Customer Resource Management

The better a business can manage the relationships it has with its customers the more successful it will become. Therefore IT systems that help support dealing with customers on a day-to-day basis are growing in popularity. Customer relationship management (CRM) is not just the application of technology, but is a strategy to learn more about customers' needs and behaviors in order to develop stronger relationships with them. As such, it is more of a business philosophy than a technical solution to assist in dealing with customers effectively and efficiently. Nevertheless, successful CRM relies on the use of technology. This guide will outline the business benefits and the potential drawbacks of implementing CRM. It will also offer help on the types of solution you could choose and how to implement them. Why CRM? In the commercial world the importance of retaining existing customers and expanding business is paramount. The costs associated with finding new customers mean that every existing customer could be important. The more opportunities that a customer has to conduct business with your company the better, and one way of achieving this is by opening up channels such as direct sales, online sales, franchises, use of agents, etc. However, the more channels you have, the greater the need to manage your interaction with your customer base. Customer relationship management (CRM) helps businesses to gain an insight into the behaviour of their customers and modify their business operations to ensure that customers are served in the best possible way. In essence, CRM helps a business to recognise the value of its customers and to capitalise on improved customer relations. The better you understand your customers, the more responsive you can be to their needs. CRM can be achieved by:

finding out about your customers' purchasing habits, opinions and preferences profiling individuals and groups to market more effectively and increase sales changing the way you operate to improve customer service and marketing

Business benefits of CRM Implementing a customer relationship management (CRM) solution might involve considerable time and expense. However, there are many potential benefits. A major benefit can be the development of better relations with your existing customers, which can lead to:

increased sales through better timing by anticipating needs based on historic trends identifying needs more effectively by understanding specific customer requirements cross-selling of other products by highlighting and suggesting alternatives or enhancements identifying which of your customers are profitable and which are not

This can lead to better marketing of your products or services by focusing on:

effective targeted marketing communications aimed specifically at customer needs a more personal approach and the development of new or improved products and services in order to win more business in the future

Enterprise Resource Planning

(http://www.tech-faq.com)

ERP (Enterprise Resource Planning) is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with a corporate houses core business processes to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components: Business Management Practices, Information Technology, and Specific Business Objectives. In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution, which influences their decisions in a productive way. At the core of ERP is a well managed, centralized data repository that acquires information from and supplies information to the fragmented applications operating on a universal computing platform. Information in large business organizations is accumulated on various servers across many functional units that geographical boundaries sometimes separate. Such information islands can possibly service individual organizational units but fail to enhance enterprise performance, speed, and competence. The term ERP originally referred to the way a large organization planned to use its resources. Formerly, ERP systems were used in larger and more industrial company types. However, ERP use has changed radically over a period of few years. Today the term can be applied to any type of company operating in any kind of field at any magnitude. Todays ERP software architecture can possibly envelop a broad range of enterprise functions and integrate them into a single unified database repository. For instance, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance, Manufacturing Warehouse Management, and Logistics were all previously stand alone software applications, generally housed with their own applications, database, and network. Today, they can all work under a single umbrella the ERP architecture. In order for a software system to be considered ERP, it must provide a business with many functionalities that have features like flexibility, modularity & openness, broadness, the finest business processes, and global focus. ERP Systems Improve Productivity, Speed, and Performance Prior to the ERP models evolution, each department in an enterprise had their own isolated software application that did not interface with any other system. Such isolated frameworks could not synchronize the inter-department processes and hence hampered the organizations productivity, speed, and performance. These led to issues

such as incompatible exchange standards, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions, etc. For example, The financials could not coordinate with the procurement team to plan out purchases as per the availability of money. Hence, deploying a comprehensive ERP system across an organization leads to performance increase, work flow synchronization, standardized information exchange formats, complete enterprise functioning overview, global decision optimization, speed enhancement, etc.

Advantages of ERP Systems There are many advantages of implementing an EPR system. A few of them are listed below: A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and work flows The ability to effortlessly communicate information across various departments Improved efficiency, performance, and productivity levels Enhanced tracking and forecasting Improved customer service and satisfaction Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

The scope of customization is limited in several circumstances The present business processes have to be retaught to make them synchronize with the ERP ERP systems can be extremely expensive to implement There could be lack of continuous technical support ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Business Intelligence

IBM researcher Hans Peter Luhn used the term business intelligence. He defined intelligence as: "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal." Business Intelligence is the processes, technologies, and tools that help us change data into information, information into knowledge and knowledge into plans that guide the organization. Technologies for gathering, storing, analyzing and providing access to data to help enterprise users make better business Decisions.

Why BI ? BI is used to identify inefficient business processes that are liable for reengineering. BI applications can give anyone the ability to make better decisions by quickly understanding the various information assets in the organization and how these interact with each other. These assets can include customer databases, supply chain information, personnel data, manufacturing, and sales and marketing activity, as well as any other source of information critical to your operation. With the use of BI businessmen can start analyzing data themselves, rather than wait for IT to run complex reports.

Characteristics Single Point of access information Timely answers to Business Questions Using Business Intelligence in all Department of an organization

Application in various industries Restaurant chains such as Hardees, Wendys, Ruby Tuesday and T.G.I. Fridays are heavy users of BI software. They use BI to make strategic decisions, such as what new products to add to their menus,which dishes to remove. Telecom Sector - BI is used to manage expenses (such as landline phone service, cell phone plans, and Internet connections).

Pharmaceutical companies use Business Intelligence software for improving product development, enhancing go-to-market strategies, and optimizing their supply chains.

Advantages Improve operational efficiency Eliminate report backlog and delays Find root cause and take action Negotiate better contracts with suppliers and customers Sell information to customers, partners and suppliers Improve strategies with better marketing analysis Give users the means to make better decision

Limitations Very high software cost Expensive and time consuming training A wise Variety of technology experts are required Extensive system upgrade and maintenance Movement of data between disparate data sources