Learn ERP & CRM
ERP stands for Enteprise
Resource Planning. Enteprise Resource Planning software is often referred to as
the backbone for the entire business. Using medical analogy an ERP system has
brains (process logic), muscle (business transactions), and heart (business
policy). ERP system communicates (as a nervous system) across business
functions. ERP systems grow and evolve over time. If left unattended, it can
get soft and flabby. The freshly implemented system is not very stable, like
your legacy system. Users might not like your newly born ERP system until it
matures.
Attributes of ERP
Systems
Leading ERP
systems supports industry standards and best practices.
The Oracle Applications
and SAP supports recommendations of the American Production and Inventory
Control Society (APICS) and Generally Accepted Accounting Practices (GAAP).
The ERP system is
composed of many modules called applications.
ERP Advantages
ERP advantages drive implementation projects.
Companies implement ERP systems for various reasons.
The reasons could be tangible, intangible, or strategic.
Due to these intangible and strategic benefits most companies do not even try to calculate a total return on investment from an ERP system.
ERP advantages drive implementation projects.
Companies implement ERP systems for various reasons.
The reasons could be tangible, intangible, or strategic.
Due to these intangible and strategic benefits most companies do not even try to calculate a total return on investment from an ERP system.
ERP Disadvantages
ERP disadvantages must be overcome.
ERP systems comes with their share of headaches.
They are usually difficult to implement.
Sometimes they are difficult to operate.
In the past few years, odds of success have improved.
ERP disadvantages must be overcome.
ERP systems comes with their share of headaches.
They are usually difficult to implement.
Sometimes they are difficult to operate.
In the past few years, odds of success have improved.
Application Service
Providers
Recently the Application Service Providers (ASP) business model is becoming popular as a way to implement and operate your ERP applications.
An application service provider (ASP) is a company that offers individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers.
Recently the Application Service Providers (ASP) business model is becoming popular as a way to implement and operate your ERP applications.
An application service provider (ASP) is a company that offers individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers.
ERP Vendors
Market share 2005
according to Gartner Dataquest
# Vendor Revenue
(million $) Market share(%)
1 SAP 4726 28.7
2 Oracle
Applications 1674 10.2
3 The
Sage Group 1221 7.4
4 Microsoft
Dynamics 616 3.7
5 SSA
Global Technologies 464 2.8
Microsoft Dynamics CRM
3.0
Each businesses is
different.
Unique set of tools are used by each to manage their customers.
Companies must make sure that their customer management software can easily adjust to their needs.
Unique set of tools are used by each to manage their customers.
Companies must make sure that their customer management software can easily adjust to their needs.
Need For CRM
Few examples of bad
customer service experiences are:
· You called a customer service phone number and
were transferred to five different people. Every single person asked you
the same questions, so you had to keep repeating the same answers over and over
again.
· A salesperson pulled together a proposal for you
but forgot to include your preferred-customer pricing in the quote.
· A credit card company mailed you an application
for a new account, even though you've had an account with that company for 10
years.
CRM Challenges
Some of the factors that
make a CRM strategy difficult to implement include:
·
Multiple customer
management systems
·
Remote workers
·
Rapidly changing
business processes
·
Multi-channel customer
interactions
·
Difficult and rigid
systems
CRM Benefits
Following are the
examples benefits that a company would get from successful implementation of
CRM software.
· CRM could track customer interests and purchase
history over time. It proactively generate new marketing initiatives for
customers based on their unique histories.
· CRM could log a history of a customer's service
requests. A service technician could easily view all of those requests
when the customer called with a new issue. Reviewing a customer's service
history might help the technician resolve a customer's new issue much more
quickly.
· A manager could view all of the interactions
with a customer across various functional areas such as sales, marketing, and
customer service. People typically refer to this cross-functional history as a
360-degree view of the customer.
· Marketing managers could analyze and report on
the effectiveness of their marketing lists and campaigns to determine how they
should re-allocate future marketing investments.
· An analyst could use business intelligence tools to segment
customers and prospects to identify trends and create predictive models for
sales and customer service planning.
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