Transcript Customer Relationship Management

Enterprise Requirements
Planning (ERP)
Customer Relationship
Management (CRM)
Data Warehousing
Gerhard Steinke
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ERP Managerial Questions
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What is ERP?
How will it help my business?
What are its costs?
What are the risks?
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Functional Business Systems
Marketing
• Customer
relationship
management
• Interactive
marketing
• Sales force
automation
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Production
Operations
Human Resource
Management
• Manufacturing
resource planning
• Manufacturing
execution systems
• Process control
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Functional
Business
Systems
• Compensation
analysis
• Employee skills
inventory
• Personnel
requirements
forecasting
Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger
• Cash management
• Credit management
• Investment
management
• Capital budgeting
• Financial forecasting
Accounting
Finance
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Marketing Information Systems
Interactive
Marketing
Sales Force
Automation
Marketing
Information
Systems
Sales
Management
Customer
Relationship
Management
Market
Research &
Forecasting
Product
Management
Advertising &
Promotion
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HR Information Systems
Personnel
Requirements
Forecasting
Compensation
Analysis
Employee Skills
Inventory
Human
Resource
Management
Personnel
Record-Keeping
Training and
Development
Analysis
Governmental
Reporting
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Accounting Information Systems
Inventory
Control
Order
Processing
Accounts
Receivable
Common
Purposes of
AIS
Accounts
Payable
General
Ledger
Payroll
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Financial Information Systems
Financial
Performance
Analysis
Cash
Management
Finance
Investment
Management
Financial
Planning
Capital
Budgeting
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Manufacturing Information Systems
Computer-Aided
Engineering
Process
Control
Purchasing &
Receiving
Computer-Aided
Manufacturing
Production/
Operations
Machine
Control
Robotics
Material
Requirements
Planning
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ERP Modules – Integrating Business
Processes
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Finance
Sales
Manufacturing
Human Resources
Portals
Supply chain
Customer relationship management
Product life cycle
Business intelligence
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Benefits of ERP
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Shorter order cycle time
Increased productivity
Lower IT costs
Better cash management
Reduced personnel
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Reasons to Adopt ERP
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One face to the business/customer
Knowing “what is possible” in terms
of organizational inventory
Eliminating redundancy
Consolidation
Handle growth
Reduce stress on existing IT
Avoid legacy systems
Modernizing
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Reasons Not to Adopt
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Cost
Loss of competitive advantage
Resistance to change
Poor cultural fit
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Typical Players
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Oracle, SAP, (Baan, Peoplesoft, JD Edwards)
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CRM Managerial Questions
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What are the goals of CRM?
Is CRM a marketing strategy by
itself?
How difficult is CRM to implement?
Do I need a consultant?
How much is CRM going to cost?
How should I implement?
How long before I see a return?
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CRM is …
“Any application or initiative
designed to help an organization
optimize interactions with
customers, suppliers, or prospects
via one or more touch points for the
purpose of acquiring, retaining, or
cross-selling customers”
- (Goodhue, Wixom, & Watson,
2002)
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Evolution
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Sales force automation (SFA)
Customer service (CS)
Sales and marketing management
(SMM)
Contact and activity management
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CRM: The Business Focus
Customer Relationship
Management
Marketing and
Fulfillment
Fax
Sales
•Cross-Sell
•Up-Sell
Customer
Service and
Support
e-Mail
Prospect or
Employee
Telephone
Web
Contact and
Account
Management
Oracle (Siebel, PeopleSoft), SAP, Onyx
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Retention
and Loyalty
Programs
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CRM in Practice
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CRM applications create value
Technology to support present and
future initiatives
Use CRM to transform the
organization
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Assumptions of CRM
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Customers act according to habit;
Current customer information is
always correct;
Customers want individual,
differentiated treatment; and,
Customers with the greatest
profitability should receive the best
service
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Drivers of CRM
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Pareto’s principle: 20/80 rule
8 to 10 calls to make a sale to new
customers, 2 to 3 to existing
customers
5-10 x more expensive to sell to
new rather than repeat customers
Greater leverage of marketing
dollars
Vehicle for organizational change
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Revenue & Cost Goals
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Increases in revenue growth
through customer satisfaction
Reduced costs of sales and
distribution
Minimization of customer support
costs
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Benefits of CRM
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Improve the ability to retain
(acquire) customers
Maximize the “lifetime” of
customers
Improve service while keeping costs
low
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Benefits of CRM
Identification
Differentiation
Interaction
Customization
Source
of
benefits
Clean data about
customer
Single Customer
View
Understanding the
customer
Customer
satisfaction and
loyalty
Customer
satisfaction and
loyalty
Benefits
Help sales force
Cross selling
Cost effective
marketing
campaign
Reduce direct
mailing cost
Cost effective
customer service
Lower cost of
acquisition and
retention of
customer
Maximize share
of wallet
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IT & CRM
Process
Identification
Differentiation
Interaction
Customization
Goal
· Identify
individual
customer
· Evaluate
customer value
and needs
· Build a continuing
relationship
· Fulfill customer
needs
· Generate profit
Traditional
Mass Marketing
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CRM
· Customer
profiling
· Individual level
analysis
· Call center
management
· Auto response
system
· Sales automation
· Marketing p
process automation
Information
technologies
· Cookies
· Web site
personalization
· Data mining
· Organizational
learning
· Web application
· Wireless
communication
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Not done
Clustering
Gerhard Steinke
Call Center
Sales
Services
ERP
E-Commerce
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Enterprise Application Architecture
Enterprise Resource Planning
Internal Business Processes
Customer Relationship Management
Marketing – Sales - Service
Partners
Supply Chain Management
Sourcing - Procurement
Partner Relationship Management
Selling – Distribution
Knowledge Management
Collaboration – Decision Support
Employees
Suppliers
Customers
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