Customer Relationships Management

To ERP

3/29/2012 Viro Vilho Iipumbu

................................................................................... Definitions ................1......... 3 3........................................................................................................................................................................................... 6 7................. 2 2............................................... Enterprise Resources Planning .................................................................................................................................................................................................................................. Structure of CRM and ERP .............................................................................. 2 3........1..............2.. Background .......................... Strategies ..................................... 6 8.... 3 4.......................................... 5 6........................................... 4 5..........................................................2............................................................................................... 4 5..... 2 2....... Disadvantages ............................................................................ 2 2...................................................................................Contents 1.......................... 4 5............ Conclusion ....................... Advantages................................................................ Abstract .............................................................................................................. Introductions ...1....................................................................................................................................................................................................................................... Reference: ................................................2........... Implementation ................ Advantage and Disadvantages .......... Customer Relationship Managements................ 7 1 .................................... 3 3........

manages and coordinates resources. logistics and finance and elimination manual re-entry of data. 2. Definitions From all the resources I read. it becomes major experience in industry and a two-way communication device which leads to programs such as frequent flyer miles and bonus points on credit cards. high tech corporations and the telecommunications industry. Me I choose the Customer Relationships Management (CRM) and I’m going to discuss about this topic in my paper with issues related to Enterprise Resources Planning’s. Continuous analysis of the gathered information about customers and contracts. It will also allow them to explore the roles of this topic in an organization. Background The customer relationship managements were introduced in the 1980s. I manage to come with one definition of CRM as a group of interconnected participating companies or parties that add value to a stream of transformed inputs from their source of origin to the end products or services that are demanded by the designated end consumers. 2. In 2000s the internet help in expanding the CRM from stagnant database and allows off-site information storage and start used most frequently in financial services. for example.2. As I did for the CRM I came up with one definition of ERPs as integrated systems that collects and processing data. development and improvement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value. Abstract The objective of this assignment was to allow us students to investigate different issues based on different selection of topic pertaining to ERP. Introductions The Customer Relationships Management as one of the component of Enterprise Resources Planning’s software development was designed to increase the organisation’s management due to effective communication and management between the organization and their customers. This assignment will help students better understand all the aspect associated with their chosen topic.1. An analysis of this case makes it possible to introduce students to theoretical concepts related to the choice of their topic. setting priorities based on the importance to the customer's company. I supported this because CRM is concerned with the creation. Synchronization of managing numerous interaction channels. information. taking the corresponding organizational decisions. where it's was costing more. 2. and functions throughout an 2 .1. It allows minimizing resource expenses for attracting new customers and retaining the existing ones by:    Unified customer data storage where the data on any cases of interaction and contract signing with customers is available at any time. difficult to operate and only pay out well in the cases of business-to-business key account marketing. reducing paperwork’s. In 1990s. particularly in relation to the management and decision approach in the business. covering areas such as manufacturing. Where the ERP systems was design to integrate systems related to organisation's operations. improving coordination between functions and tracking progress of order fulfilment and other processes.

which is useful for gathering information on customers’ preferences and. processing them.organisation as they enable organizations to automate activities such as product planning. web site analytics and campaign management. and perform follow ups. purchasing. Customer Relationship Managements The CRM software’s are designed with the ability to allow organization to organize and manage their customers and accounts. For this reason all the application systems design with the structure that makes them suitable to perform their plan. supplier management. including eprocurement 3 . The ERP’s are made up of different components compare to the CRM which made up of applications such as:       Unified database which collect and analyzes relevant internal and external data information needed by other functions Inventory management which provides inventory status and inventory forecasts Supply chain which provides information on supply chain member. the ERP systems are flexible to respond to the changing needs of their organization and have modular application architecture which means that various functionalities are logically clubbed into different business processes and structured into a module which can be interfaced or detached whenever required without affecting the other modules. order processing. With these abilities. polls and questionnaires. tracking all the associated communication and events. Survey management which automates electronic surveys. Enterprise Resources Planning As for CRM. distribution and customer Manufacturing which supplies information on production cost and pricing CRM which supplies information on customers and their needs and preferences Purchasing which provides information related to the purchasing function. Automated customer service which used to manage call centres and help desks and can sometimes answer customers’ queries automatically 3. and present them in the suitable form whenever requested by the user. review all related correspondence and events. E-CRM or Web-based CRM which allows web-based customer interaction and is used to automate e-mail.2. and report on the sales channel and related data.1. call logs. and order tracking. tracking customers interaction and analyzing sales forecasts and performance. The ERP systems also support variety of organizational functions and are suitable for a wide range of business organizations and have collections of best business processes applicable worldwide where the CRM are not. manufacturing. 3. inventory management. the CRM are made up of major applications that perform this operation such as:     Sales-force automation which automates tasks such as inventory control. They also have application which includes the abilities of Contact Management and adds features to track sales opportunities. Structure of CRM and ERP Most of all the application systems in organization are implemented for the purpose of data management which means they store data. 3. including suppliers.

Improve sales and streamline existing processes and form individualized relationships with customers. each comes with its own strategies. manage campaigns as well as discover qualified leads. CRM strategies are associated with the organisation's mission and purpose in order to control the power of CRM software and bring about a constant achievement of business objectives and profitable customer relationships. that they are intend to help the organization become an integrated whole. that an ERP system are design to bring the best business practices that are set in the way the ERP software operates to the organization. customers have their own lifetime values. the ERP strategies can summarised in two.1. Customer Differentiation: Every customer has his or her own needs and demands and therefore from the organisation's point of view. specifications and availability. interactions and transactions for a period of time in order to provide value to the customer by serving his or her need at the right time with a right product or service. Advantages Implementing a CRM system might involve considerable time and expense.    Accounting which tracks financial information such as budget allocations and debits and credits Vendor integration which integrates information for vendors such as offering automated downloads of data on product pricing. Advantage and Disadvantages As we know all the components on earth have positive and negative things in it. The main basic strategies of CRM initiatives are:  Customer identification: The organisation must be able to identify the customer via marketing channels. or functions or locations and secondly. 5. 5. Personalization: The organisation has to treat each customer differently or uniquely which is the major objective of CRM. 4 . the CRM applied the same too. Strategies With all the application systems released. One. Customer Interaction: The organisation has to keep track of customer behaviour and needs over time because the customer's long-term profitability and relationship to the company is very important. Here we are going to look at the benefit and disadvantage of CRM compare to those of ERP. but it have many prospective benefits such as:   Helping marketing departments identify and target their best customers. and those organization practices will become the basis for the future growth of the organization. E-commerce which provides business to consumer information related to order status and business to business information related to suppliers and business partners Sales which supplies information on sales and marketing 4.    With the above CRM strategies. as opposed to being a collection of individual departments.

the ERP have more benefit to those of CRM such as:  Increase productivity. Enable Data consistency when it integrates all business management functions which decrease the level of inconsistency information from different systems. and if the remote CRM system has an outage. they increases the ability of companies to use internet as part of the business strategy. clients and sales prospects.   Give employees information needed to improve customer service and also to better understand customer needs.2.    5. Help or fastening the way to identify and handle potential problems and tracks all points of contact between a customer and the company. the ERP have some more disadvantages over CRM such as:    ERP are difficult to incorporate changes and customizations required as business processes change The ERP systems focus only on what organisations have in common and not on processes where real value is created for individual customers. flexibility and customer responsiveness by integrated main business processes together in one single application and maximize the efficiency of business process across the entire organization. Disadvantages CRM systems are used for managing company’s interactions with customers. Eliminate costs and inefficiencies by enabling company to manage relationship with vendor results in lower cost for purchased item and better resource management results in more inventory turns and decrease the level of inefficiencies. the company will be unable to retrieve records Overhead which occur when the company decides on to use the local CRM application as there will be overhead costs associated with running the software. Extend businesses using the Internet when they integrating all business functions together in one system. They can be part of ERP systems or stand alone. Help in quickly managing the scheduling of follow-up sales calls to assess the satisfaction of customers and their repurchase probabilities. training issues may be a small disadvantage but large organizations need to roll out training schedules for all their employees which will cost the organization additional money to their purchasing amount. The ERP systems are inability to grow or work with other systems 5 .   Compare to the above disadvantages of CRM. Training where if the company is small. where if there are stand alone this are their disadvantages:  Record Loss as some CRM applications use remote Internet connections to save customer records the company will not have control of the data. With all the aspect of helping in targeting best customers and improving sales and streamline.

In this assignment I explain how CRM systems are related to ERP system and in which way are they differ. Implementation projects that are not supported by clear contract and licensing terms often result in significant cost increases and missed timelines. as CRM can be part of the ERP system in an organization. Another issue needed to be considered before implementing systems are contract and licensing. to deal with customer of an organisation while the ERP system deal with all organization functions which make it inappropriate to differentiate them. Implementation The successful CRM and ERP systems implementation are crucial to ensure that the receiving organization receives the features and resources required to succeed. 6 . So it is recommended to pay attention to implementation element such as Vendor Contracting and Software Licensing. 7. If they are not careful focus on the implementation. What is different is that the CRM systems has on main function. Project Management.6. Conclusion To differentiate the CRM from ERP system is not that easy. therefore the factors below need to be consider when contracting and licensing software. the resulting CRM/ERP system can be different from the organization’s expectations set during the initial selection of the software. Software Development. By this end I hope you understand that CRM focuses on segmenting customers on the basis of needs or profitability and on designing and implementing programs to allocate the appropriated resources to each customer efficiently and effectively. Data Migration and Training and Support before implementing a CRM or ERP system in your organisation.

Reference: Customer Relationship Management System URL: http://www.gov.uk/journal/2012/02/disadvantages-of-erp-crm-and-bpm-systems/ Accessed: March. Strategies and Expected Benefits of Customer Relationship Management URL: http://pure.oxagile. 23 2012 The structure of ERP URL: http://www. 23 2012 Business benefits of CRM | Business Link URL: http://www.com/strategy.com/article/177-customer-relationship-management-system Accessed: March.crmforecast.com/erp-structure. 23 2012 CRM Business Strategy URL: http://www. CRM and BPM Systems | The WritePass Journal URL: http://writepass. 23 2012 Objectives.com URL: http://www.pdf Accessed: March.ehow.html Accessed: March.uk/bdotg/action/detail?itemId=1075422939&type=RESOURCES Accessed: March. 26 2012 The Disadvantages of CRM Systems | eHow. 26 2012 Disadvantages of ERP.businesslink.8.erppandit. 26 2012 7 .se/portal/files/30961216/LTU-PB-EX-0503-SE.ltu.html Accessed: March.com/list_6178037_disadvantages-crm-systems.co.htm Accessed: March.