Download - MIS442-Chap008
-
8/2/2019 MIS442-Chap008
1/39
1
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Chapter - 8
-
8/2/2019 MIS442-Chap008
2/39
2
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
-
8/2/2019 MIS442-Chap008
3/39
3
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Section I
Customer Relationship Management:The Business Focus
-
8/2/2019 MIS442-Chap008
4/39
4
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
-
8/2/2019 MIS442-Chap008
5/39
5
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
CRM
Uses information technology to create a cross-
functional enterprise system that integrates and
automates many of the customer serving processes insales, marketing, and customer services that interact
with a companys customers.
Creates an IT framework of Web-enabled software &
databases that integrates these processes with the rest
of the companys business operations
-
8/2/2019 MIS442-Chap008
6/39
6
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Includes software modules that provide tools that
enable a business & its employees to provide fast,
convenient, dependable, consistent service to itscustomers.
-
8/2/2019 MIS442-Chap008
7/39
7
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Major Application Components of CRM
Contact & Account Management
Helps capture and track relevant data about past and plannedcontacts with prospects & customers.
Information is captured from all customer touchpoints such
as phone, fax, email, retail stores, company website etc.
Stores the data in a common customer database that
integrates all customer account information and makes it
available throughout the company via internet, intranet and
other network links.
-
8/2/2019 MIS442-Chap008
8/39
8
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Sales
Provides sales reps with software tools &
company data needed to support & manage
their sales activities.
Helps optimize cross-selling & up-selling
-
8/2/2019 MIS442-Chap008
9/39
9
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Marketing & Fulfillment
Helps accomplish direct marketing campaigns by
automating tasks
Helps capture & manage prospect & customer response
data in CRM database
Helps in the fulfillment of prospect and customerresponses and requests by quickly scheduling sales
contacts & providing appropriate information on
products & services to them
-
8/2/2019 MIS442-Chap008
10/39
10
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Customer Service and Support
Provides service reps with software tools & real-
time access to the common customer databaseshared by sales and marketing professionals
Helps customer service managers create, assign, &
manage requests for service from customers
Call center software
Help desk software
-
8/2/2019 MIS442-Chap008
11/39
11
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Retention and Loyalty Programs
Helps the company identify, reward, and marketto their most loyal and profitable customers
-
8/2/2019 MIS442-Chap008
12/39
12
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
-
8/2/2019 MIS442-Chap008
13/39
13
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Three Phases of CRM
Acquire (new customers)
A business relies on CRM software tools anddatabases to help it acquire new customers by doing
a superior job of contact management, sales
prospecting, selling, direct marketing, & fulfillment.
The goal of these CRM functions is to help
customers perceive the value of a superior product
offered by an outstanding company.
14
-
8/2/2019 MIS442-Chap008
14/39
14
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Enhance (customer satisfaction)
By supporting superior service from aresponsive networked team of sales and service
specialists.
15
-
8/2/2019 MIS442-Chap008
15/39
15
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Retain (your customers)
CRM analytical software and databases help acompany proactively identify and reward its
most loyal, profitable customers to retain
16
-
8/2/2019 MIS442-Chap008
16/39
16
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Benefits and Challenges of CRM
Allows a business to identify its best customers
those who are the most profitable
Makes possible real-time customization &
personalization of products & services based on
customer wants, needs, buying habits, & lifecycles
17
-
8/2/2019 MIS442-Chap008
17/39
17
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
18
-
8/2/2019 MIS442-Chap008
18/39
18
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management (continued)
Trends
Operational CRM
Supports customer interaction with greater
convenience through a variety of channels,including phone, fax, email, chat, mobile devices
Analytical CRM
Extracts in-depth customer history, preferences andprofitability information from your data warehouse
and other databases
19
-
8/2/2019 MIS442-Chap008
19/39
19
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management ( continued )
Collaborative CRM
Enables easy collaboration with customers,
suppliers, and partners.
Portal-based CRM
Provides all users with the tools and information
that fit their individual roles and preferences.
20
-
8/2/2019 MIS442-Chap008
20/39
20
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Section II
Enterprise Resource Planning:The Business Backbone
21
-
8/2/2019 MIS442-Chap008
21/39
21
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning
Serves as a cross-functional enterprise backbone
that integrates & automates many internal
business processes and information systems
Help companies gain the efficiency, agility, &
responsiveness needed to succeed today
22
-
8/2/2019 MIS442-Chap008
22/39
22
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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 ofManufacturing
Distribution
Sales
Accounting
Human Resource Management
23
-
8/2/2019 MIS442-Chap008
23/39
23
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
24
-
8/2/2019 MIS442-Chap008
24/39
24
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Decreased Costs
Reductions in transaction processing costsand hardware, software, and IT support staff
25
-
8/2/2019 MIS442-Chap008
25/39
25
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Decision Support
Provides vital cross-functional information onbusiness performance to assist managers in
making better decisions
26
-
8/2/2019 MIS442-Chap008
26/39
26
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Enterprise agility
Results in more flexible organizationalstructures, managerial responsibilities, and
work roles
27
-
8/2/2019 MIS442-Chap008
27/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Costs of ERP
The costs and risks of failure in implementing anew ERP system are substantial.
28
-
8/2/2019 MIS442-Chap008
28/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
29
-
8/2/2019 MIS442-Chap008
29/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Causes of ERP failures
Underestimating the complexity of the planning,
development, and training required
Failure to involve affectedemployees in the
planning & development phases and change
management programs
30
-
8/2/2019 MIS442-Chap008
30/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Trying to do too much, too fast
Insufficient training
Believing everything the software vendors
and/or consultants say
31
-
8/2/2019 MIS442-Chap008
31/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Resource Planning (continued)
Trends
Flexible ERP
Web-enabled ERP
Interenterprise ERP
E-Business Suites
32
-
8/2/2019 MIS442-Chap008
32/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Section III
Supply Chain Management:The Business Network
33
-
8/2/2019 MIS442-Chap008
33/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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-costnetwork of business relationships.
34
-
8/2/2019 MIS442-Chap008
34/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Supply Chain Management (continued)
35
-
8/2/2019 MIS442-Chap008
35/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Supply Chain Management (continued)
Electronic data interchange
Exchanging business transaction documents
over the Internet & other networks between
supply chain trading partners
36
-
8/2/2019 MIS442-Chap008
36/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Supply Chain Management (continued)
The Role of SCM
37
-
8/2/2019 MIS442-Chap008
37/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
38
-
8/2/2019 MIS442-Chap008
38/39
McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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
39
-
8/2/2019 MIS442-Chap008
39/39
Supply Chain Management (continued)
Trends