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S. Ramanathan
Leveraging IT at Different Levels
Strategic
support at
top
Decision
support for
Managers
1990s-
Electronic Business
2000s
Decision Support
1970s -80s
Project Management
Work Team
Steering Committee
Responsible for monitoring the progress of the project
Head: Top management representative
enjoys management trust
Leadership Quality
Authority
Clout in the company
Consultant Liaison
Vendor representative
Duties
Approval of budgets
Resource allocation
Establishing reporting and monitoring mechanism
Resolution of problems
Mid course correction
Project Management Team
Responsible for administering the project
Members: Leader of the consultant team
Head of Steering Committee
Vendor representative
Duties: Monitoring implementation
Assessing Quantity and Quality
Ensure co-operation between consultants and
in-house team
Ensure transfer of knowledge from consultants to in-
house team
Work Team
Actual performers of task
Consultants and in-house team
Choose the consultants with good understanding
of the package and implementation experience
Depute the staff, who are the best, know the
processes of the company well
Requirements: Team spirit
Communication skills
Patience and Perseverance
Self confidence
Technical Support Team
From EDP
Responsible for data migration
back-up
recovery
infrastructure
performance tuning
networking
Implementation Steps
1. Project planning
2. Evaluating the As-is situation
3. Modeling the To-be situation
4. Reengineering
5. Finalizing infrastructure
6. Product configuration
7. Formation of implementation team
8. Preparation of implementation plan
9. Gap Analysis
10. Customization
11. Data migration
12. Test runs
13. User Training
14. Parallel run
15. User sign-off
16. Go live
17. User documentation
18. Post implementation support
19. Performance monitoring
Project Planning
Resource allocation
Roles and Responsibilities
Time schedules
Contingency planning
Method of monitoring progress and review
Control measures
Service
Calls
5% "Admin-I-strivia”
34%
Customer Knowledge
Base
Know Win
Customers Customers
Know Win
Customers Customers
y
Management
teg
a
Str
Shared
Close Deals
Marketing,
n
Pla
Sales / Service
ss
Management
Re
mer
su
us to
eC
lts
Field Service
What is CRM?
Enhancing the experience of customers
Identifying, and capturing information on
customers
Unified view of customer across the
enterprise
What is CRM?
a multifaceted process, mediated by a set
of information technologies, that focuses on
creating two-way exchanges with
customers so that firms have an intimate
knowledge of their needs, wants, and
buying patterns. – Wikipedia definition
CRM helps companies understand, as well
as anticipate, the needs of current and
potential customers
Goal of CRM
providing services and products that are
exactly what your customers want
offering better customer service
cross selling products more effectively
helping sales staff close deals faster
retaining existing customers and
discovering new ones
Different Aspects of CRM
Customer facing operations
Back-office operations
Collection of metrics
Components of CRM
1. People Management
2. Lead Management
3. Sales Force Automation
4. Customer Service
5. Marketing
6. Workflow Automation
7. Business Reporting
8. Analytics
People Management
Effective use of people in the right place at
the right time
Matching people skills to job profiles
Identification of development needs
Development strategy
Lead Management
Tracking and distribution of sales leads
Comprehensive study of customer
purchase patterns and the identification of
potential sales leads.
Making customized forms
Mailing lists
Sales Force Automation
Forecasting
Tracking potential interactions
Opportunity management
specific opportunity the company belongs to
salespersons working on it
Assignment of revenue credits to different salesman
Stage of the process
Potential for closing
Final results
Competitive information
Contact management: info about individuals in the customer organization.
Organization charts
Contact behaviour characteristics
Account Management: info on individual corporate accounts.
Partnership relationship management
Sales processing
Customer Service and Support
Call centre management
Online help facilities
Internal help desk
Expert systems
Marketing Automation (Customer
facing)
Online catalog
Campaign management
Surveys
Contest management
Distribution of marketing materials
Email marketing
Customer intelligence
Gathering customer data
Analyzing data
Formulating strategy
Action
Workflow Automation
Routing out paperwork
Filling of forms
Integration of people and processes
Business Reporting
Real-time status reports
Summary reports
Forecasts
Capability to export to other systems
Storage of historical data for future
reference
Analytics
Study of market trends
Ability to convert data into diagrams
Dashboards
CHANGES IN CUSTOMER
EXPECTATIONS
Web Attract
C (Marketing)
u
s E-mail Shop
t (Sales / Inventory)
o
m Voice/Phone
e Buy
(E-Commerce)
r Chat
V Help
i Fax (Support)
e
w Fix-it
Partners (Field Service)
Customer
Support
Help Desk
WWW Post
Fax
Customer or
Prospect Cell Field
email nel
Telephone Chan Service
Sales & ut ion
trib
Marketing Dis
Quality
CRM Applications
Hosted vs. on-premise
Integrated vs. module
Hosted / On-demand CRM
Suitable for medium sized companies
Preferable for organizations with little internal IT support
Good choice for standard processes
Quick and easy implementation
Economical
Third party software enhancement tools
Issues
Integration with back-office systems
Upgrades could be tricky in the absence of internal IT support
Issue of handing over sensitive data to third party host
scalability
Successful example: salesforce.com
Even traditional players like Siebel and RightNow have created hosted CRM
soultions
Only 12% of the market expected to be on on-demand CRM even by 2009 –
AMR Research
CRM – Industry Leaders
Oracle: Rich functionality, good support, integration with
enterprise system
Salesforce: extremely flexible, adaptable and can be
changed to suit organization needs
RightNow : Economical, limited modules, shorter
timeframe for implementation
Siebel: both premises and hosted solutions; usable
across different sizes of units, customizable to suit
industry needs; known for its simplicity and functionality
SAP: huge range of functions; capability to execute in a
variety of platforms such as laptops and PDAs,
customizable, easy to use
How to achieve CRM
optimization
Identifying CRM goals
Integrate business processes with the CRM solution
Chosen solution should fit the objectives
Phased implementation: start with a pilot
Customer focus: should address current problems of the customer;
should not be inflexible to meet customer needs
Data consolidation: data should be collected beforehand, assessed
for its quality and made available to the CRM system
Change incorporation
Holistic approach: an integrated view of the customer should be
provided to the entire organization
CRM consultants; bring outside resources, if needed
Employee involvement: customer facing employees should actively
get involved in this implementation
Guidelines for Choosing the Right
CRM Software
Should support the specific business processes of the
company
Should be of perceived use to marketing and sales
functions – not the mechanics aspects, but the customer
relationship aspects
Should provide an understanding of learn customer
preferences and thus contribute to customer retention
Analytical capabilities
Limited customization
Ability to store and track all relevant information
Ease of customization
Organizational Alignment
Involvement of the users in the selection process
Incentives for sharing information
Addressing redundancy apprehensions of
frontline workers
Ability of the organization to absorb change
Clarity of expectations and IT department’s
capability to fulfill them
Avoid
Information overload
Adding features without value
CRM Trends
Analytical CRM: close working of analysts with
customer / customer data to understands what
contributes to highest customer satisfaction
Mobile CRM: anywhere access
CRM Integrated with enterprise systems
Integration of CRM with Internet search engine:
The moment customer profile is entered related
entries are fetched (eg) Dynamics CRM
Vertical CRM: specifically catering to a particular
sector (eg) legal, financial sectors
Outsourcing CRM
Supply Chain Management (SCM)
SCM – Sub Processes
Demand Planning
Supply Planning
Demand Fulfillment
What do the SCM products
address?- Demand Planning
Long term
Intermediate term
Short term
What do the SCM products
address? - Supply Planning
Long term planning
Inventory management
Distribution planning
Collaborative procurement
Transportation Planning
Supply allocation
What do the SCM products
address?- Demand Fulfillment
Order capturing
Customer verification
Due date confirmation
Order status monitoring
Tracking of order backlog
Despatch
Communication with customer
Tracking with delivery provider
Benefits of e-SCM
•Scalability: 24*7 availability
Capability to handle multiple requests
Accountability
SCM
Criteria for choosing an SCM
product
Seamless integration with ERP
Transparency
Simplicity: Ease of use and connectivity
Alerts for deviation
Scalability
Do not attempt 100% requirement
in the first instance. Prioritize and
Caution: implement in phases
Pitfalls in implementing SCM
Integration with ERP
Resistance to share information
Security
Cooperation of employees
Cooperation of suppliers
Maintaining credibility with users
Lethargic implementation –‘taking its own course’
Legal requirements
Service demand
Factors for successful SCM
implementation
Top management commitment
E-business culture
Technical infrastructure
Development of critical skill sets
Mechanism to measure success
Mid-course correction
Industry Exchanges
Monitor improvement
Subscription
Fixed fee for each auction
Volume based fees
Variable fee on transaction
Variable fee on savings
Reverse Auctions - Concerns
Under bidding
Quotes open
Data Security
Handling overseas bids- differences in levies
Addressed by
pre-qualification of suppliers
authentication by id and Password
data encryption
masking of supplier identities
allowances in software for varied levies
CASE STUDIES
Inventory Reduction
Success Stories
Mahindra & Mahindra:
by 20 –50 days; 30% savings
Hindustan Lever:
from 45 days to less than 5 days; 35%
savings
LG Electronics:
by 30 days; savings of about Rs. 4.7
crores
Reverse Auction Case Studies
• SmithKleine Beechem - 17 – 20% savings in
direct materials
Automotive
Freight
Commodities
Client BILT
Category Chemicals BILT saved over
Sub Category Oxidized Starch 21% on the cost of
Suppliers 13
Number of Bids 25 Oxidized Starch .. In
Current price Rs. 1.09 crores 40 minutes flat, besides
Reserve Price Rs. 1.05 crores
Lowest Price Rs. 0.90 crores discovering new suppliers
Savings Rs. 0.24 crores and reducing cycle time of
Savings % 21%
Start Time 9/27/2001 12:30 PM negotiations.
End Time 9/27/2001 1:50 PM
E-SCM at Ford
Access for suppliers to Ford’s ERP
Transparency in stock status, Production /
Delivery requirement
RFQs, POs, Schedules are all electronic
Web enabled payment and instantaneous
credit through ICICI payment gateway
Supplier account information available on-
line to suppliers
Case Study –
Larsen & Toubro
Limited – Electrical
Business Group
(EBG)
Company Overview
Products: Low Tension industrial
switchgear, switch boards, petrol
dispensing pumps
100 distinct products; 1500 product codes
Turn over: Rs. 750 crore
1995: Management Concerns
Inability of legacy system to respond to
dynamically changing market conditions
Difficulty in managing and enhancing mainframe
based applications
Dwindling support from central IT organization
due to lack of trained manpower
Lack of integration between manufacturing,
marketing and accounting systems, resulting in
data integrity and responsiveness problems
Solution – the EBG way
Formation of a cross functional task force
To look at business requirements
To locate resources for future
To evaluate ERP options
Organization wide debate on ERP policy
Scope and implementation
Each business group was given autonomy in
selection and implementation
No corporate subsidy for implementation
ERP implementation
1996 Nov.: ERP evaluation started
1997 Sep.: SAP was selected
1998 Feb.: Project kick-off
Implementation partner: Pricewaterhouse
Cooper
15 member PWC team responsible for training,
project management, documentation and
implementation
50 member L&T team for hardware selection,
system installations, programming,
administration, end-user training, testing,
networking and help desk
1999 Apr.: All modules implemented
Cost of the project: Rs. 10 crores
Benefits of ERP
Cycle time reduction from four to five months to
three months
On-line information access across organization
Paperless organization
Transparency
Unified enterprise
Visibility of stock across nationwide operation
Elimination of redundant activities
SCM initiative
Objective: improve business efficiency
increase revenue
2000 Feb.: Selection of mySAP.com
Implementation in 29 days! (because all
critical elements were in place)
75 staff trained in different areas of the
application
Investment: Rs. 50 lakhs
System Details
Internet link: 512 Kbps
Servers: Compaq Proliant (Pentium II/III)
– three application servers
Operating System: Microsoft Windows NT
Database: Informix
Firewall: Checkpoint
EBG - Electrical Sector
Network Connectivity with :
e s i n ce
Liv 000
r c h 2
18t Ma
h
B2B Purchase Queries
for Vendors
Purchase Orders Login & Authentication
% of Total