Page 41 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

Customer Relationship Management (CRM)

CRM is the business function that integrates sales, marketing, and customer service. Such integration
simplifies customer interaction. Within an integrated enterprise, customer content and contact
information are readily available to generate additional sales and service opportunities. Integrated
business processes provide consistency and simplicity to access many communication channels
available to firms today. Integration enables firms to support issues quickly and efficiently. Traditional
CRM techniques use call centers and direct marketing to market goods and services to targeted
audience. The Web has expanded the reach of this marketing function by enabling businesses to use
software analysis tools, customer interaction data, multi-channel communications, and one-to-one
interactions to market.
CRM tools integrate traditional methods of interacting customers with automated online capabilities,
including product catalogs, product configuration systems, pricing engines, proposal generators, and
sales incentives and commission systems. On the other hand, customer service has a variety of
enhanced services incorporated into communication channels, for example, integration of real-time
audio and video with Web-based data.
The growth of CRM e-Business may be attributed to the following reasons:

1. Electronic technology is one of the main reasons for the growth of CRM. Availing of CRM e-
Business facilities boosts the efficiency of the organization to a great extent. It is also cost effective
and requires very little time to implement.
2. CRM is flexible and has the ability to adapt to changing environment.
3. CRM helps in tracking the purchases and in the buying and selling of products. It helps the
organization to use electronic chat as a means of technical support and customer support.
4. CRM e-Business solutions give companies a well-planned and easily integrated e-Business
strategy that caters to both, the customer needs as well as the corporate needs. Both these need to
be adequately catered to, for the company’s objectives to be fulfilled. The net result of
implementing CRM e-Business strategies is satisfied customers and overall productivity.
Supply Chain Management (SCM)
Supply Chain Management (SCM) is the business function that enables a manufacturer to manage the
complex network of relationships between a manufacturer and its suppliers. SCM systems allow the
manufacturer to coordinate a series of transactions such as forecasting, purchasing, inventory status,
change orders, shipment, and financing. The goal of SCM is increased efficiency through automated
business processes that balance supply and demand.
Many enterprises are broadening their supply chain functionality to include Internet enabled
transactions because of the global reach of the Internet. The Internet can draw together globally
distributed information into a support structure that efficiently handles a variety of inter and intra
company operations. Increased efficiency enables firms to effectively handle lower margins, increased
customer demands, and unpredictable sales channels.

SCM is composed of two basic processes:
1. Supply Chain Planning (SCP): This includes advanced scheduling, demand forecasting,
manufacturing planning, and transportation planning. All of these are necessary components for
the effective coordination of manufacturing and supply efforts based on individual customer
orders.
2. Supply Chain Execution (SCE): This process includes order planning, production, distribution
management, and logistics. All these ensure that orders flow smoothly through the system, from
the supplier to the manufacturing operation and finally to the end customer.
SCM helps in the coordination of raw materials, intermediate goods, information, and financial
transactions among all the organizations involved in producing a finished product. A variety of
information and transportation links can be used to connect all these organizations, essentially allowing
them to function efficiently as a single organization.

34 LOVELY PROFESSIONAL UNIVERSITY