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Manufacturing TrendsCould CRM be the game changer for Manufacturing companies?

Choosing cloud CRM: securing long-term value in a short-term worldThere is little doubt that the manufacturing sectors of North America and Europe were hit by the recession of 2007, but they are recovering and the future is looking distinctly rosy. In the 4th quarter of 2014, the manufacturing sector of the UK economy grew by 3.4%, where as the economy as a whole grew by only 3%, and the outlook is more positive than it has been in many years. Indeed, a parliamentary briefing paper to MPs published in November 20141, says that in the UK manufacturing sector had seen relatively strong growth 2013-14.

It states: “Goods produced in the sector account for nearly half of all UK exports.”

In the US, manufacturing is the mainstay of economic productivity, generating $1.8 trillion in 2011. Every $1 spent in manufacturing generates $1.35 in additional economic activity.2

Research reveals that in the period February to April 2013, 29.76 million people were employed in the UK, including more than 8 million in the engineering and manufacturing industries3. This represents 27% of the total UK workforce, and makes the UK the seventh largest manufacturing nation in the world.

And in the US, manufacturing has continued to “trend up”. The number of people employed in manufacturing has continued to grow month on month. Some 20,000 extra jobs were created in February 2014. There were an additional 21,000 jobs in January 2015.4

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Being squeezed down the middle? Established manufacturers rightfully argue that they represent a squeezed middle – simultaneously choked between a global recession and pressure on margins from developing nations that are armed with a lower cost-base and bigger resource pool.

To counteract these market forces, manufacturers in established economies can differentiate their offering and optimize revenue by harnessing knowledge from within and beyond their business. This will enhance customer insight, fuel innovation and add value.

The additional challenges of fragmented production and demand, and a shift towards mass customization, can be turned to the business’s advantage by connecting agile customer relationship management (CRM) systems to existing enterprise resource planning (ERP) systems. This will enable manufacturers of all sizes to respond swiftly to market changes and tap into more lucrative new or niche customer markets.

Working smarter and having more effective customer relationship management can provide the insight and agility to build and protect competitive advantage. A fully integrated ERP and CRM system can help manufacturers to reach beyond their immediate customers, pre-empt and influence decision-making throughout the supply chain, and release pressure (and cost) at both ends of the sales and delivery cycle.

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New consumers and the true value of knowledge According to McKinsey5, over the next 15 years another 1.8 billion people will enter the global consuming class and worldwide consumption will nearly double to $64 trillion. This undoubtedly presents sales potential for manufacturers, but comes with the attendant uncertainties that competing in new markets and selling to new customer profiles brings.

These opportunities arise in an extremely challenging and changing environment. Volatile resource prices and rising energy costs, along with energy and environmental factors, play against new developments in materials and processes, such as nanotechnology, advanced robotics and 3D printing. Careful understanding will be required to turn these challenges into opportunities - and of course the technology used will need to be ready to adapt rapidly to help companies exploit these opportunities while maximizing business as usual.

McKinsey notes that this new era of manufacturing will be marked by highly agile, networked enterprises that use information and analytics as skillfully as they employ talent and machinery to deliver products and services to diverse global markets. This can’t be achieved with disparate applications or clunky connectors. What is needed is solid, industry-relevant ERP that seamlessly connects with agile CRM. This will give an organization the ability to manage, protect and influence income and profitability by combining actual income and expenditure with powerful pipeline analysis. This can be further enhanced by providing instant connectivity to daily productivity tools such as Microsoft Outlook, and this is where Microsoft Dynamics comes into its own.

Orders are the lifeblood of manufacturingIf orders are the lifeblood of manufacturing – whether from new or existing markets – then customer data is the DNA. With a customer lifecycle management strategy that has Microsoft Dynamics CRM at the core and that reaches out into existing ERP and productivity systems, manufacturers can gain deep insight into customer trends to effectively manage complex sales cycles, pre-empt and respond to changing needs and

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achieve delivery and service excellence. Yet none of this will work unless companies are capturing and maintaining accurate customer data in the first place.

“This new era of manufacturing will be marked by highly agile, networked enterprises that use information and analytics as skillfully as they employ talent and machinery.”McKinsey Global Institute

Put data in the driving seat to out-perform competitorsData-driven companies are outperforming their peers financially, according to a survey by The Economist’s Intelligence Unit (EIU). The study found that companies are more than three times as likely to rate themselves as substantially ahead in financial performance when they also rate themselves as substantially ahead in their use of data.

Almost half of respondents said that data was extremely important in strategic decision-making. However, where 76% of executives in top-performing companies cited data collection as essential, this was just 41% in companies that lag financially behind their peers, demonstrating the important role that data plays.

EIU said 80% of senior executives also believe that all employees across their organizations should have access to data and understand how they can make use of it in their work to become more productive and deliver better results.6

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Enhancing lead management and forecasting accuracy brings efficiency (and ultimately increased profit)Rapid response to leads is critical and it is in the handling process that Microsoft Dynamics CRM maximizes efficiency and adds value. It directs inquiries to the team members, whether by product specialty or geography, and notifies them in real time to prompt immediate action. Leads are also qualified more effectively by applying established best practice and business rules to ensure consistent and objective handling. When this is combined with customer purchasing and quotation data from an organization’s ERP system, the focus of the sales team can be directed to customers and prospects with the greatest potential yield. This is essential in determining how manufacturers direct their budgets.

The forecasting and opportunity management capabilities of Microsoft Dynamics CRM puts sales teams on the front foot for customer engagements, empowering them to lead and be proactive, not just to respond and react. This is a far more rewarding stance, shifting the emphasis from traditional salesman to trusted advisor, using account intelligence to approach customers with product and service proposals that will meet emerging needs or support fluctuations in their production forecasts.

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Applying the knowledgeOf course, feeding this information back into the materials and manufacturing process as early as possible is highly advantageous from an operational viewpoint, in particular given the increasing globalization and complexity of supply chains. CRM is a vital tool for channel management as a means to better understand the dynamics, nurture relationships and exert far-reaching influence. By modelling these multi-touch relationships, for example, manufacturers may pinpoint the vital information needed to secure specification in a finished product, despite being several steps back in the value chain. Such orders can, of course, be of very high volume and immense value.

Research and development (R&D) is also a critical component for future successful manufacturers. The overwhelming majority of R&D in the US (some 70%) and the UK and is carried out by businesses in the manufacturing sector. Despite challenges within the economy, UK R&D investment has continued to grow – increasing by 8% in 2011 to hit £17.4 billion7 – and with manufacturing companies investing anything between 3% to 39% of sales in R&D, accurately assessing buying trends and market needs can only help to ensure any investment is channeled towards the most lucrative products.

The global economy is set to double in the next 15 years...

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In the US, there is also a trend to increase R&D spending in business. In 2012, an additional $10.3 billion was spent on R&D in the US, taking the total spent by business in that year to $317 billion.8

Transforming sales and profits with intelligent segmentationIn addition to internal performance metrics and transactional data, manufacturers need a single, centralized platform for recording and managing broader intelligence. This includes research on new initiatives and investments by customers and prospects, input from the macro environment such as competitor activity (yours and theirs), economic indicators and legislation. Microsoft Dynamics CRM can combine and analyze information from across multiple systems and data feeds, inside and outside the business, providing manufacturers with the 360° vision and strong account intelligence they so desperately need.

While firms may intuitively rank their customers, the data points generated through combining traditional ERP data with CRM can be revealing. For example, frequent interaction with a given customer may not solely be reflected by order levels or profitability. By using a more analytical approach, accounts can be logically segmented and a bespoke plan developed for each tier, based on whether a customer buys on perceived value or price for example, and outlining the optimal frequency and type of contact. How and when time is spent with each customer is then not only tailored to meet their needs, but also to make appointments more productive and rewarding for the sales team and the customer. This transforms contact from transactional-based to relational, and generates solutions rather than simply providing quotes.

Armed with the most current figures and trends, sales team “customer IQ” and confidence is significantly boosted, laying the foundation for proactive dialogue that will engage and impress the companies they deal with. These structured and repeatable account management plans drive efficiency and predictability in results and maximize the potential for profitability and growth.

A major part of sales success for manufacturers is their ability to accurately forecast demand and sales rhythm within their

For more information please contact us on: crm.fullscope.comUS: (866) 420-7624 option 2

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customer base. Combining feeds from purchasing and finance systems with customer interaction data enables organizations to make real-time comparisons of sales team monthly forecasts against actuals.

This can identify trends across different business units and sales reps, allowing a faster reaction from a coaching perspective. It can also provide better information back to the manufacturing planning process.

Shooting straight to the heart of the biggest challenge – user adoptionThe belief that teams just won’t use CRM is a common roadblock and often a valid one. However, this is one area where successful users are gaining competitive advantage. Usability and adoption is where Microsoft Dynamics CRM and the Fullscope, formerly Zero2Ten, Manufacturers solution stand out.9

The system is renowned for user uptake, thanks to its familiar and intuitive Microsoft interface and its seamless connectivity to Outlook. And with Fullscope’s proactive user-adoption program “Adopt2Win,” businesses have the certainty of high usage by employees across all departments and locations. Engineering, production, sales and service teams, for example, are able to share information and collaborate productively, driving new products and services, and improving the outcome for customers.

Microsoft Dynamics CRM supports user adoption by delivering it through standard Microsoft desktop applications, enabling people to get up and running quickly with a shorter learning curve, and ensuring high acceptance across the organization. Information about appointments and emails, account and contact details, opportunity bids, project plans and asset information can be managed through Microsoft Outlook and accessed remotely on smartphones or tablets. This is all through a single interface, which removes the pain of having to login to numerous systems.

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Meeting the changing needs of the mobile workforceAdoption of CRM and mobile devices allows more intelligent and efficient interaction with the IT-driven customers and suppliers, and enhances the appeal of manufacturing to a new generation of workers raised on technology. Equally, the wealth of knowledge gained by long-serving employees can be retained and leveraged through a common platform. Any user doubts about CRM deployments are quickly dispelled by personal productivity gains. For example, consolidated account profiles, including sales trending and 360° views, as well as the automation of tedious administrative tasks, improves readiness and increases time spent with customers.

Many manufacturing companies also struggle with old, inflexible legacy applications that do not always meet changing business requirements. And the users may struggle to adapt to new efficient systems. Microsoft Dynamics CRM integrates easily with existing server systems and mission-critical ERP applications, as well as existing Microsoft products and technologies, maximizing the value of current IT investments and enabling companies to adapt rapidly to changing needs. It is also a highly scalable and future-proofed platform that can be tailored to manage relationships and processes without the need to develop custom applications.

Integrated CRM delivers a winning advantage Data doesn’t only happen at the sales interface – there is gold dust in the customer service interactions too. Fully integrated CRM deployments have impact and input right across the business, breaking down traditional silos and arming sales, marketing and other customer-facing teams with the insight to meet changing needs and to deliver highly bespoke communications, service and support.

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Customer insights drive decisions in – and derive input from – every stage of the customer lifecycle. The pre-sales phase is a critical driver of strategy development and Microsoft Dynamics CRM gives manufacturers a clear view further along the pipeline, enabling more accurate capacity planning, timely materials purchasing and greater production efficiencies. By using data to understand and potentially anticipate customer behavior and market trends, manufacturers can fine-tune their offering or develop entirely new propositions and products, secure in the knowledge that they are making informed decisions.

SummaryThe integrative methodology of CRM fosters a coordinated dialogue throughout the entire organization and beyond, radiating a consistent, coherent external voice. This breeds customer confidence that manufacturers understand their needs and are capable of delivering quality services and products. When facing product and price parity, this could make the difference between who wins an order – and who does not.

About Fullscope CRM Fullscope CRM, formerly Zero2Ten, is the only Microsoft Dynamics CRM firm that combines deployment and a proactive user adoption road map into a single 100% fixed-fee program. As a key member of the Microsoft Manufacturing Industry Partner Program (IPP), Fullscope has implemented more Microsoft Dynamics CRM Online solutions than any other Microsoft provider worldwide. We continually fine-tune our process and user-adoption programs to give you the maximum return on your CRM investment. This commitment to stay with you throughout your CRM journey has earned us the highest CRM customer retention rate in the business.

To find out more about how Fullscope can help you to build your business, call us now:

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EMEA: US:

SOURCES1 UK Parliamentary Briefing Paper, November 2014 2 Bureau of Economic Analysis, Industry-by-Industry Total Requirements 3 Prospect Graduate Careers, Oct 20124 Bureau of Labor Statistics, US Department of Labor : The Employment Situation February 2015 5 McKinsey Global Institute, Nov 2012 Manufacturing the future: The next era of global growth and innovation6 Economist Intelligence Unit survey, October 20127 Office for National Statistics, Nov 20128 National Science Foundation, December 2014

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