MGT 300

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CRM enables an organization to; Ø    Provide better customer service Ø    Make call centers more efficient Ø    Cross sell products more effectively Ø    Helps sales staff close deals faster Ø    Simplify marketing and sales processes Ø    Discover new customers Ø    Increase customer revenues RECENCY, FREQUENCY AND MONETARY VALUE An organization can find its most valuable customers by using a formula that industry insiders call RFM; Ø    How recently a customer purchased items (R ecency ) Ø    How frequently a customer purchased items (F requency ) Ø    How much a customer speeds on each purchased (M onetary value ) THE EVALUATION OF CRM CRM reporting technology - help organizations identify their customers across other applications. CRM analysis technologies - help organizations segment their customers into categories such as best and worst customers.  CRM predict

 Supply Chain Management Supply Chain Management v    The average company spends nearly half of every dollar that it earns on production v    In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains Basics of Supply Chain v    The supply chain has three main links: Ø    Materials flow from suppliers and their “upstream” suppliers at all levels Ø    Transformation of materials into semi-finished and finished products through the organization’s own production process Ø    Distribution of products to customers and their “downstream” customers at all levels v    Organizations must embrace technologies that can effectively manage supply chains v    Plan Ø    A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. v    Source Ø    Companies must carefully choose reliable suppliers that will deliver goods and services requ

Enabling the Organization – Decision Making Ø    Reasons for the growth of decision-making information systems §    People need to analyze large amounts of information §    People must make decisions quickly §    People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions §    People must protect the corporate asset of organizational information Ø Model  – a simplified representation or abstraction of reality Ø    IT systems in an enterprise   Transaction Processing Systems(TPS) Ø    Moving up through the organizational pyramid users move from requiring transactional information to analytical information Ø    Transaction processing system  -  the basic business system that serves the operational level (analysts) in an organization Ø    Online transaction processing (OLTP) –  the capturing of transaction and event information using technology to (1) process the information according to defined b

What is Data Warehouse? Ø    Defined in many different ways, but not rigorously -          A decision support database that is maintained separately from the organization’s operational database. -          A consistent database source that bring together information from multiple sources for decision support queries. -          Support information processing by providing a solid platform of consolidated, historical data for analysis. History of Data Warehousing Ø    In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions Ø    The data warehouse provided the ability to support decision making without disrupting the day-to-day operations, because; -          Operational information is mainly current – does not include the history for better decision making -          Issues of quality information -          Without information history, it is difficult to tell how and why things