Ch.11 MGT IS
Mobile CRM systems
is an interactive system that enable an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium for the purpose of building and maintaining relationships with its customers. It involves interacting directly with consumers through portable devices such as smartphones.
Cross selling
is the marketing additional related products to customers based on a previous purchase. It is a successful approach by banks.
Extranets
link business partners over the internet by providing them access to certain areas of each others corporate intranets. The primary goal is to foster collaboration between and among business partners. It also uses virtual private network technology to make communication over the internet more secure.
Analytical CRM Systems
provide business intelligence by analyzing customer behavior and perceptions. It typically provides information concerning customer requests and transactions, as well as customer responses to the organization's marketing, sales, and service initiates. It analyzes customer data for purposes such as to designing and executing targeted marketing campaigns, increasing customer acquisition, cross selling, and up selling. Providing input into decisions relating to products and services and providing financial forecasting and customer profitability analysis.
Operation CRM systems
Support front office business processes. Also, two major components are customer facing applications and customer touching applications. The benefits include efficient, personalized marketing, sales, and service. A 360 degree view of each customer and the ability of sales and service employees to access a complete history of customer interaction with the organization, regardless of touch point.
Pull Model
also known as make to order, the production process begins with a customer order. Therefore, companies make only what customers want, a process closely aligned with mass customization.
Customer facing CRM applications
an organization's sales, field service, and customer interaction center representatives interact directly with customers. These applications include customer service and support, sales force automation, marketing, and campaign management.
Customer Touch Points
any interaction between a customer and an organization. Physical touch points include telephone contact and direct mailings. Organizational CRM systems however use e-mail and websites.
Material Flows
are the physical products, raw materials, supplies, and so on. It also includes reverse flows.
Disadvantages of EDI
business processes csometimes must be restructure to fit EDI requirement. One company might have to use several standards in order to communicate with multiple business partners.
Information Flows
consist of data related to demand, shipments, orders, returns, and schedules, as well as changes in any of these data.
Reverse Flows
damaged or unwanted products can be returned
Source
in the _____ component, organizations choose suppliers to deliver the goods and services they need to create their product or service. They also develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring them to manufacturing facilities, and authorizing supplier payments.
Interorganizational Information Systems (IOS)
information flows among two or more organizations. By connecting the information systems of business partners, ____ enables the partners to perform a number of tasks: reduce the costs of routine business transactions, improve the quality of the information flow by reducing or eliminating errors, compress the cycle time involved in fulfilling business transactions, eliminate paper processing and its associated inefficiencies and costs, and make the transfer and processing of information easier for users.
Collaborative CRM systems
information sharing leads to _________. It also provides effective and efficient interactive communication with the customer throughout the entire organization. It integrates communications between the organization and its customers in all aspects of marketing, sales, and customer support.
Vertical Integration
is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as they are needed.
Electronic Data Interchange (EDI)
is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. ____ formats these documents according to agreed upon standards. It then transmits messages over the internet using a converter, called a translator.
Customer Relationship Management (CRM)
is a customer focused and customer driven organizational strategy. Organizations concentrate on assessing customer's requirement for products and services and then providing high quality, responsive service. It is a customer centric way of thinking and acting. The goal is to maximize the lifetime value of a customer, which is that customer's potential revenue stream over a number of years. Its effort is to maximize the number of high value repeat customers while minimizing customer churn.
Bundling
is a form of cross selling in which a business sells a group of products or services together at a lower price than their combined individual prices.
Up Selling
is a sales strategy in which the business person provides to customers the opportunity to purchase related products or services of greater value in place of, or along with, the consumer's initial product or service selection.
Customer Touching CRM applications
is an applications and technologies with which customer interact and typically help themselves. Such as search and comparison capabilities, technical and other information and services, Customized products and services, personalized web pages, FAQs, email and automated response, and loyalty programs.
On Demand CRM Systems
is one that is hosted by an external vendor in the vendor's data center. This arrangement spares the organization the costs associated with purchasing the system. It is also known as Utility Computing.
Sales Force Automation (SFA)
is the component of an operational CRM system that automatically records all of the components in a sales transaction process. It includes a contact management system, sales lead tracking system, sales forecasting system, product knowledge system, and configurators.
Supply Chain
is the flow of materials information, money, and services from raw material suppliers, through factories and warehouses, to the end customers. It also includes the organizations and processes that create and deliver products, information, and services to end customers.
Supply Chain Management (SMC)
is to improve the way a company finds the raw materials it needs to produce a product or service and deliver to its customers. It is the process of planning, organizing, and optimizing the various activities performed along the supply chain.
Advantages of EDI
it minimizes data entry errors. Length of the messages are shorter and the messages are secured. it also produces a cycle time, increases productivity, enhances customer service, and minimizes paper usage and storage.
Vendor Managed Inventory (VMI)
occurs when the supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products.
Data Consolidation
organizations must manage data effectively by being able to share it readily and quickly about the customer. The complete data is called a 360 degree view of that customer.
Bullwhip Effect
refers to erratic shifts in order up and down the supply chain. If the variables that affect customer demand an become magnified when they are viewed through the eyes of managers at each link in the supply chain.
Supply Chain Visibility
s the ability for all organization in a supply chain to access or view relevant data on purchased materials as these materials move through their supplier's production processes and transportation networks to their receiving docks.
Return
supply chain managers must create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as supporting customers who have problems with delivered products.
Problems of On Demand CRM Systems
the vendor could prove to be unreliable, in which case the company would have no CRM functionality at all. Second, hosted software is difficult or impossible to modify, and only the vendor can upgrade it. Third, the vendor hosted CRM software may be difficutl to integrate with the organization's existing software. Finally, giving strategic customer data to vendors always carries risks.
Outbound Telesales
they use the CIC to create a call list for the sales team, whose members contact sales prospects which is known as ________. In these interactions the customer and the sales team collaborate in discussing products and services that can satisfy customer's needs and generate sales.
Deliver
this component is offered referred to as logistics, is where organizations coordinate the receipt of customer orders, develop a network of warehouses select carriers to transport their products to their customers, and set up an invoicing system to receive payments.
Make
this is the manufacturing component. This component is the most metric intensive part of the supply chain, where organizations measure quality levels, production output, and worker productivity.
Contact Management System
tracks all contacts that have been made with a customer, the purpose of each contact, and any follow up that might be necessary. This eliminates duplicated contacts and redundancy, which in turn reduces the risk of irritating customers.
Main Problems with Supply Chain
uncertainties and the need to coordinate multiple activities, internal units, and business partners.
Downstream
where distribution takes place, frequently by external distributors. Managers coordinate the receipt of orders from customers, develop a network of warehouses, select carriers to deliver products to customers, and develop invoicing systems to receive payments from customers.
Customer Interaction Centers (CIC)
where organizational representatives uses multiple channels such as the web, telephone, fax, and face to face interactions to communicate with customers. Utilizes the Call Center, outbound telesales, and inbound teleservice.
Internal
where packaging, assembly, or manufacturing takes place. Managers schedule the activities necessary for production, testing, packaging, and preparing goods for delivery.
Upstream
where sourcing or procurement from external suppliers occurs. Managers select suppliers to deliver the goods and services the company needs to produce its product or services.
Product Knowledge System
which is a comprehensive source of information regarding products and services.
Sales Lead Tracking System
which lists potential customers or customers who have purchased related products.
Plan
Is the strategic component of SCM. _____ involves the development of a set of metrics (measurable deliverables) to monitor the organization's supply chian to ensure that it is efficient and it delivers high quality and value to customers for the lowest cost.
Just In Time Inventory (JIT)
____ systems deliver the precise number of parts, called work in process inventory, to be assembled into a finished product at precisely the right time. It deos not eliminate excess inventory, rather, it simply shifts it from the customer to the supplier.
Push Model
also known as make to stock, the production process begins with a forecast, which is simply an educated guess as to customer demand. It must predict which products customers will want as well as the desired quantity of each product. Then the company produces the amount of products in the forecasts, typically by using mass production and sells, or pushes those products to consumers.
Procurement Portals
automate the business processes involved in purchasing products between a single buyer and multiple suppliers.
Distribution Portals
automates the business processes involved in selling or distributing products from a single supplier to multiple buyers.
Inbound Teleservice
customers directly with the CIC to initiate a sales order, inquire about products and services before placing an order, and obtain information about a transaction that they have already made. This is known an ________. Representatives respond to requests either by utilizing service instructions found in an organizational knowledge base or by noting incidents that can be addressed only b field service technicians.
Configurators
enable customers to model the product to meet their specific needs. For example, you can customize your own running shoes at NikeID.
Financial Flows
involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit related data.
