Introduction to Information Systems Chapter 11 PPT PDF

Introduction to Information Systems Rainer, Prince, Sanchez-Rodriguez, Splettstoesser Hogeterp, Ebrahimi Fifth Canadian Edition Chapter 11 Customer Relationship Management and Supply Chain Management Copyright ©2021 John Wiley & Sons Canad...

Introduction to Information Systems Rainer, Prince, Sanchez-Rodriguez, Splettstoesser Hogeterp, Ebrahimi Fifth Canadian Edition Chapter 11 Customer Relationship Management and Supply Chain Management Copyright ©2021 John Wiley & Sons Canada, Ltd. Learning Objectives 1. Identify the primary functions of both customer relationship management (CRM) and collaborative CRM strategies 2. Describe how businesses might use applications of each of the two major components of operational CRM systems 3. Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, open-source CRM systems, social CRM systems, and real-time CRM systems 4. Describe the three components and the three flows of a supply chain 5. Identify popular strategies to solving different challenges of supply chains 6. Explain the utility of each of the three major technologies that supports supply chain management Copyright ©2021 John Wiley & Sons Canada, Ltd. 2 Chapter Outline 1. Defining Customer Relationship Management 2. Operational Customer Relationship Management Systems 3. Other Types of Customer Relationship Management Systems 4. Supply Chains 5. Supply Chain Management 6. Information Technology Support for Supply Chain Management Copyright ©2021 John Wiley & Sons Canada, Ltd. 3 Opening Case: Tesco Enhances Its Customer Relationship Management Efforts Think about: What are the features and characteristics of a good checkout experience at a shopping website? How does software like Splunk help organizations deal with unreported customer problems (such as abandoned shopping carts)? Copyright ©2021 John Wiley & Sons Canada, Ltd. 4 11.1 Defining Customer Relationship Management Customer Relationship Management (CRM) Customer Touch Points Data Consolidation Copyright ©2021 John Wiley & Sons Canada, Ltd. 5 Customer Relationship Management (CRM) CRM: treat customers differently because their needs differ and their value to the company may also differ o Customer intimacy o Lifetime value o Customer churn o CRM strategy versus CRM systems o Low-end CRM systems versus high-end CRM systems Copyright ©2021 John Wiley & Sons Canada, Ltd. 6 FIGURE 11.1 The customer relationship management process Copyright ©2021 John Wiley & Sons Canada, Ltd. 7 FIGURE 11.2 Customer touch points Copyright ©2021 John Wiley & Sons Canada, Ltd. 8 Data Consolidation Data consolidation using a data warehouse enables: o 360-degree view of a customer o Collaborative CRM o Customer identity management Copyright ©2021 John Wiley & Sons Canada, Ltd. 9 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) What is the definition of customer relationship management (in your own words)? 2) Why is CRM so important to any organization? Copyright ©2021 John Wiley & Sons Canada, Ltd. 10 11.2 Operational Customer Relationship Management Systems Support front-office processes: o Customer-facing applications o Customer-touching applications Provide the following benefits: o Efficient and personalized marketing, sales, and service o A 360-degree view of each customer o The ability of sales and service employees to access a complete history of customer interaction with the organization, regardless of the touch point Copyright ©2021 John Wiley & Sons Canada, Ltd. 11 Customer-Facing Applications Customer service and support (CIC) and call centers Salesforce automation (SFA) Marketing Campaign management Copyright ©2021 John Wiley & Sons Canada, Ltd. 12 Sales Force Automation Contact management system Sales lead tracking system Sales forecasting system Product knowledge system Configurators Copyright ©2021 John Wiley & Sons Canada, Ltd. 13 Marketing Data mining is used to develop customer purchasing profiles that could lead to: Cross-selling Upselling Bundling Copyright ©2021 John Wiley & Sons Canada, Ltd. 14 Customer-Touching Application (a.k.a. e-CRM) Search and comparison capabilities Technical and other information and services Customized products and services Personalized webpages FAQs Email and automated response Loyalty programs Copyright ©2021 John Wiley & Sons Canada, Ltd. 15 Analytical CRM Systems Analytical CRM systems analyze customer data for a variety of purposes, including: o Designing and executing targeted marketing campaigns o Increasing customer acquisition, cross-selling, and upselling o Providing input into decisions relating to products and services (e.g., pricing and product development) o Providing financial forecasting and customer profitability analysis Copyright ©2021 John Wiley & Sons Canada, Ltd. 16 FIGURE 11.3 The relationship between operational CRM and analytical CRM Copyright ©2021 John Wiley & Sons Canada, Ltd. 17 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) Differentiate between customer-facing applications and customer-touching applications. 2) Provide examples of cross-selling, upselling, and bundling. Copyright ©2021 John Wiley & Sons Canada, Ltd. 18 IT’s About Business 11.2: Sun Life Financial Consider: How would data integration with the functional areas of HR be beneficial to Sun Life Financial? What information systems architecture would be required to implement systems like those at Sun Life Financial? Copyright ©2021 John Wiley & Sons Canada, Ltd. 19 11.3 Other Types of Customer Relationship Management Systems On-demand CRM systems (i.e., utility computing or SaaS) Mobile CRM systems Open-source CRM systems Social CRM systems Real-time CRM Copyright ©2021 John Wiley & Sons Canada, Ltd. 20 11.4 Supply Chains Supply Chain Supply Chain Visibility o Inventory velocity The Structure and Components of Supply Chains Copyright ©2021 John Wiley & Sons Canada, Ltd. 21 The Structure of Supply Chains Upstream Internal Downstream Reverse flows or reverse logistics Copyright ©2021 John Wiley & Sons Canada, Ltd. 22 FIGURE 11.4 Generic supply chain Copyright ©2021 John Wiley & Sons Canada, Ltd. 23 The Components of Supply Chains Tiers of suppliers o Tier 3: Basic products o Tier 2: Sub-assemblies o Tier 1: Integrated components The flows in the supply chain o Materials flows o Information flows o Financial flows Copyright ©2021 John Wiley & Sons Canada, Ltd. 24 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) What is a supply chain? 2) Describe the three segments (parts) of a supply chain. 3) Describe the flows in a supply chain. Copyright ©2021 John Wiley & Sons Canada, Ltd. 25 11.5 Supply Chain Management Five Basic Components of SCM The Push Model versus the Pull Model Problems along the Supply Chain Solutions to Supply Chain Problems Copyright ©2021 John Wiley & Sons Canada, Ltd. 26 Five Basic Components of Supply Chain Management (SCM) Plan Source Make Deliver Return Copyright ©2021 John Wiley & Sons Canada, Ltd. 27 Interorganizational Information Systems (IOS) Enable the partners to perform the following: o Reduce the costs of routine business transactions o Improve the quality of the information flow by reducing or eliminating errors o Compress the cycle time involved in fulfilling business transactions o Eliminate paper processing and its associated inefficiencies and costs o Make the transfer and processing of information easier for users Copyright ©2021 John Wiley & Sons Canada, Ltd. 28 The Push Model versus the Pull Model Push model o Make-to-stock Pull model o Make-to-order Copyright ©2021 John Wiley & Sons Canada, Ltd. 29 Problems along the Supply Chain Two main sources of problems: o Uncertainties (e.g., the demand forecast, delivery times) o The need to coordinate multiple activities, internal units, and business partners Bullwhip effect Copyright ©2021 John Wiley & Sons Canada, Ltd. 30 FIGURE 11.5 The bullwhip effect Copyright ©2021 John Wiley & Sons Canada, Ltd. 31 Solutions to Supply Chain Problems Vertical integration Using inventories to solve supply chain problems o Building inventories o Just-in-time (JIT) inventory system Information sharing o Vendor-managed inventory (VMI) Copyright ©2021 John Wiley & Sons Canada, Ltd. 32 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) Differentiate between the push model and the pull model. 2) Describe various problems that can occur along the supply chain. 3) Describe possible solutions to problems along the supply chain. Copyright ©2021 John Wiley & Sons Canada, Ltd. 33 11.6 Information Technology Support for Supply Chain Management Electronic Data Interchange (EDI) Extranets Portals and Exchanges Emerging Technologies: o Robotics, drones, autonomous (driverless) vehicles and three-dimensional (3D) printing Copyright ©2021 John Wiley & Sons Canada, Ltd. 34 FIGURE 11.6 Comparing purchase order (PO) fulfillment without EDI Copyright ©2021 John Wiley & Sons Canada, Ltd. 35 FIGURE 11.6 Comparing purchase order (PO) fulfillment with EDI Copyright ©2021 John Wiley & Sons Canada, Ltd. 36 Extranets Use virtual private network (VPN) technology Three major types of extranets: o A company and its dealers, customers, or suppliers o An industry’s extranet o Joint ventures and other business partnerships Copyright ©2021 John Wiley & Sons Canada, Ltd. 37 FIGURE 11.7 The structure of an extranet Copyright ©2021 John Wiley & Sons Canada, Ltd. 38 Portals and Exchanges Two basic types of corporate portals: o Procurement portals (i.e., sourcing portals): for a single buyer and multiple suppliers o Distribution portals: for multiple buyers with a single supplier Copyright ©2021 John Wiley & Sons Canada, Ltd. 39 IT’s About Business 11.6: Emerging Technologies and Supply Chain Management Consider: What types of jobs are being lost due to these innovations versus those that are being gained? Which of these technologies are you interested in? Try researching the types of job training requirements for developing, maintaining, or working with the technology. Copyright ©2021 John Wiley & Sons Canada, Ltd. 40 Elbow-Partner Chat You will have 3 minutes to discuss and review the following questions with a partner or small group. Be prepared to share your answers and findings with the class. 1) Define EDI, and list its major benefits and limitations. 2) What is an extranet? How does it benefit businesses? Copyright ©2021 John Wiley & Sons Canada, Ltd. 41 Closing Case: Amazon’s Global Supply Chain Think about: How many different shipping methods are required to deliver your products to you from places that are continents away? The variety of organizations required to collaborate to produce and ship goods effectively and the types of IT systems they need to exchange accurate, up-to-date information Copyright ©2021 John Wiley & Sons Canada, Ltd. 42 Copyright Copyright © 2021 John Wiley & Sons Canada, Ltd. or the author. All rights reserved. Students and instructors who are authorized users of this course are permitted to download these materials and use them in connection with the course. No part of these materials should be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse this material is available at http://www.wiley.com/go/permissions. Copyright ©2021 John Wiley & Sons Canada, Ltd. 43