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Management Information System
Enterprise e-Business Systems
Judi Prajetno Sugiono
jpsugiono@gmail.com
(2008)
Learning Objectives
Identify and give examples to illustrate the
following aspects of customer relationship
management, enterprise resource
management, and supply chain
management systems:



Business processes supported
Customer and business value provided
Potential challenges and trends
2
Example:
Architecture of an online travel agency
3
Enterprise Application Architecture
4
Section I
Customer Relationship Management:
The Business Focus
5
Customer Relationship Management
Provides customer-facing employees with
a single, complete view of every customer
at every touch point and across all
channels
Provides the customer with a single,
complete view of the company and its
extended channels
6
Customer Relationship Management (continued)
CRM..


Integrates and automates many of the
customer serving processes
Creates an IT framework of Web-enabled
software & databases that integrates these
processes with the rest of the company’s
business operations
7
Customer Relationship Management (continued)

Includes software modules that provide tools
that enable a business & its employees to
provide fast, convenient, dependable,
consistent service.
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Major Application Components
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Major Application Components (continued)
Contact & Account Management

Helps capture and track relevant data about
past and planned contacts with prospects &
customers.
10
Major Application Components (continued)
Sales


Provides sales reps with software tools &
company data needed to support & manage
their sales activities.
Helps optimize cross-selling & up-selling
11
Major Application Components (continued)
Marketing & Fulfillment



Helps accomplish direct marketing campaigns
by automating tasks
Helps capture & manage prospect & customer
response data
Helps in fulfillment by quickly scheduling sales
contacts & providing appropriate information
on products & services to them
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Major Application Components (continued)
Customer Service and Support


Provides software tools & real-time access to
the common customer database
Helps create, assign, & manage requests for
service from customers
 Call center software
 Help desk software
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Major Application Components (continued)
Retention and Loyalty Programs

Helps the company identify, reward, and
market to their most loyal and profitable
customers
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Three Phases of CRM
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Three Phases of CRM (continued)
Acquire (new customers)

By doing a superior job of contact
management, sales prospecting, selling,
direct marketing, & fulfillment.
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Three Phases of CRM (continued)
Enhance (customer satisfaction)

By supporting superior service from a
responsive networked team of sales and
service specialists.
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Three Phases of CRM (continued)
Retain (your customers)

Help identify and reward your most loyal,
profitable customers.
18
Benefits and Challenges of CRM
Allows a business to identify its best customers
Makes possible real-time customization &
personalization of products & services based on
customer wants, needs, buying habits, & life
cycles
Enables a company to provide a consistent
customer service experience
19
CRM Failures
Due to lack of understanding &
preparation.
CRM is not a silver bullet
20
CRM Architecture
Operational CRM
Analytical CRM
Customer touch points
Analysis
Fax
Process
improvement
Web Access
e-mail
customers
Usage
Direct sales
Refined
business
actions
Call Center
Busines
s
Intellige
nce
Customer
feedback
information
Call center
Integrated
database
Sales
AP/AR
Provisioning
Billing
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Example: Propensity-to-buy Segment – a
cable television company
Segment:
Description:
Percentage of
customer
base:
Early adopters
Most likely to
buy newly
offered
products and
services.
Especially
attracted to
technology
innovation
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Pragmatists
Will purchase
new products
after value is
well
understood.
Might need to
see the product
in action
46
Skeptics
Only purchase
if value is
proven.
Chances
increase with
rebates or
money-back
guarantees
28
Laggards
Await massacceptance of
product prior to
purchase. Not
likely to
respond to new
promotions
15
22
Trends in CRM
Types of CRM
Operational CRM
Analytical CRM
Business Value
Supports customer interaction with greater convenience through a variety of channels,
including phones, fax, e-mail, and mobile devices
Synchronize customer interactions consistently across all channels
Makes your company easier to do business with
Extracts in-depth customer history, preferences, and profitability information from your
data warehouse and other databases
Allows you to analyze, predict, and derive customer value and behavior and forecast
demand
Lets you approach your customers with relevant information and offers that are tailored to
their needs
Collaborative
CRM
Enables easy collaboration with customers, suppliers, and partners
Improves efficiency and integration throughout the supply chain
Allows greater responsiveness to customer needs through sourcing of products and
services outside of your enterprise
Portal Based
CRM
Provides all user with the tools and information that fit their individual roles and
preferences
Empowers all employees to respond to customer demands more quickly and become truly
customer focus
Provides the capability to instantly access, link, and use all internal and external customer
information
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Major CRM Vendors
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Section II
Enterprise Resource Planning:
The Business Backbone
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Enterprise Application Architecture
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Enterprise Resource Planning
Serves as a cross-functional enterprise
backbone that integrates & automates many
internal business processes and information
systems
Helps companies gain the efficiency, agility, &
responsiveness needed to succeed today
Gives a company an integrated real-time view of
its core business processes
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Major Application component of ERP
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Example of Business Process flow
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The Business Process supported by ERP
at Colgate Palmolive co.
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Enterprise Resource Planning (continued)
Benefits and Challenges

Quality and efficiency
 Helps improve the quality and efficiency of
customer service, production, & distribution by
creating a framework for integrating and improving
internal business processes
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Enterprise Resource Planning (continued)

Decreased Costs
 Reductions in transaction processing costs and
hardware, software, and IT support staff
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Enterprise Resource Planning (continued)
Decision support

Provides cross-functional information on
business performance to assist managers in
making better decisions
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Enterprise Resource Planning (continued)
Enterprise agility

Results in more flexible organizational
structures, managerial responsibilities, and
work roles
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Enterprise Resource Planning (continued)
Costs of ERP

The costs and risks of failure in implementing
a new ERP system are substantial.
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Enterprise Resource Planning (continued)
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Enterprise Resource Planning (continued)
Causes of ERP failures


Underestimating the complexity of the planning,
development, and training required
Failure to involve affected employees in the
planning & development phases and change
management programs
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Enterprise Resource Planning (continued)

Trying to do too much, too fast

Insufficient training

Believing everything the software vendors
and/or consultants say
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Enterprise Resource Planning (continued)
Trends




Flexible ERP
Web-enabled ERP
Interenterprise ERP
E-Business Suites
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Section III
Supply Chain Management:
The Business Network
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Enterprise Application Architecture
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Supply Chain Management
A cross-functional interenterprise system that
uses IT to help support & manage the links
between some of a company’s key business
processes and those of its suppliers, customers,
& business partners.
Goal is to create a fast, efficient, & low-cost
network of business relationships.
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Supply Chain Management (continued)
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Supply Chain Management (continued)

Electronic data interchange
 Exchanging business transaction documents over
the Internet & other networks between supply
chain trading partners
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Supply Chain Management (continued)
The Role of SCM
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Supply Chain Management (continued)
Benefits and Challenges

Can provide faster, more accurate order
processing, reductions in inventory levels,
quicker time to market, lower transaction and
materials costs, & strategic relationships with
suppliers
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Supply Chain Management (continued)
Problem causes




Lack of proper demand planning knowledge,
tools, and guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production, inventory, and other
business data
Lack of adequate collaboration
47
Supply Chain Management (continued)
Trends
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Discussion Questions
Should a company become a customerfocused business?
Why would systems that enhance a
company’s relationships with customers
have such a high rate of failure?
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Discussion Questions (continued)
How could some of the spectacular
failures of ERP systems have been
avoided?
Should companies continue to use EDI
systems?
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Discussion Questions (continued)
How can the problem of overenthusiastic
demand forecasts in supply chain planning
be avoided?
What challenges do you see for a
company that wants to implement
collaborative SCM systems?
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Discussion Questions (continued)
Should companies install e-business
software suites or “best of breed” ebusiness software components?
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Real World Case 1 – Mitsubishi
Motor Sales
What are the key application components
of Mitsubishi’s CRM system?
What is the business use of each of those
components?
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Real World Case 1 (continued)
What are the benefits to a business and its
customers of a CRM system like
Mitsubishi’s?
Do you approve of Mitsubishi’s approach
to acquiring and installing its CRM
system?
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Real World Case 1 (continued)
Why have many CRM systems failed to
provide promised benefits like those
generated by Mitsubishi’s system?
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Real World Case 2 – Agilent Technologies &
Russ Berrie
What are the main reasons companies
experience failures in implementing ERP
systems?
What are several key things companies
should do to avoid ERP systems failures?
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Real World Case 2 (continued)
Why do you think ERP systems in
particular are often cited as examples of
failures in IT systems development,
implementation, or management?
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Real World Case 2 (continued)
What do you think caused the major
failure of Agilent’s ERP implementation?
Why do you think they did not act to avoid
the reasons you specified?
58
Real World Case 3 – TaylorMade Golf & HON Industries
How could moving business information
systems with suppliers and distributors to
the Web result in such dramatic business
benefits as experienced by TaylorMade
Golf?
How does HON Industries’ new SCM
system improve the efficiency of their
supply chain?
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Real World Case 3 (continued)
What other SCM initiatives would you
recommend that TaylorMade or HON
Industries implement to improve their
supply chain performance and business
value?
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Real World Case 3 (continued)
What are several ways a small business
could use supply chain management to
improve the efficiency and business value
of their supply chain?
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Real World Case 4 – H-P, Eastman Chemical, &
Others
Why can both large and small businesses
cut costs and increase revenues by
moving their supply chains online?
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Real World Case 4 (continued)
What is the business value to Eastman
Chemical and W.W. Grainger of their
initiatives to help their suppliers and
customers do business online?
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Real World Case 4 (continued)
Why are many small suppliers reluctant to
do business online with their large
customers?
What can be done to encourage small
suppliers to get online?
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Real World Case 5 – Wal-Mart &
Mattel
Do you agree that Wal-Mart is “the best
supply chain operator of all time”?
Why or why not?
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Real World Case 5 (continued)
What has Mattel learned from Wal-Mart?
How well are they applying it to their own
business?
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Real World Case 5 (continued)
What can other businesses learn from the
experiences of Wal-Mart and Mattel that
could improve their supply chain
performance?
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