Enterprise Business Solutions

Chapter 6
Enterprise Business Solutions in
Manufacturing
Enterprise Information Systems

2020

Nguyen Thi Hong Van, PhD

[email protected]
 Sales Force Automation

• Component of operational CRM

• Supports day-to-day sales activities:
• Order processing and tracking
• Account and contact management
• Opportunity management
• Sales management
• Territory management
• Customer history preferences, (product and
communication) management
• Sales forecasting and performance analysis

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 Examples of Sales Measures Tracked by SFA

• Sales pipeline for each salesperson, including rating and probability

• Revenue per sales person, per territory, or as a percentage of sales
quota
• Margins by product category, customer segment, or customer
• Number of calls per day, time spent per contract, revenue per call,
cost per call, ratio of orders to calls
• Number of lost customers per period or cost of customer
acquisition
• Percentage of goods returned, number of customer complaints, or
number of overdue accounts

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 Advantages of Sales Force Management Systems for
Sales Personnel

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 Advantages of Sales Force Management Systems for
Sales Managers

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 SFA Provides Improved Understanding
of Market Conditions
• Improved understanding of markets, segments, and
customers
• Improved understanding of competitors
• Enhanced understanding of organization’s strengths
and weaknesses
• Better understanding of economic structure of the
industry
• Enhanced product development
• Improved strategy development and coordination with
the sales function

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Sales Force Automation
• SFA allows sales managers to track sales
performance.

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Customer Service and Support (CSS)
• Second component of
operational CRM
• Automation of traditional
“help desk” services
• Customer interaction center
(CIC)
• Multiple communication
channels (blogs, Facebook,
phone, face-to-face, e-mail,
and so on)
• Customer service anytime,
anywhere through any channel
• Low support cost

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Enterprise Marketing Management (EMM)

• Third component of an operational CRM is

Enterprise Marketing Management (EMM)
• Improve management of promotional campaigns
• Make sure right messages are sent to the right people
through the right channels
• Customer lists need to be managed carefully
• Individualized attention to each potential customer
• Extensive analytical capabilities that can help to analyze
effectiveness of campaigns

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 Customer Resource Management (CRM)

• CRM systems allow for managing various

types of promotional campaigns.

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Analytical CRM
• Analysis of customer behavior and perceptions
• Customized marketing
• Up-selling, cross-selling
• Retaining customers
• Key technologies used to create predictive models
• Data mining
• Decision support systems
• Continuous data collection and analysis is necessary.

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 Customer Focused Business Processes Addressed by
Analytical CRM

1. Marketing campaign management and analysis

2. Customer campaign customization
3. Customer communication optimization
4. Customer segmentation and sales coverage
optimization
5. Pricing optimization and risk assessment and
management

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 Customer Focused Business Processes Addressed by
Analytical CRM (cont’d)

6. Price, quality, and satisfaction analysis of competitors

7. Customer acquisition and retention analysis
8. Customer satisfaction and complaint management
9. Product usage, life-cycle analysis, and product
development
10. Product and service quality tracking and management

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Digital Dashboards for CRM
• Digital
dashboards
help to
visualize key
CRM
performance
metrics.

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Dealing with Multiple Identities
• Many people have various
different online identities
• Different social
networks
• Multiple e-mail
addresses
• Analytical CRM helps merge
different identities for the
same person
• Uses fuzzy logic-
based algorithms

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Collaborative CRM
• CRM refers to systems providing effective and
efficient communication with the customer from the
entire organization.
• CIC is the key.

• Collaborative CRM enhances communication.

• Greater customer focus
• Understanding of historical and current needs
• Lower communication barriers
• Communication preferences of the customer considered
• Increased information integration
• Customer information shared across the organization

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Ethical Concerns with CRM
• Can personalization get too personal?
• When customers feel that the system
knows too much about them,
personalization could backfire on a
company.
• Nevertheless, as competition continues to
increase in the digital world, CRM will be a
key technology for attracting and retaining
customers.

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 Managing in the Digital World:
Supply Chain Havoc

 The eruption of the Eyjafjallajokull volcano in Iceland forced

the shut down of flights in northern Europe for days.
 Supply chains in numerous companies were disrupted.
 Examples:
 Kenya: flowers and
vegetables
 Netherlands: tulips and
peonies
 Italy: cheeses
 These contingencies require
fine-tuned supply chains.
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 POWERFUL PARTNERSHIPS
Flickr’s Caterina Fake and Stewart Butterfield

• Flickr’s Caterina Fake and Stewart Butterfield

• Caterina was a marketing expert and art director;
Stewart was a Web designer
• They were first business partners, and then got
married.
• They started with gaming; then moved onto
photograph distribution.
• Web-based businesses are inexpensive.
• Fake and Butterfield started with no venture capital.
• Yahoo! bought the business for $30 million in 2005.
• Now Fake and Butterfield are split up, pursuing their
own ventures.

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 Outsourcing Your McDonald’s Order

• McDonald’s—One of America’s success stories

• Founded in 1948 in San Bernardino, California
• Multi-billion business
• Strives for uniformity in thousands of
locations globally
• Outsourcing the drive-through
• All stores already had an Internet
connection
• Orders processed overseas
• Entered into the queuing system
• Food quality remains the same

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 COMING ATTRACTIONS
Simplifying the Recharging of Gadgets
• Simplifying the Recharging of Gadgets
• Battery chargers are needed for each different type of device (cell phone,
MP3, player, digital camera, laptop).
• Starting from 2011, cell phones sold in the European Union come with a
standardized charging port.
• Qualcomm’s eZone wireless charting technology has two parts:
• charging pad that houses the main transmitting power technology, and
• tiny receiver coil fitted inside portable gadgets.
• Toshiba’s direct-methanol fuel cell charger has potential to charge
gadgets without electrical outlet.
• Nokia’s bicycle charger kit charges cell phones through cycling.

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 NET STATS

RFID on the Rise

• RFID on the Rise

• Expected growth of 28 percent between 2010 and 2013
($11 billion revenue)
• Software and services play an increasingly larger role to
help companies utilize RFID-generated data.
• Adoption in health care, retail, automotive, packaged
goods, government, transportation
• Requires large start-up investment, but provides strong
long-term ROI

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 WHEN THINGS GO WRONG
Apple’s “Antenna Gate” — Mismanaging Customer Relationships

• Apple’s “Antenna Gate” —Mismanaging Customer

Relationships
• Release of the iPhone 4 in mid-2010 had much fanfare.
• Soon customers started complaining of dropped calls.
• This was caused by the way customers held the phone
(“death grip”).
• Apple issued a statement to stop holding the phone in
lower left corner.
• Class action lawsuits ensued.
• Consumer Reports recommended against the phone.
• Steve Jobs admitted the problem.
• Poor customer relations management

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 ETHICAL DILEMMA
CRM: TARGETING OR DISCRIMINATING
• CRM: Targeting or Discriminating
• Advantage: customers receive only ads
of interest.
• But what if a company uses its CRM software in a more
discriminating way?
• Example: banks may target customers with low credit ratings
• “Octopus Card”: Hong Kong RFID-based card
• Offers a reward program where users have to provide various
personal details
• In 2010, it was revealed that data was sold to CIGNA
• Legal…but is it ethical?

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