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Enterprise e-Business Systems

Enterprise e-Business Systems



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Published by Artur
Enterprise e-Business Systems
Enterprise e-Business Systems

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Published by: Artur on Oct 14, 2007
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Prof. Anatoly Sachenko
Enterprise e-BusinessSystems
Foundation Concepts: Enterprise e-Business Systems
outlines the goals and components of customer relationship management, enterprise resource planning, and supply chain management, and discusses the benefitsand challenges of these major enterprise e-business applications.
Customer Relationship Management: The Business Focus -
Customer relationship management is a cross-functional enterprise system that integrates and automates many of the customer serving processes in sales,marketing, and customer service that interact with a company’s customers. CRM systems use informationtechnology to support the many companies who are reorienting themselves into customer-focused businesses as atop business strategy. The major application components of CRM include contact and account management, sales,marketing and fulfillment, customer service and support, and retention profitable relationships with its customersas a primary business goal. However, many companies have found CRM systems difficult to properly implementdue to lack of adequate understanding and preparation by management and affected employees. Finally, manycompanies are moving toward collaborative CRM systems that support the collaboration of employees, business partners, and the customers themselves in enhancing profitable customer relationships.
Enterprise Resource Planning: The Business Backbone -
Enterprise resource planning is a cross-functionalenterprise system that integrates and automates many of the internal business processes of a company, particularlythose within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business. Thus, ERP serves as the vital backbone information system of the enterprise, helping a company achievethe efficiency, agility, and responsiveness required to succeed in a dynamic business environment. ERP softwaretypically consists of integrated modules that give a company a real-time cross-functional view of its core business processes, such as production, order processing, and sales, and its resources, such as cash, raw materials, production capacity, and people. However, properly implementing ERP systems is a difficult and costly processthat has caused serious business losses for some companies, who underestimated the planning, development, andtraining that were necessary to reengineer their business processes to accommodate their new ERP systems.However, continuing developments in ERP software, including Web-enabled modules and e-business softwaresuites, have made ERP more flexible and user-friendly, as well as extending it outward to a company’s business partners.
Supply Chain Management: The Business Network 
- Supply chain management is a cross-functionalinterenterprise system that integrates and automates the network of business processes and relationships between acompany and its suppliers, customers, distributors, and other business partners. The goal of SCM is to help acompany achieve agility and responsiveness in meeting the demands of their customers and needs of their suppliers, by enabling it to design, build, and sell its products using a fast, efficient, and low cost network of  business partners, processes, and relationships, or supply chains. SCM is frequently sub-divided into supply chain planning applications, such as demand and supply forecasting, and supply chain execution applications, such asinventory management, logistics management, and warehouse management. Developing effective supply chainsystems and achieving the business goals of SCM has proven to be a complex and difficult challenge for manyfirms. But SCM continues to be a major concern and top e-business initiative as companies increase their use of Internet technologies to enhance integration and collaboration with their business partners, and improve theoperational efficiency and business effectiveness of their supply chains.
Identify each give examples to illustrate the following aspects of customer relationship management,enterprise resource management, and supply chain management systems:
Business processes supported
Customer and business value provided
Potential challenges and trends
Prof. Anatoly Sachenko
III: LECTURE NOTESSection I: Customer Relationship Management: The Business Focus
Customer-focused business is one of the top business strategies that can be supported by information technology.Many companies are implementing customer relationship management (CRM) business initiatives and informationsystems as part of a customer-focused or customer centric strategy to improve their chances for success in today’scompetitive business environment.
 Analyzing Mitsubishi Motor Sales
We can learn a lot from this case about the many ways companies are implementing customer relationshipmanagement systems. Take a few minutes to read it, and we will discuss it (See Mitsubishi Motor Sales in SectionIX).
WHAT IS CRM - [Figure 6.2]
CRM is described as a cross-functional e-business application that integrates and automates many customer-serving processes in sales, direct marketing, accounting and order management, and customer service andsupport.
CRM systems create an IT framework that integrates all the functional processes with the rest of a company’s business operations.
CRM systems consist of a family of software modules that perform the business activities involved in suchfront office processes.
CRM software provides the tools that enable a business and its employees to provide fast, convenient,dependable, and consistent service to its customers.
Contract and Account Management 
CRM software helps sales, marketing, and service professionals capture and track relevant data about every past
Prof. Anatoly Sachenko
and planned contact with prospects and customers, as well as other business and life cycle events of customers.
CRM software tracks customer contacts and other business and life cycle events of customers for cross-selling andup-selling.
 Marketing and Fulfilment 
CRM software can automate tasks such as qualifying leads, managing responses, scheduling sales contacts, and providing information to prospects and customers.
Customer Service and Support 
CRM helps customer service managers quickly create, assign, and manage service requests.
 Help desk 
softwareassists customer service reps in helping customers whom are having problems with a product or service, by providing relevant service data and suggestions for resolving problems.
 Retention and Loyalty Programs
It costs six 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 or her experience.
A company can boost its profits 85 percent by increasing its annual customer retention by only 5 percent.
The odds of selling a product to a new customer are 15 percent, whereas the odds of selling a product to anexisting customer are 50 percent.
Seventy percent of complaining customers will do business with the company again if it quickly takes care of aservice snafu.
More than 90 percent of existing companies don’t have the necessary sales and service integration to supporte-commerce.Examples of business benefits of customer relationship management include:
CRM allows a business to identify and target their best customers; those who are the most profitable to the business, so they can be retained as lifelong customers for greater and more profitable services.
CRM enables real-time customization and personalization of products and services based on customer wants,needs, buying habits, and life cycles.
CRM can keep track of when a customer contacts the company, regardless of the contact point.
CRM enables a company to provide a consistent customer experience and superior service and support acrossall the contact points a customer chooses.

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