INFORMATION SYSTEMS @ X INFO102: Management Information Systems CRM and SCM

INFORMATION SYSTEMS @ XINFORMATION SYSTEMS @ X

INFO102: Management Information SystemsINFO102: Management Information Systems

CRM and SCMCRM and SCM



Enterprise systemsEnterprise systems

Customer Customer RelationshipRelationshipManagementManagement

Enterprise Enterprise Resource PlanningResource Planning

Supply Chain Supply Chain ManagementManagement

Manage all of the Manage all of the organizations organizations

interactions with interactions with customers – “front customers – “front

office”office”

Manage the Manage the majority of an majority of an

organization’s core organization’s core internal processes internal processes

“back office”“back office”

Manage the movement of materials Manage the movement of materials from suppliers and the movement of from suppliers and the movement of

finished products through the finished products through the distribution channeldistribution channel

Note: some overlap between classes of Note: some overlap between classes of systems…systems…

What’s the common denominator?What’s the common denominator?

e-Commercee-Commerce

Selling products Selling products and services using and services using Internet and the Internet and the

WWWWWW



CRM SystemsCRM Systems



Manages all of the ways used by firms to deal with existing and Manages all of the ways used by firms to deal with existing and potential new customerspotential new customers

CRM Uses information system to integrate entire business processes of CRM Uses information system to integrate entire business processes of a firm’s interaction with its customers.a firm’s interaction with its customers.

Provides end-to-end customer care ( from order receipt through Provides end-to-end customer care ( from order receipt through delivery and after sale service and support)delivery and after sale service and support)

Provides a unified view of customer across the companyProvides a unified view of customer across the company

Consolidates customer data from multiple sources (retail stores, phone, Consolidates customer data from multiple sources (retail stores, phone, e-mail, the Web) and provides analytical tools for answering questionse-mail, the Web) and provides analytical tools for answering questions

Goals:Goals: Customer loyaltyCustomer loyalty Customer profitability Customer profitability

Customer Relationship Management Systems (CRM)



CRM : Customer Relationship Management CRM : Customer Relationship Management SystemsSystems



Business Value of Customer Relationship Business Value of Customer Relationship Management Systems Management Systems

Increased customer satisfaction Increased customer satisfaction More effective marketing and reduced direct More effective marketing and reduced direct

marketing costs marketing costs Lower costs for customer acquisition Lower costs for customer acquisition Increased revenue from identifying most profitable Increased revenue from identifying most profitable

customers and segments for marketingcustomers and segments for marketing Reduced churn rate (Number of customers who stop Reduced churn rate (Number of customers who stop

using or purchasing products or services from a using or purchasing products or services from a company)company)



Three ‘dimensions’ of CRMThree ‘dimensions’ of CRM

IntegratedIntegratedCustomer Customer

DataData

OperationalOperational

CollaborativeCollaborative

AnalyticAnalytic



Operational CRM 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



• 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

Analytic CRM Analytic CRM



Analytical CRM Data Warehouse Analytical CRM Data Warehouse



ExamplesExamples

Large US BankLarge US Bank Customer attrition issueCustomer attrition issue

Walt Disney WorldWalt Disney World Customer segmentationCustomer segmentation



Collaborative CRM 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…..



CRM DemosCRM Demos

SAP CRMSAP CRM What business functions are integrated?What business functions are integrated? How does this software help change customer service from a ‘cost How does this software help change customer service from a ‘cost

centre to a profilt centre’?centre to a profilt centre’?

Microsoft CRM Demo (Fun)Microsoft CRM Demo (Fun)



SCM SystemsSCM Systems



Supply ChainSupply Chain

A network of activities, such as A network of activities, such as manufacturing plantsmanufacturing plants, , distributiondistribution centerscenters, , retail outletsretail outlets, , peoplepeople, and information, , and information, which are linked together into processes supplying which are linked together into processes supplying goods/services from goods/services from source through consumptionsource through consumption. .



Supply Chain Management (SCM)Supply Chain Management (SCM)

The integration of suppliers, distributors, and customer The integration of suppliers, distributors, and customer logistics requirements into one cohesive process.logistics requirements into one cohesive process.

Close linkage and coordination of activities involved in Close linkage and coordination of activities involved in buying, making, and moving a productbuying, making, and moving a product

Reduces time, redundant effort, and inventory costsReduces time, redundant effort, and inventory costs

Increased responsiveness to customer demandsIncreased responsiveness to customer demands



Supply Chain Management and Collaborative Commerce



Business Value of SCM

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



RFIDRFID

http://www.youtube.com/watch?v=4Zj7txoDxbE&feature=rehttp://www.youtube.com/watch?v=4Zj7txoDxbE&feature=relatedlated

Based on this video:Based on this video: What do you think RFID is?What do you think RFID is? What are all of the ways in which RFID can help improve a supply What are all of the ways in which RFID can help improve a supply

chain?chain?

Documents

INFORMATION SYSTEMS @ X INFO102: Management Information Systems CRM and SCM