ERP Sales, CRM and Knowledge Management - Modern ERP

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6 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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SELECT, IMPLEMENT & USE TODAY’S
ADVANCED BUSINESS SYSTEMS

MODERN ERP

Second Edition

Chapter 7: ERP: Sales, Marketing and CRM

ERP Sales Order Processing


Objective


capture and fulfill the
customer order
, the document
that begins the order fulfillment process


Ways to refer to Sales Order Processing

1.
Contact
-
to
-
contract
-
to
-
cash


2.
Quote
-
to
-
cash

3.
Order
-
to
-
cash

Sales Related Activities


Lead Generation


Contact


Qualification


applicability, affordability, and authority


Opportunity/Inquiry


Quote


estimate with an expiration date


Sales Order


quote that turns into a contract


Customer Order/Order Acknowledgement


confirmation of order
receipt


Order Fulfillment


includes pick, pack, and ship activities


Billing


invoice is sent to the customer (A/R)


Cash Collection


payment is received from the customer

Transactions versus Events


Transactions

have financial implications (things are debited and
credited, so will affect the financial statements directly)


An
event
, or activity, is any step in the business process and may
or may not have financial implications.


Thus, transactions are a
subset

of events.

Transactions

Events

Customer Relationship Management


Customer relationship management (CRM)

bolt
-
on to
ERP. Helps an organization with customer demands:


“Know me and know my business”


“Help me solve my business problems”


“Make it easy for me to do business with you”



Table 7
-
1:

What is CRM About?

Acquiring customers

Keeping customers

Growing your customers

Gaining customer insight

Interacting with your customers across all touch points

Building lasting relationships with your customers

Delivering value to your customers

Achieving a sustainable competitive advantage

Growing your business

SAP 2007

Where CRM and ERP Meet

Figure 7
-
2:

Where CRM and ERP Meet

Three Elements of a Successful CRM Strategy


People


Company employees, from the CEO to the front
-
office
customer service representatives, sales and marketing, need to buy
into and support CRM.


Processes
-

A company's business processes must be reengineered
to reinforce its CRM initiative, often from the viewpoint of “How
can this process best serve the customer?”


Technology
-

Firms must select the right technology to drive the
processes, provide high quality data to employees, and be user
friendly.


Principles for CRM Success

1.
CRM is not a software purchase


it’s a strategy

2.
CRM must fit the way you work now and in the future

3.
Define measureable CRM business benefits

4.
Consider total cost of ownership carefully

5.
Think beyond features: pick the right partner

Benefits of CRM


Knowing your customers better


personalization and
segmentation


Using analytics


Increase revenues by acquiring new customers and retaining
current customers


Increased customer satisfaction


Decrease selling expenses by


making fewer yet more productive sales calls


speeding data analysis


lowering communication and transactions costs


eliminating data redundancy


reducing personnel headcount


CRM Advanced Analytics


Event monitoring


Segmentation


Personalization


Pricing


Trending


Advertising


Forecasting


Profiling


Association

CRM: On
-
Premise vs. On
-
Demand


On
-
Premise



installing the software on
-
site on the
company’s own servers


Traditional method of software implementation


On
-
Demand



software is hosted by a third party service
provider


Software as a Service (
SaaS
)

Table

7
-
5
:

Comparison

of

Hosted

vs
.

On
-
Premise

Systems



Advantages of


Hosted Solutions

Advantages of


On
-
Premise Solutions

Faster deployment

Easier to customize

Lower up
-
front costs

Easier to integrate with other applications and data

Reduced upgrade/maintenance requirement

Generally less
-
expensive long
-
term
-

typically treated
(capitalized) as an investment rather than an ongoing
expense

Simpler remote/field support

Easier to use with more complete functionality in
disconnected/remote environments

Knowledge Management (KM) and CRM


Knowledge Management

(KM)


directed process of
figuring out what information a company has that could benefit
others in the company, the devising ways of making it easily
available


Companies integrate their CRM systems with KM because they
realize that knowledge plays a key role in CRM success.


Creating a Knowledge Management System:


Recognize what employees know, that is valuable and not being shared


Create formal procedures to implement the system


Create a knowledgebase including best practices, expertise directories,
and market intelligence


Make the knowledge available to people that need it


Give employees incentives for both sharing their knowledge as well as
using others’ knowledge

Identifying Knowledge to Manage


Skills and knowledge that a company has developed about how
to make its goods and services


Individual employees or groups of employees whose knowledge
is deemed critical to a company’s continued success


A company’s aggregation of documents about processes,
customers, research results, and other information that might
have value for a competitor

Reasons for Knowledge Management Systems


Sharing of best practices


Restructuring, downsizing, and outsourcing


Knowledge can command a premium price in the market


Globalization and competition


Successful innovation

Obstacles to Successful Knowledge Management


Starting too big


Relying on technological shortcuts


Not modeling the behavior


Treating KM as a one
-
off project or quick
-
win


Ignoring the power of rewards


Ongoing maintenance