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  1. 1. CRM and SCM
  2. 2. Enterprise systems Customer Relationship Management Enterprise Resource Planning Supply Chain Management Manage all of the organizations interactions with customers – “front office” Manage the majority of an organization’s core internal processes “back office” Manage the movement of materials from suppliers and the movement of finished products through the distribution channel Note: some overlap between classes of systems… What’s the common denominator? e-Commerce Selling products and services using Internet and the WWW
  3. 3. CRM Systems
  4. 4. <ul><li>Manages all of the ways used by firms to deal with existing and potential new customers </li></ul><ul><li>CRM Uses information system to integrate entire business processes of a firm’s interaction with its customers. </li></ul><ul><li>Provides end-to-end customer care ( from order receipt through delivery and after sale service and support) </li></ul><ul><li>Provides a unified view of customer across the company </li></ul><ul><li>Consolidates customer data from multiple sources (retail stores, phone, e-mail, the Web) and provides analytical tools for answering questions </li></ul><ul><li>Goals: </li></ul><ul><ul><li>Customer loyalty </li></ul></ul><ul><ul><li>Customer profitability </li></ul></ul>Customer Relationship Management Systems (CRM)
  5. 5. CRM : Customer Relationship Management Systems
  6. 6. Business Value of Customer Relationship Management Systems <ul><li>Increased customer satisfaction </li></ul><ul><li>More effective marketing and reduced direct marketing costs </li></ul><ul><li>Lower costs for customer acquisition </li></ul><ul><li>Increased revenue from identifying most profitable customers and segments for marketing </li></ul><ul><li>Reduced churn rate (Number of customers who stop using or purchasing products or services from a company) </li></ul>
  7. 7. Three ‘dimensions’ of CRM Integrated Customer Data Operational Collaborative Analytic
  8. 8. Operational CRM <ul><li>Operational CRM provides support to &quot;front office&quot; 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. </li></ul><ul><li>Examples: Campaign management, e-marketing, account and contact management, telemarketing, teleselling, e-selling, field sales </li></ul>
  9. 9. <ul><li>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 </li></ul><ul><li>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 </li></ul>Analytic CRM
  10. 10. Analytical CRM Data Warehouse
  11. 11. Examples <ul><li>Large US Bank </li></ul><ul><ul><li>Customer attrition issue </li></ul></ul><ul><li>Walt Disney World </li></ul><ul><ul><li>Customer segmentation </li></ul></ul>
  12. 12. 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…..
  13. 13. CRM Demos <ul><li>SAP CRM </li></ul><ul><ul><li>What business functions are integrated? </li></ul></ul><ul><ul><li>How does this software help change customer service from a ‘cost centre to a profilt centre’? </li></ul></ul><ul><li>Microsoft CRM Demo (Fun) </li></ul>
  14. 14. SCM Systems
  15. 15. Supply Chain <ul><li>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 . </li></ul>
  16. 16. Supply Chain Management (SCM) <ul><li>The integration of suppliers, distributors, and customer logistics requirements into one cohesive process. </li></ul><ul><li>Close linkage and coordination of activities involved in buying, making, and moving a product </li></ul><ul><li>Reduces time, redundant effort, and inventory costs </li></ul><ul><li>Increased responsiveness to customer demands </li></ul>
  17. 17. Supply Chain Management and Collaborative Commerce
  18. 18. Business Value of SCM <ul><li>Management decides when, what to produce, store, move </li></ul><ul><li>Rapidly communicate orders </li></ul><ul><li>Track the status of orders </li></ul><ul><li>Check inventory availability, monitor levels </li></ul><ul><li>Improve delivery service and track shipment </li></ul><ul><li>Reduce paperwork </li></ul><ul><li>Plan production based on actual customer demand </li></ul><ul><li>Rapidly communicate product design change </li></ul><ul><li>Provide product specifications </li></ul><ul><li>Share information about defect rates, returns </li></ul>
  19. 19. RFID <ul><li> </li></ul><ul><li>Based on this video: </li></ul><ul><ul><li>What do you think RFID is? </li></ul></ul><ul><ul><li>What are all of the ways in which RFID can help improve a supply chain? </li></ul></ul>