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© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-1

Enterprise Resource Planning, 1st Edition

Chapter 4:

ERP Systems: Sales and Marketing

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-2

Objectives

• Examine the sales and marketing modules

• Understand the interrelationships among business processes

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-3

Case: Atlantic Manufacturing

• Manufacturer of small motors• Problems with current order acquisition,

operations, distribution, and accounting systems

– Information supplied to sales force inaccurate– Customers requesting reduced lead times– Credit system inconsistent, producing collection

problems– Service calls lack warranty information– Quality control system not integrated

• Competition has eliminated these problems

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-4

Sales and Marketing Processes

• Operational-level processes– Daily activities

• Prospecting, telemarketing, direct mail

– Contact management• Databases, lists

• Support– Sales order processing system– POS systems

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-5

Sales Management Control Processes

• Designed to allocate resources to achieve maximum revenues

• Decisions made on analysis of sales– Comparison of sales – Analysis of revenues against benchmarks– Listing of most profitable products, sorted by territory and

salesperson– Software often used

• Allows for quicker analysis• Able to identify trends • Analyze salesperson performance• Identifies both strong and weak products• Can signal potential shortfalls or excesses in stock levels

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-6

Additional Sales Management Applications

• Sales forecasting– Predicts trends– Determine customers’ needs in different market

segments– Based on sales history, customer demands,

demographic trend, competitor information• Advertising

– Identifies channels that will be most effective• Product pricing

– Decision supported by pricing models– Examines CPI, expected consumer disposable

income, production volumes, labor costs, costs of raw materials

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-7

Sales and Marketing Modules

• ERP systems differ from traditional systems– Allow for integrated marketing support systems– Provide integrated CRM software

• Purpose– Identify sales prospects– Process orders– Manage inventory– Arrange deliveries– Handle billing– Process payments

• Benefits– Standard codes and documents– Common database– Provides audit trail – Allows for data Integration

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-8

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-9

CRM

• Front-end interface with customer to sales and marketing

• Comprehensive approach• Developed from sales force automation software• Provides sales force with management tools

– Sales activity– Sales and territory management– Contact databases– Leads generation and monitoring – Product-specific configuration support– Knowledge and information resource management

• Needs an underlying Sales and Marketing ERP module for operational-level data

• CRM data accessible through data warehouse

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-10

Integration with Modules

– Human Resources– Quality Management– Controlling

– CRM– Financial Accounting– Materials Management

• Sales model may be integrated with:

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-11

Featured Article: Staples and Integrated ERP

• How is technology helping Staples achieve a competitive advantage?

– Customers want full range of services• Consistent• Seamless

– Online kiosk• Connected to e-commerce web site

– POS system, order management system, supply chain• Access information about products and services• View inventory• Build PCs to order

– Multiple channel shoppers have greatly increased lifetime value

– Acquired Quill• Implemented an integration level to connect two disparate

systems

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-12

Featured Article: Staples and Integrated ERP, continued

• Reduced number of direct linkages

– Standardized systems• Web services

– Team review of systems, users, needs

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner 4-13

Summary

• The sales and marketing modules for ERP systems are designed to support the sales order processing systems, control daily activities like prospecting, and manage contacts.

• This system produces sales forecasting, identifies advertising channels, and helps to maintain competitive pricing scales.

• The CRM module serves as a front-end interface between the customer and the sales and marketing departments.