Matakuliah
Tahun
: M0594 / Enterprise System
: 2007
The Market Demand for ERP software
and CRM
Pertemuan 09-10
The Market Demand for ERP software and
CRM
Bina Nusantara
New facilities and costraints connected with
ERP
• In theory, but only in theory, everything from customer orders to
manufacturing schedules and inventory levels reside inside the ERP
system and its databases. This is what user organizations hear from
many vendor who present ERP as a state-of-the-art product with
plenty to offer all its business customers, and as a way to make a
quantum leap in the organization’s internal information using nothing
more than browser-based workstation
• In practice, however, things are little different. True enough,
salespeople can datamine to check production status or inventory
level, inquire about deliveries, and handle orders directly. However,
innovative companies have found that they need to extend their
ERP applications to the Internet by means of Web-based Enterprise
Management, making even small suppliers on the other side of the
world their supply chain partners.
• These innovative companies also need to add CRM functionality,
inventory planning chores, and other routines promoting proactive
participation on behalf of business partners
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New facilities and costraints connected with
ERP
• This has many analytical aspects, including:
– As global transactions get increasingly competitive,
suppliers become responsible for monitoring their
client’s inventory levels
– When the client is running low on a given product, the
supplier must be able to find it immediately and
replenish the stock
• This type of application offers competitive advantages to
business partners up and down the supply chain.
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New facilities and costraints connected with
ERP
• Because in the coming years Internet software will be
used extensively for the Web range of ERP, the system
must provide support for both advanced HTML (e.g.
Cascading Style Sheets, Script) as well as dynamic
HTML and XML
• The solution must also incorporate the ability to create
sophisticated views such as master/detail and table
views with grouping, sorting, restricting, and multimedia
controls. These technically oriented references also
apply to CRM software and other programming products
Bina Nusantara
Customer Relationship Management
Software and Its Benefits
• Internet commerce needs much more than internal data
handling software that can be provided through the more
classical ERP off-the-shelf packages.
• An important add-on is the currently commercially
available solutions for an effective CRM process.
• The sought after goal is that of:
– Providing an effective front office like the customer
– Understanding the customer better than ever before
– Increasing the business the end user does with one’s
company
Bina Nusantara
Customer Relationship Management
Software and Its Benefits
Bina Nusantara
Customer Relationship Management
Software and Its Benefits
• Companies that have adopted and that use CRM
software have made one of their targets better marketing
campaign management across all channels.
• They do so by using customer intelligence to personalize
the marketing effort.
• Another target is to efficiently disseminate valuable
customer intelligence to all people and systems that
need it.
• This assist in optimizing the supply chain based on
demand uncovered by measuring penetration and sales
and evaluating margins and other management-defined
criteria of performance
Bina Nusantara
Customer Relationship Management
Software and Its Benefits
• CRM solutions, and therefore CRM software, should
track both incoming and outgoing customer
communications, flash-out types of customer-initiated
events, and register direct and indirect responses to
business.
• Communication must be managed in a way that can
effectively exploit business opportunities and provide a
selective approach to channel integration.
• Essentially what is sought after through a CRM solution
is the abilility to incrementally increase customer account
visibility, linking front-desk transactions with back-office
ERP information and its supporting software, as well as
with the legacy transaction processing.
• This must be done in a way that allows one to get the
most out of the supply chain.
Bina Nusantara
Customer Relationship Management
Software and Its Benefits
• More difficulties are present when integrating CRM software with
legacy systems.
• The problem typically encountered include:
– Complexities in achieving a single customer view
– Issues of data quality and data format
– Multiple incompatible sources for the same data and what to do
about the differences
– Often misaligned windows of timing and data availability
– The lack of a methodology for a common approach to design for
all data needs
• One of the emerging solutions is that of an information portal making
it feasible to subscribe, access, publish, and understand business
information of heterogeneous backgrond.
• This portal is supposed to act as a single user interface to all
information and applications as well as to business intelligence tools
and analytics.
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Repairing the Damage of Disconnects by
Paying Greater Attention to Detail
• Dr Henry Kaufman aptly remarks that there are “a
growing number of disconnects in our personal
relationships, these feelings of disconnect and
restlessness are driven to an important extent by the
rapidity of change and by a kind of depersonalization
that envelopes aspects of our lives”
• One example is the depersonalization of relations
between lenders and borrowers through securitization.
• Another between portfolio managers and investors
through mutual funds.
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Repairing the Damage of Disconnects by
Paying Greater Attention to Detail
• Can the implementation of CRM and ERP software
improve the basis of intercompany collaboration?
• The answer is maybe if and only if, companies try hard
• Paying attention to detail in all matters associated with
the customer and his or her business is in no way
synonymous with automating marketing through
networks and computers.
• Using customer intelligence to personalize the
campaigns is a commendable enterprise, but it is not
everything
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