1. Gerhard Steinke1 Enterprise Requirements Planning (ERP) Customer Relationship Management (CRM) Data Warehousing

2. Gerhard Steinke2 ERP Managerial Questions  What is ERP?  How will it help my business?  What are its costs?  What are the risks?

3. Gerhard Steinke3 Functional Business Systems Marketing Production Operations Human Resource Management Accounting Finance Customer relationship management Interactive marketing Sales force automation Cash management Credit management Investment management Capital budgeting Financial forecasting Order processing Inventory control Accounts receivable Accounts payable Payroll General ledger Compensation analysis Employee skills inventory Personnel requirements forecasting Manufacturing resource planning Manufacturing execution systems Process control Functional Business Systems.

4. Gerhard Steinke4 Marketing Information Systems Marketing Information Systems Product Management Product Management Interactive Marketing Interactive Marketing Sales Force Automation Sales Force Automation Sales Management Sales Management Customer Relationship Management Customer Relationship Management Advertising & Promotion Advertising & Promotion Market Research & Forecasting Market Research & Forecasting

5. Gerhard Steinke5 HR Information Systems Compensation Analysis Personnel Record-Keeping Personnel Requirements Forecasting Governmental Reporting Employee Skills Inventory Training and Development Analysis Human Resource Management

6. Gerhard Steinke6 Accounting Information Systems Order Processing Payroll Inventory Control General Ledger Accounts Receivable Accounts Payable Common Purposes of AIS

7. Gerhard Steinke7 Financial Information Systems Finance Cash Management Cash Management Financial Performance Analysis Financial Performance Analysis Financial Planning Financial Planning Investment Management Investment Management Capital Budgeting Capital Budgeting

8. Gerhard Steinke8 Manufacturing Information Systems Production/ Operations Production/ Operations Computer-Aided Engineering Computer-Aided Engineering Process Control Process Control Purchasing & Receiving Purchasing & Receiving Robotics Computer-Aided Manufacturing Computer-Aided Manufacturing Machine Control Machine Control Material Requirements Planning Material Requirements Planning

9. Gerhard Steinke9 ERP Modules – Integrating Business Processes  Finance  Sales  Manufacturing  Human Resources  Portals  Supply chain  Customer relationship management  Product life cycle  Business intelligence

10. Gerhard Steinke10 Benefits of ERP  Shorter order cycle time  Increased productivity  Lower IT costs  Better cash management  Reduced personnel

11. Gerhard Steinke11 Reasons to Adopt ERP  One face to the business/customer  Knowing “what is possible” in terms of organizational inventory  Eliminating redundancy  Consolidation  Handle growth  Reduce stress on existing IT  Avoid legacy systems  Modernizing

12. Gerhard Steinke12 Reasons Not to Adopt  Cost  Loss of competitive advantage  Resistance to change  Poor cultural fit  Typical Players Oracle, SAP, (Baan, Peoplesoft, JD Edwards)

13. Gerhard Steinke13 CRM Managerial Questions  What are the goals of CRM?  Is CRM a marketing strategy by itself?  How difficult is CRM to implement?  Do I need a consultant?  How much is CRM going to cost?  How should I implement?  How long before I see a return?

14. Gerhard Steinke14 CRM is … “Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining, or cross-selling customers” - (Goodhue, Wixom, & Watson, 2002)

15. Gerhard Steinke15 Evolution  Sales force automation (SFA)  Customer service (CS)  Sales and marketing management (SMM)  Contact and activity management

16. Gerhard Steinke16 Customer Relationship Management CRM: The Business Focus Marketing and Fulfillment Customer Service and Support Retention and Loyalty Programs Contact and Account Management Sales Cross-Sell Up-Sell Prospect or Employee Fax e-Mail Telephone Web Oracle (Siebel, PeopleSoft), SAP, Onyx

17. Gerhard Steinke17 CRM in Practice  CRM applications create value  Technology to support present and future initiatives  Use CRM to transform the organization

18. Gerhard Steinke18 Assumptions of CRM  Customers act according to habit;  Current customer information is always correct;  Customers want individual, differentiated treatment; and,  Customers with the greatest profitability should receive the best service

19. Gerhard Steinke19 Drivers of CRM  Pareto’s principle: 20/80 rule  8 to 10 calls to make a sale to new customers, 2 to 3 to existing customers  5-10 x more expensive to sell to new rather than repeat customers  Greater leverage of marketing dollars  Vehicle for organizational change

20. Gerhard Steinke20 Revenue & Cost Goals  Increases in revenue growth through customer satisfaction  Reduced costs of sales and distribution  Minimization of customer support costs

21. Gerhard Steinke21 Benefits of CRM  Improve the ability to retain (acquire) customers  Maximize the “lifetime” of customers  Improve service while keeping costs low

22. Gerhard Steinke22 Benefits of CRM IdentificationDifferentiationInteractionCustomization Source of benefits Clean data about customer Single Customer View Understanding the customer Customer satisfaction and loyalty BenefitsHelp sales force Cross selling Cost effective marketing campaign Reduce direct mailing cost Cost effective customer service Lower cost of acquisition and retention of customer Maximize share of wallet

23. Gerhard Steinke23 IT & CRM ProcessIdentificationDifferentiationInteractionCustomization Goal· Identify individual customer · Evaluate customer value and needs · Build a continuing relationship · Fulfill customer needs · Generate profit Traditional Mass Marketing · Not done· Clustering· Call Center· Sales · Services CRM· Customer profiling · Individual level analysis · Call center management · Auto response system · Sales automation · Marketing p process automation Information technologies · Cookies · Web site personalization · Data mining · Organizational learning · Web application · Wireless communication · ERP · E-Commerce

24. Gerhard Steinke24 Suppliers Customers Employees Partners Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes Customer Relationship Management Marketing – Sales - Service Knowledge Management Collaboration – Decision Support Partner Relationship Management Selling – Distribution Enterprise Application Architecture