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615-260Enterprise Systems

Week 3 CRM, SCM,

eProcurement

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Enterprise Resource Planning

An Enterprise Resource Planning is packaged enterprise application software that allows a company to automate and integrate the majority of its internal business processes inc planning, accounting, manufacturing, marketing and sales

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Customer Relationship Management strategy

Customer Relationship Management (CRM) is a business strategy to select and manage customers to optimize long-term value.

CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes.

Source: www.crmguru.com

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Customer Relationship Management

Managing all aspects of the interaction that an organisation has with its customers: marketing sales and service

Much of the customer relationship is now managed electronically CRM systems Need to personalise on-line experiences

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CRM: one focus Identify and manage ‘high-yield’

customers

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Understand the needs of customers

Why don’t you: Recognise me? Understand me? Know my

preferences?

Give me rich info & options to make my own decisions?

Stop treating me like one of the pack

Your response .. Contact Management Relationship product & pricing Client flag – call routing –

personalised Web journey

Customer Yield Management

Narrowcasting – individualised communications, content management

Honeywill 2003

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Supply Chain Management"integrated supply chain management is a process-orientated, integrated approach to procuring, producing, and delivering products and services to customers. ISCM has a broad scope that includes sub-suppliers, suppliers, internal operations, trade customers, retail customers, and end users. It covers the management of material, information, and funds flows."

Source: Metz, P.J., Dymystifying Supply Chain Management, Supply Chain Management Review Winter 1998

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Supply Chain Management Control of the supply chain from supplier -

> manufacturer -> wholesaler -> retailer -> consumer

Managing movement (of goods and data about the goods) through the supply chain to: Reduce inventory Increase speed of interactions with real-time

data exchange Increase revenue by satisfying customer needs

more efficiently

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eProcurement“A typical company spends more than 60 percent of its total expenses on acquiring direct materials and indirect goods and services.

Because procurement plays such a critical role in the life of any organization, companies that replace inefficient, paper-based procurement processes with new, Internet-enabled buying systems can gain dramatic competitive and financial advantage.”

Source: http://www.ariba.com/solutions/for_buyers.cfm

Absence of eProcurement:Time, money & errors

Lowers compliance to preferred suppliers and contracts.

Inability to leverage spend

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ERP: internal business processes

CRMSCM

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CRM at Audi

Alexander HabisreitingerHead of CRM Applications, AUDI AG

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CRM in the automotive industry: Why is it difficult?

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CRM in the automotive industry: Why is it easy?

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CRM? Our definition!

Is an enterprise strategy aiming to create long-term, win-win relationships (Customer Audi)

Is nothing sensationally new in its basic elements but of high complexity and impact as a holistic approach

Is primarily a topline growth and quality topic rather than a cost-cutting program

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Levels of “CRM Excellence”

LEVELSatisfaction

Basic fulfillment Keep promises

1. Reactive CRM

“Do the ordinary things extraordinarily well“

Tools for care quality Basic customer care center Basic process integration Customer database

GOAL TOOLS

Loyalty

Excitation System barriers

2. Proactive CRM

“Create as many customer relations as you can“

Tools for active retention Relationship marketing 100% process integration Campaign management IT

Selection

“CRM portfolio“ System barriers

3. Selective CRM

“Select and treat customers by segment“

Tools for active selection “Perfect“ programs Customer segmentation Analytic tools

Levels of ‘CRM excellence’

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Implementation order

What do we do with our customers? How do we do it? Which tools

do we need?

Relationship Marketing Processes Systems & Data

CRM strategy

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Target Create a “unique” customer database that allows

analysis, interpretation, and availability of up-to-date customer data

Provide the customer care center (CCC) with a system to process customer requests/complaints

Create needed infrastructure for CRM processes: reactive activities: CCC proactive activities: customer segmentation and value

calculation, campaign management, data mining, data quality control, etc.

Save development costs

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Mechanism KuBa will save centrally all customer information from

existing customer databases. This information will be consolidated and made

available for all other connected systems/databases. KuBa will provide the needed support for mailings and

telephone marketing. Possible creation of reports. New customer information is stored on KuBa

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Functionality

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Output management Templates/standard letters/text modules in @sk!

Integration of MS Word with (nearly) all functionalities

Automatic adding of signatures

Quality assurance process before sending/printing a document

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Feedback to KuBa from Audi customer care center

I

Optimization of the process safety Successive reduction of the input necessary Constant transparency of all customer processes Reduction in archiving costs Reduction of process costs Optimization of the dispatch of brochures

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Feedback to KuBa from Audi customer care center

II Reduction in input at the call center thanks to CTI (computer-

telephone integration) Improved data validity thanks to more comprehensive input

possibilities and the portrayal of relations (e.g., between customer and Audi dealer or customer and lawyer, etc.)

Reduction in the system diversity for customer advisors thanks to the integration of the knowledge database, @sk!

All entry channels converged centrally in KuBa (only one system is now used in the call center in particular)

Comprehensive evaluation possibilities for reports, statistics, and steering factors