Tutorial on Chapter 11 & 12

CHAPTER 11 - BUILDING A CUSTOMER-CENTRIC ORGANIZATION-CUSTOMER RELATIONSHIP MANAGEMENT 

CRM enables an organization to :

 - Provide better customers service

 Make call centers more efficient

- Cross sell product more effectively

- Help sales staff close deals faster

- Simplify marketing and sales processes

- Discover new customers

- Increase customer revenues

Recency, Frequently, and Monetary value - organization can find their most valuable customer through "RCM"

• Recency - how recently customer purchased items
• Frequently - how frequent customer purchased items
• Monetary value - how much a customer spends on each purchase 

The evolution of CRM :

- CRM reporting technology : help organizations identify their customers across other applications.
- CRM analysis technologies : help organizations segments their customers into categories. 

- CRM predicting technologies : help organizations make predictions regarding customer  behaviour. 

Using analytical CRM to enhance decisions :

- Operational CRM : support traditional and transactional processing day to day.

- Analytical CRM : support backoffice operations and strategic analysis and includes all systems that do not deal directly with the customers.

CRM success factors  :

- clearly communicate the CRM strategy

- Define information needs and flows  

- Build an integrated view of the customer

- Implement in iterations

- Scalability for organizational growth

Chapter 12 : Integrating the Organization from End to End-                          Enterprise Resource Planning.

Enterprise Resource Planning (ERP)

• It serves as the organization’s backbone in providing fundamental decision making support.
• It enables people in different business areas to communicate.
• ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share.
• The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system’s individual application components (called modules), supporting diverse business function such as accounting, manufacturing, marketing, and human resources.
• ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it.

Bringing the Organization Together

·  ERP enables employees across the organization to share information across a single, centralize database.

    ·  With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency.

The Evolution before ERP : 

The Evolutions joins Together : 

The Evolutions of ERP : 

- Integrating of SCM, SRM, ERP -  Integration of SCM, CRM, and ERP is the key to success for many companies.

-   Integration allows the unlocking of information to make it available to any user, anywhere,anytime.

-   2 main competitors in ERP market is Oracle and Sap.

          

PRIMARY USERS AND BUSINESS BENEFITS OF STRATEGIC INITIATIVES :

Integration Tools

-     An integrated enterprise infuses support areas, such as finance and human resources,with a a strong customer orientation.

-   Integration are achieved using:

§   Middleware - several different types of software that sit in the middle of and provide connectivity between two or more software applications. It translates information between disparate systems.

To qualify as a true ERP solution, the system not only must integrate various organization processes, but also must be:

• Flexible – must be able to quickly respond to the changing needs of the organization

• Modular and open – must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.  Some organizations will begin with buying two modules, such as accounting and sales, and then will add modules, such as CRM and SCM, as they gain confidence in their current modules.  (Implementing in small pieces or phases – companies do not want to buy the entire ERP and spend years implementing twenty different modules to find that it doesn’t meet their need)

• Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses

• Beyond the company – must support external partnerships and collaboration efforts

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