax, e-mail, Websites, Retail stores, personal contact. CRM SW store the data in a common customer DB that integrates all customers account information and makes it available throughout the company via the Internet, intranet for sales, marketing, services and other CRM applications.

2- Sales A CRM system provides sales representatives with the SW tools and data resources they need to: Support and manage sales activities. Optimize cross- and up-selling. CRM also provides access enabling sales representatives to check on a customer’s account status and history before scheduling their sales calls.

3- Marketing and Fulfillment CRM systems help marketing professionals accomplish marketing campaigns by automating tasks Qualifying leads for targeted marketing Scheduling and tracking marketing mailings Capturing and managing responses Analyzing the business value of a campaign Fulfilling responses & requests by quickly scheduling sales contracts & provide info about products

4- Customer Service and Support CRM system provide service representatives with SW tools and access to the customer DB shared by sales and marketing professionals. CRM helps customer service managers create, assign and manage customers’ requests for service. Call center software. Help desk software. Web-based self-service.

5- Retention and Loyalty Programs 70% of complaining customers will do business with the company again if it quickly fixes a problem It costs 6 times more to sell to a new customer than to sell to an existing one An unhappy customer will tell 8-10 others about his experience Increasing customer retention by 5% can increase company profits 85%

5- Retention and Loyalty Programs Enhancing and optimizing customer retention and loyalty is a major business strategy and primary objective of CRM. CRM system help a company to Identify, reward, and market to their most loyal and profitable customers.

5- Retention and Loyalty Programs Used to identify profitable and loyal customers  direct marketing programs toward them CRM analytical software includes data mining tools and other analytical marketing software. CRM databases may consist of a customer data warehouse and data marts. + =

Three Phases of CRM All CRM application components aimed at helping a company acquire, enhance, and retain profitable relationships with its customers as a primary business goal.

Enterprise Resource Planning - ERP The Business Backbone

What is ERP? Enterprise resource planning: is a cross-functional enterprise system that integrates and automates many of the internal business processes and information systems of a company, particularly those within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business. Now, ERP serves as the vital backbone information system of the enterprise, helping a company achieve the efficiency, agility, and responsiveness required to succeed in a dynamic business environment.

What is ERP? A cross-functional enterprise system Facilitates business, supplier, and customer information flows The backbone of business processes A cross-functional enterprise system Supports basic internal business processes An integrated suite of software modules

ERP Application Components ERP software consists of integrated modules that give a company a real-time view of its core business processes, such as production, order processing, inventory management and sales tied together by the ERP application software and a common DB.

ERP Application Components

ERP Application Components ERP system .. track business resources (such as cash, raw materials, production capacity) and track the status of commitments made by the business (e.g. customer orders ,purchase orders, employee payroll) no matter which department (e.g. manufacturing, purchasing, sales, accounting) has entered the data into the system.

Benefits and Challenges of ERP ERP Business Benefits 1. Quality & efficiency 2. Decreased costs 3. Decision support 4. Enterprise agility ERP Costs 1. High risk & cost 2. Hardware and software are a small part of overall project 3. Failure can cripple or kill a business However, properly implementing ERP systems is a difficult and costly process that has caused serious business losses for some companies that underestimated the planning, development, and training that were necessary to reengineer their business processes to accommodate their new ERP systems. However, continuing developments in ERP software, including Web-enabled modules and e-business software suites, have made ERP more flexible and user-friendly, as well as extending it outward to a company's business partners.

Costs of Implementing a New ERP

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