CRM and SCM

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CRM and SCM
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Enterprise systems
Manage all of the organizations interactions with
customers front office
Manage the majority of an organizations core
internal processes back office
Customer Relationship Management
Enterprise Resource Planning
e-Commerce
Selling products and services using Internet and
the WWW
Supply Chain Management
Manage the movement of materials from suppliers
and the movement of finished products through the
distribution channel
Note some overlap between classes of
systems Whats the common denominator?
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CRM Systems
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Customer Relationship Management Systems (CRM)

• Manages all of the ways used by firms to deal
  with existing and potential new customers
• CRM Uses information system to integrate entire
  business processes of a firms interaction with
  its customers.
• Provides end-to-end customer care ( from order
  receipt through delivery and after sale service
  and support)
• Provides a unified view of customer across the
  company
• Consolidates customer data from multiple sources
  (retail stores, phone, e-mail, the Web) and
  provides analytical tools for answering questions
• Goals
• Customer loyalty
• Customer profitability

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CRM Customer Relationship Management Systems
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Business Value of Customer Relationship
Management Systems

• Increased customer satisfaction
• More effective marketing and reduced direct
  marketing costs
• Lower costs for customer acquisition
• Increased revenue from identifying most
  profitable customers and segments for marketing
• Reduced churn rate (Number of customers who stop
  using or purchasing products or services from a
  company)

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Three dimensions of CRM
Operational
Analytic
Integrated Customer Data
Collaborative
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Operational CRM

• Operational CRM provides support to "front
  office" business processes, including sales,
  marketing and service. Each interaction with a
  customer is generally added to a customer's
  contact history, and staff can retrieve
  information on customers from the database as
  necessary.
• Examples Campaign management, e-marketing,
  account and contact management, telemarketing,
  teleselling, e-selling, field sales

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Analytic CRM

• Applications that analyze customer data generated
  by operational CRM applications (and many other
  sources) to provide information about customers
  that can be used to build profitable
  relationships
• Examples Develop customer profiles analyze
  customer or product profitability identify
  trends in sales length cycle analyze leads
  generated and conversion rates develop
  predictive models to try and anticipate
  customer behavior

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Analytical CRM Data Warehouse
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Examples

• Large US Bank
• Customer attrition issue
• Walt Disney World
• Customer segmentation

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Collaborative CRM
Collaborative CRM is used where customers self
serve. This can include a variety of channels,
such as internet, email, automated phone/
interactive voice response (IVR). A good
example of collaborative CRM is web page
personalization. Collaborative CRM uses the
output of analytic CRM..
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CRM Demos

• SAP CRM
• What business functions are integrated?
• How does this software help change customer
  service from a cost centre to a profilt centre?
• Microsoft CRM Demo (Fun)

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SCM Systems
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Supply Chain

• A network of activities, such as manufacturing
  plants, distribution centers, retail outlets,
  people, and information, which are linked
  together into processes supplying goods/services
  from source through consumption.

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Supply Chain Management (SCM)

• The integration of suppliers, distributors, and
  customer logistics requirements into one cohesive
  process.
• Close linkage and coordination of activities
  involved in buying, making, and moving a product
• Reduces time, redundant effort, and inventory
  costs
• Increased responsiveness to customer demands

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Supply Chain Management and Collaborative Commerce
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Business Value of SCM

• Management decides when, what to produce, store,
  move
• Rapidly communicate orders
• Track the status of orders
• Check inventory availability, monitor levels
• Improve delivery service and track shipment
• Reduce paperwork
• Plan production based on actual customer demand
• Rapidly communicate product design change
• Provide product specifications
• Share information about defect rates, returns

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RFID

• http//www.youtube.com/watch?v4Zj7txoDxbEfeature
  related
• Based on this video
• What do you think RFID is?
• What are all of the ways in which RFID can help
  improve a supply chain?