Management Information System

Chapter IV

Customer Relationship
Management:
The Business Focus
 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 have become
a company’s most values asset. These
relationships are worth more than the
company’s products, stores, factories and even
employees.
• Every company’s strategy should address how
to find and retain the most profitable customer
possible.
 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 to
improve their chances for success in today’s
competitive environment.
 What is CRM?
Managing the full range of the customer
relationship 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.
 Continued…
• CRM uses IT to create a cross functional
enterprise system that integrates and
automates many of the customer-serving
processes in sales, mktg, and customer
services that interacts with a company’s
customers.
• CRM system include a family of software
modules that provide the tools that enable a
business and its employees to provide fast,
convenient, dependable, and consistent
services to its customers.
 Vendors of CRM
Siebel systems, Oracle, PeopleSoft, SAPAG, and
Epiphany are some of the leading vendors of
CRM software.
 Applications of CRM
• Contact & Acct Mgt : CRM software helps
sales, 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
 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 as
qualifying leads for targeted markets.
 Continued…

• Customer service & Support : A CRM system

provides 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.
 Retention & Loyalty Programs
• It costs 6 times more to sell to a new customer than
to sell to an existing one.
• A typical dissatisfied customer will tell eight to ten
people about his/her experience.
• A company can boost its profits 85% y increasing its
annual customer retention by only 5%.
• The odds of selling a product to a new customer are
15%, whereas odds of selling a product to an existing
customer are 50%.
• 70% of the complaining customers will do business
with the company again if it quickly takes care of a
service problem.
 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 of
sales and service specialists and business
partners.
 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 marketing
programs.
 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 and
superior service and support across all the
touch points a customer choose.
 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.
 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.
 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 .
ENTERPRISE RESOURCE
PLANNING:
The Business Backbone
 Introduction
• ERP is a cross-functional enterprise system
that integrates and automates many of the
internal business processes of a company.
• ERP serves as a vital backbone information
system of the enterprise, helping a company
achieve efficiency and responsiveness
required to succeed in dynamic business
environment.
• ERP system track business resources and the
status of commitment made by the business,
no matter which depts. has entered the data.
 Benefits of ERP
• Quality and Efficiency.
• Decreased Costs.
• Decision support.
• Enterprise Agility.
 Applications of ERP

Production
Planning

Sales/ Integrated
Distribution Logistics
Customer/
Employee

Accounting
Human
&
Resources
Finance
 Trends in ERP
Four important trends are shaping ERP’s
continuing evolution:
1. Improvements in integration & flexibility.
2. Extensions to e-business applications.
3. Broader reach to new users.
4. Adoption to internet technologies.
SUPPLY CHAIN MANAGEMENT:

The Business Network

 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 other
partners.
• The goal of SCM is to create a fast, efficient,
and low cost network of business
relationships, or supply chains, to get a
company’s products from concept to market.
SCM OBJECTIVES SCM OUTCOMES
• Objectives
• Supply Policies
STRATEGIC
• Network Design
• Demand forecast
TACTICAL • Production, logistics
• Inventory targets
OPERATIONAL • Work center scheduling
• Order-inventory tracking
• Order cycle
EXECUTION
• Material movement
 Challenges of SCM
• Creating a real time SCM infrastructure is a
daunting and ongoing issue and quite often a
point of failure for several reasons. The chief
reason is that the planning, selection and
implementation of SCM solution is becoming
more complex as the pace of technological
change accelerates and the number of
company’s partners increases.