Page

1
 VIVA
Vishnu Waman Thakur Charitable Trust’s
College Of Arts, Commerce and Science

CERTIFICATE
FOR CASE STUDY
This is to Certify That students from roll no. 81 to 90 of
T.Y.Bsc. (IT) Class Has Satisfactorily completed their case study on
the subject Customer Relationship Management for the year 2009-10

Professor-in-Charge Head of the Dept

Date: College Stamp

Page
2
Sr. Topic Page
1 PRM (Amul Naik 81) 3
2. BPR (Dakshata Naik 82) 6
3. BPR and ERP (Siddhi Naik 83) 10
4. Similarities & Difference between ERP & CRM(Naini Nair 86) 14

5. ERP (Nishant Nair 87 ) 18

6. Relationship between CRM,BPR&ERP (Pragin Nair 88) 23

7. Advantages and Disadvantages of the CRM(Shreeja Nair 89) 29

8. IMPLEMENTATION OF CRM & E-CRM(Soumya Nair 90) 33

Page
3
 Introduction to PRM
Let us first look what do we mean by a partnership?? It defines that “people
who get together to achieve a common purpose”. Thus deeper the alliance, greater
value-add the partners can generate between them and plus greater potential for
profitability, new growth opportunities and so on. As we know Management is
mainly the task of reducing operational uncertainties. Let’s get to know now what
thus PRM stands for!

“Partner relationship management (PRM) is a business strategy for

improving communication between companies and their channel partners.”

Web-based PRM software applications enable companies to customize and

streamline administrative tasks by making shipping schedules and other real-time
information available to all the partners over the Internet. Several CRM providers
have incorporated PRM features, such as Web-enabled spreadsheets shared
through an extranet, in their software applications.

PRM is often compared to customer relationship management (CRM) and

there is some argument over whether the complex relationship of channel
partnerships makes it necessary for PRM to be a separate entity, or merely a
component of CRM.

Partner Relationship Management solutions include key features for selling,

commission, opportunity, marketing campaigns, inventory access, and other
features designed to facilitate the relationship between manufacturers and their
channel partners. However, in many cases, partner relationship management is a
term specifically applied to relationships between businesses.

Partner relationship management can take a number of different forms. In

some cases, delivery of a product is needed during specific times of the day. For
example, in some shipping and receiving departments, suppliers must deliver
within a certain time frame. In the busiest of locations, that window could be as
little as 30 minutes. When traveling across a large geographic region, that can be a
hard target to hit.

Page
4
 Using software and other communication tools often provided through a
partner relationship management strategy, suppliers, shippers and the end users can
keep in constant contact with each other. This means the end user will be able to
know where each item is each step in the process and when to expect it. Depending
on the situation, this may allow a factory to adjust production so that the entire
operation does not shut due to supply concerns.

Partner relationship management is also important for a manufacturer and

reseller or retailer. On this side, software allows the producer to understand when a
certain product is in demand and allows that producer to adjust his processes
likewise. Without this benefit, a manufacturer would need to wait for an order from
the retailer or reseller. That could delay the process and thus allow both sides to
miss out on valuable sales.

In addition to communication, partner relationship management can also

provide services in other areas. For example, it may include a partner loyalty
component, which provides a benefit to both companies. As those relationships are
solidified, it provides a good customer base on which both can depend.

PRM strategic thinking:

PRM strategy is similar to CRM strategy; PRM needs more than just an
internal strategy effort. Its stakeholders don’t only include the CxOs and power
users; it includes the partners, more than just an opinion givers. So when we talk of
a PRM strategy, we are talking about channel strategy for the value change. You
can’t ever think of CRM implementation before you plan for a successful effort
with your channel. The purpose of this strategy, and please pay close attention here
is to utilize partners to provide a satisfactory brand experience end to end for the
customer.

That means enriched products and your customers in this effort are your
paying clients and your partners. You may be the brand holder with the keys to the
kingdom. But your partners are your generals and supporting armies that will
provide you with the scope and strength to provide the great customer experience
you need for your business to survive.

Page
5
 Features and Functions of PRM
 Lead Management: This is the place where the sales pipeline opens. Lead
generation and distribution start from this module. Actually this is an
extremely important and well thought-out part of most PRM applications
due to the complexity of the workflow associated with proper partner lead
distribution.

 Opportunity Management: It is not just a simple jump up from the

Management but also encompasses metrics to measure and the means to
monitor active sales. This provides visibility for the brand holder into the
partner pipeline.

 Marketing: Co marketing funds distribution and closed loop campaign

Management get complicated when you are dealing with thousands of
partners. Again, notice here the additional richness of the classic application.

 Planning: Planning for partner networks is aligning the business and revenue
goals one partner at a time with the overall revenue goals. It requires an
understanding of each partner’s business model and level of participation in
your partner program and their ability to align them with your corporate
objectives.

 Reporting: This is one of the mission critical features of PRM, as much as

“standard” CRM. Improper reporting means missed opportunities, lost
revenue, unreaped reward for the partners.

 Analytics: Demographic and partner analysis are essential features. e.g. by

segmenting MS partner base, it knows which partners are available for what
and how to weigh their value in any particular opportunity so that the
opportunity is provided to the best team for maximum chance of closure and
success.

 Service and Support: At one level this means automated and other
centralized call centers and technical helpdesks. The value to partners for
both internal purposes and for their customer is incalculable.

Amul . Naik(81)

Page
6
 Business process reengineering

The concept of BPR was popularized in the early 1990s by Michael Hammer
and James Champy in their best-selling book, ‘Reengineering the Corporation.' The
authors said that radical redesign and reorganization of an enterprise was necessary
to lower costs and increase the quality of service. According to them, IT was the
key enabler for that radical change. Hammer and Champy felt that the design of the
workflow in most large corporations was based on assumptions about technology,
people and organizational goals that were no longer valid. They recommended
seven principles of reengineering for streamlining work processes and,
consequently, achieving significant levels of improvement in quality, time
management and cost

BPR is, in computer science and management, an approach aiming at

improvements by means of elevating efficiency and effectiveness of the business
process that exist within and across organizations. The key to BPR is for
organizations to look at their business processes from a "clean slate" perspective
and determine how they can best construct these processes to improve how they
conduct business.

Business process reengineering is also known as BPR, Business Process

Redesign, Business Transformation, or Business Process Change Management.
Reengineering is a fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in cost, quality, speed, and service.
BPR combines a strategy of promoting business innovation with a strategy of
making major improvements to business processes so that a company can become
a much stronger and more successful competitor in the marketplace.

Re-engineering is the basis for many recent developments in management.

The cross-functional team, for example, has become popular because of the desire
to re-engineer separate functional tasks into complete cross-functional processes.
Also, many recent management information systems developments aim to integrate
a wide number of business functions.

Page
7
 Mahindra & Mahindra
Implementing BPR (Business Process Reengineering)

Brief Introduction of M&M

Started in 19i45 by J C Mahindra & K C Mahindra.InOct.1947first batch

of 75 jeeps released for Indian market. Diversified business in other segments
viz. hotels, financial services, auto components, information technology etc. In
1994 a major restructuring exercise was initiated as part of a BPR program.
The company was regrouped in six distinct clusters of related businesses.

In 1996, Nagpur and Kandivali plants received ISO 9001 .In 2001 it was
4th largest manufacturer of tractors in the world. Tractors were exported to
countries viz. US, SA, Zimbabwe, Nepal, Sri Lanka and most of the European
countries.

By the mid 1990s, BPR had become a popular tool globally, with many
leading organizations implementing it. However, when M&M undertook the
exercise, it was still a new concept in India.

Principles of BPR

• Organize around processes, not tasks.

• Have output user perform process.
• Have those who produce information process it.
• Treat geographically dispersed resources as centralized.
• Link parallel activities in the workflow instead of just integrating their
results.
• Empower workers and use built-in controls.
• Capture information once and at the source.

BPR Success Factors

• Strong and Consistent top management sponsorship.

• Addressing Cultural Transformation through effective change
management.
• Proven methodology including a vision process.

Page
8
• Reengineering team composition.
• Compelling Business for a change
• Strategic alignment with company strategic direction.
• Line Ownership.

Circumstances that lead M&M to implement BPR

• Factors.
• Manufacturing Inefficiencies.
• Poor productivity.
• Long production cycle.
• Sub-optimal output.
• Unhealthy work culture.
• Corruption was widespread.
• Decision to focus on enhancing productivity and delivering world-class
quality at the least possible cost.
• Ambition to become the largest tractor manufacturer in the world.
• The three C’s (customers, competition, change)

Analyze the BPR implementation exercise at M & M

• Implementation started in mid 1990s

• Resistance from the unions
• Re-engineering the layout and method of working
• Cellular Manufacturing
• Multi-tasking through multi-machine manning
• Reduction in non-productive activities
• Implementation of TPM & Kaizen

The ‘Platform Concept’ helped the company?

• Focus on customer requirement.

• Concurrent engineering: Formation of cross functional teams
• Formation of 3 full-time teams
• 1: Improvements in existing products
• 2: Up-gradation of existing products
• 3: Development of new products

Page
9
Results

Around a 100 officers produced 35 engines a day as compared to the 1200

employees producing 70 engines in the pre-BPR days.

• Igatpuri Plant: Employees declined by 400 but productivity went up by

125 engines per day.
• Nasik Plant: 125% improvement in productivity.
• Reduction in employee costs 1994:12.4% & 1996:10.1

Value added per employee increased from 0.3 million to 0.46 million.

“BPR was a way of reengineering our plants and making them viable in a
competitive environment” .

– Anand Mahindra

• Better inventory control.

• Better sourcing.
• Better order distribution across plants.
• Online availability of data.
• Transparent access to data.
• Process transparency.
• Integrated sales and supply chain.

BPR implementation in M&M had seen radical change for the better not only in
its functions but also in its results. This can be summed up with the statement of
Anand Mahindra “Today the atmosphere is so different that every morning all the
workers recite the company oath, which is a sea change from the situation 10 years
ago when workers used to play cards on shop floor during working hours.”

Page
10
 Dakshata Naik(82)

BPR and ERP

Simultaneously module-by-module. Why reinvent the wheel? Why not adopt

proven world-class business practices, as a part of ERP solutions? Why copy a
best-in-class practice of the same industry, when each enterprise has a different
market segment, customer expectations and overall unique business within the
same industry? Why not copy best practices of other industries? (e.g., copy best
distribution process of paint manufacturer for a detergent manufacturer).

Why aim for major changes (both BPR and ERP) which a company cannot sustain
and risk failure (as clear from many not-so-successful implementations of both
BPR and ERP)? Can we afford a long and time consuming process of
implementation (2-4 years) to face the 3C Crisis?

However, with time, BPR has become more and more dependent upon the
availability of ICT; on the other hand, ERP has been upgrading itself in terms of
adapting various proven good business processes in the industries. Many of the
business ‘transformations’ are possible because of availability of ERP with high
ICT. Similarly, many of the good proven industry-wise ‘transformed’ business
processes have been built in as business templates in ERP solutions.

Since all the arguments and counter-arguments are justified to some extent, there
may not be one best answer to the problem of making the right choice for the top
management. However, if the main consideration for top management is ‘Time’
and the ‘Cost’ resource for implementation, it would be wiser to go in for a Big
Bang approach (Choice 2). This is because of the following reasons:

a) The present state of ERP solutions, if honestly supported by the

top management, with the help of business modelers and a good
seasoned vendor can be implemented in a ‘short duration’ of 5 to 7
months.

b) The explicit and implicit benefits of ERP solutions start getting

realized immediately.

Page
11
 c) Most of the reputed ERP solutions are quite flexible and support
ability to adopt any reengineered process quickly. Therefore, as
processes are being reengineered, those can be adopted as and when
finalized, without having to change the ERP much.

d) Although adaptation to the accepted best-in-class practices may

not be the best for the unique requirement (and positioning) of the
enterprise, if chosen judiciously, many of those accepted processes as
a base may help to get the benefits faster. The process of BPR,
however, can continue process by process, depending upon the
criticality and urgency of the process.

e) Having gained experience in business modelers, best-in-class

processes and ERP implementation, the organization may not require
external consultants for reengineering the processes. It may be done
by internal trained resources.

Thus, this approach (Choice 2) can take advantage of both time and cost and
generally be more effective. It must be reiterated here that in order to meet the 3C
crisis, the enterprises have to take benefits of both ERP and BPR. They have to
view these as complementary to each other rather than conflicting with each other.
But what is most critical in all this is that, in overselling both BPR and ERP, top
management should not overlook their limitations. Both BPR and ERP only help
the tactical decision on ‘how’ to do their business, rather than helping strategic
decision on what business to do.

The difference between BPR and ERP

It is clear from the fundamental definition that BPR and ERP are quite different
from each other. While BPR focuses more on the transformation aspect of the
business processes, using innovative business concepts, ERP focuses on the
automation aspect of the business processes, using ICT to achieve the same
objective.

This can be explained by an example. If a large fertilizer plant has two strong
functional departments (namely operations and maintenance) located far from each
other, there will be considerable delay in sending a work order from the operations

Page
12
department to maintenance department in case of an equipment breakdown. This
delay would result in low availability of the equipment, hence, higher costs and
longer lead times.

An ERP can make the delay almost zero, where work order generation and
communication is automatic and instant, thereby reducing the delay in attending it,
increasing the availability of the equipment and decreasing cost. A BPR, however,
may result in drastically changing the business process, where there are no separate
departments for operation and maintenance. Additionally, maintenance (at least
95% of the cases, except where exceptionally high expertise is required) may also
be required to be carried out by the operations man.

This would not only make him more responsible for operations but also eliminate
the need for generating a work order for maintenance department. Of course, this
will lead to multi-skills concepts etc. This BPR would also increase the availability
of the machines (by eliminating delays), reduce cost etc. and may not need
automation at all. Thus, the approach of BPR and ERP can be quite different in
achieving the same goal —more availability of equipment and lesser cost.

The relationship between BPR and ERP

For instance, many ERP solutions have graduated from the APICS definition and
presently include many features like human resource management modules, supply
chain modules (linking suppliers and customers), product data management,
electronic data interchange, engineering change management, multi-currency and
multi-location plants facilities, which is allowing many drastically transformed
business processes to be adopted quickly.

Most consultants take advantage of this overlap and confusion. They talk, whatever
is convenient, at the point of sale to puzzled Indian executives, in order to clinch
the deal and meet their own business interests. The fact is that both ERP and BPR
go hand in hand to helping companies face the 3C crisis.

When it comes to overcoming the 3C crisis, BPR and ERP are complementary to
each other. But questions which top management may ask are:

Page
13
Whether to transform the business processes first through BPR and then adopt
ERP; or first adopt an ERP solution with world-class proven practices and then
keep on doing reengineering: or adopt them together, business process module
wise, one after the other, till the complete business is covered.

The arguments and counter-arguments for these three routes are presented in Table
below:

Arguments, counter arguments for BPR, ERP sequencing

BPR before ERP Argument Counter argument

ERP before BPR Why customize a BPR on Why take a very long time
ERP which may not be (1-3 years) to implement
required at all after BPR?BPR (involving major
(e.g., maintenance work organizational changes,
order generation process job profile changes and
mentioned earlier) workflow path changes?)
Maybe ‘too late’ to take
advantage of ERP

Siddhi Naik()

Page
14
 Similarities between ERP and CRM

Attribute Similarity Significance

How these applications Companies have the By synchronizing these
help businesses same goals pertaining to areas, companies can
the effectiveness and expect to increase
performance of CRM, profitability, become
and ERP systems more competitive, and
support ground-
breaking business
techniques (become
more modernized)
Effective application CRM, and ERP With these four
qualities systems rely heavily attributes, CRM, and
containing the ERP systems are much
following attributes: more effective in
flexibility; modular meeting the goals of the
(being able to support business; if one quality
many different is missing from a
platforms); certain application, the
comprehensive (the effectiveness of the
ability to support a wide entire system
range of organizational consequently decreases
functions); and beyond and is therefore
the company unsuccessful in
(connecting achieving the
organizations with aforementioned goals
partners and customers)

Difference between ERP and CRM

Page
15
ERP stands for “Enterprise Resource Planning.” ERP software is a system that
allows medium-to-large businesses to automate their distribution, financial, human
resources, manufacturing, marketing, sales, and project management functions.
When it comes to high-end corporate software, ERP is often about as ambitious as
it can be.

CRM stands for “Customer Relationship Management.” CRM software focuses on

the interaction a company maintains with its customers. In short, it’s all about the
customers. The premise is simple: keep better track of your contacts and you close
more sales while maintaining a happy customer base. If you take care of those
customers, they’ll keep coming back for more.

While CRM focuses squarely on the customer, ERP takes in a much broader view–
it’s there to run the whole business, not just marketing and sales. Many software
vendors will integrate CRM within a corporate-wide ERP system.

Attribute CRM ERP Significance

Use Managing the Integrating all All of these areas

aspects of a departments of deal with the
customer’s an organization effectiveness of
relationship to into a single, certain aspects of
an comprehensive organizations in
organization IT system order to
accomplish
goals: SCM
looks to
maximize supply
chain
profitability;
CRM aims to
increase
customer loyalty
and retention;
and ERP strives

Page
16
 to universalize
organizations so
decisions can be
made by looking
at all of the data

Users Sales, Accounting, Even though the

marketing, finance, users are
customer logistics, different, the
service production applications are
interdependent;
they rely on one
another to ensure
a successful
customer value
delivery system
Business Benefits Sales Forecasting, All systems
forecasts, planning, allow for
sales purchasing, different business
strategies, material benefits which in
marketing management, turn add to the
campaigns warehousing, effectiveness of
inventory, the business
distribution itself; its
productivity and

Page
17
 overall stance in
the business
world
Leading Vendors Siebel, PeopleSoft, Because there is
Oracle, Oracle, SAP not necessarily
PeopleSoft one single vendor
that can supply
an organization
with software for
all three systems,
the goal becomes
to find a way to
synchronize all
of the systems; to
have them work
together for
maximum
efficiency

Naini Nair(86)

Page
18
 Enterprise Resource Planning
ERP, which is an abbreviation for Enterprise Resource Planning, is
principally an integration of business management practices and modern
technology. Information Technology (IT) integrates with the core business
processes of a corporate house 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 wide
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 in turn influences
their decisions in a productive way. At the
core of ERP is a well managed centralized
data repository which acquires information
from and supply information into the
fragmented applications operating on a
universal computing platform.

Information in large business organizations is accumulated on various

servers across many functional units and sometimes separated by geographical
boundaries. Such information islands can possibly service individual organizational
units but fail to enhance enterprise wide performance, speed and competence.

The term ERP originally referred to the way a large organization planned to
use its organizational wide resources. Formerly, ERP systems were used in larger
and more industrial types of companies. However, the use of ERP 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 and of any magnitude.

Today's ERP software architecture can possibly envelop a broad range of

enterprise wide functions and integrate them into a single unified database
repository. For instance, functions such as Human Resources, Supply Chain

Page
19
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,
but 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 wide collection of functionalities supported by features like
flexibility, modularity & openness, widespread, finest business processes and
global focus.

Integration is Key to ERP System

Integration is an exceptionally significant ingredient to ERP systems. The
integration between business processes helps develop communication and
information distribution, leading to remarkable increase in productivity, speed and
performance.

The key objective of an ERP system is to integrate information and

processes from all functional divisions of an organization and merge it for
effortless access and structured workflow. The integration is typically
accomplished by constructing a single database repository that communicates with
multiple software applications providing different divisions of an organization with
various business statistics and information.

Although the perfect configuration would be a single ERP system for an

entire organization, but many larger organizations usually deploy a single
functional system and slowly interface it with other functional divisions. This type
of deployment can really be time-consuming and expensive.

The Ideal ERP System

An ERP system would qualify as the best model for enterprise wide solution
architecture, if it chains all the below organizational processes together with a
central database repository and a fused computing platform.

• Manufacturing Engineering, resource & capacity planning, material

planning, workflow management, shop floor management, quality control,
bills of material, manufacturing process, etc.
• Financials Accounts payable, accounts receivable, fixed assets, general
ledger, cash management, and billing (contract/service) Human Resources

Page
20
 Recruitment, benefits, compensations, training, payroll, time and attendance,
labour rules, people management Supply Chain Management
Inventory management, supply chain planning, supplier scheduling, claim
processing, sales order administration, procurement planning, transportation
and distribution
• Projects Costing, billing, activity management, time and expense
• Customer Relationship Management Sales and marketing, service,
commissions, customer contact and after sales support
• Data Warehouse Generally, this is an information storehouse that can be
accessed by organizations, customers, suppliers and employees for their
learning and orientation.

ERP System Improves Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had
their own isolated software application which did not interface with any other
system. Such isolated framework could not synchronize the inter-department
processes and hence hampered the productivity, speed and performance of the
overall organization. These led to issues such as incompatible exchange standards,
lack of synchronization, incomplete understanding of the enterprise functioning,
unproductive decisions and many more.

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, workflow synchronization, standardized information
exchange formats, complete overview of the enterprise functioning, global decision
optimization, speed enhancement and much more.

Implementation of an ERP System

Implementing an ERP system in an organization is an extremely complex
process. It takes lot of systematic planning, expert consultation and well structured
approach. Due to its extensive scope it may even take years to implement in a large
organization. Implementing an ERP system will eventually necessitate significant
changes on staff and work processes. While it may seem practical for an in-house
IT administration to head the project, it is commonly advised that special ERP
implementation experts be consulted, since they are specially trained in deploying
these kinds of systems.

Page
21
Organizations generally use ERP vendors or consulting companies to implement
their customized ERP system. There are three types of professional services that
are provided when implementing an ERP system, they are Consulting,
Customization and Support.

• Consulting Services - are responsible for the initial stages of ERP

implementation where they help an organization go live with their new
system, with product training, workflow, improve ERP's use in the specific
organization, etc.
• Customization Services - work by extending the use of the new ERP system
or changing its use by creating customized interfaces and/or underlying
application code. While ERP systems are made for many core routines, there
are still some needs that need to be built or customized for a particular
organization.
• Support Services - include both support and maintenance of ERP systems.
For instance, trouble shooting and assistance with ERP issues.

ERP implementation process goes through five major stages which are Structured
Planning, Process Assessment, Data Compilation & Cleanup, Education & Testing
and Usage & Evaluation.

1. Structured Planning: is the foremost and the most crucial stage where an
capable project team is selected, present business processes are studied,
information flow within and outside the organization is scrutinized, vital
objectives are set and a comprehensive implementation plan is formulated.
2. Process Assessment: is the next important stage where the prospective
software capabilities are examined, manual business processes are
recognized and standard working procedures are constructed.
3. Data Compilation & Cleanup: helps in identifying data which is to be
converted and the new information that would be needed. The compiled data
is then analyzed for accuracy and completeness, throwing away the
worthless/unwanted information.
4. Education & Testing: aids in proofing the system and educating the users
with ERP mechanisms. The complete database is tested and verified by the
project team using multiple testing methods and processes. A broad in-house
training is held where all the concerned users are oriented with the
functioning of the new ERP system.

Page
22
 5. Usage & Evaluation: is the final and an ongoing stage for the ERP. The
lately implemented ERP is deployed live within the organization and is
regularly checked by the project team for any flaw or error detection.

Advantages of ERP Systems

There are many advantages of implementing an EPR system. Few of them are
listed below:

• A perfectly integrated system chaining all the functional areas together

• The capability to streamline different organizational processes and
workflows
• 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 rethought 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

Nishant Nair(87)

Relationship betweenCRM,BPR&ERP

Page
23
Customer relationship management (CRM):-

 Customer relationship management (CRM) – involves managing all

aspects of a customer’s relationship with an organization to increase
customer loyalty and retention and an organization's profitability

 Many organizations, such as Charles Schwab and Kaiser Permanente,

have obtained great success through the implementation of CRM systems

 CRM is not just technology, but a strategy, process, and business goal that
an organization must embrace on an enterprisewide level

 CRM can enable an organization to:

• Identify types of customers

• Design individual customer marketing campaigns

• Treat each customer as an individual

• Understand customer buying behaviors

customer relationship management generally denotes a company-wide

business strategy embracing all customer-facing departments and even
beyond. When an implementation is effective, people, processes, and
technology work in synergy to develop and strengthen relationships, increase
profitability, and reduce operational costs

Norm Francis, founder of Pivotal Software (1994), and a co-founder of Basis

Software Group (BSG) the company that developed ACCPAC, an
accounting software package (purchased from Norm by Computer
Associates in 1985), invented the concept of 360-degree customer
relationship management, a concept that continues to be used today to

Page
24
 describe the unification of activities across the organization by employees
who play a role in the customer relationship

CRM Overview

BUSINESS PROCESS REENGINEERING(BPR):-

 Business process – a standardized set of activities that accomplish a specific

task, such as processing a customer’s order

 Business process reengineering (BPR) – the analysis and redesign of

workflow within and between enterprises

 The purpose of BPR is to make all business processes best-in-class

Page
25
  Reengineering the Corporation – by Michael Hammer and James Champy -
recommends seven BPR principles

Business process reengineering (BPR) is a 'free marks' question for any

management student. Like every management article, I begin it with a definition,
leading on to the process and its pros and cons. Read on to find out if you're indeed
efficient, or merely just effective.

 Hammer and Champy, its first proponents, define BPR as - "The

fundamental reconsideration and the radical redesign of organizational
processes, in order to achieve drastic improvement of current performance in
cost, services and speed."

For the non-management people's benefit, I'd define it as the difference

between efficiency and effectiveness. While effectiveness entails doing the
right things in a goal-oriented manner, efficiency is doing the right things in
a process-oriented way.

Page
26
Finding OPPORTUNITY USING BPR

 Types of change an organization can achieve, along with the

magnitudes of change and the potential business benefit

Enterprise resource planning (ERP):-

 Enterprise resource planning (ERP) – integrates all departments and

functions throughout an organization into a single IT system so that
employees can make decisions by viewing enterprise wide information on all
business operations

ERP SOFTWARE

 ERP functions offered by all ERP vendors include:

Page
27
 • Finance, accounting, sales, marketing, human resources, operations,
and logistics

• ERP vendors differentiate themselves by offering unique

components including:

• CRM, SCM, and BI

• According to Gartner, the average failure rate for an ERP project is

66 percent

 The initials ERP originated as an extension of MRP (Material

Requirements Planning; later manufacturing resource planning) and CIM
(Computer Integrated Manufacturing). It was introduced by research and
analysis firm Gartner in 1990. ERP systems now attempt to cover all core
functions of an enterprise, regardless of the organization's business or
charter. These systems can now be found in non-manufacturing businesses,
non-profit organizations and governments.

 To be considered an ERP system, a software package must provide the

function of at least two systems. For example, a software package that
provides both payroll and accounting functions could technically be
considered an ERP software package.

 Examples of modules in an ERP which formerly would have been stand-

alone applications include: Product lifecycle management, Supply chain
management (e.g. Purchasing, Manufacturing andDistribution), Warehouse
Management, Customer Relationship Management (CRM), Sales Order
Processing, Online Sales, Financials, Human Resources, and Decision
Support System.

 This is common to retailers, where even a mid-sized retailer will have a

discrete Point-of-Sale (POS) product and financials application, then a
series of specialized applications to handle business requirements such as
warehouse management, staff rostering, merchandising and logistics.

 Ideally, ERP delivers a single database that contains all data for the various
software modules that typically address areas such as:

Page
28
 Manufacturing

 Engineering, bills of material, scheduling, capacity, workflow

management, quality control, cost management, manufacturing process,
manufacturing projects, manufacturing flow

 Supply chain management

 Order to cash, inventory, order entry, purchasing, product configurator,

supply chain planning, supplier scheduling, inspection of goods, claim
processing, commission calculation

 Financials

 General ledger, cash management, accounts payable, accounts receivable,

fixed assets

 Project management

 Costing, billing, time and expense, performance units, activity

management

 Human resources

 Human resources, payroll, training, time and attendance, rostering, benefits

Page
29
 Pragin Nair(88)

Advantages and Disadvantages of the CRM

The main advantage that brings harnessed the implementation of the

Administration of the Relationships with the Clients in a enterprise is the increment
of the information that this have of its current and potential clients, what allows to
address the offer toward its desires and necessities, increasing this way the grade of
satisfaction and optimizing its cycle of life.

Other advantages that brings harnessed the implementation of the CRM is the
increases of the sales and the reduction of the sale cycle. The disadvantages are so
much related with the high costs that has the application of CRM, in terms of
economic Resources as likewise human, and with the difficulty that has the
handling of the given information the reticence of some sectors to share it and also
to the risk of to invade the client's privacy and to expose it to situations not wanted

Page
30
The micro and small company’s have the advantage of having less clients and less
personal what facilitates him the handling of the information and makes difficult
the appearance of problems to share it.

The fact of managing a low flow of information also reduces since the costs many
times it is not necessary to acquire a special software to make it but rather you can
take manually or in simple programs as the Access.

A problem that you can sometimes present in the company’s of smaller size is the
lack of formalization of the procedures and the lack of the employees' interest for
submit in the importance that they have these and in the philosophy of work of the
company.

Benefits of CRM
Shared or distributed data
As companies realize that customer relationships are happening on many
levels (not just through customer service or a web presence), they start to
understand the need for sharing all available data throughout the organization.
A CRM system is an enabler for making informed decisions and follow-up, on
all the different levels.

Cost reduction
A strong point in Customer Relationship Management is that it is making
the customer a partner in your business, not just a subject. As customers are
doing their own order entry, and are empowered to find the info they need to
come to a buy decision, less order entry and customer support staff is needed.

Page
31
Better Customer Service
All data concerning interactions with customers is centralized. The customer
service department can greatly benefit from this, because they have all the
information they need at their fingertips. No need to guess, no need to ask the
customer for the n-th time. And through the use of push-technology, customer
service reps can lead the customer towards the information they need. And,
most of the time, the customer can do this on their own, as the CRM system
(remember, the 3 P's) is more and more able to anticipate the need of the
customer. The customer experience is greatly enhanced.

Increased Customer Satisfaction

The customer feels that he is more "part of the team" instead of just a subject for
sales and marketing (the proverbial number), customer service is better, his
needs are anticipated. There is no doubt that customer satisfaction will go up. If
the products sold exceed the customers expectation, of course, no

CRM system can help you with shoddy products. In my opinion, the term
statisfaction is a contaminated. Many companies think that if customers are
satisfied that this is a good predictor for repeat business. However, this is not
the case. Only delighted customers have a great level of loyalty.

Better Customer Retention

If a CRM system can help to enchant customers, this will increase customer
loyalty, and they will keep coming back to buy again and again, hence customer
retention.

Loyal customers
Need I say more? Q.E.D.

More repeat business

The repeat business is coming from the delighted customers, who are turned
from doubting clients into loyal advocates.

More new business

If you are delivering the ultimate customer experience, this will seed the word-
of-mouth buzz, which will spawn more new business.

Page
32
 More Profit!
More business at lower cost equals more profit.

CRM Infrastructure is like a complex factory set up to enable customer

transactions and record data.

CRM Infrastructure is complex, both in terms of gathering data and in terms

of delivering services. Examining both sides not only highlights the complexity,
but also reveals obstacles that prevent current infrastructure from providing Final
Mile functionality.

On the data side, the CRM infrastructure has evolved from large-scale data
management projects including Data Warehouses and Data Marts. These projects
have focused on extracting data from sales order systems, provisioning systems,
and customer service systems, and placing the data in a neatly defined, easily
accessed master database.

The requirements for handling data in this fashion are intricate and involve many
steps. A small army of information technology personnel must be used to access
legacy systems, create standardized "meta-databases" with data definitions,
establish data conversion and standardization procedures, schedule data loads,
integrate query tools, and define processes to analyze and report on the data.

All of this work generates a standardized, 360-degree view of customers that can
by used to service the customer through any channel. But this is an operational
problem, not a marketing problem. The Final Mile issue for marketing is to convert
data to “business intelligence” to support short term, tactical campaigns targeted at
customers and/or prospects

Page
33
 Shreeja Nair(89)

INTRODUCTION
The customer relationship management (CRM) is essential and vital function of
customer oriented marketing. Its functions include gathering and accumulating
customer-related information in order to provide effective services.

E-CRM is a combination of IT sector but also the key strategy to electronic

commerce. e-CRM is a combination of software, hardware, application and
management commitment.

Aim of e-CRM system is to improve customer service, develop a relationship and

retain valuable customers. e-CRM is a concern for many organizations especially
banking sector.

The purpose of this study is to gain a better understanding of the benefits e-CRM to
customers and organization in banking industry.

Page
34
To justify the purpose two research questions have been addressed and on the basis
literature review, a frame of reference was developed which helped us to answer
the research questions and collect data.

IMPLEMENTATION OF CRM & E-CRM

Who? What?

A leading with two Swedish banks needed help on a complex project, which had a
fixed schedule and budget.

The project involved customization and integration of a packaged framework

product. With a track-record of delivery in the organization as well as strong
capabilities in Enterprise Architecture and integration, J2EE and Forte, Thought
Works were selected for the job.

Why?

The bank was using multiple customer service platforms. All of them were 'one-
off' solutions designed exclusively for a specific product line.

The client needed a common platform that was scalable both functionally and
technically as well as allowing them to use their customer service staff more
efficiently and offer consistent customer service across all product lines.

How?

The customer contact management system was based on Cordiant version 3.5. This
framework supported extensive customization using Java for the development of
all desktop, Web and CTI components and Forte for all data access, legacy
integration and workflow.

Thought Works' Agile techniques were used to provide a platform for all call
centers and to serve as the system of record for all customer interactions with the
bank regardless of channel type.

The Results?

Page
35
ThoughtWorks and the client team working together delivered the customer
contact management system on time, within budget and with additional
functionality. Benefits of the new platform include:

1. Enabled customer service personnel to support multiple product lines with

ease
2. Streamlined training of new staff
3. Contribution to more efficient customer service
4. Improved integration between front-line customer service personnel and
back-office personnel
5. Improved user experience.

The format of the project also served as a basis for improvements to the
development process for ongoing work within the client's IT department.

The new system supports several product lines and plans are in place for it to
become the default service desktop for the entire company.

A qualitative research approach was used for this study. Empirical data was
collected through in-depth interviews were conducted with two Swedish banks and
a group of their customers.

In the last chapter findings and conclusions were drawn on the basis on research
questions. Our findings indicate that Swedish banks are well aware of the benefits
and applications of the e-CRM and use the system to maintain good relationships
with their customers.

Our findings also indicate that with the implementation of e-CRM and the latest
technologies. We have found that both the banks seem to have same description
about the benefits of e-CRM.

We found that both banks have maintained good relationships with customers due
to the usage of e-CRM. Our finding indicates that with the implementation of e-
CRM and the latest technologies banks have ensured full security for the
transactions of their customer's.

E-CRM facilitates the organizations to provide one to one services and also
maintain the transaction security of the customers.

Page
36
 Soumya Nair(90)

Page
37
i