On the development trend and integration of CRM an

2022-09-28
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On the development trend and integration of CRM and ERP

the author will talk about the function and development trend of CRM and the function and development trend of ERP, and finally comprehensively elaborate the function integration of CRM and ERP

crm functions

according to the latest research results, the functions of customer relationship management (CRM) can be summarized into three aspects: the informatization of sales, marketing and customer service business processes; Integration and automatic processing of means (such as, fax, contact, email, etc.) required for communication with customers; Process the information accumulated by the above two functions, generate customer intelligence, and support the strategic and tactical decisions of the enterprise. As shown in Figure 1

Figure 1 overview of customer relationship management

from the figure, we can see that the basic functions of CRM software include customer management, product management, time management, contact management, marketing management, potential customer management, sales management, sales and marketing, customer service, and some also involve workflow management, call center, partnership management, knowledge management, business intelligence, e-commerce, etc

crm development trend

experts, institutions and companies at home and abroad who have been engaged in CRM research, consultation and Implementation for many years put forward the following views on the main development trend of CRM in terms of technical functions

according to the customer-centric concept, the enterprise is composed of front office and back office. As shown in Figure 2 below. The front desk refers to the place where the "battle" between the customer and the enterprise takes place. The backstage is the place that points to the front desk to provide effective support and delivery services as well as production and maintenance. The information systems of the foreground and background will be further integrated. Suppliers of background software products, such as ERP manufacturers, will continue to expand their foreground management functions. Suppliers of foreground software, such as CRM, call center and other manufacturers, will also enhance the integration ability of their foreground products with other background products

Figure 2 composition of the enterprise

- the function of the call center will be greatly expanded, especially the call out function. It will truly realize the integration of WWW, email, fax, wireless communication, direct contact, etc., and become a contact center

- Network Based self-service will become an important way for enterprises to provide services to users

- existing CRM products will incorporate more functions of partnership management (PRM). PRM products will have finer and more progressiveness industry solutions, and will integrate some functions of distribution system software and e-commerce software to achieve greater development

- future CRM products will integrate some concepts of knowledge management and competitive intelligence, and become a powerful tool for knowledge management and competitive intelligence

- the ASP (application service providers) method of CRM will be recognized and applied by people

- make full use of the functions of data warehouse and data mining to realize real "one-to-one" marketing and help enterprise managers make decision analysis

ERP (Enterprise Resource Planning) is an enterprise resource management system based on the latest information technology, which integrates enterprise management concepts, business processes, basic data, human, material and financial resources, computer hardware and software with systematic management ideas. It has become the operation mode of modern enterprises and the cornerstone of their survival and development in the information age

according to the system standard of a complete set of enterprise management system samples proposed by Garter Group Inc., a famous computer technology consulting and evaluation group in the United States, the symmetry plane of the gap should be located on the symmetry plane of two supports. ERP integrates and integrates all resources of the enterprise. In short, it is a management information system that comprehensively integrates the three major flows of the enterprise: logistics, capital flow and information flow. Its function module is different from the previous MRP or MRPII module. It can not only be used for the management of production enterprises, but also be imported into ERP system for resource planning and management in many other types of enterprises, such as some non production and public welfare enterprises. Here, the main functional modules of ERP are still introduced with the example of a typical production enterprise

in enterprises, general management mainly includes four aspects: human resource management, financial management (accounting, financial management), production control (planning, manufacturing) and logistics management (distribution, procurement, inventory management)

the development trend of ERP

shortly after the emergence of ERP, computer technology encountered the upsurge of internet/intranet and network computing, the internationalization trend of manufacturing industry and the deepening of manufacturing information technology. Among them, the most remarkable are the following developments

- incorporate product data management (PDM) function. PDM organizes all kinds of information in the whole process of product design and manufacturing, data and documents in different design stages of products in a unified environment. With the development of CIMS and concurrent engineering, PDM is becoming more and more important. Both CAD and ERP manufacturers develop PDM as their own products

- integration of ERP and EDI (Electronic Data Interchange). There are two aspects

1. ERP integrates EDI within the enterprise. In this way, ERP users can exchange information with non ERP software users of the enterprise in the same environment

2. EDI between enterprises. At present, in some industries, such as automobile manufacturing, EDI function is a vital function. The way of sales in the automotive industry requires ERP software to use EDI in the sales and procurement module to realize the electronic ordering and sales billing process between customers or suppliers

- added work flow function. The demand for workflow coincides with the application of paperless management and EDI in ERP software. After using EDI, there is a problem that electronic documents (electronic planning documents, electronic orders or engineering change documents) are transferred to the designated personnel according to the specified route at the required time, which must be controlled by workflow management. For example, the workflow management module has been added to the workshop production management of Oracle, which is an integrated, rule-based, automatic and coherent workflow management program. Comprehensive workflow rules ensure that time-related business information, such as the approval of purchase order requirements, can automatically flow to the designated personnel at the right time. The management of workflow extends the function of ERP to office automation and business process control

- add DW (data warehouse) and OLAP (online analytical processing) functions. The basic feature of MRPII or ERP software is "online transaction processing". For the top managers of enterprises, it is very difficult to directly obtain the data needed for macro decision-making from the ERP system with large scale and complete data but "no details". In the mid-1990s, Data Warehouse DW and online analytical processing OLAP technology appeared, and the new generation of ERP software immediately integrated them to provide users with enterprise level macro decision-making analysis tools

- Application of CRM. The traditional ERP system focuses on the management of enterprise background, but lacks the system function of directly facing customers. Because traditional enterprises only focus on buying high-quality and low-cost raw materials and producing products quickly and efficiently. As for the questions of which products are more popular and which services need to be improved, there are often no exact answers, which can only be guessed by experience. In the environment of e-commerce, enterprises' customers may be scattered all over the world, and enterprises cannot know their situation like the palm of their hand, so there must be a system to collect customer information, analyze and use it. Therefore, the customer relationship management system CRM, also known as the front desk management system, has become the latest bright spot in the ERP market

- new modular software concept. The new concept of "modularization" is different from the current "kit of optional modules". For example, the modularization of SAP company has the following characteristics:

1. A new method of integrating third-party software into ERP is adopted, which is called business application programming interface (Bapi). This is a standardized open interface. With Bapi, users can use ERP system through browser and exchange email, and users can mix and match these software modules with non ERP software

2. Users can update a module separately as required, and there is no need to comprehensively upgrade the system in order to enhance a certain function. Users use the method of module by module update to enhance the function of the system without replacing the whole system

3. Bapi technology is a very significant progress for ERP software developers. From MRPII to ERP, there are more and more system functions. No matter how powerful a software company is, it cannot develop software with all management functions including all majors of the enterprise alone. Technically, we must be able to connect the third-party software to our own core software

4. Specialized software. This will change the situation of providing users with general products suitable for all users, and "tailor" the software in advance for specific user markets to launch software products for special markets. Specialized software can get available menus, modules and reports without targeted configuration by users, which can be enabled faster and get more targeted services. Forrester called this commercialization trend of ERP software professional military equipment as ERP's "vertical market strategy". The specialization trend of ERP software shows that the expansion of manufacturing software coverage has made ERP go out of the manufacturing industry and look for a broader market in energy, telecommunications and other industries

integration of CRM and ERP

from the above contents of CRM functions and development trends and ERP functions and development trends, it is not difficult to see that there are overlaps between the functions of CRM and ERP, and mutual penetration and common improvement are also mentioned in their respective development trends at the same time. Here are some views on which aspects of the integration and how to realize it

integration part

crm focuses on managing the customers of the enterprise, and the customers of the enterprise are also the most important resources of the enterprise. As an enterprise resource planning system, ERP also needs to do a more comprehensive management of the customers of the enterprise, which is reflected in the distribution system and accounts receivable module of ERP. So to exaggerate, it can also be said that CRM can be used as a subsystem of ERP system. Of course, a more accurate statement should be that CRM system is an extension of sales management in ERP system (as shown in Figure 3). Because there are call centers, B2B, B2C, one-to-one marketing, etc. in CRM that are not originally within ERP. Since it is an extension, natural ERP is the foundation of CRM and the soil for cultivating CRM. ERP and CRM mainly overlap in the following aspects:

customer management

some basic information of customers is used in CRM and ERP systems. At the same time, ERP system should be able to query the communication history between customers and enterprises

Product Management

both CRM and ERP systems need to use the basic information of products, BOM of products, customized configuration and quotation of products, etc

workflow management

both CRM and ERP systems have workflow management. In fact, their working methods are the same

personnel management during work loading

crm and ERP systems should be involved

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