Enterprise e-Business Systems

1
Enterprise e-Business Systems
2
Enterprise Application Architecture
3

• Customer Relationship Management (CRM) The
  Customer Focus

4

• A customer focused business was one of the top
  business strategies that can be supported by IT.
• Thus many Companies are implementing CRM business
  initiatives and information systems as part of a
  customer-focused or customer centric strategy to
  improve their chance for success in todays
  competitive environment.

5
Mitsubishi Motor Sales

• They realized their business lacked a customer
  focus and decided to change through a CRM
  initiative.
• CRM project involved acquiring and installing the
  hardware, software, network and data resources
  from 18 vendors needed to create and support one
  central call center system that would provide
  superior service to all customers, prospects, and
  other callers.

6

• The team of sales, marketing, finance, and IT
  professionals who directed the project decided to
  install individual CRM software components using
  a slow, phased development approach so employees
  could be properly trained in each new application.

7

• The new system has produced increased customer
  satisfaction, major cost savings, improved
  employee morals, etc for Mitsubishi management.

8
Customer Relationship Management

• Provides customer-facing employees with a single,
  complete view of every customer at every touch
  point and across all channels
• Provides the customer with a single, complete
  view of the company and its extended channels

9
Customer Relationship Management (continued)

• CRM..
• Integrates and automates many of the customer
  serving processes
• Creates an IT framework of Web-enabled software
  databases that integrates these processes with
  the rest of the companys business operations

10

• CRM include a family of software modules that
  provides the tools that enable a business and its
  employees to provide fast, convenient,
  dependable, and consistent service to its
  customers.
• Siebel systems, Oracle, PeoppleSoft, SAP are some
  leaders of CRM.

11
Customer Relationship Management (continued)
12
Contact and Accountant Mgt

• Information is captured from all customer
  touchpoints such as telephone, fax, email, etc.
• CRM systems store the data in a common customer
  database that integrate all customer account
  information and makes it available throughout the
  company via internet, intranet, etc for sales,
  marketing, service, and other CRM applications.

13
Sales

• It provides sales representative with the
  software tools and company data sources they need
  to support and manage their sales activities and
  optimize cross selling and up selling.

14
Marketing and Fulfillment

• CRM helps marketing professionals accomplish
  direct marketing campaigns by automating tasks
  like qualifying leads for targeted marketing,
  scheduling and tracking direct marketing
  mailings.
• Then CRM software helps marketing professionals
  capture and manage prospects and customer
  response data in CRM database and analyze the
  customer and business value of a companys direct
  marketing campaigns.

15
Customer service and support

• It provides service representative with software
  tools and real time access to the common customer
  database shared by sales and marketing
  professionals.
• It helps customer service managers create, assign
  and manage requests for service by customers.

16

• Call center software routes calls to customer
  support agents based on their skills and
  authority to handle specific kinds of service
  requests.
• Help desk software assists customer service reps
  in helping customers who are having problems with
  a product or service by providing relevant
  service data and suggestions for resolving
  problems.

17
Retention and Loyalty Programs

• It costs 6 times more to sell a new customer than
  to sell to an existing one.
• A typical dissatisfied customer will tell 8 to 10
  people about his or her experience.
• A company can boost its profits 85 by increasing
  its annual customer retention by only 5.
• 70 of complaining customers will do business
  with the company again if it quickly takes care
  of a service.

18

• CRM try to help a company identify, reward, and
  market to their most loyal and profitable
  customers.
• CRM analytical software includes data mining
  tools and other analytical marketing software
  while CRM databases may consist of a customer
  data warehouse and CRM data marts.

19
3 Phases of relationship between a business and
customers
20
Customer Relationship Management (continued)

• Benefits and Challenges
• Allows a business to identify its best customers
• Makes possible real-time customization
  personalization of products services based on
  customer wants, needs, buying habits, life
  cycles

21
Customer Relationship Management (continued)

• Benefits and Challenges (continued)
• Enables a company to provide a consistent
  customer service experience
• Failures
• Due to lack of understanding preparation.
• CRM is not a silver bullet

22

• Monster.com rolled out a CRM in 1998. The company
  had invested over 1 million in customized
  software and integrated all its computer systems
  in an attempt to boost the efficiency of its
  sales force.
• However the new system proved to be so slow that
  sales people in the field found themselves unable
  to download customer information from the company
  database on to their laptops. Every time they
  tried, their machine froze.
• Eventually the company was forced to rebuild the
  entire system and lost millions of dollars and
  goodwill of customers and employees.

23
Customer Relationship Management (continued)

• Trends
• Operational CRM
• Analytical CRM
• Collaborative CRM
• Portal-based CRM

24
Operational CRM

• Supports customer interaction with greater
  convenience through a variety of channels
  including phone, fax, email, chat and mobile.
• Synchronize customer interactions consistently
  across all channels.
• Makes your company easier to do business with

25
Analytical CRM

• Extracts in-depth customer history, preferences
  and profitability information from your data
  warehouse and other database.
• Allows to analyze, predict and derive customer
  value and behavior and forecast demand.

26
Collaborative CRM

• Enables easy collaboration with customers,
  suppliers, and partners.
• Improves efficiency and integration throughout
  the supply chain
• Allows greater responsiveness to customer needs
  through sourcing of products and services outside
  of your enterprise.

27
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

28

• Enterprise Resource Planning (ERP) The
  Business Backbone

29
Enterprise Resource Planning

• Serves as a cross-functional enterprise backbone
  that integrates automates many internal
  business processes and information systems
• Helps companies gain the efficiency, agility,
  responsiveness needed to succeed today

30
Enterprise Resource Planning (continued)

• Gives a company an integrated real-time view of
  its core business processes
• ERP software suites typically consist of
  integrated modules of
• Manufacturing
• Distribution
• Sales
• Accounting
• Human Resource Management

31
Enterprise Resource Planning (continued)

• Benefits
• Quality and efficiency
• Helps improve the quality and efficiency of
  customer service, production, distribution by
  creating a framework for integrating and
  improving internal business processes
• Decreased Costs
• Reductions in transaction processing costs and
  hardware, software, and IT support staff

32
Enterprise Resource Planning (continued)

• Benefits
• Decision support
• Provides cross-functional information on business
  performance to assist managers in making better
  decisions
• Enterprise agility
• Results in more flexible organizational
  structures, managerial responsibilities, and work
  roles

33
Enterprise Resource Planning (continued)

• Challenges
• Costs of ERP
• The costs and risks of failure in implementing a
  new ERP system are substantial.

34
Enterprise Resource Planning (continued)
35
Enterprise Resource Planning (continued)

• Causes of ERP failures
• Underestimating the complexity of the planning,
  development, and training required
• Failure to involve affected employees in the
  planning development phases and change
  management programs

• Trying to do too much, too fast
• Insufficient training
• Believing everything the software vendors and/or
  consultants say

36
Enterprise Resource Planning (continued)

• Trends
• Flexible ERP
• SAP AG, Oracle, PeopleSoft, etc
• Web-enabled ERP
• Interenterprise ERP
• ERP with web enabled links between company, its
  customers, suppliers, distributors and others.
• E-Business Suites
• Integrate ERP, CRM, SCM, procurement, decision
  support and other business functions.
• Oracles e-Business Suit and SAPs mySAP

37

• Supply Chain Management The Business Network

38
Supply Chain Management

• A cross-functional interenterprise system that
  uses IT to help support manage the links
  between some of a companys key business
  processes and those of its suppliers, customers,
  business partners.
• Goal is to create a fast, efficient, low-cost
  network of business relationships.

39

• The inter relationships with suppliers,
  customers, distributers and other businesses that
  are needed to design, build and sell a product
  make up the network of business entities,
  relationships and processes that is called a
  supply chain.
• And since each supply chain process should add
  value to the products or services a company
  produces, a supply chain is frequently called a
  value chain.

40
Supply Chain Management (continued)
41
What do supply chain management (SCM) tools do?

• Supply chain management tools enable managers to
  make informed business decisions about the
  operation of their supply chain

Supply Chain Management Definition

• Supply chain management tools facilitate planning
  and production scheduling based on known business
  constraints

Supply Chain Management Overview
42
SCM capacity constraints
Managing a supply chain would be easy if we had
unlimited resources
How do I decide what to do on which piece of
equipment, and when?
Can only drill one piece of metal at a time
-- OR --
Computer processing and storage capacity not
infinite
Supply Chain Manager
43
SCM Tools levels
Supply Chain Elements

• Supply Chain Planning services configure
  operations to best meet projected demand levels
• The planning horizon ranges from developing a
  long term strategic outlook to developing a short
  term tactical production schedule

SCM Service Offering
Strategic Planning
Network Design
Demand Planning
Supply Planning
Production Planning
Tactical Planning
Warehouse Management
Transportation Management
Order Management

• Supply Chain Execution services monitor and
  control production operations
• They provide real time tracking and alert
  notification

Inventory Management
Operational Planning
Event Management
Real time / Minutes
Hours / Days
Weeks / Months
Quarters
Years
Source BAH
44
Supply Chain Planning Process
Demand Planning

• Anticipate demand based on historical trends and
  current conditions
• Perform what if analysis - highlight the impact
  of changing demand drivers

Network Design
Production Planning
Production Scheduling

• Design where to place production facilities and
  optimize the end to end chain
• Construct alternate flow scenarios that
  incorporate associated constraints

• Decompose the supply plan into sub assembly /
  production needs by site
• Balance production capacity across sites

• Optimize processing flows, sequence, and timing
• Produce a finite capacity production schedule

Supply Planning

• Balances unconstrained demand against high level
  supply chain constraints
• Reflect order priority and due dates

Hours / Days
Weeks / Months
Planning Horizon
Quarters
Years
45
Supply Chain Execution Process
Order Management
Inventory Management
Transportation Management
Warehouse Management

• Record customer orders and track status from
  receipt to final delivery
• Direct efficient response to orders with dynamic
  cost / benefit analysis of options

• Streamline information movement and provide tight
  inventory control
• Inventories replenished using kanban, min-max, or
  reorder point

• Optimize and track outbound and inbound shipping

• Optimization and management of warehouse processes

Event Management

• Monitor and manage critical planning and event
  information
• Broadcast alert notification and present response
  alternatives based on pre determined business
  rules

46
I2 gtmaster production schedule
Source i2 Technologies
47
SCM vendors

• Although each of the vendors claim to provide an
  end to end solution, they actually fall into two
  distinct camps
• First are the ERP vendors who provide a strong
  solution for integrating the data environment and
  providing visibility
• Second are the SCM vendors who provide robust
  optimization solutions
• In combination, with an ERP vendor providing the
  data environment and a SCM vendor providing the
  optimization solution, you can achieve a very
  elegant solution

Source Gartner
48
Supply Chain Management (continued)

• Benefits and Challenges
• Can provide faster, more accurate
• order processing,
• reductions in inventory levels,
• quicker time to market,
• lower transaction and materials costs,
• strategic relationships with suppliers

49
Supply Chain Management (continued)

• Problem causes
• Lack of proper demand planning knowledge, tools,
  and guidelines
• Inaccurate or overoptimistic demand forecasts
• Inaccurate production, inventory, and other
  business data
• Lack of adequate collaboration

50
Supply Chain Management (continued)

• Trends