Core Course Information Management

Oktober 2004

Core Course Information Management

eBusiness

Core Course Information Management2

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


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


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 ...


Our Positioning

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


A Solution Framework / Architecture

P o r t a l

Business Process Hub

C R

M

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rpris

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tions

Busin

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Inte

lligen

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Supp

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ain

Mgt

. Sales Tracking

OrderManagement

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning &Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise


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?


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)


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


Are you just adding smart software, or are you building a competitive vision ?

The Inter-Networked Business

The Extended Enterprise

The Integrated Enterprise

The High Performance Team

The Effective Individual

1980 2010

Enabling Technology

‘The Net’

Chain Mnmgt

ERP

WFM

PC-Tools

Change

Value creation

External

relationships

Organizational

Transformation

BPR

Performance

improvement

Source: The digital economy by Don Tapscott


ContractorsContractors CompanyCompany CustomersCustomers

ComplementorsComplementors

CompetitorsCompetitors

Community

The Art of Doing eBusiness is the Art of Managing your Relationships Digitally

The 6C Network Model


Are You Sure Your eRelationship Focus Is Right?

Product innovationProduct innovation

OperationalexcellenceOperationalexcellence

CustomerintimacyCustomerintimacy

Source: Treacy & Wiersema, 1996 The discipline of market leaders











Are you implementing the right eActions?

Price FightingMass MarketPrice FightingMass Market

OperationalExcellence

Low Price, Low CostStandard Products

One-way Media

Low Price, Low CostStandard Products

One-way Media

EfficiencyProduce & Sell

EfficiencyProduce & Sell

HierarchyNo Overhead

HierarchyNo Overhead

Budget ManagersLoyal Execution

Budget ManagersLoyal Execution

eSupply Chain MgteProcurement

Data: ERP Financials

eSupply Chain MgteProcurement

Data: ERP Financials

Added ValueSegmented Market

Added ValueSegmented Market

ProductInnovation

Being FirstHigh value products

Two-way Media

Being FirstHigh value products

Two-way Media

R&DInnovate & Sell

R&DInnovate & Sell

Free BrainsStrong Back-office

Free BrainsStrong Back-office

DevelopersDevelopers

eWorkforce

Data: Product

eWorkforce

Data: Product

CustomizationIndividualized Market

CustomizationIndividualized Market

CustomerIntimacy

Service&InteractionModular Products

1:1 Media

Service&InteractionModular Products

1:1 Media

Quality ManagementSense & Respond

Quality ManagementSense & Respond

Flat & FlexibleStrong Front-office

Flat & FlexibleStrong Front-office

CommunicatorsCommunicators

eCRM

Data: Customer

eCRM

Data: Customer

C C

C

C

C

Context

Strategy

Process

Structure

People

ICT


eStrategy Service Structure

Standard process:

Initiation Phase

eAssessment Phase

eStrategy Development Phase

Road mapping Phase

Completion Phase

Week 1 Week 2 Week 3

Action by Supplier Action by client

eStrategyDevelopment

Phase

eStrategyDevelopment

PhaseeAssessment

Phase

eAssessmentPhase

2. 3.

CompletionPhase

CompletionPhase

RoadMapping

Phase

RoadMapping

Phase

4. 5.

InitiationPhase

InitiationPhase

1.


Enterprise Solutions

Business Process HubC

R M

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Busin

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Inte

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Supp

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Mgt

. Sales Tracking

OrderMgt.

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning&Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise

P o r t a l

eStrategy eInnovation eTransformation eSolutions Business Intelligence


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?


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


CRM moves towards Customer Centric

Focus of the organization

Transaction oriented Relation oriented

Low

High

Dependency on Information Technology

ERP

CRM

eCRM

ProductOrientation

ProductOrientation

MarketOrientation

MarketOrientation

CustomerOrientation

CustomerOrientation

NetworkOrientation

NetworkOrientation


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.


70 %

20 %

10 %

15 %

25 %

60 %

45 %

35 %

20 %

Profitability Number of customers

Turnover

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


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


1. Capture of customer contacts

@2. Analysis : OLAP, analytical application datamining, segmentation > customer capital

e-crme-crmBusiness Business intelligenceintelligence

5. Multi channel distribution

4. Communication personnalisation

6. InteractionCustomer oriented

Data warehouse

3. Marketing strategy

The CRM Cycle


Customer Management proces

The focus of Customer Relationship Management is:

optimising customer management

InteractInteract

DefineDefine

AnalyseAnalyse

CustomerCustomerManagementManagementCollectCollect

by improving the Customer Interaction Process


CRM activities

InteractInteract

DefineDefine

AnalyseAnalyse

CustomerCustomerManagementManagementCollectCollect

CustomerInteraction

Online processing

TriggerCustomer

Back officeprocessing

Data WarehouseCRM data marts

Data Sources

Marketing, salesand channelmanagement

Supportingproduct

information

Forecasting,planning, simulationmonitoring, control

Product development

Businessgoals

Channel

OrganiseSegment

Feedback


A few aspects of CRM

ConsultingConsulting

Customer Interaction CentersCustomer Interaction Centers

Operational CRMOperational CRM

Customer PortalsCustomer Portals

CRM ImplementationCRM Implementation

Analytical CRMAnalytical CRM


Customer Chain: an end to end CRM implementation approach

Operating ManagementNew

action

Data MiningLog analysis / Click Stream

Scores

Customer Value Marketing

studies

Business Plan

Strategic Marketing Positioning

Potential analysis and feasibility study

Enhance

Results

Adjust

Marketing Acquisition

QualificationCustomer

relation action

CRM vendor selection

Campaign Mgt system

Campaign Management

Pilot / Roll-out

Information systems

Data Flows

ProcessingAdministration

and security

Data Management


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

Awarenesscommunication

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

CRM Transition support, Communication & Training


Customer Interaction Centers - Principles

CICB2C

Clients

B2BClients

MarketingSalesAfter-salesNetwork

Information

Assistance

Customer service

Value added services

Telemarketing

Telesales and payment

Point of Sales Network

Back-office

Web Server

Call centre

ERP/Legacy System Datawarehouse


• 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

Challenges & Opportunities


Customer Interaction Centers

• Solutions– Telephony: Lucent, Alcatel, Nortel

– Middleware / CTI: Genesys, Cisco/Geotel

– Contact management: Siebel, Clarify, Coheris Conso +, Hermes pro

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.


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


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

"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."


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


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

"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.


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


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


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

"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.


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


The Right Approach…

5-Operation

6-Corrective and Evolutive

Maintenance 1-Consultancy

2-Analysis andDesign

3-Development4-Integration

The right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitmentThe right approach for the right results: One single team for a global commitment


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..


Customer Solutions


R M

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Busin

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Inte

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Supp

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Mgt

. Sales Tracking

OrderMgt.

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning&Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise

P o r t a l

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


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 andservice quality

How to collaborate with partners?


Optional bill payment

Approval cycle

Order sent to supplier

Supplier

Optional interface to AP systems

Route to recipient

Requisition

Item selection / create requisition

Internet Procurement

eProcurement – Simply, using the internet to manage your Procurement process


Scope

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

•Organizational readiness;

•Total cost model (including integration); Platform recommendation

•Initial ROI & Business Case

•Identify new venture options & strategy

• eBusiness vision & Strategy

• Processes• Technology• Sourcing• People • and organisation

Quick Scope

• Business benefits• ROI modeling

Business Value

• Pre-qualify suppliers• Invite proposals• Commercial & technical

appraisal• Negotiation campaign• Input costs to ROI

Select Platform

The Scope phase lays the foundation for a successful project


Understanding eProc Requirements

Understanding eProc Requirements

Package Functionality Comparison

Package Functionality Comparison

Strategy for eProcurementStrategy for

eProcurement

Savings / ROI ModelSavings / ROI Model

Operational Economic Model

Operational Economic Model

Supplier Engagement

Supplier Engagement

Vendor Catalogue Management

Vendor Catalogue Management

..which can be delivered through modular workshops


Supplier Solutions


R M

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Busin

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Inte

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Supp

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Mgt

. Sales Tracking

OrderMgt.

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning&Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise

P o r t a l

eProcurement Business Process Hub


Workforce

How to communicate the right information at the right time?

How to make the enterprise more transparent to employees?

How to benefit from individual intelligence on entreprise level?

How to increase Human Resources availability and efficiency


What is eWorkplace?

• Internal, employee-focused, applications

– Travel & Expense Management

– Human Resources Self Service (benefits, compensation)

– Time Sheet Completion/Approval

– Internal Procurement

– Knowledge Management


Why eWorkplace?

eWorkplace leverages Web-based technology for direct, bottom-line impact– Reduced operating and transaction costs

– Reduced re-working

– Eliminates re-keying of data

– Workflow can be managed

– Improved, flexible reporting

– Reduced rogue expenditures

– Integration with back office systems

– Increased negotiating power

– Improved supplier management


Why eWorkplace?

Visible Agent of Change:– Common workplace

– Single point of reference and communication

– Compliance with business rules

– Improved Manager/Employee workflow visibility

– Rapid deployment across the corporate intranet

– Helps reduce the paper burden on Employees ….

… thereby increasing time spent on productive work


eWorkplace Vision

• Efficient and effective Front Office which empowers the employee

• Linked to Back Office system(s) which empowers the company

• Speedy, agile, flexible, responsive … and cohesive

• Increase in customer and employee satisfaction and therefore shareholder value


Key Benefits Summary

• Reduce transaction costs = Quick Return on Investment

• Increase expenditure controls and reporting capabilities

• Employee self-management and empowerment

• Adhere to company processes and practices


Business Benefit ManagementBusiness Benefit Management

Pro

cess Evo

lutio

n

Back O

ffice Integ

ration

Ed

ucatio

n &

Su

pp

ort

Kn

ow

ledg

e Mg

mt

En

gag

emen

t

Co

nten

t Mg

mt

Ben

efit Measu

remen

t

COMPLETE SOLUTION

60% of spend in the e.biz revolution will beon change management & related aspects

More than 75% of IT projects fail to deliver their expected business benefit

eWorkplace is more than just IT tools..

"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."


Defining the Process

Managingthe

Individuals

Providing the Technology

BenefitsManagement

Process Mappingand Analysis

Managing resistanceto Change

CommunicationStrategy and Plan

Business Impact

Analysis

KPI setting

Systems Development/Customisation

IT, Processes and People must be in Alignment

Maximising the Benefits


Workforce Solutions


R M

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rpris

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Busin

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Inte

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ce

Supp

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Mgt

. Sales Tracking

OrderMgt.

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning&Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise

P o r t a l

Intranet eLearning


Enabling Infrastructure

How to have an upgradable information system available?

How to quickly integrate new eBusiness applications and change?

How to open, without security risks, our systems to customers and partners?


Infrastructure Solutions

C R

M

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rpris

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Busin

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Inte

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Supp

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Mgt

. Sales Tracking

OrderMgt.

MarketingCampaign

CustomerService

Strategy

Finance

HRM

Planning&Production

Learn

Develop

Collaborate

Analytics

Design

Forecast &Planning

Execution

Suppliers

Workforce

Customers

Enterprise

P o r t a l

EAI and B2B Integration Total Business Integration Web Hosting Outsourcing of Messaging Mediacert Internet Payments Virtual ID Universal Directory Services WCM Portals SMS EF3

Business Process Hub


Vragen????


E Business Strategie model Boonstra

Impact

Bereik

Proces Waarde-keten

Integratie Transactie Interactie Informatie Inkoop Verkoop Reïntermediatie….. Disintermediatie

Locaal

Nationaal

Multi-domestic

Internationaal

Creatie

Transformatie

Multi-channel

geen

Core Course Information Management

Documents

Transcript of Core Course Information Management