What's Happening?! Cisco and Ericsson have announced a new ...

What’s Happening?!What’s Happening?!

Cisco and Ericsson have announced a new partnership to focus on selling to the telecom service companies.

Comcast had dropped its bid to buy Disney.Comcast had dropped its bid to buy Disney.

Nortel has fired its CEO.Nortel has fired its CEO.

GM has produced its last Oldsmobile.GM has produced its last Oldsmobile.

Database ProjectDatabase Project

Tuesday, May 4 – Access orientation and interview BIS Market Research boss.

May 13 – Submit survey form at beginning of class.

May 18 – PC Lab to prepare Access database. May 25 – Project is due.

Database project team assignments are on the Database project team assignments are on the next two slides.next two slides.

Allessio, Benjamin Kelly, MaitlandChiu, Chester Pease, EricDiep, David Lin, EmersonDitmars, Ivan Belliss, JonathanEspino, Maniya Marangone, Fred

Kwok, Ka Leow, ChristopherLegeny, Stephan Isabel, ThanyaMagallanes, Piper Freebairn, SeanMeneely, Claire Stallons, ChadMoon, Christopher Cooper, CharlesMoreno, Hannah Perez, JohathanVu, Quan Lee, WayneWells-Garcia, Guisselle Nerenberg, LewisWinicki, Elliott Query, MikeWooley, Stacey Liao, Jimmy

Ditmars, Ivan Belliss, JonathanMoon, Christopher Cooper, CharlesMagallanes, Piper Freebairn, SeanLegeny, Stephan Isabel, ThanyaAllessio, Benjamin Kelly, MaitlandVu, Quan Lee, WayneKwok, Ka Leow, ChristopherWooley, Stacey Liao, JimmyDiep, David Lin, EmersonEspino, Maniya Marangone, FredWells-Garcia, Guisselle Nerenberg, LewisChiu, Chester Pease, EricMoreno, Hannah Perez, JohathanWinicki, Elliott Query, MikeMeneely, Claire Stallons, Chad

Database ProjectDatabase Project

BIS Market Research has been hired by a Venture Capital firm to do an analysis to determine the better business model for a company to pursue to be successful selling to consumers using the Internet. Some of the people who have been money sources for the VC are very upset that they have lost a significant amount of money on dot.com companies that have gone bankrupt.

The VC wants data to support their contention that there are valid business models that can be successful selling products to consumers over the Internet. The focus of this analysis should be on consumers and not business to business.

Database ProjectDatabase Project

It would make sense to break the analysis into four consumer groups: 1) teens, 2) young adults, 3) mid-range adults and 4) seniors. This assignment will concentrate on the young adult category.

The final results of this project will provide a statistical profile of factors that support a better business model for a company to be successful selling to consumers using the Internet and a list of survey respondents that will be contacted to be part of a focus group based on the fact that they have a high potential to buy things using the Internet.

To complete the database project, it will be necessary to accomplish the following:

1. Determine appropriate questions to generate the necessary data and design the questionnaire form (source document).

2. Edit the data in the source documents.

3. Input the data to create a database using Access database software.

4. Do an analysis of the data collected.

5. Prepare reports for the client summarizing the market analysis.

6. Prepare a report for BIS Market Research that summarizes the key learning points of the assignment.

When in doubt regarding any part of this assignment, do as you

would in a real world situation.

AdviceAdvice Never forget that the client is paying a very large Never forget that the client is paying a very large

fee for the market survey and results that should fee for the market survey and results that should assist them in their business.assist them in their business.

If you collected the data, give it to the client. If you collected the data, give it to the client. All All of it!of it!

How long of a survey would you be willing to How long of a survey would you be willing to complete?complete?

Presentation AssignmentsPresentation Assignments

Ch. 6 Summary – Eric Pease Ch. 6 Summary – Eric Pease Ch. 7 Introduction – Chad StallonsCh. 7 Introduction – Chad Stallons Ch. 7 Summary – Claire MeneelyCh. 7 Summary – Claire Meneely Ch. 8 Introduction – Ivan DitmarsCh. 8 Introduction – Ivan Ditmars Ch. 8 Summary – Jonathan BellissCh. 8 Summary – Jonathan Belliss Ch. 9 Introduction – Chester ChiuCh. 9 Introduction – Chester Chiu Ch. 9 Summary – David DiepCh. 9 Summary – David Diep Ch. 10 Introduction – Charles CooperCh. 10 Introduction – Charles Cooper Ch. 10 Summary – Thanya IsabelCh. 10 Summary – Thanya Isabel Ch. 11 Introduction – Maitland KellyCh. 11 Introduction – Maitland Kelly Ch. 11 Summary – Ka KwokCh. 11 Summary – Ka Kwok Ch. 12 Introduction – Emerson LinCh. 12 Introduction – Emerson Lin

Question!Question!

Name five companies that represent the best IS management jobs in the US.

5 Best IS Management Jobs5 Best IS Management Jobs

Wal-Mart Dell Schwab Cisco eBay

Chapter 6 IntroductionChapter 6 Introduction

Enterprise e-Business Enterprise e-Business SystemsSystems

Applications in Business and ManagementApplications in Business and Management

Plan for the DayPlan for the Day

• Successful e-Business company examples • With a continuing eye on business benefits, challenges and trends • B2B versus B2C (e-Business/e-Commerce)

• The significance of e-Business communities

What is e-Business?What is e-Business?

Electronic business not only deals with buying and selling online but also encompasses the entire online processes of developing, marketing, selling, delivering, servicing, and caring for products and services transacted on inter-networked, global market place of customers.

E-Commerce Versus E-BusinessE-Commerce Versus E-Business

E-Commerce is the front end of a web-based

approach.

E-Business is positioning the entire organization to

function in the most effective way possible in

support of an E-Commerce approach.

Scope of e-BusinessScope of e-Business

Business to Consumer (B2C)

Business to Business (B2B)

Consumer to Consumer (C2C)

Company ExamplesCompany Examples Colgate-Palmolive – ERP success.Colgate-Palmolive – ERP success. Cisco Systems – ERP successCisco Systems – ERP success Agilent Technologies – ERP problems.Agilent Technologies – ERP problems. Wal-Mart – SCM successWal-Mart – SCM success Solectron Corp. – SCM problemsSolectron Corp. – SCM problems McKesson – Web-based SCM integrationMcKesson – Web-based SCM integration Mitsubishi Motors – CRM success.Mitsubishi Motors – CRM success. Dell, Inc. – Direct Business Model (online Dell, Inc. – Direct Business Model (online

everything)everything)

Cross Functional Integrated Cross Functional Integrated SystemsSystems

ERP – Enterprise Resource PlanningERP – Enterprise Resource Planning SCM – Supply Chain ManagementSCM – Supply Chain Management CRM – Customer Relationship CRM – Customer Relationship

ManagementManagement

Customers are in charge!Customers are in charge!

It is easier than ever for customers to comparison It is easier than ever for customers to comparison

shop and with a click of the mouse to switch shop and with a click of the mouse to switch

companies.companies.

For this reason, customer relationships have become For this reason, customer relationships have become

a company’s most valued asset. a company’s most valued asset.

Every company strategy should address how to find Every company strategy should address how to find

and retain the most profitable customers possible.and retain the most profitable customers possible.

It is significantly cheaper to retain existing It is significantly cheaper to retain existing customers than to gain new ones.customers than to gain new ones.

Internet CommunitiesInternet Communities

Considered an important dimension in pursuing B2C opportunities via the Internet.

“Has there ever been an Internet buzzword that has been more abused or confused than community?”

Success in e-BusinessSuccess in e-Business

Selection & ValueSelection & Value

Performance & ServicePerformance & Service

Look & FeelLook & Feel

Advertising & IncentivesAdvertising & Incentives

Personal AttentionPersonal Attention

Community RelationshipsCommunity Relationships

Security & ReliabilitySecurity & Reliability

Some KeyFactorsfor Successin B2C

The FutureThe Future

B2C, e-tailing, e-commerce, online retailing, online merchandising—whatever it is called—is here to stay.

Yet, it’s got a ways to go until it hits the maturity curve.

The latest trends to watch are online customer service, permission-based e-mail marketing and affiliate networks.

Chapter 6Chapter 6

Enterprise e-Business Enterprise e-Business SystemsSystems

Plan for the DayPlan for the Day

• More on ERP, SCM and CRM

• Successful e-Business company examples

• Keys to e-Business success

Chapter 6Chapter 6

Section I – Customer Relationship Management:

The Business Focus

Section II – Enterprise Resource Planning:

The Business Backbone

Section III – Supply Chain Management:

The Business Network

What is e-Business?What is e-Business?

E-Business not only deals with buying and selling online but also encompasses the entire online business processes of planning, developing, marketing, selling, delivering, servicing, and caring for products and services transacted on inter-Networked systems for a national and in many cases a global market place of customers.

e-Commerce Versus e-Businesse-Commerce Versus e-Business

Jack Callon says that e-Commerce is the Jack Callon says that e-Commerce is the systems front end of e-Business. It is systems front end of e-Business. It is primarily the web page and the closely primarily the web page and the closely related functions and activities.related functions and activities.

E-Business is posturing the organization so E-Business is posturing the organization so that business strategies, processes and that business strategies, processes and systems are all prioritized and positioned to systems are all prioritized and positioned to support such an approach.support such an approach.

Scope of e-BusinessScope of e-Business

Business to Consumer (B2C)

Business to Business (B2B)

Consumer to Consumer (C2C)

TermsTerms• e-Commerce

• e-Business

• Virtual Corporation

• Partnerships

• Outsourcing

• Internet

• Intranet

• Extranet

• Electronic Data Integration (EDI)

Company ExamplesCompany Examples Colgate-Palmolive – ERP success.Colgate-Palmolive – ERP success. Cisco Systems – ERP successCisco Systems – ERP success Agilent Technologies – ERP problems.Agilent Technologies – ERP problems. Wal-Mart – SCM successWal-Mart – SCM success Solectron Corp. – SCM problemsSolectron Corp. – SCM problems McKesson – Web-based SCM integrationMcKesson – Web-based SCM integration Mitsubishi Motors – CRM success.Mitsubishi Motors – CRM success. Dell, Inc. – Direct Business Model (online Dell, Inc. – Direct Business Model (online

everything)everything)

Accounting and Financial Accounting and Financial Information SystemsInformation Systems

What are they?What are they?

Who uses them?Who uses them?

How are they used?How are they used?

Types of Accounting SystemsTypes of Accounting Systems

OperationalOperational

Management Management

Why do company use computers Why do company use computers for their accounting systems?for their accounting systems?

Repetitive

Clearly defined procedures

Must do it!

Frequently meets all three of the common criteria: volumes, complexity and timing.

Accounting is a combination of multiple sub-systems

Basic IS Premise: BICARSABasic IS Premise: BICARSA

Customer Purchase

Order

Order

Processing

System

System

Database

Accounts

Receivable

System

Inventory

Control

Systems

Sales

Analysis

Basic Business PremiseBasic Business Premise

You can’t sell from an empty wagon. Inventories are the graveyard of a business.

Inventory carrying costs:Inventory carrying costs:

Cost of money tied up in the manufactured or purchased Cost of money tied up in the manufactured or purchased inventory item.inventory item.

Direct inventory costs: warehouse, logistical equipment, Direct inventory costs: warehouse, logistical equipment, utilities, employees, security, physical inventory and utilities, employees, security, physical inventory and record keeping.record keeping.

Other inventory costs: obsolescence, damage, theft, lost, Other inventory costs: obsolescence, damage, theft, lost, etc. etc.

Inventory Control CriteriaInventory Control Criteria

1. What balance is desired between inventory investment

and customer service?

2. What balance is desired between inventory investment and

costs associated with changes in the production line?

3. What balance is desired between inventory investment and

the cost of placing inventory replenishment orders?

4. What balance is desired between inventory investment and

transportation costs?

Three Typical ObjectivesThree Typical Objectives

1. Maximize customer service.

2. Minimize inventory investment.

3. Efficient, low-cost manufacturing operation.

Next Business PremiseNext Business Premise

Three kinds of manufacturing companies:Three kinds of manufacturing companies:

1.1. Vertically integrated.Vertically integrated.

2.2. Vendor emphasis for components—assemble and test.Vendor emphasis for components—assemble and test.

3.3. Outsource.Outsource.

A company can do combinations of 2 and 3.A company can do combinations of 2 and 3.

How many companies do vertically integrated manufacturing?How many companies do vertically integrated manufacturing?

ThereforeTherefore

An emphasis on just-in-time manufacturing and An emphasis on just-in-time manufacturing and shipping direct to customers.shipping direct to customers.

This can mean inventorying at the assembly level.This can mean inventorying at the assembly level.

The basic issues are lead-time to customer and The basic issues are lead-time to customer and related operating costs.related operating costs.

Why Automate Manufacturing?Why Automate Manufacturing?

• Consistency

• Repetitiveness

• Precision

• Quality

• Cost

• Worker Safety

• Eliminate Worker Boredom

ERPERP

The cross functional enterprise system that integrates and automates many of the internal business processes of a company.

This includes manufacturing planning and operations, logistics, distribution, accounting, finance and human resources.

Serves as a vital backbone of the enterprise to achieve efficiency, agility and responsiveness required to succeed in a dynamic business environment.

• Purchasing and

•Accounts Payable

•MRP•Inbound Inventory

•Plant Management

• Manufactur-ing and

•Production Scheduling

•Inventory Control

•Distribution and

•Accounts Receivable

Custom

ersSup

plie

rs

Finance and Accounting

Human Resources

Enterprise Resource Planning

Demand

Planning

Manufacturing Planning

Logistical Planning

Distribution Planning

Order Entry

Business Processes and Functions Business Processes and Functions Supported by ERPSupported by ERP

Fig. 6.9Fig. 6.9

ERP Benefits and ChallengesERP Benefits and Challenges

Quality and EfficiencyQuality and Efficiency through integration of business through integration of business processes.processes.

Decreased CostsDecreased Costs in both business and IT operations. in both business and IT operations.

Decision Support Decision Support based on more complete and timely based on more complete and timely information.information.

Enterprise Agility Enterprise Agility through more flexible organizational through more flexible organizational structures, managerial responsibilities and work roles.structures, managerial responsibilities and work roles.

Colgate-PalmoliveColgate-Palmolive

Implemented SAP to access more timely and accurate data, get the most out of working capital and reduce manufacturing costs.

It needed the ability to coordinate globally and act locally.

Expanded to all divisions worldwide during 2001.

Costs to Implement ERPCosts to Implement ERP

Reengineering business processes 43% Training and change management 15% Software 15% Data conversion 15% Hardware 12%

Colgate-PalmoliveColgate-Palmolive

BeforeBefore After After

Acquire an orderAcquire an order 1-5 days 4 hours 1-5 days 4 hours

Process an orderProcess an order 1-2 days1-2 days

Distribution planning and picking up to 4 days 14 hoursDistribution planning and picking up to 4 days 14 hours

On-time deliveriesOn-time deliveries 91.5%91.5% 97.5% 97.5%

Order to delivery timeOrder to delivery time -50% -50%

Total delivery cost per caseTotal delivery cost per case -10% -10%

Domestic inventoriesDomestic inventories -1/3 -1/3

Working capital (% of sales)Working capital (% of sales) 11.3% 6.3%11.3% 6.3%

Cisco ProblemsCisco Problems

Financial Justification of ISFinancial Justification of IS

Backend InfrastructureBackend Infrastructure

Caliber of customer support decreasingCaliber of customer support decreasing

Cisco SolutionCisco Solution

Time

Lo

w

1991

Level 0: IT as cost centerLevel 0: IT as cost center

Key IT Success Factors

• Organization Model• Exceptional Staff• Receptive Company

Level 1: CFP model

1993

Level 2: Replacement of all key apps (ERP)

1995

Level 3: Use of Internet, CCO

1997

Level 4: Consultative Proactive Leadership

2000

CFP ModelCFP Model

Client Funded Project ModelClient Funded Project Model ““Necessary Overhead” to “Strategic Partner”Necessary Overhead” to “Strategic Partner” Utilize IT as a Competitive ResourceUtilize IT as a Competitive Resource Foundation of future small, large-scale Foundation of future small, large-scale

projectsprojects

Cisco ERPCisco ERP

$15 million dollar project$15 million dollar project Management SupportManagement Support

– Annual GoalAnnual Goal– Functional ManagementFunctional Management

Foundation of Cisco integrated systemsFoundation of Cisco integrated systems

Agilent TechnologiesAgilent Technologies

The good news: “The ERP system is stable.” The bad news: It involved a rocky migration that

cost the company $105 million in revenue and $70 million in profit.

The Oracle e-Business software froze production for a week.

The Oracle systems handles half of the company’s worldwide production and almost all of its financial operations including order entry and shipping.

Agilent TechnologiesAgilent Technologies

Agilent brought 2,000 legacy systems from HP when they were spun off as a separate company.

Part of the migration was moving 6,000 orders to the new system which resulted in problems.

“Disruptions to the business after implementing the ERP system were more extensive that we expected.”

The issue wasn’t the quality of the Oracle software but the very complex nature of the ERP implementation.

Agilent TechnologiesAgilent Technologies

Agilent comments based on this experience: “ERP implementations are a fundamental transformation

of a company’s business processes.” “People, processes, policies and the company’s culture are

all factors that should be taken into consideration when implementing such a system.”

A consultant’s perspective:A consultant’s perspective:

Ninety-nine percent of such rollout fiascoes are caused by Ninety-nine percent of such rollout fiascoes are caused by management’s inability to spec out their own requirements and management’s inability to spec out their own requirements and the implementer’s inability to implement those specs. the implementer’s inability to implement those specs.

SCMSCM

Supply chain management is a cross-

functional inter-enterprise system that

integrates and automates the network of

business processes and relationships between

a company and its suppliers, customers,

distributors and other business partners.

SCM GoalSCM Goal

The goal of SCM is to enable a company to achieve The goal of SCM is to enable a company to achieve

agility and responsiveness in meeting the demands agility and responsiveness in meeting the demands

of its customers and the needs of its suppliers by of its customers and the needs of its suppliers by

enabling it to design, build and sell its products enabling it to design, build and sell its products

using a network-based approach involving using a network-based approach involving

business partners and processes within the supply business partners and processes within the supply

chain.chain.

SCM FunctionsSCM Functions

Planning:– Supply Chain Design– Collaborative Demand and Supply Planning

Execution:– Materials Management– Collaborative Manufacturing– Collaborative Fulfillment– Supply Chain Event Management– Supply Chain Performance Management

Supply Chain Life CycleSupply Chain Life Cycle

Commit Schedule Make Deliver

See Fig. 6.14 for complete diagramSee Fig. 6.14 for complete diagram

Wal-Mart StoresWal-Mart Stores

2004 FY Revenue $259 Billion 2004 FY Profit $55 Billion Cash position $5.2 Billion 3,200 stores in the US 1,100 stores in nine foreign countries 1.3 million associates Largest corporation in the world Ranked No. 1 in Fortune Most Admired Founded in 1962 in Rogers, Ark.

Impressive ProfileImpressive Profile• Timely basic business strategy

• Strong, effective customer focus.

• Strong culture (at least traditionally under Sam)

• Phenomenal growth (stores, revenue and profit)

• Outstanding distribution system.

• Good Information Systems organization.

• Good business leaders.

• Execute, execute, execute!

Business LeadersBusiness Leaders Sam WaltonSam Walton

– Store founder and CEO until 1988Store founder and CEO until 1988– Died in 1992Died in 1992

David GlassDavid Glass– Replaced Sam and was CEO for twelve yearsReplaced Sam and was CEO for twelve years– Took Wal-Mart sales from $16 billion to $165 billionTook Wal-Mart sales from $16 billion to $165 billion

Lee ScottLee Scott– Replaced David Glass as CEO in 2000Replaced David Glass as CEO in 2000– Started working for Wal-Mart in 1989Started working for Wal-Mart in 1989– Served as Director of Transportation and President of Wal-Mart storesServed as Director of Transportation and President of Wal-Mart stores

Kevin TurnerKevin Turner– Current CIO and Senior Vice PresidentCurrent CIO and Senior Vice President

Randy MottRandy Mott– Former CIO and Senior Vice PresidentFormer CIO and Senior Vice President– Advanced the EDIAdvanced the EDI

Wal-Mart and MattelWal-Mart and Mattel Being a supplier to Wal-Mart is a two-edged sword. They

are a phenomenal but tough customer as they demand excellence.

Wal-Mart invested early and heavily in a system to identify and track sales on an individual item level.

This made its IT infrastructure a key competitive resource that has been studied and copied by companies around the world.

“Wal-Mart changed the face of business.” First major company to share sales and inventory data with

suppliers.

Wal-MartWal-Mart Treats its suppliers as business partners. Implemented a collaborative planning, forecasting

and replenishment system. Results in lower inventory carrying costs for both

Wal-Mart and its suppliers. Wal-Mart’s margins can be far lower than other

retailers’ because they have such an efficient supply chain.

Key to Wal-Mart’s success is that it gets buy-in from its suppliers to an incredible degree.

Mattel PerspectiveMattel Perspective

Having sales data on a specific toy dictates ramping up or shutting down manufacturing.

Having data on a daily or hourly basis is necessary to figure out what is selling best and where to tailor manufacturing.

The greatest efficiencies will appear when the kind of trusting mutually beneficial relationship that Mattel has with Wal-Mart is duplicated with the rest of the company’s retail customers.

McKesson and CVSMcKesson and CVS McKesson is the largest US distributor of pharmaceuticals,

heath care products and medical/surgical supplies. CVS is a leading drug retail chain who wants better

integration with McKesson’s systems. This dictates a much closer relationship between the two

companies with McKesson even taking responsibility form CVS stock levels.

This requires seamless business process integration between the two companies and new applications that link CVS to McKesson’s operations department.

Solectron Corp.Solectron Corp.

SCM theory contends that technologically driven improvements in inventory management especially through “just-in-time” production, direct online sales and supply chain management will result in increased efficiency and tailored output to match demand.

Because of these benefits a company will gain increased working capital, boost profit margins and level business cycles.

Solectron Corp.Solectron Corp.

Killer applications cannot compensate for old-fashioned business judgment.

SCM cannot synchronize every party in the product chain by providing a transparent view of supply and demand.

Forecasts are still provided by people who can be overly optimistic or pessimistic.

Solectron Corp.Solectron Corp. In the fall of 2000, company management felt that

there was a glut of telecom equipment supply. It’s major customers: Cisco, Ericsson and Lucent

was experiencing explosive growth and told Solectron to produce massive product volumes.

Solectron ended up with $4.7 billion in inventory that it obtained from its 4,000 suppliers.

CRMCRM

Customer relationship management is a cross-

functional enterprise system that integrates and

automates many of the customer serving processes in

sales, marketing and customer services that interact

with a company’s customers.

Customers are in charge!Customers are in charge!

It is easier than ever for customers to comparison shop and with little more than a click of a mouse to switch companies.

For this reason, customer relationships have become a company’s most valued asset.

Every company strategy needs to address how to find and retain the most profitable customers possible.

SalesSales•Cross SellCross Sell•Up SellUp Sell

Marketing and Marketing and FulfillmentFulfillment

Customer Service Customer Service and Supportand Support

RetentionRetentionand and

Loyalty Loyalty ProgramsPrograms

Contact and Account Contact and Account ManagementManagement

Prospects Prospects or or

CustomersCustomers

FaxFax e-Maile-Mail

TelephoneTelephone WebWeb

CRM ApplicationsCRM Applications

Mitsubishi Motor SalesMitsubishi Motor SalesImplementing CRM SystemsImplementing CRM Systems

Traditionally was primarily about (selling) cars. Had 18 toll free customer service numbers for

customers to find information ranging from sales to repair service.

Concluded that they lacked a cohesive customer focus.

Company shifted to an increased focus on customers in 1999.

Approach CriteriaApproach Criteria

The Three S Test:The Three S Test:

Is it simple?Is it simple?

Does it satisfy?Does it satisfy?

Is it scalable?Is it scalable?

CRM ImplementationCRM Implementation

Centralized to one call center. Outsourced to a service center for basic calls. Gained flexible skills-based call routing. Half of calls received information from an

interactive voice response unit. Consolidated 11 screens of customer data into one. Call center handled 38% more calls in 2000 with

no more staff. Customer satisfaction rose 8%.

Project TeamProject Team

Included people from sales, marketing, finance and the IT department.

Obviously had the backing of senior management. Emphasized the selection of the best-of-bred CRM

software. Decided to implement changes slowly based on

employee use of previous new approaches.

Major Vendor: Siebel SystemsMajor Vendor: Siebel Systems

Call center software.Call center software. Customer-centric database.Customer-centric database.

““Dirty data was a major stumbling block.”Dirty data was a major stumbling block.”

Digital Phone SwitchDigital Phone Switch

Flexible call routing.Flexible call routing. Half of callers got answers from a voice response unit.Half of callers got answers from a voice response unit. GUI enabled 11 screens’ worth of information to be put GUI enabled 11 screens’ worth of information to be put

on one screen of a call agent.on one screen of a call agent. Siebel software provided agents with decision-tree Siebel software provided agents with decision-tree

scripts and automated customer correspondence.scripts and automated customer correspondence. Added ability to monitor outsourced service calls.Added ability to monitor outsourced service calls. Added software to hourly forecast call center coverage.Added software to hourly forecast call center coverage. Added software to record agent voice and screen Added software to record agent voice and screen

activity for quality assurance and training.activity for quality assurance and training.

Impact on AgentsImpact on Agents

Career growth and higher pay. Agents can handle broader product calls. Can be trained during slack time. Reduced turnover of agents.

Company BenefitsCompany Benefits

Better feel for customer concerns. Helps drive marketing decisions. Accelerated earlier results.

SalesSales•Cross SellCross Sell•Up SellUp Sell

Marketing and Marketing and FulfillmentFulfillment

Customer Service Customer Service and Supportand Support

RetentionRetentionand and

Loyalty Loyalty ProgramsPrograms

Contact and Account Contact and Account ManagementManagement

Prospects Prospects or or

CustomersCustomers

FaxFax e-Maile-Mail

TelephoneTelephone WebWeb

CRM ApplicationsCRM Applications

•Information Sharing

•Product/Sales Data

•Sourcing Help

•Logistics

•Order Fulfillment

•

Current supply chain improvement

•

Supply chain,

e-commerce loosely

coupled

SCM Stages SCM Stages

Stage 2•Intranet/extranet links to trading partners•Supplier network expansion

•Order Management•Inventory Management•Resource Allocation•Systems Use and Integration

Stage 3•Collaborative Planning/fulfillment•Extranet and exchange-based collaboration

•Collaborative Marketing•Sales and Service•SCM Optimization•Collaborative Design and Delivery