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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.
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