1.Describe Customer Relationship Management and its role in supporting business operations.

ANSWER: Customer relationship management (CRM is a combination o! people" processes and technolog# that see$s to understand a compan#%s customers. &t is an integrated approach to managing relationships b# !ocusing on customer retention and relationship de'elopment. CRM has e'ol'ed !rom ad'ances in in!ormation technolog# and organi(ational changes in customer)centric processes. Companies that success!ull# implement CRM *ill reap the re*ards in customer lo#alt# and long run pro!itabilit#. +o*e'er" success!ul implementation is elusi'e to man# companies" mostl# because the# do not understand that CRM re,uires compan#)*ide" cross) !unctional" customer)!ocused business process re)engineering. Although a large portion o! CRM is technolog#" 'ie*ing CRM as a technolog#)onl# solution is li$el# to !ail. Managing a success!ul CRM implementation re,uires an integrated and balanced approach to technolog#" process" and people. Customer relationship management (CRM pro'iders ha'e tailored their o!!erings !or the small business mar$et" pro'iding so!t*are)as)a)ser'ice options" integration *ith other technologies" and an understanding o! *hat small businesses *ant !rom their customer relationships. &t used to be that CRM *as onl# !or large enterprises and" then" there *ere horror stories about the technolog# being too costl#" too time consuming" too comple- and too disrupti'e to be success!ul. .'er the last !e* #ears" ho*e'er" than$s to so!t*are)as)a)ser'ice (SaaS CRM pro'iders li$e Sales!orce.com and Netsuite CRM has rehabilitated its tarnished image. /ecause o! this" large enterprises along *ith mid)si(ed companies ha'e opened up their arms and embraced CRM in its more a!!ordable" easier" and accessible reincarnation and e'en small businesses ma# !ind these tools *orth*hile. Small and mid)si(ed businesses *ere !orecast to spend about 0112 million on CRM" contact center" and e)ser'ice technolog# last #ear" according to a sur'e# b# Ser'ices 3 Support 4ro!essionals Association (SS4A " reported b# SearchCRM.com. 5he a'ailabilit# o! customer relationship management pac$ages !or the small and mid)si(e business mar$et is gro*ing" particularl# in the on)demand or SaaS models. E'er# business needs some !orm o! customer relationship management (CRM s#stem" argues /rian Donagh#" 'ice president o! product strateg# *ith Smart .nline &nc." a pro'ider o! so!t*are)as)a)ser'ice (SaaS applications !or businesses in Durham" N.C. 5hat%s true e'en i! the s#stem is an amalgamation o! 4ost)&t notes" spreadsheets" and the li$e. .! course" this is not al*a#s e!!ecti'e. Benefits of CRM Regardless o! *hich t#pe o! CRM product #our business chooses" the# o!!er some o! the same bene!its" allo*ing #ou to do the !ollo*ing: Realize which customers produce the most profit. /# anal#(ing bu#ing beha'iors and other customer data" #our business can gain a better understanding o! *ho are #our best customers. 6ou can di!!erentiate bet*een the customer *ho pro'ide the highest pro!it margins and those that simpl# bring #ou the most re'enue. 6ou could use that in!ormation to pro'ide them a better t#pe or tier o! customer ser'ice !or better customers.

Analyze buying patterns. More understanding o! customer bu#ing patterns can" again help #ou spot potential high)'alue customers so that #ou can ma$e the most o! #our sales opportunities *ith those customers. Maximize per-customer profits. Data gleaned !rom CRM can help #ou lo*er the cost o! selling to certain customers and help #ou increase pro!its !rom those customer interactions. Features to loo for in CRM

Whether hosted or licensed" these are some common !eatures #ou%ll *ant to loo$ !or in a CRM solution !or #our business: Application !rogramming "nterface #A!"$% 5his allo*s the CRM solution to lin$ *ith other s#stems" eliminating the need to enter in!ormation multiple times" sa#s Clate Mas$" president and chie! e-ecuti'e o!!icer *ith &n!usion So!t*are. Multiple contact information% 7sers should be able to organi(e and access in!ormation b# a person%s name" as *ell as his or her compan#" sa#s +arding. 5hat ma$es it possible to 'ie* all the interactions that ha'e occurred *ith a particular person" as *ell as *ith multiple indi'iduals *ithin a single compan#. &ashboards% 5he s#stem should pro'ide a summar# 'ie* o! the sales opportunities under*a# across a compan#%s customer base and the emplo#ees *or$ing on them. With this" promising opportunities are less li$el# to !all through the crac$s" sa#s +arding. &elegation% Emplo#ees should be able to use the s#stem to electronicall# delegate tas$s to their colleagues. &n!ormation entr# and access: Emplo#ees also should be able to enter and access in!ormation !rom an#*here *ithin the s#stem" sa#s Donagh# o! Smart .nline. 8or e-ample" i! the#%'e tal$ed *ith a client on the phone" the# should be able to enter details o! the call under the person%s name. .nce in the s#stem" that in!ormation should be accessible through both the indi'idual%s and the compan#%s name. R'()* of CRM% 1.Ensure outstanding customer satis!action b# maintaining strong *or$ing relationships. 9.:uide and lead team members to deli'er products;ser'ices that meet or e-ceed the customer re,uirements. <.+andle client issues throughout the implementation li!e c#cle in a timel# and accurate !ashion. 2.Manage and train resources to ensure ,ualit# and consistenc# o! ser'ice to customers. =.Schedule and conduct status meetings *ith appropriate de'elopment resources and customers.

>.4ro'ide proper re!und and compensation to customers on time. ?.Assist sales team in business ac,uisitions" planning" retention and management. 1.Maintain complete and accurate customer correspondence data. @.Assist in ma$ing maAor business decisions. 1B.De'elop and update client related reports. 11.Managing client relationships to build a reputation !or e-cellent ser'ice and generate repeat business. 19.Negotiate and manage agreements through business contract process. 1<.Create online 'ideos" training guides" 8ACs" WebE- training sessions etc. to bene!it all customers. 12.&denti!# and de'elop problem sol'ing methodologies to resol'e customer issues.

9.&denti!# bene!its and challenges o! CRM. ANSWER:

The Benefits of CRM Solutions

There are many benefits of CRM or Customer Relationship Management software. They include Management decision making is nimble and well informed supported by real-time reporting across all business teams. Staff manage their time more effectively. CRM prompts users to follow up on activities and sends automated alerts when important actions occur. Marketing activity brings higher quality leads through continually improving contact segmentation and targeted campaigns. Pipeline reports are trusted and used as the basis for reliable sales and production forecasts to increase efficiency and predictably manage cash flow.
!erformance hotspots are +uic ly identified so timel# action can be ta$en to correct issues and re*ard outstanding results. ,he -alue of each customer relationship is understood so ser'ice resources can be prioriti(ed to protect the most pro!itable accounts. .or flow automation replaces repetiti-e manual processes to cut admin *or$ and eliminate duplication so teams can !ocus on pro!itable acti'it#. Customer churn is minimal. 7sers ha'e access to all the relationship detail the# need to engage *ith clients and deal *ith ser'ice re,uests e!!icientl#. Communication is a strength. Shared diaries" team calendars and ser'ice schedules gi'e e'er#one clear 'isibilit# o! indi'idual acti'ities. CRM connects to accounting and other bac$)o!!ice applications to Aoin up processes and remo'e double handling o! tas$s.

 /sers can instantly chec customer order histories to assess bu#ing patterns and identi!# ne* sales opportunities. )mail mar eting actions are reported in CRM so hot prospects can be passed to sales teams !or !urther action. Mobile and remote staff wor producti-ely *ith reliable access to all the customer and acti'it# in!ormation the# need 'ia their mobile de'ice. "mportant business processes are aligned in one system. &n addition to customers" sales 3 ser'ice process CRM adapts to manage other di'erse items li$e contracts" proAects" e'ents" products" applications 3 propert#. !ositi-e team culture has de-eloped as sta!! share in!ormation and gain a better understanding o! other areas in the compan#. *ales cycles are reduced and *in rates impro'ed as teams ha'e clear 'isibilit# o! *hich prospects are most li$el# to close.

Customer data is protected and centrally managed. Teams are granted access to data at levels that are consistent with their role. Training costs are reduced by equipping new users with tools they are already familiar with and applying workflow driven processes to guide them and enforce your proven rules and methodology. Data can be held in the cloud to align CRM with a company strategy to transition more services to the cloud and benefit from the efficiencies of a hosted platform

The Challenges of CRM mplementations

5he challenges associated *ith a CRM solution include the need to in'est signi!icant amount o! mone# in the process. 5here are man# problems that arise *ith a CRM s#stem. 5he initial problem begins *ith the e-pensi'e costs that occur *hen implementing the s#stem. &t is a huge in'estment to maintain a customer database. 5he additional e-pense comes !rom the mone# needed !or the computer hard*are" so!t*are" and personnel that is needed to maintain it. 5hese e-orbitant costs can lead to a negati'e 'ibe *ithin the compan# and can result in a CRM collapse. Ne-t arises the problem o! an inade,uate !ocus on obAecti'es. 5his t#picall# occurs a!ter the CRM s#stem is implemented. When hard times hit" the organi(ation ma# lose sight o! its goals and e'entuall# steer a*a# !rom the clearl# laid out obAecti'es. :oals ma# get interchanged and ultimatel# lose their original importance. Another challenge o! a CRM s#stem is the insu!!icient resources. .rgani(ations start lessening their budgets !or the current phase in order to handle the initial e-orbitant costs. .rgani(ations tend to !ail at utili(ing the necessar# resources !or success and that can result in !ailure. &nappropriate metrics also cause a dilemma in a CRM s#stem. .rgani(ations constantl# !ail to use the right metrics. 8ailure to chose the right method o! measurement is a main reason o! *h# this s#stem ma# not *or$. Di!!erent metrics implement di!!erent goals. A CRM s#stem is !ar !rom simple. /eing that it is such a comple- s#stem also comes into pla# as a challenge. Su!!icient training needs to be gi'en to emplo#ees in order !or them to comprehend and deal *ith the di!!iculties easil#. Companies need to $eep in mind that the business needs are the most important. 5he problem arises *hen companies gain the technolog# needed and applies it to business problems to disco'er it isn%t actuall# sol'ing the main problems. 5he# need to anal#(e their business problems !irst and then !ind the appropriate CRM solution !or

it" not the other *a# around. &ronicall#" a CRM s#stem is supposed to be based on the customer" but a!ter implementing a CRM s#stem the compan# ma# lose customer !ocus. 5he problem comes !rom the !act that although the s#stem is based on the customer" the emplo#ees need to be too. &t is highl# essential !or the compan# to put in e!!ort to !ocus their emplo#ees. 5his can also be 'er# e-pensi'e. 5he !inal challenge o! a CRM s#stem is the !act that it gi'es o!! slo* returns. 5he large in'estment that *as originall# spent ma# not sho* returns !or #ears. 5his tests the patience o! the compan# and can lead to emplo#ees and management slac$ing in their e!!orts to impro'e the implementation. Man# o! these problems can be resol'ed and $ept under control as long as the compan# is determined to !ollo* through *ith the entire process.

<.Describe the role in!ormation pla#s in enterprise resource planning s#stem. ANSWER: Enterprise Resource 4lanning is the latest high end solution" in!ormation technolog# has lent to business application. 5he ER4 solutions see$ to streamline and integrate operation processes and in!ormation !lo*s in the compan# to s#nergi(e the resources o! an organi(ation namel# men" material" mone# and machine through in!ormation. &nitiall# implementation o! an ER4 pac$age *as possible onl# !or 'er# large Multi National Companies and &n!rastructure Companies due to high cost in'ol'ed. 5oda# man# companies in &ndia ha'e gone in !or implementation o! ER4 and it is e-pected in the near !uture that >BD o! the companies *ill be implementing one or the other ER4 pac$ages since this *ill become a must !or gaining competiti'e ad'antage. As the business needs are 'er# comple- in nature" the implementation o! an ER4 pac$age needs Chartered Accountants *ith !unctional s$ills !or e'aluation" /usiness 4rocess Reengineering (/4R " Mapping o! /usiness re,uirements" Report designing" ensuring /usiness controls" customi(ation o! the pac$age !or the speci!ic re,uirements" Documentation etc." E'olution o! ER4 &n the e'er gro*ing business en'ironment the !ollo*ing demands are placed on the industr# : Aggressi'e Cost control initiati'es Need to anal#(e costs ; re'enues on a product or customer basis 8le-ibilit# to respond to changing business re,uirements More in!ormed management decision ma$ing Changes in *a#s o! doing business Di!!icult# in getting accurate data" timel# in!ormation and improper inter!ace o! the comple- natured business !unctions ha'e been identi!ied as the hurdles in the gro*th o! an# business. 5ime and again depending upon the 'elocit# o! the gro*ing

business needs" one or the other applications and planning s#stems ha'e been introduced into the business *orld !or crossing these hurdles and !or achie'ing the re,uired gro*th. 5he# are: Management &n!ormation S#stems (M&S &ntegrated &n!ormation S#stems (&&S E-ecuti'e &n!ormation S#stems (E&S Corporate &n!ormation S#stems (C&S Enterprise Wide S#stems (EWS Material Resource 4lanning (MR4 Manu!acturing Resource 4lanning (MR4 && Mone# Resource 4lanning (MR4 &&& 5he latest planning tool added to the abo'e list is Enterprise Resource 4lanning. 0eed for )R! Most organi(ations across the *orld ha'e reali(ed that in a rapidl# changing en'ironment" it is impossible to create and maintain a custom designed so!t*are pac$age *hich *ill cater to all their re,uirements and also be completel# up)to) date. Reali(ing the re,uirement o! user organi(ations some o! the leading so!t*are companies ha'e designed Enterprise Resource 4lanning so!t*are *hich *ill o!!er an integrated so!t*are solution to all the !unctions o! an organi(ation. Features of )R! Some o! the maAor !eatures o! ER4 and *hat ER4 can do !or the business s#stem are as belo*: ER4 !acilitates compan#)*ide &ntegrated &n!ormation S#stem co'ering all !unctional areas li$e Manu!acturing" Selling and distribution" 4a#ables" Recei'ables" &n'entor#" Accounts" +uman resources" 4urchases etc." ER4 per!orms core Corporate acti'ities and increases customer ser'ice and thereb# augmenting the Corporate &mage. ER4 bridges the in!ormation gap across the organi(ation. ER4 pro'ides !or complete integration o! S#stems not onl# across the departments in a compan# but also across the companies under the same management. ER4 is the onl# solution !or better 4roAect Management. ER4 allo*s automatic introduction o! latest technologies li$e Electronic 8und 5rans!er(E85 " Electronic Data &nterchange(ED& " &nternet" &ntranet" Eideo con!erencing" E)Commerce etc.

ER4 eliminates the most o! the business problems li$e Material shortages" 4roducti'it# enhancements" Customer ser'ice" Cash Management" &n'entor# problems" Cualit# problems" 4rompt deli'er# etc." ER4 not onl# addresses the current re,uirements o! the compan# but also pro'ides the opportunit# o! continuall# impro'ing and re!ining business processes. ER4 pro'ides business intelligence tools li$e Decision Support S#stems (DSS " E-ecuti'e &n!ormation S#stem (E&S " Reporting" Data Mining and Earl# Warning S#stems (Robots !or enabling people to ma$e better decisions and thus impro'e their business processes Components o! ER4 5o enable the eas# handling o! the s#stem the ER4 has been di'ided into the !ollo*ing Core subs#stems: Sales and Marketing Master Scheduling Material Requirement Planning Capacity Requirement Planning Bill of Materials Purchasing Shop floor control Accounts Payable/Receivable ogistics Asset Management !inancial Accounting *uppliers of )R! 5here are man# numbers o! ER4 suppliers *ho are 'er# acti'e in the mar$et. Some o! the companies o!!ering reno*ned international ER4 products include:

Baan C"#A #$B %BM &# 'd(ards Marcarn "racle PeopleSoft Platinum Ramco SAP SM% Soft(are )***

Benefits of )R!
5he bene!its accruing to an# business enterprise on account o! implementing are unlimited. According to the companies li$e N&FE" D+G" 5e$troni-" 8uAitsu" Millipore" Sun Micros#stems" !ollo*ing are some o! the bene!its the# achie'ed b# implementing ER4 pac$ages: 1.:i'es Accounts 4a#able personnel increased control o! in'oicing and pa#ment processing and thereb# boosting their producti'it# and eliminating their reliance on computer personnel !or these operations. 9.Reduce paper documents b# pro'iding on)line !ormats !or ,uic$l# entering and retrie'ing in!ormation. <.&mpro'es timeliness o! in!ormation b# permitting" posting dail# instead o! monthl#. 2.:reater accurac# o! in!ormation *ith detailed content" better presentation" !ull# satis!actor# !or the Auditors. =.&mpro'ed Cost Control >.8aster response and !ollo* up on customers ?.More e!!icient cash collection" sa#" material reduction in dela# in pa#ments b# customers. 1./etter monitoring and ,uic$er resolution o! ,ueries.

@.Enables ,uic$ response to change in business operations and mar$et conditions. 1B.+elps to achie'e competiti'e ad'antage b# impro'ing its business process. 11.&mpro'es suppl#)demand lin$age *ith remote locations and branches in di!!erent countries. 19.4ro'ides a uni!ied customer database usable b# all applications. 1<.&mpro'es &nternational operations b# supporting a 'ariet# o! ta- structures" in'oicing schemes" multiple currencies" multiple period accounting and languages. 12.&mpro'es in!ormation access and management throughout the enterprise. 1=.4ro'ides solution !or problems li$e 69F and Single Monitor# 7nit(SM7 or Euro Currenc#.

2.E-plain the business 'alue o! integrating SCM" CRM" and ER4 s#stems. ANSWER: &n order to understand the business 'alue o! integrating SCM" CRM and ER4 s#stems it is necessar# to e-plain their respecti'e importance to business operations. *upply chain management #*CM$ in'ol'es the management o! in!ormation !lo* through out the suppl# chain in order to promote e!!icienc# and ma-imi(e pro!its. SCM components enable organi(ations to plan" schedule" control and optimi(e the suppl# chain. 8rom the initial stage" the procurement o! the ra* materials to the !inal stage" the deli'er# o! the end product to customers. Customer relationship management #CRM$ in'ol'es managing all aspects o! a customerHs relationship *ith an organi(ation to increase customer lo#alt# and retention and there!ore build up !urther sales that *ill e'entuall# lead to an increase in pro!its. CRM components allo* organi(ations to identi!# and categories customers and there!ore pro'ide appropriate customer ser'ice according to their re,uirements. )nterprise resource planning #)R!$ integrates all departments and !unctions throughout an organi(ation into a single &5 or integrated &5 s#stems to enable decisions to be made b# 'ie*ing the entire organi(ations in!ormation on its business operations" such as accounting" !inance" logistics and production. "ntegration of *CM1 CRM and )R! allows for% 2 &n!ormation is readil# a'ailable and 'isible throughout the organi(ation. I &t allo*s !or more accurate and simpli!ied in!ormation to be !iltered through out the organi(ation and there!ore !acilitating decision)ma$ing. I &t allo*s !or organi(ations to learn !rom pre'ious errors and to be competiti'e. I Data duplicit# is lessened. I &ncreases e!!icienc#" producti'it# and pro!its.

Business benefits of integrating CRM1 *CM and )R!