1. ENTERPRISE BUSINESS SYSTEMS
ACM 312 MIS Week 8

2. 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?

3. 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

4. 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

5. ERP
Facilitates information flows
Business
Supplier
Customer

6. 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

7. 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

8. 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

9. 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

10. Three Phases of CRM

11. 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

12. 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

13. Customer retention evaluation report

14. 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

15. 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

16. 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

17. 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.

18. 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

19. 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