Customer Relationship Management 4556

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Electronic Business Replacement of physical processes with electronic

ones

Cost and price reductions Reduction or elimination of intermediaries

Shortening transaction times for ordering anddelivery

Wider presence and increased visibility


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Electronic Business Greater choices and more information for customers

Improved service

Collection and analysis of customer data and preferences Virtual companies with lower prices

Leveling the playing field for smaller companies

Gain global access to markets & customers


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It is the process of conducting business byautomation of business to business and business toconsumer transactions through reliable and secure

connection.

Electronic Commerce or e-commerce, the exchangeof goods and services by means of the Internet orother computer networks


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Banking, insurance, transport, &commercial organizationwith various transactions like placing an order, sendingorders, making payments, deposits and withdrawals,

reservation of tickets at railways, airlines, theaters etc ., takeplace on internet as part of e-commerce.

Software consisting of system software, newspapers,

books, music, songs etc. can be delivered on net by way ofdownloading into ones computer.


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Various technologies like Electronic Data Interchange(EDI)E-mail, Electronic Fund Transfer (EFT), electronic forms,Digital Cash(DC),Bulletin Board system(BBS), Electroniccatalogues , web casting or push technology, etc . Are used incombination while conducting E-commerce on internet.

More and more companies are creating their own websites with their Home pages & web pages; placing thedetails on net for millions of prospective customers beingable to view it.


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TYPES OF E-COMMERCE

1. Product Transaction(C2B)

2. Service Transaction(B2C)

3. Auctions(C2C)

4. B2B Transaction


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1) Product Transactions(C2B) Retail Web sites typically include electronic catalogsthat describe and display products for sale. Consumers

can search for individual items or randomly browseelectronic catalogs, some much larger than their mailorder print counterparts. An Internet book retailer, forexample, can offer millions of different book titles forsale on its Web site, far more titles than could fit into a

store or that could be included cost-effectively in aprint catalog.


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2) Service Transactions(B2C)

Other e-commerce businesses offer services. Financialservices represent a large segment of e-commerce. For a

small fee, online investment brokerages trade stocks onbehalf of their clients. Online stock brokerages typicallycharge customers lower fees than traditional stockbrokerages. Other sites provide consumers with a way toresearch and obtain mortgages and other loans online.


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3 ) Auctions(C2C)

Some e-commerce sites specialize in bringing buyersand sellers together, rather than selling products fromtheir own inventories. Online auctioneers provide sellers away to list and display items for sale and take bids frominterested buyers. In exchange for the auctioneersservices, sellers pay the auctioneer a small fixed fee and aportion of the proceeds from the sale. Other sites invert

this model. These sites enable bidders to name the pricethey are willing to pay for a particular product or serviceand then try to find a seller who is willing to meet that.


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4) B2B Transactions

Business-to-business commerce represents one of the fastestgrowing segments of e-commerce. Businesses order supplies

and coordinate complicated projects electronically. With e-commerce, however, software can automatically track theinventories of manufacturers and suppliers so that both haveadequate supplies on hand and no longer need to have excessinventories. Reducing inventories enables both manufacturersand suppliers to lower costs. The labor-intensive method ofprinting and then faxing or mailing purchase orders can also beavoided because software can create purchase orders and sendthem electronically.


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Customer Relationship

Management

Definition:-

Customer relationship Management is the process of carefully managing detailedInformation about individual customers and all customer Touch Points to maximize

Customer loyalty.

Touch-point: A customer touch point is any occasion on which a customer encounter the bran

And product From actual experience to personal or mass communications to casualObservations.

Example: For a hotel ,the touch point include the reservations, check-in and checkoutFrequent stay-programs, room- service, business services, exercise facilities, laundryService, restaurants, and bars.


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When Do We Use CRM?When we need to: Support staff with daily structured activities Provide marketing support for campaigns & loyalty Provide sales and services a consolidated view of the customer Provide all management with key information to review processes

and results Structure all customer facing activities Provide a platform for customer self service Provide a partial view of joint processes to partners Centralize key information in a safe and secure place so that the

company holds the IP rather than a staff member

Can be used to provide external view for shareholders and othersas well.


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Where does c.r.m. fiT?


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What Is the si ess ase?

se t i pr ve b tt li eAcquire new customers (contestable)Increase revenue from existingcustomersDevelop new products and services (timeto market)

Increase brand awareness & perceptionsIncrease customer loyalty (minimisechurn)Increase customer satisfactionImprove productivity (sales force, fieldservice)

Displace costs (lower maintenance costs)Reduce capital requirementsDecrease time to marketReduce customer support handoffsReduce fulfillment errors (integratedsystem)

DirectRevenue ImpactIndirect

Revenue Impact

Reduce

CostsDirect CostReduction

Indirect CostReduction

IncreaseRevenues

IncreaseProfitability

ReduceCosts


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What is er ?

Enterprise resource planning software, orERP, doesn't live

up to its acronym. Forget about planningit doesn't dothatand forget about resource, a throwaway term. But

remember the enterprise part. This is ERP's true ambition.

It attempts to integrate all departments and functions across

a company onto a single computer system


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WHAT IS E.R.P.?

E.R.P functions typically attempt to cover all basic functions

of an organizations, regardless of the organizations businessor charter.

The term ERP originally implied systems designed to plan theutilization of the enterprise wide resources in themanufacturing environment, today it has much broader

scope.

Business, N.G.O., organizations, governments & other largeentities utilize ERP system.


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Major su liers of er :-SAP

OracleJ.D Edwards

PeopleSoft

Siebel Systems


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BENEFIT:OPERATIONAL EFFICIENCY

Lower cost Data entered only once, used by all

processes

and departments Better customer service

Current data accessible to all participants

E.g. customer service rep can see stock levels

in other divisions, progress on order, etc.

(seeDarwinreading)

Allows management of processes across

organizational boundaries


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BENEFIT:LOWER IT COSTa) ERP is very expensiveb) But expect long term savings from

1:Elimination of legacy systems

(A)Upgrades, maintenance and licensing costs

2:Future maintenance and upgrades cheaper

(B)Spread costs over a large base

3:Biggest saving in integration?

(C)Huge costs for ad-hoc integration of aging

applications


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BENEFIT:STANDARD PROCESSBenefit: Standard Process ERP is managerial means to force global standardization in processes.

1:Technological enforcement coded into software Local variation,2:workarounds eliminated .

Centralization of control over procedures1:May bring efficiency2:Will sacrifice flexibility.

Lilly1:example:

No customization for local traditions or cultures

Only for legal or regulatory reasons


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BENEFIT:MANGERIAL DATA1: Standardizing processes requires

standardization of:

A:Product codes

B:Accounting methodsC:Human Resources systems

2:This allows comparisons between divisions

Especially using

A:financial measures of effectiveness

B: EX. Economic ValueAdded(EVA)analysis.

C: On global basis


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Supply ChainSupply ChainManagementManagement


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Su ly Chain All activities associated with the flow and

transformation of goods and services from

raw materials to the end user, the customer

A sequence of business activities from

suppliers through customers that provide

the products, services, and information to

achieve customer satisfaction


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The Su ly ChainInformation

Cash

ProductsandServices

ProductsandServices

ProductsandServices

CustomersCustomers

Totalsatisfaction

with quality,price,delivery, andservice

DistributorsDistributors

Package anddelivery

Inventory

ProducersProducers

Finishedgoods, endproducts andservices

Inventory

SuppliersSuppliers

Inventory

Materials,parts, sub-assemblies,and services


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Su ly Chain Management

Synchronization of activities

required to achieve maximumcompetitive benefits

Coordination, cooperation, and

communication

Rapid flow of information

Vertical integration


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Information in the Su ly Chain Consolidation of purchasing

from all suppliers

Intercompany and intracompanyinformation access

Data interchange

Data acquisition at the point oforigin and point of sale

Instantaneous updating ofinventory levels


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Benefit & PROBLEMS of s.c.m.:BENEFIT:1:Fullfillment

2:Logistics

3:Production

4:Revenue & Profit

5:Costs

PROBLEMS:

1:Distribution Network Configuration2:Distribution Strategy

3:Information

4:Inventory Management

Documents

Customer Relationship Management 4556