Database Reference
In-Depth Information
ERP vendors have been acquiring or building new modules for Sales Force Automation (SFA) and
CRM to front-end traditional Sales Order, Billing, and Accounts Receivable (AR) application mod-
ules. This streamlines the information flow from the initiating sales forecasting activity to servicing
an established customer. While this extends the business functions and activities supported by infor-
mation processing, it also extends the reach of the traditional back-of-office ERP products. However,
this does not necessarily deliver functionality of a true CRM. Extended ERP is seldom more than
a vendor's best-of-breed and piecemeal application add-on functionality intended simply to extend
the market share of their ERP product. Front-of-office applications grafted on an ERP may not be as
functionally rich as SAP CRM but may have a certain advantage in terms of the in-built provisions
for integration with back-of-office modules. A judicious balance needs to be struck between these
aspects to evaluate and select the most appropriate vehicle for delivery of CRM functionality for the
enterprise. These issues are the focus of Chapters 3 “CRM Evaluation” and 4 “CRM Selection.”
2.4 CRMs as Keepers of Customer Knowledge Assets
CRM implementations must ultimately be business driven and not dictated and driven by tech-
nology issues. The survival and success of an enterprise depend on how it differentiates itself
and its products and services from those of its competitors. In this era of mass customization,
what organizations need is not more standardization and generic processes, but the ability to be
more dynamic, more flexible, more proprietary, and more customized. Because the CRM strategy
basically embodies the
theory of business
of a company (a la Peter Drucker), it must also mirror
these differences in strategies and processes. To leverage their competencies, distinct advantages,
edges, or competitive advantages, companies cannot abandon the corresponding differentiating
processes and will have to incorporate such fundamental variants in their CRM implementations
or interface with such systems. SAP's Industry-Specific (IS) solutions are primarily efforts driven
by recognition of this fundamental need of its customer organizations.
All of these unique value propositions and differentiating factors are information assets of an
organization and are captured and configured into the CRM system. These information assets
include the business rules and procedures or methods of operations, customer analytics, param-
eters of analysis, ranges for defining credit limits, credit periods, discounting structures, and rat-
ings. Like any other assets, CRM packages like SAP CRM register, maintain, monitor, and report
on these informational assets. This helps in maintaining these assets current and useful.
2.4.1 Collaborative Enterprise
CRM provides the design and architecture for the collaborative enterprise as has been dis-
cussed in this chapter. It provides the basic platform for enabling the enterprise-wide, integrated,
information-based, process-driven, real-time intelligent enterprise. This has a direct impact on
many aspects that traditionally have been more relevant to issues of organizational development:
◾
Vision
: CRM enables the realization of an organization that has a customer-centric vision
to be competitive by raising the level of skills and competencies of its personnel so that they
can respond better, faster, and at the optimal cost to the changing customer expectations
ever y day.
◾
Strategic goals
: CRM enables access to customer-sensitive data to all customer-related person-
nel to keep track of the organization's overall performance, with reference to the company's
