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

2. Learning Objectives
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.

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
Customer relationships have become a company’s most valued asset
Every company’s strategy should be to find and retain the most profitable customers possible
Managing the full range of the customer relationship involves
Providing customer-facing employees with a single, complete view of every customer at every touch point and across all channels
Providing the customer with a single, complete view of the company and its extended channels
CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes

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,
Websites, retail stores, kiosks
Personal contact
CRM helps sales, marketing, and service professionals capture and track relevant
data about
Every past and planned contact with prospects and customers
Other business and life cycle events of customers
Data are captured through customer touchpoints
Telephone, fax,
Websites, retail stores, kiosks
Personal contact

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. 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
A CRM system gives service reps real-time access to the same database used by sales and marketing

7. Retention and Loyalty Programs
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

8. Identify and target the best customers
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
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 across all customer contact points

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
Business benefits of CRM are not guaranteed
50 percent of CRM projects did not produce promised results
20 percent damaged customer relationships
List of reasons for failure from 9th edition changed to paragraph below list in 10th edition
Lack of understanding and preparation
Not solving business process problems first
No participation on part of business stakeholders involved
How could some of the spectacular failures of ERP systems have been avoided?
Recommendations:
start early
clean up data first
involve end users
obtain top management commitment
get professional help from industry experienced consultants
implement the system in phases (reduces complexity)
train users
promote realistic expectations

10. Cross-functional enterprise system
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
Enterprise resource planning is a cross-functional enterprise system
An integrated suite of software modules
Supports basic internal business processes
Facilitates business, supplier, and customer information flows

11. Most common causes of ERP failure
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. 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
What is a Supply Chain?
Definition from previous chapter
Supply Chain Management (SCM)
the complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final customers
1. Supply chain begins when the raw materials used in production are delivered to the producer
2. Continues with the actual production activities that create finished goods.
3. Finally the finished goods move through the producer's distribution channels to end customers.
Chapter 8
The interrelationships with suppliers, customers, distributors, and other businesses needed to design, build, and sell a product
Each supply chain process should add value to the products or services a company produces
Frequently called a value chain
Forecast demand
How much to build
Control inventory
How much to have on hand
Enhance relationships with customers, suppliers, distributors, and others
Receive feedback on the status of every link in the supply chain

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. 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. Modern Plastics, SupplySolution, Inc.
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
Customer persuaded Modern Plastics to connect with its iSupply system, could see what customers needed eliminating the wait for an order