•Assess how enterprise systems provide value for businesses and describe how they work

•Assess how supply chain management systems provide value for businesses and describe how they work

•Assess how customer relationship management systems provide value for businesses and describe how they work 

•Explain how enterprise applications can be used in platforms for new cross-functional services

•Identify the challenges posed by enterprise applications and management solutions

•Challenge: develop a single view of corporate and private banking customers; overcome historic segmentation of customers by product and location

•Solutions: develop a customer relationship management system (CRM) and data warehouse to integrate customer data from diverse legacy systems
•Enable a single view of corporate customers
•Illustrates the role of enterprise systems in developing a holistic view of customers and achieving higher customer loyalty and profitability

                  How Enterprise Systems Work

Enterprise Systems:

•Enterprise Resource Planning (ERP) systems

•Interdependent software modules with a common central database that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing

What Are Enterprise Systems?

 Process Map for Procuring New Equipment

Business Value of Enterprise Systems

•A more uniform organization

•More efficient operations and customer-driven business processes

•Firmwide information for improved decision making 

•Company can use enterprise system to support organizational structures that were not previously possible or to create a more disciplined organizational Culture.

•Example: use ER to create  a more disciplined organizational  culture across geographic or business unit 

 More efficient operations and customer-driven business processes

•ER can help create the foundation for a more customer-driven organization. By

integrating discrete business processes in sales, production, finance, and

logistics, the entire organization more efficiently respond to customer requests

for products or information, forecast new products, and build and deliver them

as demand requires.

Firmwide information for improved decision making

•ER create a single, integrated repository of data for the entire firm, The data

have common, standardized definitions and formats that are accepted by the

entire organization.

•ER  software includes analytical tools for using data captured by the system to

evaluate overall organizational performance. 

The Supply Chain

•Network of organizations and business processes for procuring raw materials, transforming into products, and distributing them to customers

•Materials, information, and payments flow through the supply chain in both directions. 

Supply chain management:

•Coordination of business processes to speed information, product, and fund

flows up and down a supply chain to reduce time, redundant effort, and

inventory costs.

Supply Chain Processes

SCOR (Chain Operations Reference Model) identifies five major supply chain processes: 

•Plan: Balancing demand and supply to meet sourcing, production, and delivery requirements

•Source: Procurement of goods and services needed to create a product or service 

Business Value of Supply Chain Management Systems

•Improved customer service and responsiveness

•Cost reduction

•Cash utilization 

Customer Relationship Management and Partner Relationship Management

Customer Relationship Management (CRM):

•Business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention 

•CRM helps organization identify customers whose cost little to attract and to keep and who provide the greatest revenues for every marketing or customer service dollar spent.

•The good customers represent about 80-90 percent of a company’s profits, but the represent only 10 to 20 percent of the company’s customer bas.

•CRM focuses on ways of retaining profitable customers and maximizing lifetime revenue from them.  

Partner Relationship Management (PRM):

•Automation of the firm’s relationships with its selling partners using customer data and analytical tools to improve coordination and customer sales

•It provides a firm with tools to assess its partners’ performance so it can make sure its best partners receive the support they need to close more business.  

Customer Relationship Management Applications

CRM systems:

•Capture and integrate customer data from all over the organization

•Consolidate and analyze the data

•Distribute results to various systems and customer touch points across the enterprise 

Customer Relationship Management (CRM) Software
•Can range from niche tools to large-scale enterprise applications
•Can link to other major enterprise applications, such as supply chain
management
•Can include modules for partner relationship management (PRM) and employee relationship management (ERM)

Typically include capabilities for 

oSales Force Automation (SFA)

oCustomer service

oMarketing 

•Sales force automation (SFA): SAF modules in CRM systems help sales staff

increase their productivity by focusing sales efforts on the most profitable

customers, those who are good candidates for sales and services.

•It provide sales prospect and contact information, product configuration capabilities, and sales quote generation capabilities.  

oCustomer service: in this modules provide information and tools to make call

centers, help desk, and customer support staff more efficient. they have

capabilities for assigning and managing customer service request. 

•Marketing: CRM systems support direct-marketing campaigns by providing capabilities for:

•capturing prospect and customer data

•providing product and service information,

•qualifying leads for targeted marketing, and

•scheduling and tracking direct-marking mailings or e-mail.

CRM Software Capabilities

 Customer Loyalty Management Process Map

Operational and Analytical CRM

Operational CRM:

•Customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation

•Examples: Campaign management, e-marketing, account and contact management, lead management, telemarketing, teleselling, e-selling, field sales

Analytical CRM:

•Applications that analyze customer data generated by operational CRM applications to provide information for improving business performance

•Examples: Develop customer segmentation strategies and customer profiles; analyze customer or product profitability; identify trends in sales length cycle; analyze leads generated and conversion rates

Analytical CRM Data Warehouse

Business Value of Customer Relationship Management Systems

•Increased customer satisfaction

•More effective marketing and reduced direct marketing costs

•Lower costs for customer acquisition and retention 
•Increased revenue from identifying most profitable customers and segments for marketing, cross-selling, up-selling

 Reduce churn rate:

•Number of customers who stop using or purchasing products or services from a company

Service Platforms and Business Process Management

Service Platform:

•Integration of multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner

Business Process Management:

•A methodology for dealing with the organization’s need to change its business processes continually to remain competitive

•Portals

: Frameworks for building composite services, integrating information form enterprise applications and in-house legacy systems

Order-to-Cash Service

 Management Opportunities:
 •Improvement of process coordination and management decision making
•Reductions in inventory costs, order-to-delivery time, and more efficient customer response and higher product and customer profitability

Management Challenges:

•High total cost of ownership

•Organizational change requirements

•Realizing strategic value 

Solution Guidelines:
•Look at business objectives first
•Attention to data and data management
•Senior management commitment and employee support
•Education and training