ENTERPRISE RESOURCE PLANNING - ERP

RABIA MEHMOOD
LECTURER - UOL
ERP SALES, CUSTOMER RELATIONSHIP MANAGEMENT, AND KNOWLEDGE
MANAGEMENT

 Know the steps in the sales process

 Become familiar with functionality in the Sales module of an ERP system
 Understand the marketing, sales, and service and support functionality in a CRM system
 Be aware of various types of CRM analytics
 Compare traditional CRM with social CRM
 Recognize how knowledge management and CRM work together
INTRODUCTION

 ERP systems are adept at processing revenue-related transactions

 Customer relationship is critical for companies’ sustainability
 Customer relationship management (CRM) is augmented with ERP systems for learning more about customers’
behaviors & needs
 CRM can manage customer life cycle events
 Provides analytics for marketing, sales & service departments
 Social CRM enhances the customer experience

 Knowledge Management systems reduce the customer service cost by helping them get answers to questions and
solve problems themselves
POINT OF SALE (POS) SYSTEMS

 Electronic cash registers that manage sales-related transactions

 Have many add-ons like credit card verification, inventory management, time clocks & other accounting features
 ERP system holds master data and sales-related transactions
 Data transferred from the ERP system to the POS system includes item and pricing data; retail promotional data, such
as start and end times for a special price; and bonus buy data, such as “buy
ERP & POS SYSTEMS DATA FLOW

POS System ERP System

 Sales and payments  Item data and price data
 Returns  Promotions data
 Item exchange  Bonus buy data
 Gift cards
CUSTOMER RELATIONSHIP MANAGEMENT

 It is important for companies to deliver products, services & information to customers that are immediate and tailored
to their needs
 Key demands of customer include:
 Know me and know my business
 Help me solve my business problems
 Make it easy for me to do business with you

 CRM system enable businesses to manage relationships with their customers as well as their associated data & information
 Describes how marketing, sales & customer service departments should work together for changing isolated events to
durable relationships
 Sales and customer service representatives (CSRs) would have access to the status of sales orders as well as the ability
to make and track changes
CUSTOMER RELATIONSHIP MANAGEMENT…

 Why implement CRM ?

 Keep current customers
 Attract and acquire new customers
 Close deals faster and grow revenue
 Gain insight into customers in order to make better business decisions
 Interact with customers across all touch points
 Build long-lasting relationships with customers
 Deliver superior customer service
 Achieve a sustainable competitive advantage
CRM vs ERP
CRM
 Seek to increase in profit through higher sales
volume
 Improves relationship with customer
 Increases profit & brand loyalty
 Emphasizes the leads, prospects & sales and support
 Referred as front-office systems
ERP
 Focus on cost cuts and reduce overhead
 Allows organizations to invest less capital in business
processes
 Focus on billing & shipping information
 Referred as back-office systems
CRM FUNCTIONALITY

 Organize, automate & synchronize:

i. Marketing
ii. Sales
iii. Customer Service
iv. Technical support
1. MARKETING

 Top three marketing goals for companies include:

i. Generating demand
ii. Creating brand awareness
iii. Building long-term profitable relationships with customer
 Key marketing functions of CRM include:
 Engaging audiences seamlessly across all interaction channels
 Designing, executing, coordinating, optimizing, and monitoring the marketing campaign process
 Segmenting the market to allow for better targeting of groups and to use marketing resources more efficiently
 Personalizing product proposals for each website visitor
 Understanding which channels, messages, campaigns result in the highest conversions and opportunity wins
2. SALES

 Helps in boosting sales performance by cross-selling & upselling processes, closing deals faster
 Helpful in reducing loss of revenue due to unmanaged sales opportunities by keeping staff aware of active
opportunities
 Key CRM Sales functions include:
 Planning and forecasting revenues and product quantities
 Optimizing the assignment of opportunities to specific sales representatives or sales groups based on product knowledge,
history of success, or geographic location.
 Tracking the execution of sales-related tasks by sales representatives
 Generating and managing long-term agreements with customers
 Staying on top of opportunities so they turn into sales
2. SALES…

 Sales pipeline:
 Key area of reporting in CRM
 Projects the estimated revenue that will be generated in upcoming months & is a good indicator of the health of a company
3. SERVICE & SUPPORT

 Three main goals of CRM service & support are:

i. Efficiently assign, manage, and resolve customer support incidents with automated routing, queuing, and service request
escalation
ii. Help identify common support problems, assess customer needs, track processes, and measure service performance
iii. Share sales and support information and use it to identify top customers and prioritize service needs
CRM FUNCTIONALITY…

 Field Service:
 Manage installations, service or repairs of systems or equipment previously sold to customers
 Includes scheduling & dispatching technicians to support service activities e.g. installations, break/fix, planned maintenance
etc.
 The goal is to make technicians more prepared when making service calls, so productivity, service revenue, and customer
satisfaction is increased
CRM INTERACTION CHANNELS

 Today’s customers demand more & better service through conceivable interaction channels
 Interaction channels are ways to support marketing, sales & service efforts
 Valuable in both B2B & B2C models
 In B2C models, this process is known as Partner channel management

i. Call center:
 Provides first line of contact with customer & offers unique opportunity to increase customer satisfaction
 Using, CRM service, when a call comes, the customer’s case automatically appears, showing contact info & product purchase
to billing info.
 Should be equipped with the essential information to handle customer cases quickly & effectively
CRM INTERACTION CHANNELS…

ii. Mobile:
 Give location information or enable field service to update service tickets immediately
 Fastest-growing CRM interaction channel

iii. E-commerce
 Company’s internet presence through a username/password gateway
 Corporate stores & personalized marketing are key-components
 Reduces marketing cost & provides customers with exclusive sales experience

 Social Media
 Allows companies to gather metrics that will help them know their customers better and serve them better
SOCIAL CRM

 Next generation of CRM is social CRM

 Involves managing customer relationships through social media
 Makes companies enable to monitor what is being done on their sites, listen to what is being said and respond
accordingly
 Companies use social media monitoring to track online conversations about a specific phrase, word, brand, or their
organization as a whole
 Traditional CRM systems include customer data & information BUT social CRM involves customer engagement &
interactions
SOCIAL CRM…

 Example of using social CRM includes:

i. Lead generations
ii. Reputation management
iii. Marketing
iv. Product management
ELEMENTS FOR CRM SUCCESS

 Key elements for CRM success are:

i. People
 Everyone in organization must accept the new way of doing work
 Change management plays a role here
 Users must be trained properly

ii. Process
 Redesign of current process should reinforce CRM strategy from viewpoint of how customer can be served better
 Most companies begin with best practice approach
o How are successful companies accomplishing the same work?
o They begin to rethink their processes in line with new technology
ELEMENTS FOR CRM SUCCESS…

iii. Technology
 Selected CRM system should be user friendly, drives the redesigned processes & provides high-quality data to employees
 Selected CRM system should enable faster & more accurate decision-making by providing employees complete customer intelligence
 Hybrid approach to CRM deployment means that company have on-premise ERP implementation but has cloud-based CRM system
CRM METRICS

 Enable employees using the system to know what success looks like & make them able to regularly track their
performance against goals & expectations
CRM ANALYTICS

 Deals with what companies do with the information provided by CRM systems
 Helpful for providing 360 degree view of customer life cycle and business decision making
 Typical CRM analytics include:
i. Event monitoring
 Notifies user on occurring of specifically defined events

ii. Profiling
 Captures characteristics about most typical customers needed to target sales & marketing campaigns
CRM ANALYTICS…

iii. Predictive modeling

 Use historical & current data to generate a model to forecast future outcomes

iv. Segmentation
 Generate intelligence about how profiling attributes interrelated to on another to form patterns & groupings

 Segment includes people or organizations that have one or more common characteristics that cause them to demand similar products

v. Personalization
 Marketing to the individual or “market-of-one” to enhance e-commerce sales
 Web pages are tailored to specifically target an individual customer’ needs and meet them more effectively
CRM ANALYTICS…

vi. Pricing
 Facilitates more aggressive pricing or better pricing policies
 Initial prices are stored in CRM but then discounts can be applied based on information specific to inventory item or customer
attractiveness

vii. Association
 Analysis of events that occur frequently together
KNOWLEDGE MANAGEMENT

 Information gained through experience, association or familiarity is called knowledge

 Two types of organizational knowledge are:
i. Explicit knowledge
 Easily documented & codified
 Includes company’s aggregation of documents about its business processes, customers, research results & legal agreements

ii. Tacit knowledge

 Knowledge contained by people for years of working in particular industry & or for a particular company
 Also known as intellectual capital
 Brainpower of humans that can be used internally or externally to create more power

 Key to competitive advantage because it is difficult for competitors to replicate

KNOWLEDGE MANAGEMENT

 When both types of knowledge are captured, we get Organizational knowledge

 Knowledge that accumulated since the inception of organization
 Companies must be careful that organizational knowledge is not ignored or lost
 Companies should employee knowledge management to improve internal productivity, customer satisfaction &
competitive advantage
 Knowledge management
 Directed process of figuring out what knowledge a company has that could benefit others internal or external to the company, then
devising ways of making it easily available
 Strategy is about finding solutions to problems and then sharing and reusing these solutions many times
 Knowledge management (KM) system refers to any kind of system that captures and stores knowledge, improves
collaboration by sharing knowledge, locates knowledge sources, mines repositories for hidden knowledge, or in some
other way enriches the KM strategy.
CRM & KNOWLEDGE MANAGEMENT

 CRM and KM work together for the same goals:

 Improve business efficiency
 Enhance customer satisfaction
 Enable a company to speak with a single voice

 Goal for integrating CRM & KM is to answer as many problems as possible quickly, easily, and correctly
 Companies use KM to deliver consistent information to customers
 Best answers for problems are captured in knowledge base
 Knowledge base helps sales representatives to identify the proper product, pricing & sales strategy for
approaching new or existing customer
REASONS TO IMPLEMENT A KNOWLEDGE MANAGEMENT SYSTEM
IMPLEMENTING A KNOWLEDGE MANAGEMENT SYSTEM

 KM system implementation involves following steps:

i. Confirm the purpose
 Determine what information should go into a system

ii. Form a team that will be responsible for the process

 Key employees of information related area will be involved

iii. Create a knowledge base

i. Repository should include best practices, expertise & market intelligence
ii. Repository should not be finite or static
IMPLEMENTING A KNOWLEDGE MANAGEMENT SYSTEM…

iv. Create formal procedures to implement the system

 Process is developed for managing a change

v. Create an efficient process by which information is shared from experts to CSRs to customers
 Multiple communication modes will be used
KNOWLEDGE MANAGEMENT METRICS

 Used to measure the impact of the system on providing accurately, timely & complete information to internal &
external users
 These include:
i. Topics coverage
 Rate at which required topics are available within knowledge base

ii. Solution rate

 Rate at which customers indicate they were successful in finding useful information

iii. Solution adoption

 More direct measure of effectiveness
 Determines whether the information is being used in practice