CRM and SCM

Enterprise systems
Manage all of the organizations interactions with customers front office Manage the majority of an organizations core internal processes back office

Customer Relationship Management

Selling products and services using Internet and the WWW

Enterprise Resource Planning

e-Commerce Supply Chain Management

Manage the movement of materials from suppliers and the movement of finished products through the distribution channel

Note: some overlap between classes of systems Whats the common denominator?

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CRM Systems

Customer Relationship Management Systems (CRM)

Manages all of the ways used by firms to deal with existing and potential new customers CRM Uses information system to integrate entire business processes of a firms interaction with its customers. Provides end-to-end customer care ( from order receipt through delivery and after sale service and support) Provides a unified view of customer across the company Consolidates customer data from multiple sources (retail stores, phone, e-mail, the Web) and provides analytical tools for answering questions Goals:
Customer loyalty Customer profitability
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CRM : Customer Relationship Management Systems

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Business Value of Customer Relationship Management Systems

Increased customer satisfaction More effective marketing and reduced direct marketing costs Lower costs for customer acquisition Increased revenue from identifying most profitable customers and segments for marketing Reduced churn rate (Number of customers who stop using or purchasing products or services from a company)

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Three dimensions of CRM

Operational Analytic

Integrated Customer Data

Collaborative

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Operational CRM
Operational CRM provides support to "front office" business processes, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve information on customers from the database as necessary. Examples: Campaign management, e-marketing, account and contact management, telemarketing, teleselling, e-selling, field sales
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Analytic CRM
Applications that analyze customer data generated by operational CRM applications (and many other sources) to provide information about customers that can be used to build profitable relationships

Examples: Develop customer profiles; analyze customer or product profitability; identify trends in sales length cycle; analyze leads generated and conversion rates develop predictive models to try and anticipate customer behavior

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Analytical CRM Data Warehouse

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Examples
Large US Bank
Customer attrition issue

Walt Disney World

Customer segmentation

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Collaborative CRM
Collaborative CRM is used where customers self serve. This can include a variety of channels, such as internet, email, automated phone/ interactive voice response (IVR). A good example of collaborative CRM is web page personalization.

Collaborative CRM uses the output of analytic CRM..

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CRM Demos
SAP CRM

What business functions are integrated? How does this software help change customer service from a cost centre to a profilt centre?
Microsoft CRM Demo (Fun)

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SCM Systems

Supply Chain
A network of activities, such as manufacturing plants, distribution centers, retail outlets, people, and information, which are linked together into processes supplying goods/services from source through consumption.

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Supply Chain Management (SCM)

The integration of suppliers, distributors, and customer logistics requirements into one cohesive process. Close linkage and coordination of activities involved in buying, making, and moving a product Reduces time, redundant effort, and inventory costs

Increased responsiveness to customer demands

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Supply Chain Management and Collaborative Commerce

Business Value of SCM

Management decides when, what to produce, store, move Rapidly communicate orders Track the status of orders Check inventory availability, monitor levels Improve delivery service and track shipment Reduce paperwork Plan production based on actual customer demand Rapidly communicate product design change Provide product specifications Share information about defect rates, returns

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RFID
http://www.youtube.com/watch?v=4Zj7txoDx bE&feature=related Based on this video:
What do you think RFID is? What are all of the ways in which RFID can help improve a supply chain?

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