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Providing the customer with a single, complete view of the company and its extended
channels
CRM uses IT to create a cross-functional enterprise system that integrates and automates many
of the customer-serving processes.
CRM systems include a family of software modules that provides the tools that enable a business
and its employees to deliver fast, convenient, dependable, and consistent service to its
customers. Siebel Systems, Oracle, PeopleSoft, SAP AG, and Epiphany are some of the leading
vendors of CRM software.
CRM systems store the data in a common customer database that integrates all customer
account information and makes it available throughout the company via Internet, intranet, or
other network links for sales, marketing, service, and other CRM applications.
2. Sales:
A CRM system provides sales reps with the tools and data resources they need to
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CRM also provides the means to check on a customers account status and history before
scheduling a sales call
3. Marketing and Fulfillment:
CRM systems help with direct marketing campaigns by automatic such tasks as
Help desk software provides service data and suggestions for solving problems
Enhancing and optimizing customer retention and loyalty is a major business strategy and
primary objective of customer relationship management.
CRM systems try to help a company identify, reward, and market to their most loyal and
profitable customers.
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Benefits of CRM:
Provide superior service and support across all customer contact points
CRM Failures:
Business benefits of CRM are not guaranteed
Operational CRM
Analytical CRM
Collaborative CRM
Portal-based CRM
Operational CRM
Supports customer interaction with greater convenience through a variety of channels including
phone, fax, e-mail, chat, and mobile devices
Synchronizes customer interactions consistently across all channels
Makes the company easier to do business with
Analytical CRM:
Extracts in-depth customer history, preferences, and profitability information from your data
warehouse and other databases
Allows you to analyze, predict, and derive customer value and behavior and forecast demand
Lets you approach your customers with relevant information and offers that are tailored to their
needs
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Collaborative CRM:
Portal-based CRM:
Provides all users with the tools and information that fit their individual roles and preferences
Empowers all employees to respond to customer demands more quickly and become truly
customer-focused
Provides the capability to instantly access, link, and use all internal and external customer
information
Manufacturing
Logistics
Distribution
Accounting
Finance
Human resources
ERP is recognized as a necessary ingredient for the companies to gain the efficiency, agility and
responsiveness required to succeed in the business.
What is ERP?
It means enterprise resource planning, which itself means planning the resources in an
enterprise (business). So, this abbreviation simply means, that this is a way of using the
resources in a company more effectively.
Various processes that are essential to running a business, including inventory and order
management, accounting, human resources, customer relationship management (CRM),
and beyond. At its most basic level, ERP software integrates these various functions into one
complete system to streamline processes and information across the entire organization.
It is a set of business software tools designed to facilitate the flow of information between
all departments or functions within a business.
The central feature of all ERP systems is a shared database that supports multiple functions
used by different business units. In practice, this means that employees in different divisionsfor
example, accounting and salescan rely on the same information for their specific needs.
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5. Example: The most recent example of ERP failure is Shane Co., the family owned jewelry
retailer and one of the 10 largest jewelry retailers in the world. In January 2009, Shane Co.
sought bankruptcy protection, attributing the companys decline to delays and cost overruns in
their $36 million SAP AG inventory-management system. Shane Co. claimed SAP took almost
three years to install and implement the system instead of one year, while costs ballooned to
$36 million from a projected maximum of $10 million.
CAUSES OF ERP FAILURE:
Most common causes of ERP failure
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Trends in ERP:
ERP is still evolvingadapting to developments in technology and the demands of the market.
Four important trends are shaping ERPs continuing evolution: improvements in integration and
flexibility, extensions to e-business applications, a broader reach to new users, and the adoption of
Internet technologies. Figure 8.12 illustrates four major developments and trends that are evolving in
ERP applications.
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First, the ERP software packages that were often criticized for their inflexibility, have gradually
been modified into more flexible products.
The growth of the Internet and corporate intranets and extranets prompted software companies
to use Internet technologies to build Web interfaces and networking capabilities into ERP
systems.
This Internet connectivity has led to the development of interenterprise ERP systems that
provide Web-enabled links between key business systems (such as inventory and production) of
a company and its customers, suppliers, distributors, and others.
All of these developments have provided the business and technological momentum for the
integration of ERP functions into e-business suites.
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The interrelationships
o
Each supply chain process should add value to the products or services a company
produces
o
At an acceptable cost
Goals of SCM:
The goal of SCM is to efficiently
Forecast demand
Control inventory
The figure below illustrates the basic business processes in the supply chain life cycle and the
functional SCM processes that support them.
It also emphasizes how many companies today are reengineering their supply chain processes,
aided by Internet technologies and supply chain management software.
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For example, the demands of todays competitive business environment are pushing
manufacturers to use their intranets, extranets, and e-commerce Web portals to help them
reengineer their relationships with their suppliers, distributors, and retailers.
The objective is to significantly reduce costs, increase efficiency, and improve their supply chain
cycle times.
SCM software can also help to improve interenterprise coordination among supply chain process
players. The result is much more effective distribution and channel networks among business
partners.
One of the earliest uses of information technology for supply chain management
The electronic exchange of business transaction documents between supply chain trading
partners
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Many transactions occur over the Internet, using secure virtual private networks
EDI is an example of the almost complete automation of an e-commerce supply chain process.
EDI over the Internet, using secure virtual private networks , is a growing B2B e-commerce
application.
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Track Shipments
Key Challenges
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Trends in SCM:
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Example of SCM:
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