Professional Documents
Culture Documents
SUBMITTED TO
RESP. MRS. SHWETA SHARMA MAM FACULTY IPM, MEERUT
SUBMITTED BY
VIVEK RANJAN PGDM BATCH-2010:2012 IPM, MEERUT
ACKNOWLEDGEMENT
I would like to show my gratitude and respect to Mrs. Shweta Sharma Ma'am, for providing me with the golden opportunity to prepare an intellectual report on Customer Relationship Management. It is a great experience to go through in depth study of the customer service and support of Ericsson.
I am grateful to Resp. Mrs. Shweta Sharma Ma'am, for guiding me throughout the preparation of report, without her kind support it would have been difficult for me to complete the report so meaningful and interesting in a short period of time.
I thank her whole heartily for her consent encouragement, warm response and for filling every gap in my personal development and knowledge enlightens and valuable idea that made this assignment successful.
I personally feel that this kind of project work would help us in future to understand the customers need in the market place and help me to contribute in the success of the organization.
C R M
INTRODUCTION In todays competitive market driven economy it is not only sufficient to provide your customers with the best service levels and customer experience over the short-term, but also analyze the transactional information to develop better services and products for your customer over the long run through the discovery of not-so-obvious insights into customers wants and needs.
WHAT IS CRM? CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness responsiveness and marketing.
ADVANTAGES OF CRM
Shared or distributed data Cost reduction Better Customer Service Increased Customer Satisfaction Better Customer Retention Loyal customers More repeat business More new business More Profit
DISADVANTAGES OF CRM Lack of formalization of the procedures. Lack of the employees' interest.
Listen to your customers Gaining new customers Test everything you do for effectiveness Treat your staff with extreme care and attention.
REASON TO FAIL CRM CRM initiatives launched without a strategy. The CRM strategy is not integral to the business strategy The CRM toolset is based on someone elses success. CRM is launched with no regard for enterprise or customer interfaces. CRM is launched without customer input. CRM is considered an IT project not business initiatives leveraging technology. CRM is launched without defined metrics and objectives CRM is considered a one-time event. Assume you have a customer-centric culture because you have customers No top down leadership and employee buy-in for CRM. CRM SERVICE OFFERING CONSULTING
Feasibility Analysis Technology Evaluation & Selection Project Scoping Metrics Reporting & ROI Proof-of-Concept development Application Audit & Health Check
IMPLEMENTATION
Implementation Strategy Functionality Mapping & Gap Analysis Data Migration, Conference Room Pilot & Training Full Cycle Implementations & Deployment Global Rollouts Release Management
UPGRADE SERVICES
Application/Product Upgrade Database Upgrade Data Conversion and Migration Object Migration
WHY CHOOSE CRM CRM (Customer Relationship Management) software aids in increasing efficiency, serves to aid the sales department in all of its efforts, manages to boost sales, and fundamentally contributes to the overall development of the company. It also manages to work towards organizational goals. This is achieved through a concise study of potential customers.
Their preferences are taken into consideration and used to coordinate and implement a customer centric business strategy that focuses primarily on the customer, yields to recording the importance of his ideas and suggestions and results in increased customer retention. OPT FOR CRM Why CRM? CRM solution helps to reduce the time required for sales cycles while hanging onto potential sales leads. Customer retention is also maximized. Sales orders and sales revenues increase as a matter of increased organization growth.
CRM facilitates growth in that it aids the reduction of costs and the increased availability of information to the organization - that can be used according to customer information requirements. This information is increasingly
important to an organization and can prove to make the difference between success and failure.
CRM IS REWARDING The benefits of CRM are enormous.The marketing department is yet another department that stands to gain enormously as CRM aids in marketing functions. The customer centred strategy that provides information on potential customers, boosts the marketing function by providing the marketing department with a clear idea of what the customer needs are and enables them to work accordingly. PRIVACY AND DATA SECURITY One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for Customer Privacy and data security, as well as and legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.
MARKET STRUCTURE The following table lists the top CRM software vendors in 2006-2007 (figures in millions of US dollars) published in Gartner study
Vendor
2007
2007
2006
2006
'06-'07
SAP
2,050.8
25.3
1,681.7
26.6
22.0
Oracle
1,319.8
15.3
1,016.8
15.5
29.8
Salesforce.com
676.5
8.3
451.7
6.9
49.8
Amdocs
421.0
5.2
365.9
5.6
15.1
Microsoft
332.1
4.1
176.1
2.7
88.6
Others
3,289.1
40.6
2,881.6
43.7
14.1
Total
8,089.3
100
6,573.8
100
23.1
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prime driver in an all-communicating world and the company aims at making its customers successful through innovative end-to-end solutions, evolution and enhancement of their networks, cost-efficient management of these networks and responsiveness to the customers needs. Ericsson perceives their competitive advantage to be technology leadership, innovative end-to-end solutions, strong, long-term customer relationships, and the largest customer base within the telecom business world-wide and operational excellence.Ericsson has always been a leader in driving
technology forward, switching from telegraph to telephone all the way to the roll out of 4G. Ericsson has helped form the industry's standards, from NMT and GSM to LTE. Ericsson also has one of the richest telecom heritages and was one of the first companies to establish operations overseas. Even when the company was in its infancy, the founder decided to open a production facility in St. Petersburg, Russia And today Ericsson has continued to expand and innovate to make telecom services affordable and available to all, just as Lars Magnus Ericsson set out to do in 1878 when he sold his first phones. As the business environment is constantly evolving there is the need for
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solutions that takes care of the needs of the customers without increasing the costs. The enterprise services of Ericsson helps the enterprises to get the maximum value from the communications solutions. The company takes charge of all the network as well as service operations thereby allowing the customer to focus on the core business.
There has been an increase in the telecom operators arena in the past few years. It is important that the operators are aware of the strategic choices and how to manage the network. Ericsson has also acquired the expertise to work with different operators so as to create the best possible market proposition. Ericsson has offices and operations in more than 180 countries, with more than 17,700 staff in Sweden, and also significant presences in, for example, Brazil, China, Finland, India, Ireland, Italy, Hungary, the UK and the USA. In the early 20th century, Ericsson dominated the world market for manual telephone exchanges but was late to introduce automatic
equipment. The world's largest ever manual telephone exchange, serving 60,000 lines, was installed by Ericsson in Moscow in 1916. Throughout the 1990s, Ericsson held a 35-40% market share of installed cellular
telephone systems. Like most of the telecommunications industry, Ericsson suffered heavy losses after the telecommunications crash in the early 2000s, and had to lay off tens of thousands of staff worldwide in an attempt to manage the financial situation, returning to profit by the mid-2000s. Ericsson is currently the world's largest mobile telecommunications
equipment vendor with a market share of 35%. Ericsson has the following segments: the Systems division that manages the fixed line as well as mobile telephone networks. There is the Phones division that is engaged in the distribution of the mobile handsets. The Other
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operations division focuses on miscellaneous operations including Ericsson Enterprise, Power Modules, Mobile Platforms and many more The
telecommunications crash that happened in the 2000s dealt a heavy blow to the company and it had to cut down on its workforce. However the company came together with Sony to introduce the Sony Ericsson handsets. The company is a leading provider of handsets as well as a supplier for a number of wireless technologies. It has a big contribution towards modernizing the existing copper lines so as to be able to provide broadband services.
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FEATURES & FUNCTIONS SAP Customer Relationship Management (SAP CRM) includes features and functions that support core business processes in the following areas:
Marketing
Analyze, plan, develop, and execute all marketing through all customer interaction points. This central
activities
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insights enabling you to make intelligent business decisions and to drive end-to-end marketing processes.
Sales Maintain focus on productive activity to acquire, grow, and
retain profitable relationships with functionality for sales planning and forecasting, territories, accounts, contacts, activities, opportunities, quotations, contracts.
Service Reduce the cost of service while enhancing customer
orders,
product
configuration,
pricing,
billing,
and
satisfaction with support for sales and marketing for service; service contract management; customer service and support; return and depot repair; field service management; maintenance; warranty parts and claim and
management;
installation
and
logistics
finance; and service analytics. Call centers, channel service, and eservice provide multiple channels for service delivery.
Partner channel management Attain a more profitable and loyal
indirect channel by managing partner relationships and empowering channel partners. Improve processes for partner recruitment, partner management, communications, channel marketing, channel
forecasting, collaborative selling, partner order management, channel service, and analytics for partners and channel managers.
Interaction center Maximize customer loyalty, reduce costs, and
boost revenue by transforming your interaction center into a strategic delivery channel for marketing, sales, and service efforts across all contact channels. Activities such as telemarketing, telesales, customer service, multifunctional shared service, and interaction center
the Internet into a valuable sales, marketing, and service channel for businesses and consumers. Increase profitability and reach new
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markets with functionality for e-marketing, e-commerce, e-service, and Web channel analytics. Deploy these capabilities directly against the SAP ERP application or with SAP CRM as a fully integrated customer channel.
Business communications management Improve contact center and
communication-dependent business process effectiveness and reduce costs through SAP Business Communications Management an allsoftware, IP-based communications solution, natively integrated with SAP CRM. Whether customers contact your company by phone, e-mail, chat, text message, or fax, SAP Business Communications Management routes the contact to the right person with the right skills, whether the person is in the office or working remotely all without the need for costly, cumbersome reducing hardware-based total cost of
communications ownership.
systems,
significantly
optimizes any decision-making process across all customer interaction channels, enabling you to take the most appropriate next action to enhance customer relationships and maximize your customers' lifetime value. SAP CRM also supports several industry-specific processes with functionality designed to meet the individual needs of diverse industry groups, for example:
Trade
promotion
management
Empowers
account
and
trade
managers to improve control and visibility of the entire trade promotion process. The end-to-end solution enables managers to accurately plan, maximize profitability and increase brand presence with trade activities.
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FEATURES & FUNCTIONS OF SAP CRM ERICSSON (E-COMMERCE) SAP CRM provides an e-commerce application that enables you to turn the Internet into both a profitable sales channel and an interaction channel for business customers and consumers. With SAP CRM, you can empower your customers with a personalized Web experience and convenient self-services. Plus, the application delivers a fully integrated Web channel, helping you strengthen sales and service operations while reducing transaction costs and customer service calls. SAP CRM enables a complete range of e-commerce processes, including: E-MARKETING
Support demand generation and customer loyalty processes via the
Internet.
Personalize your customers' Web experiences with the most relevant
additional revenue through a Web-based channel via support campaign for catalog management, customer content execution, segmentation,
comprehensive management,
management,
pricing
and
contracts,
interactive
selling
and
to-cash process.
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E-SERVICE
Offer your customers an intuitive channel to perform service tasks,
order status, obtaining order tracking information, managing accounts and payments, and researching and resolving product problems.
Service complex products that require sophisticated maintenance.
E-ANALYTICS
Gain insight into, analyze, and act on e-business trends. Measure and optimize the success of your Web shop and online
content.
Perform analysis across the breadth of marketing, sales, and service
from a Web perspective and track and use Web behavior to target customers and drive future marketing activities. FLEXIBLE IMPLEMENTATION OPTIONS FOR ERICSSONS CUSTOMERS SAP gives an easy way to leverage your existing SAP functionality and IT investments to build an e-commerce presence. You can implement the SAP E-Commerce application with your existing SAP ERP application for an entrylevel solution to quickly turn the Web into a profitable sales and interaction channel. The application supports end-to-end, order-to-cash processes with easy-to-use, interactive selling and self-services and provides an easy upgrade path to the complete SAP CRM application. In addition, customizable Web shop templates for different industries and business models, including B2B and B2C models, can speed the
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implementation of both SAP E-Commerce for SAP ERP and SAP E-Commerce for SAP CRM.
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ERICSSON: CUSTOMER RELATIONSHIP MANAGEMENT Ericsson is the largest supplier of mobile systems in the world with locations in 140 countries. Ericsson's customers are amongst the world's 10 largest mobile operators and approximately 40 percent of all mobile calls are made through Ericsson systems Ericsson's strategy is to achieve high performance in the services business, an area which has boosted financial performance for the company. Ericsson recognized the need to capitalize on this rapidly growing business. One of the company's first priorities was to move its Customer Service Request (CSR) handling process into one central solution. Ericsson selected SAP CRM because it had the functionality needed to revamp the CSR process. Ericsson's subsequent development releases included an upgrade to mySAP CRM 4.0. Accenture collaborated with Ericsson to transform the CSR handling process into one central service management solutiona global effort to consolidate functionality that had been regionally developed and supported. Accenture helped design the new solution and build the call center functionality. Accenture also developed the key performance indicator reporting solution, built on the SAP Business Information Warehouse technology. The new service management solution is helping Ericsson on its journey to achieve high performance. Ericsson's services business now has one central solution for the handling of approximately 100,000 CSRs annually by 8,000 service engineers. This implementationone of the largest to-date on the mySAP CRM platformhas enabled Ericsson to capitalize on one standard
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process with clear reporting information to achieve high performance in the services business.
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This client success story is one of several featured in Accenture's SAP Global Capabilities brochure. Ericsson's business is project based, comprising of designing and installing telecom infrastructure like radio base stations, switches and mini-links across the entire country. To minimize the "Time to Customer" from order receipt to site installation and handover, Ericsson uses SAP-PS extensively and in a very integrated manner. SAP-PS is also used for managing investments on in-house and R&D projects. Ericsson uses SAP-CS and PM to handle the Repair Center functions, customer field support services, warranty support, in-house maintenance, and training functionality. Study of the As-Is business processes and collecting User
Requirements. Mapping the MUS (Market Unit Solution) template to meet end-user requirements. Development of the Business Blueprint covering the choice of functionality and explanations of enhancements to cover the requirement gaps with respect to the template. Development of prototypes to demonstrate the functionalities in the business blue print and obtaining the user acceptance for these prototypes. Configuring the PS, PM and CS module as apart of the realization phase. Interaction with ABAP/4 consultants for functional specifications and developments like Stock Peek Report, Aid to Cost Planning, Interface with Web based Site Tracking Project Management tools and Non Valuated Project Stock View reports. Development of customized PS, PM and CS reports to meet end user requirements Planning and implementing the Tasks and Roles for all PS/PM/CS Users within the security guidelines and business requirements at each Ericsson Company.
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Documentation of the User training manuals and coordinating and conducting end user training. Migration of legacy project and sales data, including WBS Elements, Networks, Sales Orders, Task Lists, Contracts, Equipment, Functional Locations, Service Orders and Materials on network activities. Providing cross-functional (SD, PM, CS, PS, MM, CO, CATS) post-go live support for all Project and Service related Business scenarios. SAP-PS, IM and Interface Functionality Implemented: Ericsson uses SAPProject Systems very extensively for all infrastructure projects for its customers, as well as for its own in-house R&D projects and capital investments. The implementation involved full integration functionalities of the Project Systems module with Sales and Distribution, Materials Management, Finance, Investment Management and Controlling. Some examples of using the PS and IM modules for improving lead time and saving cost at Ericsson are The creation of Sales Orders triggers the creation of networks from a standard template, which schedules the project activities and does preliminary cost planning immediately. Capacity planning and Resource planning are used to accurately assess the manpower available for fulfilling project requirements and assign specific personnel to the various project activities. Budgeting and availability control is implemented to allocate funds to perform site activities, and send a mail to the project manager in the event of the budgets being exceeded. Material requirements for a project are established using a separate configurator. These materials are then assigned to the network using an interface, which has been developed to save, time and cost.
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Project MRP is used to procure materials directly to the project, which means lower stock levels and minimization of obsolescence in the warehouse. Milestone billing is used to trigger invoicing as soon as certain activities were confirmed on projects. CATS (Cross Application Time Sheet) is used to accurately capture work done on each project. This enables easily differentiating productive time spent on projects, vis--vis time spent outside of project activities. CATS is linked by an interface that has been developed, with the payroll software. Integration with Controlling includes Results Analysis, Settlement, Incoming Orders and Earned Value Analysis (Progress Analysis) Internal projects are monitored and controlled using the Investment Management functionalities of Program budgets and Investment measures. This provides a good control of the use of corporate funds in R&D and other projects. Overhead costing sheets are used to plan indirect costs on projects and book these costs incurred on the various cost centers to the projects. Ericsson had a legacy system that used procurement to stock. Since procurement to project stock does not take existing stocks into consideration, a report has been developed which peeks into plant stocks and project returns before initiation of project related
Implemented: Ericsson uses SAP PM and CS for handling service contracts and adhoc support services that it provides to all internal and external customers after project completion. CS and PM are also used to handle customer-
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training functions. Some examples of SAP - PM and CS functionalities implemented at Ericsson are Functional Locations and Equipment to handle the installed base of customers Notifications (Work Requests, Malfunction Reports, Queries) to log in customer calls Task lists to record standard work instructions for use in service orders CS Contracts to handle Warranty Contracts, General Service Contracts and Resource Related Billing Contracts. Sales of Services (Sales Orders) to handle and Spare Parts sales, adhoc support, periodic billing and free of charge services. PM Work Orders and Service Orders to collect costs incurred in support to be settled to a cost center or to a sales order or a contract CATS for time recording on service Orders and PM Work Orders. Period End Closing, including Results Analysis and Settlement.
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1. SAP-R/3 (4.0B) - Web Interface - Implementation at Mahindra & Mahindra: Jul 2000 to Feb 2001 Business Analyst and Consultant, SAP R/3 and Internet Technologies, Responsible for designing Dealer and Supplier Connect web applications to reduce supply and procurement lead times. Modules: MM/SD Implementers: Mahindra Consulting Ltd Mahindra & Mahindra Ltd. is India's leading manufacturer of medium utility vehicles and tractors and has implemented SAP R/3 for their manufacturing facilities. With over 500 dealers across the country and over 2000 suppliers, internet technologies offered excellent opportunities to reduce costs by reducing lead time and improving efficiencies by bridging the communication gap along the supply chain. As a Business Analyst and Consultant, his role included Developing the specifications for data inflow and outflow between SAPR/3 database and the database server for the internet application Designing the functionalities of the web application, including For Dealer Connect: Order Placement; Order Status reporting; Payment position and Credit position; Delivery and Invoicing. For Supplier Connect: Request for Quotation; PO placement; PO Amendment; Delivery Schedules; Receiving and Inspection Reports and Payment position; Testing the prototype and getting approvals from the business
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2000
Consultant, SAP R/3 PS, PM and IM module, and responsible for the "Internal Projects" business process for petroleum refinery projects and franchisee gas stations. Modules: PS, IM, SD, MM, PP, FI, CO, PM Team Size: 6 (Project Systems) Implementers: SAP India Bharat Petroleum, is India's second largest oil company in terms of market share, and has a turnover exceeding USD 6.5 billion. The company produces a diverse range of products, from Petrochemicals and Solvents to aircraft fuel and specialty lubricants and markets them through over 4500 Petrol Stations and over 1300 LPG distributors, besides supplying fuel directly to hundreds of industries, and several international and domestic airlines Bharat Petroleum uses SAP-PS and IM to manage their internal projects, viz. setting up gas stations, capital investments in the refineries and major maintenance overhauls. Investment Management functionality is used in conjunction with Project Systems to monitor and control corporate investment budgets. Bharat Petroleum uses SAP-PM to manage the Preventive and Repair Maintenance of its machinery.
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3. SAP-R/3 Implementation at Siemens: May 1999 to Nov 1999 Consultant, SAP R/3 PS and CS module, and Project Leader for Implementation of SAP R/3 for Projects business. Modules: PS, SD, MM, PP, FI, CO, PM, QM Implementers: IBM Global Services Siemens uses SAP - Plant Maintenance to monitor and maintain the equipment in its factories and Customer Service Management while providing Warranty, Service Contract and Breakdown service support to Customers where Medical Equipment or projects have been installed. Siemens uses Project Management for Execution of Projects ranging from Power Control Consoles for heavy engineering industry to Large Thermal Power plants. The functionalities implemented at Siemens in Plant Maintenance and Service Management included Structuring of Objects, Serial Number Management for creation of equipment, Notifications, Service Orders, Maintenance Plans, Warranties, Resource Related Billing and Costing of Service Orders. The functionalities implemented at Siemens in Project Management included Project structuring using WBS Elements and Networks, Project
Planning for Cost and Time, Budgeting, Confirmations and Reporting. As the Project leader for implementation of SAP R/3 for Projects Businesses of SIEMENS, and PS module team lead, his role included: Interaction with the users and the management develop a prototype demonstrating the functionalities of legacy system using SAP Analysis of Fit-Gap and development of work-arounds, including writing functional specifications for enhancements.
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Interaction with ABAP/4 consultants for functional specifications and developments Documentation of the User training manuals and coordinating and conducting end user training. Providing post-go live support, customizing maintenance, etc.
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4. SAP-R/3 (3.1h) Implementation at Asea Brown Boveri: Sep, 1998 to Apr, 1999 Consultant, SAP R/3 PS module, and responsible for the "Turnkey Project Implementation" and "Control Console Manufacturing" business processes. Modules: PS, SD, MM, FI, CO, MM, HR, PP, QM Team Project Systems Implementers: IBM Global Services, India The pilot sites (Nasik & Kalkaji locations) for SAP implementation included Power Generation Segment for Project business scenario and Transmission and Distribution Segment for made to order scenario. The product range for the made to order scenario includes medium and high voltage switchgear, substations and network protection systems. It also offers turnkey solutions, life extension and retrofit services. Size: 3, for
1997
Consultant, SAP R/3 PM module, and responsible for the "Plant Maintenance" business processes - Aug '97 to Jan '98; Consultant, SAP R/3 PS module, and responsible for the "Asset Management and Capital Purchase" business processes - Jan '98 to Aug '98 Modules: PS, PM, SD, MM, FI, CO, MM, HR, PP, QM Team Size: PS, 3 for PM Implementers: SAP Germany together with Mahindra ASYST Mahindra & Mahindra Ltd. is India's leading manufacturer of medium utility vehicles and tractors and has implemented SAP R/3 for their manufacturing facilities. The Project Systems module was used to manage capital purchases, R&D projects and establishment of new 3, for
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construction projects. The Plant Maintenance Module is used in Mahindra and Mahindra, for the planned preventive maintenance and repair maintenance of Plant and Machinery. The various functionalities of Plant Maintenance implemented at Mahindra and Mahindra are Structuring of Technical Objects Master Data..Work Centers, Material Master, Bill of Materials (Equipment Spare Parts), Measurement Points Maintenance Notifications (Work Requests, Malfunction Reports, Queries) and Maintenance Order Processing Preventive Maintenance Planning and Scheduling using Maintenance Task Lists and Maintenance Plans Materials Planning Procurement of external services, service entry sheet with release strategy Maintenance Costing and Order Settlement Plant Maintenance Information System Overhaul Maintenance Planning, scheduling, Execution and Controlling using Project Systems Module Requirement Planning and Capacity Requirements
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