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Enterprise Business Processes and Applications ( IS 6006 ). Masters in Business Information System s 3 rd Mar 2009. Fergal Carton Bu siness Information Systems. Last week. Apple Exercise Customers / channel s On -line / not on-line Register ed / not registered Products Hardware
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Enterprise Business Processes and Applications(IS 6006) Masters in Business Information Systems 3rd Mar 2009 Fergal Carton Business Information Systems
Last week • Apple Exercise • Customers / channels • On-line / not on-line • Registered / not registered • Products • Hardware • Software • Service • Talk from Miguel Lioittier, Institut Superieur de Commerce, Paris • The current financial crisis and its causes • CRM implementations • eCRM • Questions on strategy proposal for 9th March
This week • Apple fulfilment process and ERP impact • CRM implementations • eCRM • Questions on strategy proposal for 9th March
Apple channels and products • An increasing range of channels • Apple stores (eg. ATMac, Penrose Wharf) • Apple.com • Major accounts (Dixons, Curry’s, Fnac, HMV, Virgin, …) • Retailer (Tesco, O2 stores, Argos, …) • Indirect distributor (Russian market?) • … • An increasing range of products • iTunes • iTunes gift cards • iPods • iPod accessories • Notebooks • Desktops • iPhones • Service • Software • …
Apple business framework • Map out channels, products and customers • Group channels into those similar in terms of fulfilment process • Think through the stages in the fulfilment process • What is the impact of a single instance ERP system?
Apple business framework 1 Products Software Hardware On-line Channels Physical
Apple business framework 2 Products Software Service? Hardware Registered Customers Not registered
Apple fulfilment process stages • A fulfilment process is defined by • A customer requirement (sales order, …) • A lead time or commit date • Requires knowledge of inventory levels • A distribution organisation • An invoicing / cash collection process • A customer service commitment • Map these information flows to framework
ERP impact for Apple • All sales orders have to go through SAP • Non SO-revenue must be interfaced • On-line sales • SAP interface for e-Commerce? • Reporting of revenue ≠ collection of cash • Universal Product coding, pricing • Systems infrastructure requirements • Support requirements
Integration is a trade-off • Implementation of SAP in every sales outlet expensive? • Control means knowing where inventory is • Supply network is complex • Visibility may be limited in certain regions • Implementation and support resources
Why CRM Fails • Why Does CRM Fail? • Disparate views of customers • Silo effect • Many types of CRM • Many types of CRM application
Critical Success Factors(Parr & Shanks, 2000) • Top management Support • Full-time release of business experts • Empowered decision makers • Realistic milestones and end date • Steering Committee determines scope & goals • Smaller scope • Champion • Vanilla ERP • Balanced team • Commitment to change People Project Technology
CRM is more thanTechnology • Strategy important too • Integrated business model needed • Holistic view of customers needed • Need to combine data from various sources • Need to integrate value chain
ChannelDisparity • 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 andAnalytical 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
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
eCRMand Portals • Features • Online catalogues • Online order processing • Online order configurability • Lead capture and profiling • Online surveys • Literature fulfillment • Email (!) marketing
eCRMand 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
eCRMand 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
CRM strategy proposal • Introduction (keep this short) • What is CRM? • Some issues concerning customer management arising from initial discussions • What this proposal will address • Objectives of CRM Strategy project (main section, most effort should go in here) • How do PCB manage their customers • What is a typical (or your own) methodology for looking at CRM for clients • Applying this framework to PCB, what can you see as potential benefits of a CRM strategy • Requirements Analysis (keep this short) • Outline of work that will be done to develop strategy (discovery procedure), requirements analysis etc. • Budget • Conclusion • Appendices • References • Company Profile