Gerhard Steinke 1

Enterprise Requirements Planning (ERP)

Customer Relationship Management (CRM)

Data Warehousing

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ERP Managerial Questions

What is ERP? How will it help my business? What are its costs? What are the risks?

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Functional Business SystemsMarketing

ProductionOperations

Human ResourceManagement

Accounting Finance

• Customer relationship management

• Interactive marketing

• Sales force automation

• Cash management• Credit management• Investment

management• Capital budgeting• Financial forecasting

• Order processing• Inventory control• Accounts receivable• Accounts payable• Payroll• General ledger

• Compensation analysis

• Employee skills inventory

• Personnel requirements forecasting

• Manufacturing resource planning

• Manufacturing execution systems

• Process control FunctionalBusinessSystems

.

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Marketing Information SystemsMarketing Information Systems

Marketing Information

Systems

Product Management

Product Management

InteractiveMarketing

InteractiveMarketing

Sales ForceAutomation

Sales ForceAutomation

Sales Management

Sales Management

Customer RelationshipManagement

Customer RelationshipManagement

Advertising &Promotion

Advertising &Promotion

MarketResearch & Forecasting

MarketResearch & Forecasting

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HR Information SystemsHR Information Systems

CompensationAnalysis

Personnel Record-Keeping

Personnel RequirementsForecasting

GovernmentalReporting

Employee SkillsInventory

Training andDevelopment

Analysis

HumanResource

Management

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Accounting Information SystemsAccounting Information Systems

OrderProcessing

Payroll

InventoryControl

GeneralLedger

AccountsReceivable

AccountsPayable

CommonPurposes of

AIS

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Financial Information SystemsFinancial Information Systems

FinanceFinance

CashManagement

CashManagement

FinancialPerformance

Analysis

FinancialPerformance

Analysis

FinancialPlanningFinancialPlanning

InvestmentManagementInvestment

Management

CapitalBudgeting

CapitalBudgeting

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Manufacturing Information SystemsManufacturing Information Systems

Production/OperationsProduction/Operations

Computer-AidedEngineering

Computer-AidedEngineering

ProcessControlProcessControl

Purchasing &Receiving

Purchasing &Receiving

RoboticsRobotics

Computer-AidedManufacturing

Computer-AidedManufacturing

MachineControlMachineControl

MaterialRequirements

Planning

MaterialRequirements

Planning

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ERP Modules – Integrating Business Processes

Finance Sales Manufacturing Human Resources Portals Supply chain Customer relationship management Product life cycle Business intelligence

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Benefits of ERP

Shorter order cycle time Increased productivity Lower IT costs Better cash management Reduced personnel

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Reasons to Adopt ERP One face to the business/customer Knowing “what is possible” in terms of

organizational inventory Eliminating redundancy Consolidation Handle growth Reduce stress on existing IT Avoid legacy systems Modernizing

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Reasons Not to Adopt

Cost Loss of competitive advantage Resistance to change Poor cultural fit

Typical Players Oracle, SAP, (Baan, Peoplesoft, JD Edwards)

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CRM Managerial Questions

What are the goals of CRM? Is CRM a marketing strategy by

itself? How difficult is CRM to implement? Do I need a consultant? How much is CRM going to cost? How should I implement? How long before I see a return?

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CRM is …

“Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining, or cross-selling customers” - (Goodhue, Wixom, & Watson, 2002)

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Evolution

Sales force automation (SFA) Customer service (CS)

Sales and marketing management (SMM)

Contact and activity management

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Customer Relationship ManagementCustomer Relationship Management

CRM: The Business Focus

Marketing andFulfillment Customer

Service andSupport

Retentionand LoyaltyPrograms

Contact andAccount

Management

Sales•Cross-Sell•Up-Sell

Prospect orEmployee

Fax e-Mail

Telephone Web

Oracle (Siebel, PeopleSoft), SAP, Onyx

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CRM in Practice

CRM applications create value Technology to support present and

future initiatives Use CRM to transform the

organization

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Assumptions of CRM

Customers act according to habit; Current customer information is

always correct; Customers want individual,

differentiated treatment; and, Customers with the greatest

profitability should receive the best service

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Drivers of CRM

Pareto’s principle: 20/80 rule 8 to 10 calls to make a sale to new

customers, 2 to 3 to existing customers

5-10 x more expensive to sell to new rather than repeat customers

Greater leverage of marketing dollars

Vehicle for organizational change

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Revenue & Cost Goals

Increases in revenue growth through customer satisfaction

Reduced costs of sales and distribution

Minimization of customer support costs

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Benefits of CRM

Improve the ability to retain (acquire) customers

Maximize the “lifetime” of customers

Improve service while keeping costs low

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Benefits of CRM

  Identification Differentiation Interaction Customization

Source of benefits

Clean data about customerSingle Customer View

Understanding the customer

Customer satisfaction and loyalty

Customer satisfaction and loyalty

Benefits Help sales forceCross selling

Cost effective marketing campaignReduce direct mailing cost

Cost effective customer service

Lower cost of acquisition and retention of customerMaximize share of wallet

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IT & CRM

Process Identification Differentiation Interaction Customization

Goal ·     Identify individual customer

·     Evaluate customer value and needs

·     Build a continuing relationship

·     Fulfill customerneeds·     Generate profit

Traditional Mass Marketing

·     Not done ·     Clustering ·     Call Center ·     Sales·     Services

CRM ·     Customerprofiling

·     Individual level analysis

·     Call center management·     Auto response system

·     Sales automation·     Marketing pprocess automation

Information technologies

·     Cookies·     Web site personalization

·     Data mining·     Organizationallearning

·     Web application·     Wireless communication

·     ERP·     E-Commerce

 

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Suppliers

Customers

Em

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Par

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Supply Chain ManagementSourcing - Procurement

Enterprise Resource PlanningInternal Business Processes

Customer Relationship ManagementMarketing – Sales - Service

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Enterprise Application ArchitectureEnterprise Application Architecture