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Chapter
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Enterprise Business Systems
Well, Sort-of
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Chapter
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Enterprise Business Systems
What are enterprise business systems?
Good Question!!
 The term Enterprise Content Management (ECM) refers to the
technologies used to capture, manage, store, preserve, and deliver
content and documents related to organizational processes. ECM
tools & strategies allow the management of an organization's
unstructured information, wherever that information exists.
So is that what we will be studying?
 Not really. We will look at:
 Customer Relationship Management (CRM)
 Enterprise Resource Planning (ERP)
 Supply Chain Management (SCM)
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Enterprise Business Systems
What is Customer Relationship Management (CRM)?
 The use of information technology to create a cross-functional
enterprise system that integrates and automates many of the
customer-serving processes in sales, marketing, and customer
services that interact with a company’s customers
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What is Customer Relationship Management (CRM)?
• Contact and Account Management: helps
sales, marketing, and service professionals
capture and track relevant data about every
past and planned contact with prospects and
customers, as well as other business and life
cycle events of customers
• Sales: provides sales reps with tools and
company data sources needed to support and
manage sales activities, and optimize crossselling and up-selling
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Enterprise Business Systems
What is Customer Relationship Management (CRM)?
• Marketing Fulfillment: help marketing
professionals accomplish direct marketing
campaigns by automating such tasks as
qualifying leads for targeted marketing, and
scheduling and tracking direct marketing
mailings
• Customer Service and Support: provides
service reps with software tools and real-time
access to the common customer database
shared by sales and marketing professionals
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What is Customer Relationship Management (CRM)?
• Retention and Loyalty Programs: help a company identify,
reward, and market to their most loyal and profitable customers
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Enterprise Business Systems
What is Customer Relationship Management (CRM)?
• Retention and Loyalty Programs:
 Consider the following:
 It costs six times more to sell to a new customer than to sell
to an existing customer
 A dissatisfied customer will tell 8 – 10 people about their
unpleasant experience
 A company can boost profits 85% by increasing annual
customer retention by 5%
 The odds of selling a product to a new customer are 15%; the
odds of selling a product to an existing customer are 50%
 70% of complaining customers will do business with the
company again if it quickly takes care of a service problem
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What are the phases of CRM?
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What are the phases of CRM?
• Acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillment
 Direct Marketing
 Interactive Marketing
 Targeted Marketing
 Promotions
• Enhance relationship with customer by supporting superior service
from a responsive networked team of sales and service specialists
and business partners
 Cross/Up-Sell
 Improved customer support
• Retain and expand business with customers by proactively
identifying and rewarding the most loyal and profitable customers
 Proactive Services
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What are the benefits of CRM?
 CRM allows a business to identify and target their best
customers so they can be retained as lifelong customers for
greater and more profitable services.
 CRM makes possible real-time customization and
personalization of products and services based on customer
wants, needs, buying habits, and life cycles.
 CRM can keep track of when a customer contacts the company,
regardless of the contact point.
 CRM systems can enable a company to provide a consistent
customer experience and superior service and support across
all the contact points a customer chooses
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Why do CRMs Fail?
 Lack of understanding and preparation.
 Rely on CRM to solve business
problem without first developing the
business process changes and change
management programs that are
required.
 CRM projects implemented without the
participation of the business
stakeholders involved.
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What are the trends in CRM?
 Operational CRM:
 Support convenient customer interaction through a variety of
media, including phone, fax, e-mail, chat, cell phone
 Synchronize customer interactions across all media
 Make your company easier to do business with
 Analytical CRM:
 Extract in-depth customer history, preferences and profitability
information from various databases
 Encourage analysis, prediction and definition of customer
values, behaviors and demands
 Approach customers with relevant information and offer
products and services tailored to their needs
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What are the trends in CRM?
 Collaborative CRM:
 Enable easy collaboration with customers, suppliers and
partners
 Improve efficiency and integration through the supply chain
 Improve responsiveness to customer needs through sourcing
of products and services outside your enterprise
 Portal-based CRM:
 Provide users with tools and information that fit their individual
roles and preferences
 Empower employees to respond to customer demands ,ore
quickly and become customer-focused
 Provide instant access and linkage and use all internal and
external customer information
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What is Partner Relationship Management (PRM)?
 Applications that apply many
of the same tools used in
CRM systems to enhance
collaboration between a
company and its business
partners, such as distributors
and dealers, to better
coordinate and optimize sales
and service to customers
across all marketing channels
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What is Enterprise Resource Planning (ERP)?
 A cross-functional enterprise system
driven by an integrated suite of
software modules that supports the
basic internal business processes of
a company
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What ERP Process & Information Flows are needed?
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What are the benefits of ERP?
• Quality and Efficiency: ERP creates a framework for integrating
and improving a company’s internal business processes that
results in significant improvements in the quality and efficiency of
customer service, production, and distribution
• Decreased Costs: Significant reductions in transaction
processing costs and hardware, software, and IT support staff
• Decision Support: Provides vital cross-functional information on
business performance quickly to managers to significantly
improve their ability to make better decisions in a timely manner
• Enterprise Agility: ERP breaks down many former departmental
and functional walls of business processes, information systems,
and information resources
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What are the costs of ERP?
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What are the trends in ERP?
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Why do ERPs fail?
 Business mangers and IT professionals underestimate the
complexity of the planning, development, and training
needed
 Failure to involve affected employees in the planning and
development phases
 Trying to do too much too fast in the conversion process
 Failure to do enough data conversion and testing
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Enterprise Business Systems
What is Supply Chain Management (SCM)?
 A cross-functional inter-enterprise system
that uses information technology to help
support and manage the links between
some of a company’s key business
processes and those of its suppliers,
customers, and business partners
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What are the objectives of SCM?
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What is the role of SCM?
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What does a SCM do?
• Materials Management: share accurate
inventory and procurement order
information, ensure materials required for
production are available in the right place
at the right time, and reduce raw material
spending, procurement costs, safety
stocks, and raw material and finished
goods inventory
• Collaborative Manufacturing: optimize
plans and schedules while considering
resource, material, and dependency
constraints
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What does a SCM do?
• Collaborative Fulfillment: commit to
delivery dates in real time, fulfill orders
from all channels on time with order
management, transportation planning,
and vehicle scheduling, and support the
entire logistics process, including picking,
packing, shipping, and delivery in foreign
countries
• Supply Chain Event Management:
monitor every stage of the supply chain
process, from price quotation to the
moment the customer receives the
product, and receive alerts when
problems arise
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What does a SCM do?
• Supply Chain Performance Management: report key
measurements in the supply chain, such as filling rates, order
cycle times, and capacity utilization
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What are the trends in SCM?
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What are the benefits of SCM?
 Faster, more accurate order processing.
 Reductions in inventory levels.
 Quicker times to market.
 Lower transaction and material costs.
 Strategic relationship with suppliers.
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Why do SCMs fail?
 Lack of proper demand planning knowledge, tools and
guidelines
 Inaccurate or overoptimistic demand forecasts
 Inaccurate production, inventory and other business data
provided by a company’s other information systems
 Lack of adequate collaboration among marketing,
production, and inventory management departments within a
company
 Immature, incomplete or hard to implement SCM software
tools
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What is Electronic Data Interchange (EDI)?
 The electronic exchange of business transaction documents
over the Internet and other networks between supply chain
trading partners
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Enterprise Business Systems
What is it, really???
 A set of standards for structuring
information to be electronically
exchanged between and within
businesses, organizations,
government entities and other
groups
 The standards describe structures
that emulate documents, for
example purchase orders to
automate purchasing.
 The term EDI is also used to refer to the implementation and
operation of systems and processes for creating,
transmitting, and receiving EDI documents.
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What activities are involved?
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Are there any Questions???