Enterprise Business Processes and Applications (IS 6006) Masters in Business Information Systems 10 th Feb 2009 Fergal Carton Business Information Systems

Last week Lessons from customer stories Call center technology Call center visit? CRM strategy assignment (7 th March) Apple Exercise as homework

This week Apple Exercise Marketing Sales force automation

Apple Exercise SAP manages complexity in the demand fulfilment cycle, map out the demand fulfilment process … –Apple stores –Apple.com –Major accounts –Retailer –Indirect distributor

Apple Exercise Customers require existing and new products –There are many new products coming onto the market –After sales service has a cost, but customers willing to pay –After sales service impact for new products unknown? Customers are prepared to buy in new ways –There are many new channels for selling those products Customers will invent new combinations of product / channel Processing the requirements for products is a challenge –Customer lead times must be maintained –Product quality must not be compromised –Customer details must be retained and managed –Costs must be kept under control Efficient execution is vital, no matter what the requirement is The company needs to perform financially –Markets watch revenue, inventory holding, margins, …

Apple Exercise Functions in a business are working towards a common goal To get to that goal information needs to be shared Integration is a way of sharing information on corporate resources Multiple sources of demand for the same finite set of finished goods Where volume is increasing, standardisation is key ERP provides the one drum beat for all resources “If it ain’t in SAP, it don’t exist”

Marketing Internal Customer Data –Data warehouses Consolidation of all customer data in one place Built from operational databases Reporting biased –Data mining Trawl existing data to build picture of customer –Data marts Department-specific view of data warehouses

Marketing External Customer Data –Marketing databases –Credit checking services –Postcode databases –Profiles –Electoral Rolls –Data Protection Act issues

Marketing How to build a complete picture of the customer? –Need to integrate customer data from numerous sources –Data warehouses can do this Campaign management –How well did the last campaign work? –Scenario: SMS campaign

Sales force Automation Sales channels –Telesales, online, sales rep? What does the salesperson need? –Depends on complexity and value of product. –Sales channels and sales processes for newspapers are probably less complex than those for Airbus A380s.

Sales force Automation Account Management –Customer retention issue –Sell customer new stuff –Take care of customer’s problems –Keep customer happy

Sales force Automation Outbound Call Centres –Call Centre Agents are part of sales team Self – Service Sales –Online sales on web pages –Amazon.com amongst many others

CRM Technologies Common themes –Access to customer data What data? Does everyone need the same view? –Performance? What happened to Monster? –Reliability? –Workflow / process automation? Especially in Call Centre

CRM Implementation Issues Toward a Unified View of Customer Relationship Management. Chan, March Journal of American Academy of Business Knowledge.

CRM Implementation Issues What is the CRM Implementation Failure Rate? What is the similarity with ERP Implementations? What key lesson was learned from ERP implementations?

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

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

Function / Process Disparity Information Silos Decision Silos Functional Disparity –What is this? Process Disparity –What is this? What is the likely cause?

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

An Enterprise view of CRM As described by Chan Based on ANsI 3-Schema Model

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

eCRM and Portals SCM Implications –Ordering process must be fully integrated with stock control and shipping processes –Must have solid reverse logistics process