Marketing of ERP

Business Modeling for ERP
Approach to ERP

To develop a business model comprising the business process or activities & showing the interconnection & sequence of the business subsystems or processes that derive it

Business Strategy

Business Model

Business Process




Money People Facilities Material Information Information INPUT WORKFLOW OUTPUT F/B & control Business as a system .

Contract with package vendor  Value of the s/w & conditions of payment  List of deliverables  Condns & concessions for acquiring complementary modules in future  Cost of implementation training  Annual maintenance fee  Warranty or guarantee terms  Terms & condns for the receipt of new versions & upgrades  Details of technical support on site  Terms & condns for customization  Profile of vendor team  Other specific responsibilities assigned to vendor .

Contract with consultants  Profile of the consultant team  Consulting fee & payment conditions  Time schedule & the implementation budget  Time required for showing the results  Implementation methodology  Terms & conditions of knowledge transfer & employee training  List of deliverables  Reporting mechanism to the company management  Project monitoring & status reporting systems .

Contract with employees  Should not put the company in a position where the smooth running of ERP system is interrupted  Train another person before leaving  Should give prior notice before leaving Company should retain employees by  Offering competitve salaries  Challenging work environment  Stock options .

Market dynamics & competitive strategy  What is ERP’s current competitive position?  Is it market leader or is it challenger?  Is it seeking a strong or dominant industry position  How does one position ERP .

Marketing of ERP  Managing the ERP marketing strategy process  From industry choice to positioning Segmenting Targeting positioning .Objective: To serve the customers & outperform competitors by focusing the company’s competencies appropriately .

Marketing of ERP Analysis of competitive positioning  Customer purchase criteria  Customer preference concerning service or product on each criterion  Customer perceptions of competing vendor & their products on each criterion .

Analysis of competitive positioning Customer purchase criteria  Price ( purchase price. discounts. support facilities)  Psychological  Quality  Delivery schedule  Warranty provided  After – sales service  Credit terms  Implementation strengths . multisite license price)  Performance ( scalability. upgradability.

map customer preferences on each criterion identified .How the different ERPs differ Go for competitive positioning decision .provides benchmarks related to which an ERP & related service offerings positioned  Customer perceptions on competing products .Analysis of competitive positioning  Customer preferences .

integrated marketing & profitability . customer needs.promotion  Image  Identity – what it is & what it is intended to provide  Decide – USP  Marketing concept – target market.

Marketing strategy or Business plan  Target market : To identify industry sectors  Positioning : define & emphasize USP of market  Product line : Add – on products  Price : competitive price  Distribution : synergy with h/w or s/w vendors  Sales force : to expand by 10%  Service : To provide widely available & quick service by competing professionals .

Strategy must be elaborated to answer questions like What will be done? When it will be done? Who will do it? How much will it cost? .Marketing strategy or Business plan  Advertising : To develop a new advertising campaign that supports the positioning  Seminars / tradeshows : To participate  Strategy : To emphasize USP in the advt & commercials : Increase the advt budget by 20% Each mkg.

Action Programmes Elaboration of each marketing strategy element  What will be done?  When will it be done?  Who will do it?  How much will it cost? Buyer’s consciousness  Buyer’s characteristics  Making purchase decisions 15/11/2007 16 .

Criteria for selecting an ERP system .

Actual sales cycle .ERP Prospecting Qualification of the prospect Corporate marketing presentation Demonstration of the key features of the s/w Simulation Close the sale .

Actual Sales Cycle  Prospecting   Generate prospects Develop relationships with management consultants  Qualification of prospect  Assessment of seriousness of prospects 15/11/2007 19 .

 Corporate marketing presentation   Presentation on company’s mission. customers Explaining the features and benefits of the product  Demonstration of key features of the software   Relating business process of organizations to key ERP features Participation of decision makers and users groups 15/11/2007 20 . culture.

 Closing the sale  15/11/2007 21 . pre and post – implementation support etc. discounts. Simulation of some of company’s business processes   Mapping business processes to ERP software and demonstration Helps the vendor in implementation and to gain confidence with the organization Finalizing price.

ERP FAMILY  Enterprise planning  Supervisory control  Supply chain management  Executive systems  Maintenance management  Planning scheduling  Warehouse management  Decision support .

Managing the ERP Marketing Strategy Process Deep understanding of the market and the product and know all about the process of managing marketing strategy from the organization's point of view. 15/11/2007 23 .

Relationship Marketing-The Key  Convert many of its qualified prospects into first-time customers  Convert those satisfied first-time customers into repeat 'customers  Both first-time and repeat customers may continue to buy from competitors as well.  The company then acts to convert repeat product categories 15/11/2007 24 .

customers who praise the company  The ultimate challenge is to turn advocates into partners. where the customer and the company actively work together 15/11/2007 25 . The next challenge is to turn clients into advocates.

Value creation and delivery sequence  The first phase. choosing the value. a target price established. and the product made and distributed. the value. represents the "homework" that the marketing personnel must do before actually positioning the ERP in the market.  The task in the third phase entails communicating 15/11/2007 26 .  The ERP's specifications and services must be detailed.

Developing Marketing Strategies  ERP with premium price or at medium price with limited functionality?  Positioning strategy to be changed at different stages of product life cycle  Strategy choice depends on organization's role in the market. global opportunities and challenges 15/11/2007 27 .

channels.Planning Marketing Programmes  Decisions to be made on marketing expenditures. marketing mix and marketing allocation  Level of marketing expenditures  Allocation of marketing budget to ERP. promotion media. etc.  Promotion – most important marketing programme 15/11/2007 28 .

Participants in the ERP Buying Process  Vary in number and type for different products  Ranges from 3-4 or team based buying  Participants could be  Those who initiate proposal  Those who will use the software or service  Technical personnel  People with formal authority to purchase  High level mangers for negotiations 15/11/2007 29 .

Who Will Require ERP ?  Organizations  With a vision for leadership  That are customer-service driven  That are under tremendous competitive pressure  In which business processes are too complex requiring coordination among employees 15/11/2007 30 .