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Management Information System

Chapter IV

Customer Relationship

Management:

The Business Focus

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Introduction

Today, customers are in charge. It is easier

than ever for the customers to comparison

shop and, with a click of a mouse switch

companies.

As a result customer relationship havebecome a companys most values asset. These

relationships are worth more than the

companys products, stores, factories and

even employees.

Every companys strategy should address how

to find and retain the most profitable

customer possible.

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Continued

The primary business value of customer

relationships today is indisputable.

Many companies are implementing CRM business

initiatives and information systems as par of a

customer focused or customer centric strategy toimprove their chances for success in todays

competitive environment.

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What is CRM?

Managing the full range of the customerrelationship involves two related objectives:

(a) To provide the organization and all of its

customer facing employees with a single,

complete view of every customer at every

touch point and across all channels.

(b) To provide the customer with a single,

complete view of the company and its

extended channels.

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Continued

CRM uses IT to create a cross functionalenterprise system that integrates andautomates many of the customer-servingprocesses in sales, mktg, and customer

services that interacts with a companyscustomers.

CRM system include a family of softwaremodules that provide the tools that enable a

business and its employees to provide fast,convenient, dependable, and consistentservices to its customers.

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Vendors of CRM

Siebel systems, Oracle, PeopleSoft, SAPAG, and

Epiphany are some of the leading vendors of

CRM software.

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Applications of CRM

Contact & Acct Mgt : CRM software helpssales, mktg, and service professionals capture

and track relevant data about every past and

planned contact with prospects and

customers. CRM system stores the data in a

common customer database that integrate all

customer acct information and makes it

available throughout the company. Sales : A CRM system provides sales reps with

the software tools and company data sources

they need to support and manage their sales

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Continued

activities, and optimize cross selling and up

selling. For e.g. a CRM system would alert a

bank sales rep to call customers who make

large deposits to sell them premier credit or

investment services. Mktg & Fulfillment : CRM system helps mktg

professionals accomplish direct mktg

campaigns by automating such tasks asqualifying leads for targeted markets.

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Continued

Customer service & Support : A CRM systemprovides service reps with software tools and

real time access to the common customer

database shared by sales and mktg people.CRM helps customer service managers create,

assign, and manage requests for service by

customers.

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Retention & Loyalty Programs

It costs 6 times more to sell to a new customer thanto sell to an existing one.

A typical dissatisfied customer will tell eight to tenpeople about his/her experience.

A company can boost its profits 85% y increasing itsannual customer retention by only 5%.

The odds of selling a product to a new customer are15%, whereas odds of selling a product to an existingcustomer are 50%.

70% of the complaining customers will do businesswith the company again if it quickly takes care of aservice problem.

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Phases of CRM

Acquire : A business relies on CRM software

tools and databases to help it acquire new

customers by doing a superior job of contact

management, sales prospecting, selling, direct

mktg.

Enhance : Web enabled CRM help keep

customers happy by supporting superior

service from a responsive networked team ofsales and service specialists and business

partners.

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Continued

Retain : CRM analytical software and database

help a company proactively identify and

reward its most loyal and profitable customers

to retain and expand their business via

targeted mktg and relationship marketingprograms.

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Benefits of CRM

CRM allows a business to identify and target

their best and most profitable customers so

they can be retained a long life customers.

It makes possible real time customization and

personalization of products and services

based on the customers wants.

CRM system can enable a company to provide

a consistent customer experience andsuperior service and support across all the

touch points a customer choose.

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Types of CRM

Operational CRM

(a) Supports customer interaction with greater

convenience through a variety of cannels.

(b) Synchronizes customer interactions

consistently across all channels.

(c) Makes your company easier to do business

with.

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Continued

Analytical CRM

(a) Extracts in-depth customer history,

preferences from your data warehouse.

(b) Allows you to analyze, predict, derive

customer value and forecast demand.

(c) Lets you approach your customers with

relevant information and offer that are

tailored to their needs.

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Continued

Collaborative CRM

(a) Enables easy collaboration with the

customers, suppliers and partners.

(b) Improves efficiency and integration

throughout the supply chain.

(c) Allows greater responsiveness to customers

needs .

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ENTERPRISE RESOURCE

PLANNING:The Business Backbone

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Introduction

ERP is a cross-functional enterprise systemthat integrates and automates many of theinternal business processes of a company.

ERP serves as a vital backbone information

system of the enterprise, helping a companyachieve efficiency and responsivenessrequired to succeed in dynamic businessenvironment.

ERP system track business resources and thestatus of commitment made by the business,no matter which depts. has entered the data.

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Benefits ofERP

Quality and Efficiency.

Decreased Costs.

Decision support.

Enterprise Agility.

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Applications of ERP

Sales/Distribution

Human

Resources

Accounting

&

Finance

IntegratedLogistics

Production

Planning

Customer/

Employee

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Trends in ERP

Four important trends are shaping ERPs

continuing evolution:

1. Improvements in integration & flexibility.

2. Extensions to e-business applications.

3. Broader reach to new users.

4. Adoption to internet technologies.

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SUPPLY CHAIN MANAGEMENT:

The Business Network

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Introduction

SCM is a cross functional interenterprise

system that integrates and automates the

network of business processes and

relationships between a company and its

suppliers, customers, distributors and otherpartners.

The goal of SCM is to create a fast, efficient,

and low cost network of businessrelationships, or supply chains, to get a

companys products from concept to market.

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SCM OBJECTIVES SCM OUTCOMES Objectives

Supply Policies Network Design

Demand forecast

Production, logistics

Inventory targets

Work center scheduling

Order-inventory tracking

Order cycle

Material movement

STRATEGIC

TACTICAL

OPERATIONAL

EXECUTION

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