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Core Course Information Management. eBusiness. Break-out sessie. Opdracht Beantwoord de vraag;
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Core Course Information Management eBusiness
Break-out sessie Opdracht • Beantwoord de vraag; Welke eBusiness activiteit is het afgelopen (1 a2) jaar opgezet binnen jullie organisatie die heeft geleid tot substantieel anders zaken doen. Of aan de verkoopkant (opbrengsten) of aan de interne dan wel leverancierskant (kosten, besparingen)? • Groepjes van 3 personen; 1 bedrijf ontleden. • 15 min. • 10 min. evaluatie Core Course Information Management
The issues today • Know your customers • Share your customers’ requirements throughout the value chain • Collaborate with the partners in your extended enterprise • Build a transparent enterprise for your employees • Maintain an information system that evolves with you business processes Core Course Information Management
eBusiness today • Internet technologies have been accepted – is “e” still an important issue today? • Enabler to reach new markets; customer centric innovations; loyalty; reduce friction cost; increase shareholder value • Increased focus on ROI and “time-to-money” • Shorter time-to-market • New intermediation • Need for community partnerships • eCommerce failures? mCommerce disillusion? Collaborative Business “en vogue”? U-Commerce? The network as a commodity? • SOAP – UDDI – XML / new standards, web services Creation of new and Redefinition of existing Communities ... Core Course Information Management
T R A N S F O R M I N G E N T R E P R I S E S I N e C O M M U N I T I E S Our Positioning Core Course Information Management
A Solution Framework / Architecture P o r t a l Design Strategy Learn Sales Tracking Suppliers Finance Develop Order Management Forecast & Planning Workforce Enterprise Enterprise Applications Business Intelligence Supply Chain Mgt. C R M HRM Collaborate Marketing Campaign Execution Customers Planning & Production Analytics Customer Service Business Process Hub Core Course Information Management
Entreprise Intelligence • How can I best benefit from the Internet? • Knowledge is the competitive issue • I need information (KPI’s) not data • Who are my partners in this new strategy • How about my channel strategy? Core Course Information Management
Do you ask yourself ... • We have the feeling that our business position is in danger because of e-business developments around us (business management) • We are convinced that e-business can leverage our overall business, but do not know how to get this clear (business management) • We are convinced that the recent capabilities of ICT can create new business opportunities, but do not know how to get this to the senior business management (IT-department) • We have integrated our internal ICT systems and are looking for the next step (IT-department) Core Course Information Management
Do you have these issues? • We have a huge amount of e-projects running, but • No one seems to be able to help us get this in control • No one seems to be able to tell us what to do with it or provide us with unsatisfactory answers • These projects do not seem to have any shared goal • They cost a huge amount of money and time • Their goals and objectives are unclear or it’s unclear how these goals contribute to the business goals • The IT department is getting crazy because of the divergent, uncoordinated and conflicting requirements • We need to prioritize resources but we do not know how Core Course Information Management
The Inter-Networked Business The High Performance Team The Integrated Enterprise The Extended Enterprise The Effective Individual Are you just adding smart software, or are you building a competitive vision ? Change Value creation External relationships Organizational Transformation BPR Performance improvement Enabling Technology ‘The Net’ Chain Mnmgt ERP WFM PC-Tools 1980 2010 Source: The digital economy by Don Tapscott Core Course Information Management
The 6C Network Model The Art of Doing eBusiness is the Art of Managing your Relationships Digitally Complementors Community Contractors Company Customers Competitors Core Course Information Management
Are You Sure Your eRelationship Focus Is Right? Product innovation Operational excellence Customer intimacy Source: Treacy & Wiersema, 1996 The discipline of market leaders Core Course Information Management
Operational Excellence Product Innovation Customer Intimacy Price Fighting Mass Market Added Value Segmented Market Customization Individualized Market Low Price, Low Cost Standard Products One-way Media Being First High value products Two-way Media Service&Interaction Modular Products 1:1 Media Efficiency Produce & Sell R&D Innovate & Sell Quality Management Sense & Respond Hierarchy No Overhead Free Brains Strong Back-office Flat & Flexible Strong Front-office Budget Managers Loyal Execution Developers Communicators eSupply Chain Mgt eProcurement Data: ERP Financials eWorkforce Data: Product eCRM Data: Customer Are you implementing the right eActions? Context Strategy Process Structure People ICT Core Course Information Management
Action by client Action by Supplier eStrategy Service Structure 5. 1. Initiation Phase 2. eAssessment Phase eStrategy Development Phase 3. Road Mapping Phase 4. Completion Phase Week 1 Week 2 Week 3 Standard process: Initiation Phase eAssessment Phase eStrategy Development Phase Road mapping Phase Completion Phase Core Course Information Management
Enterprise Solutions P o r t a l Design Strategy Learn Sales Tracking Suppliers Finance Develop Order Mgt. Forecast & Planning Workforce Enterprise Business Intelligence Enterprise Applications Supply Chain Mgt. C R M HRM Collaborate Marketing Campaign Execution Customers Planning& Production Analytics Customer Service Business Process Hub • eStrategy • eInnovation • eTransformation • eSolutions • Business Intelligence Core Course Information Management
Customer • How should I approach my customers? • What are communication channels ? • How can I increase customer loyalty ? • How to increase market share ? • How to cross- and up-sell? Core Course Information Management
What is CRM? Definition CRM (source: Gartner): A business strategy that maximizes profitability, revenue and customer satisfaction by: • Organizing around customer segments • Fostering behavior that satisfies customers • Implementing customer-centric processes Core Course Information Management
CRM moves towards Customer Centric High Network Orientation eCRM Customer Orientation Dependency on Information Technology CRM Market Orientation ERP Product Orientation Low Transaction oriented Relation oriented Focus of the organization Core Course Information Management
CRM General Business Issues (1) More demanding customersCustomers want to be treated well. They want to be served at one single point of contact not handed over from department to department. They want consistent high quality and they want fast responses.Fiercer competitionCompetition is just one click away. Gross and net margin are under pressure. Customer churn is a serious threat.GlobalizationCorporations operate on a global scale to find ways to obtain sustained growth. This implies even more competitors.New EconomyInternet provides new opportunities for approaching customers.Customer orientationOrganizations shift more and more from a product or market view to a customer view.Mass customizationMarkets change fast. There is a high pace of technological change. A short time to market is required. Internet allows one-on-one customization even when there are ten million customers. Core Course Information Management
Market Share vs. Share of Wallet • All customers are not equal • The target of CRM is to keep and develop the business achieved with the best customers Number of customers Profitability Turnover 70 % 20 % 10 % 15 % 25 % 60 % 45 % 35 % 20 % Core Course Information Management
CRM Benefits & Costs (1) • Quick Wins • efficient work • opportunity management • Increase of revenue • more sales to existing customers, more new customers, lower customer churn • richer product / customer mix • Higher transaction efficiency • more efficient customer contact • direct mail • lower advertising costs • effective sales support • shorter CRM cycle. Less interactions => lower costs, earlier profits • “Soft” benefits • employee motivation • faster roll-out of organizational changes Core Course Information Management
Customer oriented Data warehouse The CRM Cycle 2. Analysis : OLAP, analytical application datamining, segmentation > customer capital 5. Multi channel distribution Business intelligence e-crm 6. Interaction 3. Marketing strategy 4. Communication personnalisation 1. Capture of customer contacts Core Course Information Management
Customer Management proces The focus of Customer Relationship Management is: optimising customer management Analyse Collect Define Customer Management Interact by improving the Customer Interaction Process Core Course Information Management
Forecasting, planning, simulation monitoring, control Segment Organise Business goals Product development Analyse Data Warehouse CRM data marts Collect Define Customer Management Interact Data Sources Channel Feedback Online processing CRM activities Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
Strategic Marketing Positioning Potential analysis and feasibility study Marketing Data Mining Information systems Log analysis / Click Stream Scores Acquisition Qualification Customer relation action Data Flows Data Management Marketing studies CRM vendor selection Campaign Mgt system Processing Administration and security Customer Value Business Plan Adjust Enhance Pilot / Roll-out Campaign Management New action Results Customer Chain: an end to end CRM implementation approach Operating Management Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
CRM Transition support, Communication & Training • Startup & Planning • Change charter • Start-up workshop • Planning of: • change mgt, • training, • communication Impact Determination Risk scan Fit/gap analyse Key-user startup Projectteam training Development Role mapping Awareness communication Training preparation Training development On-line help development Roll-Out Train the trainer End user training End user impact communication Support On the job support Helpdesk Post-go live training Post-go live communication Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
Point of Sales Network CIC Information Back-office Assistance Customer service Call centre Value added services Telemarketing Web Server Telesales and payment ERP/Legacy System Datawarehouse Customer Interaction Centers - Principles B2C Clients • Marketing • Sales • After-sales • Network B2B Clients Core Course Information Management
Challenges & Opportunities • New Interaction channels appear • Face to face, telephone, white mail, fax, minitel, • Web self-care, co-browsing, e-mail, chat, VoIP, WAP, SMS, Interactive Television... • The customer knowledge has to be shared • Consistency of actions across the channels, • CRM’ life time value & real-time 1to1 marketing • CIC’s must be integrated within the whole Customer Value Chain • Applications must communicate with each other... • ...and be open for tomorrow’s channels Core Course Information Management
In the cross-channel evolution, the customer interaction center (CIC) becomes an increasingly important touchpoint in the customer relationship and the processes in place in the CIC need to ensure that multi-channel customers can be managed through the contact center profitably. Customer Interaction Centers • Solutions • Telephony: Lucent, Alcatel, Nortel • Middleware / CTI: Genesys, Cisco/Geotel • Contact management: Siebel, Clarify, Coheris Conso +, Hermes pro Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
Sales Force Automation • Context • In a highly competitive environment, sales forces need extended applications to support their negotiations • Detailed and configurable reporting information must be accessible anytime anywhere • Solutions • Siebel, Oracle, Saratoga, Access Core Course Information Management
"There's a very direct link between employee loyalty and customer loyalty," says Marc Drizin, Walker Information VP and loyalty specialist. "Happy employees lead to happy customers and, often, increased revenue." Loyalty schemes • Context • As market environments are increasingly competitive, loyalty schemes are used by companies to retain their customer • As a reliable source of customer information, it is a man component of a CRM scheme • Solutions • Oracle, 404 Found!, Poseidon CLS Core Course Information Management
Data flow Processing • Context • Customer information is increasing as new channels appear • It becomes more and more complex for companies to manage their information exchanges Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
"Information should be considered part of the IT portfolio, and data quality solutions should be seen as a means to increase the value of that portfolio, in addition to reducing business risk and identifying business opportunity," says Doug Laney, vice president and director with Meta Group's Technology Research Services. Databases / Datawarehouse • Context • New interaction channels increase the volume of customer information collected • For analysis purposes, customer data must be gathered in a central place and in a consistent way • Solutions • NCR Teradata, Oracle, SAP Core Course Information Management
Campaign Management • Context • Using new channels, companies are increasingly communicating directly to their customers and prospects • They need solutions to manage their campaigns and measure their efficiency and ROI • Solutions • Prime@Vantage, AIMS, Marketic One, Oracle, e.piphany Core Course Information Management
Reporting - Geomarketing • Context • Reporting information on customer activities is used by marketing divisions to follow their actions and estimate their ROI • This must be completed with geographic indicators • Solutions • Business Objects, Microstrategy, ESRI, Oracle, SAP Core Course Information Management
"The Peppers and Rogers Viewpoint: Managing Customer Assets Through Analytics" Many companies fail to maximize the ROI of their CRM investments because they focus on operational initiatives without investing enough effort to develop a solid, quantitative understanding of customers' actual differences. Datamining • Context • Profiling and segmentation require to analyze huge volume of data from different sources • Mathematical models and algorithms must be created and used, requiring specific skills • Solutions • SAS, SPSS Core Course Information Management
A few aspects of CRM Consulting CRM Implementation Customer Interaction Centers Operational CRM Analytical CRM Customer Portals Core Course Information Management
Context • More and more internet users.. • ..accessing bigger databases • Web sites are becoming more complex • New interaction channels appear beside the Internet: Wap, 3G phones, IVRs, interactive TV, PDAs... • As web sites offer more services, it requires more interaction with back-office systems (ERPs, Datawarhouses, Call centers..) • Solutions have to be modular, scalable and open to new channels Core Course Information Management
The Right Approach… 6-Corrective and Evolutive Maintenance 1-Consultancy 2-Analysis andDesign 5-Operation 4-Integration 3-Development The right approach for the right results: One single team for a global commitment Core Course Information Management
Customer Portals • An end to end capability: • Complete management, from consulting to hosting - maintenance • Or a step by step approach: • Consulting and vendor selection • Software integration • Hosting • Solutions • BEA, Vignette, IBM Webshpere, Intershop, Broadvision, SAP, Oracle.. Core Course Information Management
Customer Solutions P o r t a l Design Strategy Learn Sales Tracking Suppliers • CRM Solutions Implementation • CCC • Customer Chain for Loyalty • Database Marketing • Commercial Channel Performance • Oil&Gas Cards • Electronic Invoicing • Datawarehouse • Geomarketing • SVI • CRM • Outbound Customer Contacts • eTrading&eBanking Finance Develop Order Mgt. Forecast & Planning Workforce Enterprise Business Intelligence Enterprise Applications Supply Chain Mgt. C R M HRM Collaborate Marketing Campaign Execution Customers Planning& Production Analytics Customer Service Business Process Hub Core Course Information Management
Supplier • How to share the vision and the needs of the final customer? • How to reduce manufacturing lead time and supply • How to increase delivery efficiency and service quality • How to collaborate with partners? Core Course Information Management
Approval cycle Order sent to supplier Item selection / create requisition Supplier Internet Procurement Requisition Route to recipient Optional bill payment Optional interface to AP systems eProcurement – Simply, using the internet to manage your Procurement process Core Course Information Management
Quick Scope • Identify business opportunity hypotheses • Review current procurement practices • User requirements definition; outline solution specification; • Commodity map; Category eProcurability; • Organizational implications; eProcurement strategy; • Existing technology readiness audit • Business readiness audit • eBusiness vision & Strategy • Processes • Technology • Sourcing • People • and organisation Scope Business Value • Organizational readiness; • Total cost model (including integration); Platform recommendation • Business benefits • ROI modeling Select Platform • Initial ROI & Business Case • Identify new venture options & strategy • Pre-qualify suppliers • Invite proposals • Commercial & technical appraisal • Negotiation campaign • Input costs to ROI The Scope phase lays the foundation for a successful project Core Course Information Management
..which can be delivered through modular workshops Understanding eProc Requirements Package Functionality Comparison Strategy for eProcurement Savings / ROI Model Operational Economic Model Supplier Engagement Vendor Catalogue Management Core Course Information Management