1. Management Information Systems
Managing Information Technology in the Business Enterprise

2. Enterprise e-Business Systems
Chapter 6
Enterprise e-Business Systems

3. Learning Objectives
Identify and 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

4. Customer Relationship Management: The Business Focus
Section I
Customer Relationship Management: The Business Focus

5. Customer Relationship Management
Provides customer-facing employees with a single, complete view of every customer at every touch point and across all channels
Provides the customer with a single, complete view of the company and its extended channels

6. Customer Relationship Management (continued)
Integrates and automates many of the customer serving processes
Creates an IT framework of Web-enabled software & databases that integrates these processes with the rest of the company’s business operations
Includes software modules that provide tools that enable a business & its employees to provide fast, convenient, dependable, consistent service.

7. Customer Relationship Management (continued)
Major Application Components
Contact & Account Management
Helps capture and track relevant data about past and planned contacts with prospects & customers.

8. Customer Relationship Management (continued)
Sales
Provides sales reps with software tools & company data needed to support & manage their sales activities.
Helps optimize cross-selling & up-selling

9. Customer Relationship Management (continued)
Marketing & Fulfillment
Helps accomplish direct marketing campaigns by automating tasks
Helps capture & manage prospect & customer response data
Helps in fulfillment by quickly scheduling sales contacts & providing appropriate information on products & services to them

10. Customer Relationship Management (continued)
Customer Service and Support
Provides software tools & real-time access to the common customer database
Helps create, assign, & manage requests for service from customers
Call center software
Help desk software

11. Customer Relationship Management (continued)
Retention and Loyalty Programs
Helps the company identify, reward, and market to their most loyal and profitable customers

12. Customer Relationship Management (continued)

13. Customer Relationship Management (continued)
Three Phases of CRM
Acquire (new customers)
By doing a superior job of contact management, sales prospecting, selling, direct marketing, & fulfillment.

14. Customer Relationship Management (continued)
Enhance (customer satisfaction)
By supporting superior service from a responsive networked team of sales and service specialists.

15. Customer Relationship Management (continued)
Retain (your customers)
Help identify and reward your most loyal, profitable customers.

16. Customer Relationship Management (continued)
Benefits and Challenges
Allows a business to identify its best customers
Makes possible real-time customization & personalization of products & services based on customer wants, needs, buying habits, & life cycles

17. Customer Relationship Management (continued)
Benefits and Challenges (continued)
Enables a company to provide a consistent customer service experience
Failures
Due to lack of understanding & preparation.
CRM is not a silver bullet

18. Customer Relationship Management (continued)
Trends
Operational CRM
Analytical CRM
Collaborative CRM
Portal-based CRM

19. Enterprise Resource Planning: The Business Backbone
Section II
Enterprise Resource Planning: The Business Backbone

20. Enterprise Resource Planning
Serves as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems
Helps companies gain the efficiency, agility, & responsiveness needed to succeed today

21. Enterprise Resource Planning (continued)
Gives a company an integrated real-time view of its core business processes
ERP software suites typically consist of integrated modules of…
Manufacturing
Distribution
Sales
Accounting
Human Resource Management

22. Enterprise Resource Planning (continued)
Benefits and Challenges
Quality and efficiency
Helps improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processes
Decreased Costs
Reductions in transaction processing costs and hardware, software, and IT support staff

23. Enterprise Resource Planning (continued)
Decision support
Provides cross-functional information on business performance to assist managers in making better decisions
Enterprise agility
Results in more flexible organizational structures, managerial responsibilities, and work roles

24. Enterprise Resource Planning (continued)
Costs of ERP
The costs and risks of failure in implementing a new ERP system are substantial.

25. Enterprise Resource Planning (continued)

26. Enterprise Resource Planning (continued)
Causes of ERP failures
Underestimating the complexity of the planning, development, and training required
Failure to involve affected employees in the planning & development phases and change management programs
Trying to do too much, too fast
Insufficient training
Believing everything the software vendors and/or consultants say

27. Enterprise Resource Planning (continued)
Trends
Flexible ERP
Web-enabled ERP
Interenterprise ERP
E-Business Suites

28. Supply Chain Management: The Business Network
Section III
Supply Chain Management: The Business Network

29. Supply Chain Management
A cross-functional interenterprise system that uses IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners.
Goal is to create a fast, efficient, & low-cost network of business relationships.

30. Supply Chain Management (continued)

31. Supply Chain Management (continued)
Electronic data interchange
Exchanging business transaction documents over the Internet & other networks between supply chain trading partners

32. Supply Chain Management (continued)
The Role of SCM

33. Supply Chain Management (continued)
Benefits and Challenges
Faster, more accurate order processing,
Reductions in inventory levels,
Quicker time to market,
Lower transaction and materials costs,
Strategic relationships with suppliers

34. Supply Chain Management (continued)
Problem causes
Lack of proper demand planning knowledge, tools, and guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production, inventory, and other business data
Lack of adequate collaboration

35. Supply Chain Management (continued)
Trends

36. Summary
Customer Relationship Management integrates and automates the customer serving operations in sales and marketing.
Enterprise Resource Planning integrates and automates operations and resources used internally in the business.
Supply Chain Management integrates and automates processes that link suppliers, customers, distributors, and business partners.

37. Discussion Questions
Should every company become a customer-focused business?
Why would systems that enhance a company’s relationships with customers have such a high rate of failure?

38. Discussion Questions (continued)
How could some of the spectacular failures of ERP systems have been avoided?
Should companies continue to use EDI systems?

39. Discussion Questions (continued)
How can the problem of overenthusiastic demand forecasts in supply chain planning be avoided?
What challenges do you see for a company that wants to implement collaborative SCM systems?

40. Discussion Questions (continued)
Should companies install e-business software suites or “best of breed” e-business software components?

41. Real World Case 1 – Canada Post et al
Hart’s advice for implementation of CRM is to keep the technology standard. Do you agree?
Why should the participation of senior executives in CRM be mandatory?
What are the pros and cons of implementation of CRM in any organization?

42. Real World Case 2 – Indigo Books and Music Inc.
What are the challenging aspects of category management at Indigo?
Why was detailed analysis of business processes at Indigo conducted before selecting mySAP?
What are the challenging aspects of mySAP retail system implementation at Indigo?

43. Real World Case 3 – Wal-Mart and Mattel
Do you agree that Wal-Mart is “the best supply chain operator of all time”?
What has Mattel learned from Wal-Mart?
How well is Mattel applying this knowledge to its own business?
What can other businesses learn from Wal-Mart and Mattel that could improve their supply chain performance?

44. Real World Case 4 – Call Centres
What is the major impact of interactive voice response on business relationships with customers?
Identify pros and cons of IVR technology.
What is the significance of virtual call centres?
What businesses benefit most from IVR systems?