1
e-Business Systems
CHAPTER 7
Lecture-9/ T. Nouf Almujally
Outline
Section 1 (Enterprise Business Systems):
•
Cross-Functional Enterprise Applications
•
Getting All the Geese Lined Up: Managing at the Enterprise Level
•
Customer Relationship Management: The Business Focus.
•
What is CRM?
•
The Three Phases of CRM
•
Benefits and Challenges of CRM (not required)
•
•
•
•
CRM Failures (not required)
Enterprise Recourse Planning: The Business Backbone
What is ERP?
Benefits and Challenges of ERP
•
Causes of ERP Failures (not required)
Outline
Section 1 (Enterprise Business Systems):
•
Supply Chain Management: The Business Network.
•
What is CRM?
•
•
•
•
•
•
Electronic Data Interchange (not required)
The Role of SCM (not required)
Benefits and Challenges of SCM (not required)
Enterprise Application Integration
Transaction Processing Systems.
Enterprise Collaboration Systems
Section 2:
•
Functional Business Systems summarized in Figure 7.24 (required only)
Learning Objectives
•
Identify these cross-functional enterprise systems, and
give examples of how they can provide business
value to a company
•
•
•
•
•
•
Enterprise Resource planning
Customer Relationship Management
Supply chain management
Enterprise application integration
Transaction processing systems
Enterprise collaboration systems
Enterprise Business Systems
E-business
Using the Internet, other networks, and IT to
support…
Electronic commerce
Enterprise communications
and collaboration
Web-enabled business processes
Both within a networked enterprise and with its
customers and business partners.
E-commerce
Buying, selling, and marketing of products, services,
and information over the Internet and other networks
Cross-Functional Enterprise Applications
•
•
Business firms are using Internet technologies to
help them reengineer and integrate the flow of
information among their internal business
processes and their customers and suppliers.
Companies all across the globe are using the
WWW and their intranets and extranets as a
technology platforms for their cross-functional
and interenterprise information systems.
Cross-Functional Enterprise Applications
•
Companies today are using IT to develop
integrated cross-functional enterprise systems that
cross the boundaries of traditional business functions
to reengineer and improve business processes all
across the enterprise.
•
•
To share information resources and improve the
efficiency and effectiveness of business processes.
To develop strategic relationships with customers,
suppliers, and business partners.
Enterprise Application Architecture
Major e-business cross-functional enterprise applications and their
interrelationships are summarized in this architecture:
Internal production,
distribution, ……. financial
processes.
Developing sourcing
and procurement
processes
Acquiring and retaining
profitable customers via
marketing, sales, …..services.
Enterprise Application Architecture
These applications include integrated
functional enterprise systems such as:
•
Enterprise resource planning (ERP).
Customer relationship management (CRM)
Supply chain management (SCM).
•
•
•
•
cross-
Focuses on accomplishing fundamental business
processes in concert with:
•
•
•
•
Customers
Suppliers
Partners
Employees
Managing at the Enterprise Level
•
Getting the whole business to fly in the same
direction, as efficiently as possible:
•
•
•
Customer relationships
Back-office operations
Movement of raw materials & finished goods
Customer Relationship Management - CRM
The Business Focus
Customer Relationship Management
•
A customer-centric focus
•
Customer relationships are a company’s most valued asset.
•
Every company should find and retain the most profitable
customers possible.
What is CRM?
Managing the full range of the customer relationship
involves two related objectives:
(1) Providing customer-facing employees with a
single, complete view of every customer,
at every touch point, across all channels
(2) Providing the customer with a single,
complete view of the company and
its extended channels
What is CRM?
Customer relationship management: is 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.
• Create an IT framework of Web-enabled software and
databases that integrates these processes with the rest of a
company’s business operations.
• Siebel Systems, Oracle, SAP AG, IBM are some of the leading
vendors of CRM software.
Application Components of a CRM System
•
CRM systems include a family of software modules that provides
the tools that enable a business and its employees to provide
fast, dependable, and consistent service to its customers.
1- Contact and Account Management
•
•
CRM SW helps sales, marketing, and service professionals
capture and track relevant data about:
•
Every past and planned contact with customers.
•
Other customer business & life-cycle events.
Data are captured through:
•
•
Telephone, fax, e-mail, Websites, Retail stores, personal contact.
CRM SW store the data in a common customer DB that
integrates all customers account information and makes it
available throughout the company via the Internet, intranet
for sales, marketing, services and other CRM applications.
2- Sales
•
•
A CRM system provides sales representatives
with the SW tools and data resources they
need to:
•
Support and manage sales activities.
•
Optimize cross- and up-selling.
CRM also provides access enabling sales
representatives to check on a customer’s
account status and history before scheduling
their sales calls.
3- Marketing and Fulfillment
CRM systems help marketing professionals accomplish
marketing campaigns by automating tasks
Qualifying leads for targeted marketing
Scheduling and tracking marketing mailings
Capturing and managing responses
Analyzing the business value of a campaign
Fulfilling responses & requests by quickly scheduling sales
contracts & provide info about products
4- Customer Service and Support
•
•
CRM system provide service representatives with SW tools and access
to the customer DB shared by sales and marketing professionals.
CRM helps customer service managers create, assign and manage
customers’ requests for service.
•
Call center software.
•
Help desk software.
•
Web-based self-service.
5- Retention and Loyalty Programs
70% of complaining
customers will do
business with the
company again if it
quickly fixes a
problem
It costs 6 times
more to sell to
a new
customer than
to sell to an
existing one
An unhappy
customer will
tell 8-10 others
about his
experience
Increasing
customer
retention by 5%
can increase
company
profits 85%
5- Retention and Loyalty Programs
•
•
Enhancing and optimizing customer retention and
loyalty is a major business strategy and primary
objective of CRM.
CRM system help a company to Identify, reward, and
market to their most loyal and profitable customers.
5- Retention and Loyalty Programs
CRM analytical
software includes
data mining tools
and other analytical
marketing software.
+
CRM databases may
consist of a
customer data
warehouse and
data marts.
=
Used to identify
profitable and
loyal
customers 
direct
marketing
programs
toward them
Three Phases of CRM
•
All CRM application components aimed at helping a
company acquire, enhance, and retain profitable
relationships with its customers as a primary business
goal.
Enterprise Resource Planning - ERP
The Business
Backbone
What is ERP?
Enterprise resource planning:
•
is a cross-functional enterprise system that integrates
and automates many of the internal business processes
and information systems of a company, particularly
those within the manufacturing, logistics, distribution,
accounting, finance, and human resource functions of the
business.
•
Now, ERP serves as the vital backbone information
system of the enterprise, helping a company achieve
the efficiency, agility, and responsiveness required to
succeed in a dynamic business environment.
What is ERP?
Facilitates business,
supplier, and customer
information flows
The backbone of
business processes
A cross-functional
enterprise system
Supports basic
internal business
processes
An integrated
suite of software
modules
ERP Application Components
•
ERP software consists of integrated modules that
give a company a real-time view of its core
business processes, such as production, order
processing, inventory management and sales tied
together by the ERP application software and a
common DB.
ERP Application Components
ERP Application Components
•
ERP system ..
•
•
•
track business resources (such as cash, raw
materials, production capacity)
and track the status of commitments made by the
business (e.g. customer orders ,purchase orders,
employee payroll)
no matter which department (e.g. manufacturing,
purchasing, sales, accounting) has entered the data
into the system.
Benefits and Challenges of ERP
ERP Business Benefits
ERP Costs
1. Quality & efficiency
1. High risk & cost
2. Decreased costs
2. Hardware and
software are a small
part of overall
project
3. Decision support
4. Enterprise agility
3. Failure can cripple or
kill a business
Costs of Implementing a New ERP
Read from Chapter 7 (Section 1)