• Managing Customer Relationship involves two related

objectives: • CRM improves customer focus

– Providing organization & customer-facing employees with a • CRM is IT framework of Web-enabled software and databases
single and complete view of every customer at every touch that integrate CRM processes with the rest of a company’s
point and across all channels business operations
– Providing the customer with a single and complete view • Family of software modules that enables employees to
of the company and its extended channels deliver fast, convenient, dependable and consistent service
• Ex. Oracle, PeopleSoft, SAP, Siebel Systems, Epiphany
• CRM uses IT to create cross-functional enterprise system that integrates
and automates many of the customer- serving processes in sales,
marketing and customer
services that interact with company’s customers
CRM is an integrated enterprise business system of Web-enabled
Software tools and databases accomplishing various customer-
focused business processes that supportthree phases of relationship
between a business and its customers
– Identify and target the best customers
– Real-time customization and personalization of products
and services
– Track when a customer contacts the company regardless of the
contact point
• CRM helps sales, marketing and service professionals capture • Buys a chocolate pack every Friday at 18:00
and track relevant data about – Provide a consistent customer experience
– Every past and future encounter with prospects and • Hilton Hotel’s OnQ
customers CRM & PMS
– Other business and life cycle events of customers – Provide superior service and support across all customer
• Data are captured through customer touch points contact points
– Telephone, fax, e-mail
– Websites, retail stores, kiosks
– Personal contact
• Data are store in a common customer database
• CRM provides sales reps with software tools and
company data sources • It costs 6 times more to sell to a new customer
– Needed to support and manage sales activities • Increasing customer retention by 5 percent can boost profits by 85 percent
– Cross-selling & Up-selling • The odds of selling to an existing customer are 50 percent; a new one 15
• CRM is also capable of generating percent
– Sales prospect and Product information • About 70 percent of customers will do business with the
– Product configurations charts company again if a problem is quickly taken care of
– Sales quote & reports • Enhancing and optimizing customer retention and loyalty is a primary
– Real-time access to customer’s account status objective of CRM
and history – Identify, reward, and market to the most loyal and
– Alert of unresolved issue profitable customers
• CRM information helps prepare for prospective sales – Evaluate targeted marketing and relationship
– Real time access to customer account status programs
– Ex. Huge deposit and offer for investment • Ex. Frequent Flyer Reward points
option

• CRM systems help with direct marketing campaigns by automating

such tasks as
– Qualifying leads for targeted marketing
– Scheduling and tracking mailings
– Capturing and managing responses
– Analyzing the customer & business value of the campaign
– Fulfilling responses and requests
• Assists in fulfillment of prospect and customer responses and requests
by quickly scheduling sales contacts and providing appropriate
information on products and services

• A CRM system provides service reps with software tools and real-time
access to the same database used by sales and marketing
– Service reps can create, assign and manage request for
service by customers
• Call center software routes calls to agents
• Help desk software provides customer reps service data
and suggestions for solving problems
– Hesk (https://www.hesk.com/demo.php)
• Web-based self-service enables customers
to access personalized support information
 • Enhance
– keep customers happy by staying connected to them
– Tracking lead to build precise marketing campaigns
– Support of superior service from a
Responsive network of sales and
service specialists team
• Web-enabled account management,
and customer service and support
tools help keep customers happy
• Sales Force Automation, and
Direct Marketing &
Fulfillment tools to increase
profitability
– Cross-selling and Up-
selling
– Customer Value – One stop shopping
@ attractive price

• Retain
– Managing relationships
– Effective data analysis, regular and systematic follow- • Acquire
up communication with contacts, and well-serviced – Gathering customer data
accounts help you reduce your company’s churn rate. – Like solicitation
– CRM Analytical software and databases help a – CRM system can help acquire new customers
company proactively identif and reward loyal and • Contact Management
profitable customer • Sales prospecting
• Targeted Marketing • Selling
• Relationship Marketing Programs • Direct marketing and fulfillment
– Maintaining and rewarding “Personalized – The goal of these CRM function is to help
business relationship” customer perceive the value of a superior product
– Continental Airlines: Apology & offered by an outstanding company
Recovery Paradox
• Auto rerouting software
• ERP is a cross-functional enterprise system
– driven by an integrated suite of software modules
– that supports the basic internal business processes of a
company
• ERP is
– the technological backbone of e-business
– Enterprise-wide transaction framework
• A typical ERP in manufacturing company
– Processes data from and track the status of sales,
inventory, shipping, invoicing and also forecast
raw material and human resources requirements

• Manufacturing Module
– Material requirement planning, Production planning, Capacity
planning
• Sales & Marketing Module
– Sales analysis, sales planning, pricing analysis
• Distribution
– Order management, purchasing & logistics planning
• Human Resource Module
– Personnel requirement planning, salary &
benefits administration
• Accounting & Finance Module
– Record keeping, financial forecasting,
managerial accounting
 • It gives an integrated real-time view of its core business
processes, such as production, order processing and inventory
management, tied together by the ERP application software and
a common database maintained by a DBMS

• ERP systems track

– business resources and
• Cash, raw materials, production capacity, human
resource
– status of process/commitments made by business
• Customer order, purchase orders, employee
payroll
no matter which department the data came from.
– Manufacturing, purchasing, sales,
accounting

• Quality and efficiency

– ERP creates a framework for integrating internal
business processes resulting into improvements in
quality & efficiency in production, distribution &
customer service
• Decreased costs
• The interrelationships – Compared to non-integrated legacy system, ERP
– With suppliers, customers, has proven to reduce number and cost of
distributors, and other hardware & software and IT support staff and
businesses also transaction processing costs.
– Needed to design, build, and • Decision support
sell a product – Availability and accessibility to vital cross-functional
• Each supply chain process should add value to the information on business performance in time improves
products or services a company produces the quality of decision
– Frequently called a value chain • Enterprise agility
– Breaks down the departmental/functional “silos” or wall
of business
processes, information systems and information
resources
– More flexible organizational structure, managerial
responsibilities and work roles
– More agile & adaptive organization and workforce to
• SCM skills are required to operate an
eBusiness • • SCM helps company to get the
Inter-enterprise relationship
• A successful SCM strategy is based on – Right Product to the
• SCM IS cross-functional inter-enterprise
– Accurate order processing – Right Place at the
system helps a company to manage and
– Just-In-Time Inventory – Right Time in the
support the links(inter-relationships) between
management – Right Quantity at the
a supply chain trading partner (another
– Timely order fulfillment – Right Cost/Selling Price(Contracted Price)
company) so that your company can share
• SCM is a top strategic • Goal of SCM is to manage SC process efficiently by
some of your key business processes with
objective and a major – Forecasting demand
those of your other business entities.
eBusiness application – Controlling inventory
development initiative & – Enhancing the network of business
implementation of many relationships
companies – Receiving feedback on the status of every link

• SCM is a cross-functional inter-enterprise system

that help support and manage the links between a
company’s key business processes and those of its
suppliers, customers and business partners
– Improves manufacturing
efficiency and distribution
effectiveness
– Creates fast, efficient and low cost network of
business relationships
 • Strategic relationships with supplier
– Automate purchase order forms and processing • Faster, more accurate order processing
– Vendor managed inventory • Reductions in inventory levels
– Improved strategic sourcing – Reduced days in inventory
• Improved customer retention & loyalty – Increased inventory turns
– Reduced days sales outstanding • Quicker times to market
– Streamlining and reducing errors in the • Lower transaction and materials costs
invoicing process – Reduced cost of goods sold
– Eliminating backorders
• Reduced accounts receivable, bad debt write-downs
and dispute

– Under-estimating the complexity of planning,

development, training needed to prepare for a
new ERP system
– Failure to involve affected employees in
planning and development
– Lack of change management programs
– Trying to do too much too fast
– Insufficient training
– Insufficient data conversion and testing
– Over-reliance on ERP vendor or consultants
• Start by choosing the right software for your business. • Quality and efficiency
• Select the best fitting software integration and the right partners to – ERP creates a framework for integrating internal business
aid implementation. It means choosing the best fit over the best- processes resulting into improvements in quality &
known software in the market to support your needs. efficiency in production, distribution & customer service
• Clarify the roles and responsibilities of each stakeholder, especially • Decreased costs
at the c-level and management level – Compared to non-integrated legacy system, ERP has
• Plan the implementation project strategically: define scope, proven to reduce number and cost of hardware &
resources, budget, time, risk, and mitigation. software and IT support staff and also transaction
• Create clear and structured change management processes to educate processing costs.
stakeholders on the value of change, advocate the goals to be • Decision support
achieved, and outline potential project risks. – Availability and accessibility to vital cross-functional
• Software training should be a consistent, accessible, and adaptable information on business performance in time improves the
source of information to avoid risks and ensure the proper handling quality of decision
of tools. • Enterprise agility
• Practice risk management to improve the control over risks and – Breaks down the departmental/functional “silos” or wall of
threats for faster mitigation. business
• Operational disruption is the biggest risk and cost for software processes, information systems and information resources
implementation. When companies cut corners to save costs and – More flexible organizational structure, managerial
underinvest in change management, training, or support, the price to responsibilities and work roles
mitigate errors is always far greater than the initial cost of preparing – More agile & adaptive organization and workforce to
the project correctly. capitalize on new business opportunities
• Roll out large-scale projects incrementally and step-by-step. It
creates room to test the implementation strategy and identify risks
and issues early on.
• Allocate time and resources for improvements and optimizations
during implementation