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Module 5

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

Functional Business Systems

Functional Business Systems

Information systems within a business organization that support one of the traditional functions of business such as marketing, finance, or production. Functional business systems can be either operations or management information systems.

Marketing Information Systems contd..

Marketing is concerned with the planning, promotion, and sale of existing products in existing markets and the development of new products and new markets to better serve present and potential customers. Marketing information systems assist marketers in meeting the information needs in each of the following areas:

What is Cross Functional Enterprise Sys.

Many organizations are using information technology to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions (such as marketing and finance), in order to reengineer and improve vital business processes all across the enterprise. These organizations view cross-functional enterprise systems as a strategic way to use IT to share information resources and improve the efficiency and effectiveness of business objectives......

Cross-Functional Enterprise Applications

Companies today are using IT to integrated cross-functional enterprise that cross the boundaries of traditional functions to reengineer and improve processes all across the enterprise.

develop systems business business

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

These applications include integrated crossfunctional 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 companys 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) (Prospectus)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 companys 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 S/W 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 Software 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 customers account status and history before scheduling their sales calls.

3- Marketing and Fulfillment

targeted marketing

Capturing and managing responses

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(customer care). 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 Increasing customer retention by 5% can increase company profits 85%

An unhappy customer will tell 8-10 others about his experience

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.

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.

Three Phases of CRM

CRM contd

Acquire. A business relies on CRM software tools and databases to help it acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillment. The goal of these CRM functions is to help customers perceive the value of a superior product offered by an outstanding company. Enhance. Web-enabled CRM account management and customer-service and -support tools help keep customers happy by supporting superior service from a responsive networked team of sales and service specialists and business partners. And CRM sales force automation and direct marketing and fulfillment tools help companies cross-sell and up-sell to their customers, thus increasing their profitability to the business. The value perceived by customers is the convenience of one-stop shopping at attractive prices.

CRM Contd

Retain. CRM analytical software and databases help a company proactively identify and reward its most loyal and profitable customers, to retain and expand its business via targeted marketing and relationship marketing programs. The value perceived by customers is of a rewarding personalized business relationship with their company.

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. ERP software typically consists of integrated modules that give a company a real-time cross-functional view of its core business processes, such as production, order processing, and sales, and its resources, such as cash, raw materials, production capacity, and people.

What is ERP?
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

Costs of Implementing a New ERP

What Is SCM?

supply chain management is a cross-functional interenterprise system that uses information technology to help support and manage the links between some of a companys key business processes and those of its suppliers, customers, and business partners. The goal of SCM is to create a fast, efficient, and lowcost network of business relationships, or a supply chain, to get a companys products from concept to market. The goal of SCM is to help a company achieve agility and responsiveness in meeting the demands of its customers and the needs of its suppliers, by enabling it to design, build, and sell its products using a fast, efficient, and low-cost network of business partners, processes, and relationships, or supply chain.

SCM

Objectives of Supply Chain Management

Stages in SCM

SCM Stages
Figure illustrates the trends in the use of supply chain management today as three possible stages in a companys implementation of SCM systems. Stage1: A company concentrates on making improvements to its internal supply chain processes and its external processes and relationships with suppliers and customers. -Its e-commerce Web site and those of some of its trading partners provide access to online catalogues and useful supply chain information,

SCM Stages contd

Stage2: - a company accomplishes substantial supply chain management applications by using selected SCM software programs internally, as well as externally via intranet and extranet links among suppliers, distributors, customers, and other trading partners. - Companies in this stage also concentrate on expanding the business network of Web-enabled SCM-capable trading partners in their supply chain to increase its operational efficiency and effectiveness in meeting their strategic business objectives.

SCM Stages contid.

Stage3: - A company begins to develop and implement cuttingedge collaborative supply chain management applications using advanced SCM software, full service extranet links, and private and public ecommerce exchanges. - In addition, collaborative marketing sales, and service applications with trading partners, including customer- and partner-relationship management systems, may be developed. - Companies in this third stage strive to optimize the development and management of their supply chains in order to meet their strategic customer value and business value goals