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Indiana University - Accenture Case Competition 2009

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This is a case recommendation that my team and I put together for a case competition put on by Accenture in 2009. We were given a company overview of a car manufacturer that wanted to get more in-tune with their service centers; we put together a sales presentation to illustrate the company-specific benefits for following through with our solution.

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Indiana University - Accenture Case Competition 2009

  1. 1. Leveraging CRM to Predict Inventory and Increase the Customer Experience 8 TEAM Kishen Parikshak | Matt Blair | Zach Kost
  2. 2. Accenture’s History Accenture has an exceptional past within the automotive industry. 1  Accenture has been creating custom, enterprise- wide CRM models for 20 years  We have time-tested models that are intuitive, scalable and measurable for exceptional long-term performance  We provide automotive consulting, technology and outsourcing services to leading OEMs and tier one suppliers
  3. 3. Credentials We have served 27 of the 35 automotive companies in the Fortune 500. 2 Teamed with Accenture to Turned to Accenture to help Chose Accenture to make create a single, integrated view benchmark performance and meaningful, long-term of each customer. The result: an create a corporate strategy changes to increase service unprecedented ability to for developing new customer levels and operational understand customers and service capabilities. efficiency and decrease target marketing messages. inventory investment. Accenture was chosen to help Accenture's High Performance upgrade its service parts and Business research confirms that accessories supply chain highly efficient, end-to-end service to dealers, enabling processes differentiate high- them to offer customers better performance businesses in the service. automotive industry from their competitors.
  4. 4. Recommendations Leverage capabilities of CRM software to increase company value. 3 CAPABILITY LOW COST Implement Siebel CRM HIGH Software Attract Customers STRATEGY LOYALTY with Progressive Map Key Dealer Marketing Schemes Demographics Inventory Combine Customer/Dealer Holding Turnover Knowledge to Forecast Demand Costs Stock Price CRM DEALERS CUSTOMERS FORECASTING
  5. 5. Siebel CRM Software Siebel is Oracle’s most complete, industry specific CRM suite. 4  Automotive manufacturer- Vendors focused frameworks assist in the customization of Siebel to meet CarCo’s specific needs. Customers Manufacturers  Database design incorporates specific application areas for SIEBEL expanding on customer and dealer information. Financiers Distributors  By using an Oracle product, Dealers CarCo will easily be able to integrate CRM with existing ERP software CRM DEALERS CUSTOMERS FORECASTING
  6. 6. Current Systems Upgrading back-office legacy systems into centralized repository. 5 Current State: multiple systems gathering data from dealers • For example, dealers are currently using spreadsheets for gathering customer data. Desired State: centralized repository for storing data from all dealers • Gather customer information from dealers through end-customer contract information CRM DEALERS CUSTOMERS FORECASTING
  7. 7. CRM Implementation Costs will tail-off over the two year implementation period. 6 CRM Implementation $1,100,000 $1,000,000 $900,000 $800,000 2 Year Cost of $700,000 Implementation: $17,310,000 $600,000 $500,000 $400,000 CRM DEALERS CUSTOMERS FORECASTING
  8. 8. Dealer Loyalty Make dealers more successful by using CRM. 7 Decreased financing and Offer floorplan costs incentives for for dealers low demand Segment vehicles to market liquidate vehicle demand Leverage current existing data from legacy systems CRM DEALERS CUSTOMERS FORECASTING
  9. 9. Inventory Reduction Over 3 years, proper forecasting can reduce inventory by 35%. 8 Inventory Reduction $12,000,000,000 $11,000,000,000 $10,000,000,000 $9,000,000,000 3 Year Inventory $8,000,000,000 Reduction: $7,000,000,000 35% = $3.9B $6,000,000,000 $5,000,000,000 $4,000,000,000 9/1/2009 3/1/2010 6/1/2010 9/1/2010 3/1/2011 6/1/2011 9/1/2011 3/1/2012 6/1/2012 9/1/2012 12/1/2009 12/1/2010 12/1/2011 CRM DEALERS CUSTOMERS FORECASTING
  10. 10. Focused Marketing Schemes Attention to marketing will help us cut costs and increase revenues. 9 Proactive Customer Return Marketing Retention value from Initiatives using CRM CRM DEALERS CUSTOMERS FORECASTING
  11. 11. Proactive Marketing Understand your customer and forecast demand through CRM. 10 Use the CRM to Forecast sales Create an study to similar efficient demographics dealerships product mix Add value to Reach Relocate CarCo’s customers products based business model efficiently on demand CRM DEALERS CUSTOMERS FORECASTING
  12. 12. Retaining Past Customers A solid relationship with previous customers is critical for cost savings. 11 600% Attract New Customer > Retain Customer  Use a customer loyalty program to retain customers  Available to customers who purchase new vehicles  Special considerations for trade-in CRM DEALERS CUSTOMERS FORECASTING www.automotive.com/auto-news/02/42239/index.htm
  13. 13. Retaining Past Customers A solid relationship with these customers is critical for cost savings. 13 1/5 of our If half of CarCo 2.5 million those return spends $250 customers for a $1000 per year to per year rebate maintain customers CRM DEALERS CUSTOMERS FORECASTING
  14. 14. Retaining Past Customers Retaining prior customers is more cost efficient. 14 10 – 15% Last Year At 10% This $250 Average Budget Marketing Allotment Car Cost Revenue Affordable Marketing 92 Billion they can Million a spend 9.2 year leaves Billion about 63% of their marketing budget *www.ecademy.com/node/php?id=44965 *http://www.business-standard.com/india/news/acquiring-new-customers-vs-retaining-old-customers/203350/ CRM DEALERS CUSTOMERS FORECASTING
  15. 15. Recommendations Leverage capabilities of CRM software to increase company value. 15 CAPABILITY LOW COST Implement Siebel CRM HIGH Software Attract Customers STRATEGY LOYALTY with Progressive Map Key Dealer Marketing Schemes Demographics Inventory Combine Customer/Dealer Holding Turnover Knowledge to Forecast Demand Costs Stock Price CRM DEALERS CUSTOMERS FORECASTING
  16. 16. Implementation Timeline Steps for implementing recommendations over the next three years. 16  Months 1 - 6  Customize and implement at CarCo headquarters using a software engineering staff of 20  Data cleansing of previously acquired customer demographic information  Months 6 - 18  Implement and port into individual dealer’s systems  Months 18 - 36  Benefits of demand forecasting will decrease inventory CRM DEALERS CUSTOMERS FORECASTING
  17. 17. Risks / Mitigating Factors Measurements of the probability and impact of potential risks. 17 Risk Mitigation Risk Probability Lack of dealer Market forecasting advantages acceptance of Seibel of implementation . CRM software. Impact Probability Customers providing “dirty Use effective input controls to data” in loyalty program. manage acceptable answers. Impact CarCo may misapply Accenture supplies assistance Probability acquired customer in market analytics and information. change management. Impact CRM DEALERS CUSTOMERS FORECASTING
  18. 18. Long-Term Potential By using Siebel, CarCo will be able to later expand it’s CRM offerings. 18  After addressing current issues, expand offering to take advantage of CRM potential. 2009 - 2011 Customer Loyalty Inventory Demand Forecasting 2011 - 2014 Dealer E-Purchasing Online Financing 2014+ Scalability Sustainability CRM DEALERS CUSTOMERS FORECASTING
  19. 19. Questions Comments 8 TEAM Kishen Parikshak | Matt Blair | Zach Kost
  20. 20. T E A M ‐ AM M 8 October 2, 2009 Kis shen Parikshak k  |  Matt Blair  |  Zach Kost  CARC CO: LEV VERAG GING CR RM TO PREDI ICT INV VENTORY  AND INCREAS A SE THE CUSTO OMER E EXPERIENCE INTRODU UCTION TO C RM    Upon evaluating g the current state of CarCo, our team founnd a great oppo ortunity for gro owth concerning  manageme ent of the customer experien nce and the pre mand to decrease inventory holding times.   ediction of dem Although a a CRM impleme entation has been explored i in the past, we e feel that the e existence of su uch software is s  crucial in e expanding your r company’s coompetitive market share.    Acccenture unde erstands that m management is s left with diffic cult decisions s surrounding thhe various  approache es to implemen nting systems tto better mana age customer r relationships.  W We believe theese systems ca an be  scaled to fit your busines ss as it grows, a as well as incre ease the effect tiveness of youur current inter rnal processes. .   Today, ourr team aspires to assist you inn arriving at an n educated dec cision concerni ing your appro oach to custommer  resource m management.   CUSTOME ER RELATION NSHIP MANA AGEMENT  Vendors Veendors typically create CRM software that tends to be industry‐ specific to help organizattions meet theeir potential with as little effo ort  as possiblee.  However, too maximize ROI, an  implement tation must bee properly customized to mak ke it  Cu ustomers Manufactu urers most effec ctive in streamlining businesss processes.  If left  uncustomized, a softwar re could actually deter the  furthering of the organization by restricting proper analytics  of data and d providing ine effective or pot tentially poorlyy  interpreted d results.  Financiers Distributors UNDERST TANDING YO UR CUSTOM MER    By y understandinng the custome er, CarCo is better able to  constructivvely respond too their needs.  Demand shifts s must be ablee to be  Dealers properly innterpreted for your company y to take neces ssary steps to p provide  insights int to potential so olutions.  In tim mes like this, a s structured fram mework is  needed to ensure proper r deployment o of fresh ideas. PROVIDIN NG VALUE TO O DEALERS    Giving incentive es to dealers fo or their application of new marketing methodology acts to standardize part  of your business processes.  Market seg gmentation is a necessity wh ng the “typical” dealer’s idea hen approachin als.   We unders stand that dealer demograph hics differ across unique market segments a and they must t all be conside ered  appropriat to manage manufacturing wo tely for CarCo t orkflow.  TAKING T THE NEXT ST EP    Fo ollowing through with a CRM M implementation will help bo oost your orgaanization into a a position of  competitivve advantage reelative to your r peers.  Other manufacturer stry only have indirect ways o rs in your indus of  targeting their buyers – a and by pushingg towards the i ng  the people who are buyin idea of knowin ng your products,  you will be e able to better r respond to th heir demands in the future.

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