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Enterprise e-Business Systems

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Title: Enterprise e-Business Systems


1
Enterprise e-Business Systems
2
Enterprise Application Architecture
3
  • Customer Relationship Management (CRM) The
    Customer Focus

4
  • A customer focused business was one of the top
    business strategies that can be supported by IT.
  • Thus many Companies are implementing CRM business
    initiatives and information systems as part of a
    customer-focused or customer centric strategy to
    improve their chance for success in todays
    competitive environment.

5
Mitsubishi Motor Sales
  • They realized their business lacked a customer
    focus and decided to change through a CRM
    initiative.
  • CRM project involved acquiring and installing the
    hardware, software, network and data resources
    from 18 vendors needed to create and support one
    central call center system that would provide
    superior service to all customers, prospects, and
    other callers.

6
  • The team of sales, marketing, finance, and IT
    professionals who directed the project decided to
    install individual CRM software components using
    a slow, phased development approach so employees
    could be properly trained in each new application.

7
  • The new system has produced increased customer
    satisfaction, major cost savings, improved
    employee morals, etc for Mitsubishi management.

8
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

9
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 companys business operations

10
  • CRM include a family of software modules that
    provides the tools that enable a business and its
    employees to provide fast, convenient,
    dependable, and consistent service to its
    customers.
  • Siebel systems, Oracle, PeoppleSoft, SAP are some
    leaders of CRM.

11
Customer Relationship Management (continued)
12
Contact and Accountant Mgt
  • Information is captured from all customer
    touchpoints such as telephone, fax, email, etc.
  • CRM systems store the data in a common customer
    database that integrate all customer account
    information and makes it available throughout the
    company via internet, intranet, etc for sales,
    marketing, service, and other CRM applications.

13
Sales
  • It provides sales representative with the
    software tools and company data sources they need
    to support and manage their sales activities and
    optimize cross selling and up selling.

14
Marketing and Fulfillment
  • CRM helps marketing professionals accomplish
    direct marketing campaigns by automating tasks
    like qualifying leads for targeted marketing,
    scheduling and tracking direct marketing
    mailings.
  • Then CRM software helps marketing professionals
    capture and manage prospects and customer
    response data in CRM database and analyze the
    customer and business value of a companys direct
    marketing campaigns.

15
Customer service and support
  • It provides service representative with software
    tools and real time access to the common customer
    database shared by sales and marketing
    professionals.
  • It helps customer service managers create, assign
    and manage requests for service by customers.

16
  • Call center software routes calls to customer
    support agents based on their skills and
    authority to handle specific kinds of service
    requests.
  • Help desk software assists customer service reps
    in helping customers who are having problems with
    a product or service by providing relevant
    service data and suggestions for resolving
    problems.

17
Retention and Loyalty Programs
  • It costs 6 times more to sell a new customer than
    to sell to an existing one.
  • A typical dissatisfied customer will tell 8 to 10
    people about his or her experience.
  • A company can boost its profits 85 by increasing
    its annual customer retention by only 5.
  • 70 of complaining customers will do business
    with the company again if it quickly takes care
    of a service.

18
  • CRM try to help a company identify, reward, and
    market to their most loyal and profitable
    customers.
  • CRM analytical software includes data mining
    tools and other analytical marketing software
    while CRM databases may consist of a customer
    data warehouse and CRM data marts.

19
3 Phases of relationship between a business and
customers
20
Customer Relationship Management (continued)
  • Benefits and Challenges
  • 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

21
Customer Relationship Management (continued)
  • Benefits and Challenges (continued)
  • Enables a company to provide a consistent
    customer service experience
  • Failures
  • Due to lack of understanding preparation.
  • CRM is not a silver bullet

22
  • Monster.com rolled out a CRM in 1998. The company
    had invested over 1 million in customized
    software and integrated all its computer systems
    in an attempt to boost the efficiency of its
    sales force.
  • However the new system proved to be so slow that
    sales people in the field found themselves unable
    to download customer information from the company
    database on to their laptops. Every time they
    tried, their machine froze.
  • Eventually the company was forced to rebuild the
    entire system and lost millions of dollars and
    goodwill of customers and employees.

23
Customer Relationship Management (continued)
  • Trends
  • Operational CRM
  • Analytical CRM
  • Collaborative CRM
  • Portal-based CRM

24
Operational CRM
  • Supports customer interaction with greater
    convenience through a variety of channels
    including phone, fax, email, chat and mobile.
  • Synchronize customer interactions consistently
    across all channels.
  • Makes your company easier to do business with

25
Analytical CRM
  • Extracts in-depth customer history, preferences
    and profitability information from your data
    warehouse and other database.
  • Allows to analyze, predict and derive customer
    value and behavior and forecast demand.

26
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.

27
Portal-based CRM
  • Provides all users 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
    focused
  • Provides the capability to instantly access, link
    and use all internal and external customer
    information

28
  • Enterprise Resource Planning (ERP) The
    Business Backbone

29
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

30
Enterprise Resource Planning (continued)
  • Gives a company an integrated real-time view of
    its core business processes
  • ERP software suites typically consist of
    integrated modules of
  • Manufacturing
  • Distribution
  • Sales
  • Accounting
  • Human Resource Management

31
Enterprise Resource Planning (continued)
  • Benefits
  • 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
  • Decreased Costs
  • Reductions in transaction processing costs and
    hardware, software, and IT support staff

32
Enterprise Resource Planning (continued)
  • Benefits
  • Decision support
  • Provides cross-functional information on business
    performance to assist managers in making better
    decisions
  • Enterprise agility
  • Results in more flexible organizational
    structures, managerial responsibilities, and work
    roles

33
Enterprise Resource Planning (continued)
  • Challenges
  • Costs of ERP
  • The costs and risks of failure in implementing a
    new ERP system are substantial.

34
Enterprise Resource Planning (continued)
35
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
  • Trying to do too much, too fast
  • Insufficient training
  • Believing everything the software vendors and/or
    consultants say

36
Enterprise Resource Planning (continued)
  • Trends
  • Flexible ERP
  • SAP AG, Oracle, PeopleSoft, etc
  • Web-enabled ERP
  • Interenterprise ERP
  • ERP with web enabled links between company, its
    customers, suppliers, distributors and others.
  • E-Business Suites
  • Integrate ERP, CRM, SCM, procurement, decision
    support and other business functions.
  • Oracles e-Business Suit and SAPs mySAP

37
  • Supply Chain Management The Business Network

38
Supply Chain Management
  • A cross-functional interenterprise system that
    uses IT to help support manage the links
    between some of a companys key business
    processes and those of its suppliers, customers,
    business partners.
  • Goal is to create a fast, efficient, low-cost
    network of business relationships.

39
  • The inter relationships with suppliers,
    customers, distributers and other businesses that
    are needed to design, build and sell a product
    make up the network of business entities,
    relationships and processes that is called a
    supply chain.
  • And since each supply chain process should add
    value to the products or services a company
    produces, a supply chain is frequently called a
    value chain.

40
Supply Chain Management (continued)
41
What do supply chain management (SCM) tools do?
  • Supply chain management tools enable managers to
    make informed business decisions about the
    operation of their supply chain

Supply Chain Management Definition
  • Supply chain management tools facilitate planning
    and production scheduling based on known business
    constraints

Supply Chain Management Overview
42
SCM capacity constraints
Managing a supply chain would be easy if we had
unlimited resources
How do I decide what to do on which piece of
equipment, and when?
Can only drill one piece of metal at a time
-- OR --
Computer processing and storage capacity not
infinite
Supply Chain Manager
43
SCM Tools levels
Supply Chain Elements
  • Supply Chain Planning services configure
    operations to best meet projected demand levels
  • The planning horizon ranges from developing a
    long term strategic outlook to developing a short
    term tactical production schedule

SCM Service Offering
Strategic Planning
Network Design
Demand Planning
Supply Planning
Production Planning
Tactical Planning
Warehouse Management
Transportation Management
Order Management
  • Supply Chain Execution services monitor and
    control production operations
  • They provide real time tracking and alert
    notification

Inventory Management
Operational Planning
Event Management
Real time / Minutes
Hours / Days
Weeks / Months
Quarters
Years
Source BAH
44
Supply Chain Planning Process
Demand Planning
  • Anticipate demand based on historical trends and
    current conditions
  • Perform what if analysis - highlight the impact
    of changing demand drivers

Network Design
Production Planning
Production Scheduling
  • Design where to place production facilities and
    optimize the end to end chain
  • Construct alternate flow scenarios that
    incorporate associated constraints
  • Decompose the supply plan into sub assembly /
    production needs by site
  • Balance production capacity across sites
  • Optimize processing flows, sequence, and timing
  • Produce a finite capacity production schedule

Supply Planning
  • Balances unconstrained demand against high level
    supply chain constraints
  • Reflect order priority and due dates

Hours / Days
Weeks / Months
Planning Horizon
Quarters
Years
45
Supply Chain Execution Process
Order Management
Inventory Management
Transportation Management
Warehouse Management
  • Record customer orders and track status from
    receipt to final delivery
  • Direct efficient response to orders with dynamic
    cost / benefit analysis of options
  • Streamline information movement and provide tight
    inventory control
  • Inventories replenished using kanban, min-max, or
    reorder point
  • Optimize and track outbound and inbound shipping
  • Optimization and management of warehouse processes

Event Management
  • Monitor and manage critical planning and event
    information
  • Broadcast alert notification and present response
    alternatives based on pre determined business
    rules

46
I2 gtmaster production schedule
Source i2 Technologies
47
SCM vendors
  • Although each of the vendors claim to provide an
    end to end solution, they actually fall into two
    distinct camps
  • First are the ERP vendors who provide a strong
    solution for integrating the data environment and
    providing visibility
  • Second are the SCM vendors who provide robust
    optimization solutions
  • In combination, with an ERP vendor providing the
    data environment and a SCM vendor providing the
    optimization solution, you can achieve a very
    elegant solution

Source Gartner
48
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

49
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

50
Supply Chain Management (continued)
  • Trends
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