Saturday, May 31, 2014

Benefits and Challenges of CRM

Benefits and Challenges of CRM

The potential business benefits of customer relationship management very much. For example, the CRM allows a company to identify and focus on their best customers, those who are the most profitable for the company , so that they can be retained as lifelong customers for greater service and profitable. Customer relationship management customization and personalization enables real-time ata range of products and services based on their wants, needs, and buying habits of the customer life cycle. CRM can also browse the time when customers call the company, where any connection point. The CRM system also allows the company to provide a consistent experience and superior service and support to customers, at all points of contact are chosen by the customer. All of these benefits will provide strategic business value for the company and great customer value for its customers.

CRM failure

Business benefits of customer relationship management is not guaranteed and it is proven to trap for many companies. Berbaai survey conducted industry research group includes a report stating that more than 50 percent of CRM projects do not give the results promised. In the other study reports 20 percent of the companies surveyed reported that CRM implementation actually have damaged their long-standing relationships with customers. Moreover, in a survey of over 25 senior management satisfaction management tool, although 72 percent of them expect to implement CRM in the near future.


What is the reason for the high rate of failure or dissatisfaction with CRM -related business? Research shows that the main reason it is common; lack of understanding and preparation. In other words, corporate managers often rely on the famous novel application of information technology (such as CRM) to solve business problems without first developing a business process and change management programs needed changes. For example, in many cases, failed CRM projects are implemented without participation from of the parties with an interest in the company (stakeholders) involved with the project. Therefore, the employees and customers are not ready for a variety of processes or new challenges which are famil of new CRM implementation. We will discuss failure in information technology management, system implementation and change management in the writings to come.

Friday, May 30, 2014

CRM (Customer Relation Management) : Business Focus

CRM (Customer Relation Management)  : Business Focus


Managing customer relationships involves two interrelated objectives; First, give the organization and all its employees are dealing with customers, a complete view of each customer in each case and in cross all channels, and second, the customer give a complete view of enterprise - channel and other channels.
This is the cause of the company turned to customer relationship management to help them become customer-focused business. CRM uses information technology to create a cross-functional enterprise system that integrates and automates many processes on customer service in sales, offers, and customer services that interact with enterprise customers. The CRM system also creates a framework for the IT software database seta run via the Web, which integrate these processes with other business operations, and support the cooperation between the company and its customers.
CRM system includes a group of models which provide a variety of tools, which helps companies and their employees provide a service that is fast, reliable, and consistent to its customers. Siebel Systems, Oracle, PeopleSoft, SAP AG, and Epiphany are some of the major application components of a CRM system.

Contact and Account Management.

CRM software helps the practitioner sales, marketing , and services to capture and track relevant data about each contact that has passed or planned with the customer ayau prospective customers, as well as cycle and other business activities of the customer. Information captured from all points of contact, such as telephone, fax, email, company web sites, retail stores, stall and personal contacts. All CRM storing the data in a common database for customers who mengintegrasikansemua customer account information and make it available throughout the enterprise via the internet, intranet or other network connection for application sales, marketing, service, and other CRM applications.

Sales.

CRM system gives the sales staff of software tools and enterprise data sources they need to support and manage their sales activities, and optimize cross selling and increasing bids for the sale. Examples include the outlook for sales and product information, product configuration, and the ability of making a list of the sales price. CRM also gives them real-time access to a common view upon customers, to allow them to examine all aspects of the status of the customer's account status to sale them. For example, the CRM system will alert a bank's sales staff to call customers who make great storage, in order to sell a major credit or investment services. Alternatively, the system will warn a salesperson for services that have not been fulfilled, delivery or payment issues, which can be addressed through a personal relationship with the customer .

Marketing and Order Fulfillment.

CRM systems help marketing practitioners completed direct marketing campaigns by automating tasks such as marketing qualifying on target, and scheduling and tracking direct marketing mailings. Then, the CRM software will help practitioners pemasran to capture and manage customer response data and prospective customers in the CRM database, and analyze customer value and business value of the company's direct marketing campaigns. CRM also helps in meeting customers and prospective customers respond quickly to schedule a sales contact and provide appropriate information for products and services for them, while while capturing relevant information for the CRM database.

Services and Support for Customers.

Sestem CRM gives sales staff the tools of software and real-time access to a common database of customers that can be shared with the sales and marketing practitioners  CRM helps customer service managers create, assign, and manage a wide range of customer requests for service. Call Center Software sends all calls to the customer support staff based on their expertise and authority to handle requests for certain services . Help Desk Software helps the customer service staff to assist customers who have a problem with a product or service, to provide the data services and relevant suggestions to resolve the issue. Web-based self-service allows customers to easily access personal information on supporting the company's Web site, while still giving them the option to receive further assistance in oline or by phone of the customer service personnel.

Retention and Loyalty programs.
  1. The cost six times more likely to sell to a new customer than to existing customers.
  2. Dissatisfied customers usually will tell eight to ten other people, experiences.
  3. The company can increase profits by 85 percent by increasing customer retention year, only 5 percent .
  4.  Uncertainty to sell products to new customers is 15 per cent, while the uncertainty for selling products to existing customers is 50 per cent.
  5.  Seventy percent of customers who complain will do business with that company again if it quickly treat the disorder services.

Various Causes of ERP Failure.

Various Causes of ERP Failure.


What are the main causes of ERP project failure? In almost all cases, business managers and IT experts from the telecom companies, underestimated the complexity of planning, development, and training needed to prepare for a new ERP face system that will radically change the business processes and their information systems . Failure to engage employees, affected in the planning and development as well as change management program, or try to do too many things in a way that is too fast, the process of conversion, are common causes of failure of ERP projects. Inadequate training in the various tasks required for a new job leh ERP systems, and the failure to perform sufficient testing and conversion of the data, are other causes of failure. In many cases , the failure is also due to the company's ERP and IT management too trusting various statements given ERP software vendors or the assistance of prestigious consulting firms hired to lead the implementation.

Various Benefits of ERP

Various Benefits of ERP


Many major companies find business value from the use of ERP in some fundamental way. Quality and Efficiency. ERP creates a framework to integrate and enhance the company's internal business processes, which resulted in significant improvements in the quality and efficiency of customer service, production and distribution.
Decrease Costs. Many companies reported a significant decrease in the cost of transaction processing and hardware, software and IT support staff, when compared with legacy systems that are not integrated are replaced by their new ERP system.
Decision Support. ERP provides information about business performance across functions is very important, appropriate for managers to be able to significantly improve their ability to make decisions in a timely manner across the entire business enterprise.
Corporate agility. Implementing an ERP system is breaking down the walls of many departments and functions, or " fortress" of various business processes, information systems, and information resources. This results in the organizational structure of managerial responsibilities, and the role of flexible working , and hence produce and labor organizations more agile and adaptive, which can more easily take advantage of new business opportunities .

Saturday, May 17, 2014

ERP: The Business Backbone

All types of business , now implemented , Enterprise Resource Planning system (ERP). ERP acts as a cross-functional enterprise backbone that integrates and automates many internal processes and information systems , the functions of production , logistics , didtribusi , accounting , finance , and human resources company . Large companies around the world , began installing ERP systems on tanhun 1990 , as a conceptual framework and catalyst to reengineer their business processes . ERP software serves as an important engine , which is required to integrate and resolve cross-functional processes that result. Today , ERP is considered as an essential ingredient, the company needed to be able to get the efficiency, agility , and responsiveness, which is needed for success in a dynamic business environment today.
Enterprise Resource Planning is cross-functional enterprise system that is driven by a suit of software modules, integrated business processes that support the company's internal basis. For example, ERP software for manufacturing companies generally will process the data and track the status of sales , inventory , shipping, and invoicing, as well as estimates of raw materials and human resources needs .

ERP gives companies , view real-time integrated over the core business processes , pemmrosesan orders, and inventory management, which was put together by the ERP application software , and a common database maintained by the DBMS . ERP systems browse business resources (eg, cash, raw materials, and production capacity) , as well as the status of the various commitments made ​​by a company (such as customer orders, purchase orders, payroll, etc.) no matter which department (production, purchasing, sales, accounting, etc.) that have been entering data into the system. Examples of the production process is supported Material Requirement Planning - MRP, production planning and capacity planning . Some of the sales and marketing process didukukung by the ERP system supporting many important human resource processes , from planning personnel needs to payroll and benefits administration, as well as be able to resolve the majority of applications of managerial accounting and financial record keeping required .

Various Benefits of ERP

Many major companies find business value from the use of ERP in some fundamental way .

Quality and Efficiency. ERP creates a framework to integrate and enhance the company's internal business processes , which resulted in significant improvements in the quality and efficiency of customer service , production and distribution.

Decrease Costs. Many companies reported a significant decrease in the cost of transaction processing and hardware, software and IT support staff , when compared with legacy systems that are not integrated are replaced by their new ERP system .

Decision Support. ERP provides information about business performance across functions is very important , appropriate for managers to be able to significantly improve their ability to make decisions in a timely manner across the entire business enterprise .


Corporate agility. Implementing an ERP system is breaking down the walls of many departments and functions, or " fortress " of various business processes, information systems, and information resources. This results in the organizational structure of managerial responsibilities, and the role of flexible working , and hence produce and labor organizations more agile and adaptive, which can more easily take advantage of new business opportunities .