Enterprise Business Processes and Applications (IS 6006) Masters in Business Information Systems 25 th Feb 2009 Fergal Carton Business Information Systems

Last week Managing demand complexity Apple Exercise –Modelling customers and channels

This week Talk from Miguel Lioittier, Institut Superieur de Commerce, Paris –The current financial crisis and its causes Apple Exercise –Customers / channels On-line / not on-line Registered / not registered –Products Hardware Software Service CRM implementations eCRM Questions on strategy proposal for 9 th March

Apple channels and products An increasing range of channels –Apple stores (eg. ATMac, Penrose Wharf) –Apple.com –Major accounts (Dixons, Curry’s, Fnac, HMV, Virgin, …) –Retailer (Tesco, O2 stores, Argos, …) –Indirect distributor (Russian market?) –… An increasing range of products –iTunes –iTunes gift cards –iPods –iPod accessories –Notebooks –Desktops –iPhones –Service –Software –…

Apple business framework Map out channels, products and customers –Group channels into those similar in terms of fulfilment process Think through the stages in the fulfilment process What is the impact of a single instance ERP system?

Apple business framework 1 Channels On-line Physical Products Hardware Software

Apple business framework 2 Customers Registered Not registered Products Hardware SoftwareService?

Apple fulfilment process stages

Why CRM Fails Why Does CRM Fail? –Disparate views of customers –Silo effect –Many types of CRM –Many types of CRM application

Critical Success Factors (Parr & Shanks, 2000) Top management Support Full-time release of business experts Empowered decision makers Realistic milestones and end date Steering Committee determines scope & goals Smaller scope Champion Vanilla ERP Balanced team Commitment to change Project Technology People

CRM is more than Technology Strategy important too Integrated business model needed Holistic view of customers needed Need to combine data from various sources Need to integrate value chain

Channel Disparity What sort of channels can a customer use to interact with a company? What sort of channel conflicts arise? Why do channel conflicts arise? What are the consequences for the customer? What are the consequences for the firm?

Operational and Analytical Disparity Data from Operations is not analysed – it gets buried in silos Business insights from Analytics are not applied to enhance operations Businesses tend to collect huge amounts of data –But little of use is done with these data

eCRM eCRM is an evolution of CRM using Internet technology A lot of eCRM is based around the customer portal A portal is a website that aggregates all of the customer’s shopping, research and service needs –E.g. amazon.com

eCRM and Portals Features –Online catalogues –Online order processing –Online order configurability –Lead capture and profiling –Online surveys –Literature fulfillment – (!) marketing

eCRM and Portals Advantages for customer –Customer is in control of purchasing process –Customer is not pressed for time –Site can be tailored to customer’s needs and interests –Customer can check out problems themselves

eCRM and Portals Advantages for company –Marketing information easy to gather –Profile of customer can be built –Cheaper than lots of call centre staff and physical retail locations