ASSIGNMENT ON

BUSINESS INTELLIGENCE AND CRM

Submitted to: MUSTHAQ AHMED MOHAMMED MINHAJUDDIN

Submitted by: K.Vinod Kumar PGPM Second year 050101019

QUESTIONS

1)

What is BI and Techniques used take an example of any company using it and explain?

Definition: Business Intelligence (BI) is the ways in which we store and use business information. It encompasses the technologies, applications, and means for collecting, integrating, analyzing, and presenting business data. Using data that has been stored in a data warehouse, software applications are able to use this data to report past business information as well as predict future business information, including trends, threats, opportunities and patterns. Popular BI applications are very complex and experts in this field are in high demand. Some of the currently popular enterprise level systems, which can manage information about all of the business functions and systems, are sold and implemented by Oracle, SAP, IBM, and Hewlett Packard (HP). Companies often need in-house experts in these systems to assist with the implementation and the on-going use of these systems, which are quite complex. Also Known As: BI, Data Mining, Decision Support Systems, Business Performance Management, knowledge management, management information systems, MIS

The following megatrends impacting Business Intelligence in 2012:

1. 2. 3.

Saving cost on BI and with the use of BI (Total-Cost-of-Ownership) Faster access to relevant information for everyone (Time-To-Information) Getting more value from the information available (Return-On-Intelligence)

This impacts the BI market with the following (more detailed) trends arising: 1. Fixing the basics a. Building the foundation of any BI & DWH environment to fund future use should involve key elements like Master Data Management (Customer, Product) and Data Quality improvements.

2.

Big data a. The rise in volume (amount of data), velocity (speed of data ) and variety (range of data) gives way to new architectures involving datawarehouse appliance based on in memory technology and smart software solutions.

3.

Mobile BI (Smartphone, tablets) a. Customers are demanding that access to data is Apple simple and Google fast. This puts a demand on both the backend of any BI solution (like datawarehouse appliances) but also on the frontend where information access and visualization must be possible anytime, anywhere. The increased use of tables and Smartphones has already become mainstream in many business environment.

4. a.

Cloud / SAAS Cloud or SAAS (Software as a Service) is in increasing demand for both temporary as well as permanent usage. Its all about services (like reporting) provided from a managed environments based on a (new) business model (often pay per use). In other words: making BI (hardware, software, data) available via the internet. Agile development & use a. Historically BI has been IT controlled data collection, integration and distribution of historical data. However BI has evolved into being part of the ongoing daily (operational, tactic and strategic) business processes to plan, monitor and improve on the organizational goals.

5.

b. Next generation BI therefore is by nature more agile in its development (BI lifecycle)

c.

Next generation BI also requires (real- or right time) insights into (increasingly) complex questions

6.

Self service a. BI once was the field of a limited number of expert users but has come a long way since. Trough the democratization of information, placing BI in the hand of many but still as a separate process, BI now has become a part of our daily work. With this comes the increased need to create insight on the fly instead of trough standard IT governance processes.

7.

Social BI (mixing facts of BI with opinions from Social Media) a. Social media like Twitter and Facebook are no longer a hype or a trend but part of everyday life both from a personal as well as from business perspective. They can supply organizations with essential information about their customers opinions. Combined with the actual customer behavior as captured in transactional systems this proves to be a wealth of information.

Market Automation:-

Marketing automation is the answer because the world of marketing is actually complex enough add to that the complexities of its activities and the tremendous amount of data included, the whole thing is simply astounding. With all the advent of advance automation technology, the monotonous jobs are greatly reduced with the aid of intelligent software. Marketing Automation endeavors in order to greatly enhance productivity and also efficiency . Above all it immediately handles the particular tedious jobs that normally drain marketing employees. Marketing covers

an array of components it seems merely humanly impossible to maintain the high level of efficiency over a long period of time. Marketing Automation is made to address the matter of flagging competence and aspires only to increase the effectiveness of each activity to ensure the sustainability of a healthy business organization. Business process management (BPM): Business process management (BPM) is a methodology to ensure that those processes support a common set of goals and objectives. It involves automating and/or improving the effectiveness of process activities, tasks and outcomes to accomplish particular business purposes. Its goals include not only efficiency and productivity but, beyond them, control, responsiveness and improvement. Efficiency enables individuals to maximize the time they can devote to priority business tasks and to maximize throughput. Control assures that company resources are aligned optimally to execute strategies. Responsiveness and improvement support the competitive differentiation that enables a company to excel over others. BPM, then, is about improving processes and implementing systems that enable the improvement. In pursuit of this mission, BPM starts with the following assumptions: As a business changes, so must its processes; as a result, they need to be revisited periodically. Processes are used by multiple organizations and stakeholders. Processes interact with systems and people. Those people can be employees, customers, suppliers or other stakeholders. To attain the process goals of efficiency, productivity, control, response and improvement, companies first must understand their processes, the needs and skills of the people who use them, the changes that affect them and which areas need improvement. To understand these things, they need relevant information and the ability to analyze and apply it. Business intelligence (BI) tools provide this information, its contexts and appropriate analytics. BI delivers information that, when linked with BPM, gives people the input they require to improve business processes. This last point is key: Both processes and tools are subordinate to the end of empowering people, at whatever level they occupy, to make informed business decisions that execute corporate strategy, improve performance and ultimately produce the best possible results. BI Sharpens Business Processes The ultimate goal of business process management is performance management: managing the performance of the organization and its business network by using all assets in ways that achieve a common set of goals and objectives. Performance management enables all individuals to work across strategic, tactical and operational levels to align actions so that the organization produces rapid, effective responses to business challenges.

To connect processes with performance goals, companies need business intelligence capabilities, including metrics, key performance indicators (KPIs), executive dashboards and advanced reporting capabilities. They must go beyond just providing reports of basic operational metrics to facilitating access to aggregate data definitions and real-time information. Without BI, it is impossible to correlate process outcomes to corporate performance goals or to apply operational metrics to continuous process improvement. BI is also a critical tool for analyzing process data. Without it, its virtually impossible to measure, evaluate and control business processes. Through process performance reports, BI gives business process managers the means to measure process execution as well as to gain insight into future workflow design improvements. BI tools map out process metrics such as throughput and flow rates in process modeling and then can be used to measure actual process execution. This data can be aggregated from the process implementation and displayed in real time in performance dashboards and reports. Like corporate performance management systems, BI in a BPM environment supports high-level strategic metrics as well as drill-down analytics and sends alerts when process performance results begin to deviate from targets. In addition, by providing a platform for rule-triggered actions, BI can turn alerts into automated procedures for escalation and remediation in real time, allowing the organization to respond without delay to changes in the business environment. Ultimately, statistics distilled from actual operations can be fed back into the process model to begin the next cycle of performance improvement. In many cases, business data is far more important than process data for analyzing and optimizing business processes. BI is the critical element of BPM here. To use the example of the mortgage loan approval process, the real-time value of credit scores is critical data for calculating the loan interest rate to be offered. In this situation, integrated business intelligence data is the major ingredient to support key decisions in the process. BI is also critical to BPM because day-to-day business decisions must be made in the context of business process. BI not only harnesses the power of transactional data created by processes but also creates understanding that leads to action. Order fulfillment is an example of this intersection. In such a case, BI helps make these and other decisions: Should we process this order even though it exceeds the customers credit limit? Should we escalate this order to the regional sales manager because the credit score is low and this customer is a priority client? Should we extend more credit to this customer even though he or she has outstanding payments? These key processing decisions cannot be made efficiently unless the data from each application and each process is incorporated in a BPM application. Integrating process and data on a readily available platform enables decision-making in context and in real time.

Integration of BI and BPM also addresses an issue in the relationship of enterprise software to business processes. An application represents a logical grouping of tasks that has been automated with the objective of reducing or supplementing human interaction. A business process is a set of activities performed by people and machines that are necessary to bring about a desired result. Thus, an application represents a subset of the tasks of a business process. The remaining steps of any business process continue to be human activities and interactions. The bottom line is that most IT applications automate only a subset of the tasks in a business process, and often they do so in an inflexible way. Most applications in widespread use today do not help to streamline processes. In many companies, departments buy niche technology to solve their particular problems. Even though in recent years the application footprint of enterprise resource planning (ERP) has expanded, companies still find themselves with separate applications addressing customer relationship management (CRM), supply chain management (SCM) and supplier resource management (SRM). The problem with these applications is that they are focused on function, not business process. They provide no real linkage between transactions and processes when business processes cross individual systems and departments. SUPPLY CHAIN ANALYTICS: Supply channel analytics are used to characterize and benchmark a companys supply channels from its various vendors and suppliers, through internal inventory management and ultimately aspects of delivering products to its customers. Aspects of supply chain analytics involve the following: Supplier and vendor management: Many organizations are unable to identify who their vendors are or how many vendors are supplying products or services. Supply chain analytics allow a companys management to track performance and reliability by supplier, evaluating and rating the quality of the products supplied, as well as help to optimize supplier relationships with respect to spending, procurement, and risk. Shipping: There are different methods by which a company delivers its products to its customers, each with its own cost schedule. For example, it may be more expensive to ship products by air than by truck, but the products will arrive at the destination faster if shipped by air. A company can minimize its delivery costs by being able to select

Business Intelligence the most efficient delivery method for any specic business arrangement, but knowing whether the products can be available within the right time schedule is a difficult problem, especially if your production depends on external suppliers. Therefore, supplier and inventory information with productivity data. Inventory control: As discussed earlier, maintaining an inventory of commodity products that exhibit volatile pricing and limited useful life creates a market risk if those products cannot be used before their obsolescence. Alternatively, we would not want to keep the shelves empty, because parts are needed to build the products that are in the orderand-fulllment cycle. Between the sales channel information, the productivity data, and the supply chain data, it is possible to make more precise predictions about inventory requirements. It is also possible to determine the best way to quantify and mitigate risk, especially through the development of nancial products (such as barrier options) to limit nancial losses. Distribution analysis: Imagine that your company has a large number of retail outlets, a smaller number of regional warehouses, and a very small number of factories. The optimal distribution model would arrange for the delivery of the exact number of products from each factory to its closest warehouses so that each warehouse could deliver the exact number of products to each of the retail stores. Unfortunately for both companies and customers, this optimal distribution is pretty rare. If a company can predict demand for specic products within certain areas, though, the managers cannot only distribute the product to the right locations in the right quantities, but also minimize shipping costs by ramping up product creation at the factories most economically geographically located at a rate that matches the consumer demand. Business Intelligence in CEAT: merging

Comprehensive Business Intelligence Application Addresses Data Analysis & MIS Reporting Needs of CEAT Limited Ceat is a leading manufacturer of automobile tyres in India, and one of the most recognised brands in the country. The company also exports a range of tyres to over 130 countries. CEAT has a wide distribution network of over 3500 dealers,37 regional offices and more than 136 C&F agents. The companys manufacturing plants are located in Mumbai,Nasik and Halol. CEAT

manufactures the largest range of tyres in the industry which incorporate both cross-ply and radial technology. The range of tyres cover, virtually all user segments from giant earthmovers to specialty tyres for scooters and motorcycles. The company also markets tubes and flaps. Challenge Business users, key personnel, Managers and top management at CEAT wanted information visibility on web. Territory Managers were not able to see entire report in a single sheet. Before going to a dealer, they were doing lot of manual homework. They were not getting correct data while discussion with dealer. Adhering to continuous report requests from business users was becoming a challenge as generation of SAP reports required lot of efforts & time. Why 1KEY BI CEAT selected 1KEY BI because it provided us with far more than just trending and reporting. It gave us a higher level of business intelligence (BI) capabilities that: Integrated easily with our existing production and control systems data from SAP & non SAP data. Provided deep insight into our batch processes. Facilitated information-sharing among our production and supervisory staff so they could better monitor production in their appropriate contexts. Cost-effective with low TCO. Dashboard feature.

Implementation Plan The initial plan was to develop reports for 1 department at a time so that we could provide all kind of reports required. In the process we ensured that the quality and performance is not degraded anywhere. Also we released the tool for identified MIS users only along with a basic training session. The implementation process began in April 2010 last year and went on for 6 months to develop the initial requirements collected from different departments with the team of 2 BI consultants from Paramatrix and 1 project manager from MAIA Intelligence. SAP data was pulled using SQL Servers SSIS and Microsoft BizTalk and reports created on 1KEY. 4 people from CEATs IT team were involved, 2 from sales & distribution & 2 from finance. The entire setup including the development (of reports) and support is now managed by the IT team of CEAT. Partial List of Reports Around 100 to 150 real-time reports are being used by CEAT to monitor the business numbers, track productivity, schedule resources based on volumes and manpower rooster from 1KEY BI.

Territory Dashboards Treasury Reports Accounts Receivable / Payable CEO Reports/Dash Boards Key Performance Indicators

Sales: New business monitoring across all the products giving snapshots of daily and MTD new business logged in - used by management team to track business across products; this helps them channelize resources if required in certain directions CRM: Dealers / Distributors Performance based on product sales Finance: Snapshots of income and expense Snapshots of renewal and revival business Productivity: 1KEY BI allowed CEAT to drill down and make phase changes that could shorten raw material addition times, improve line speeds, reduce the time in quality control, shorten overall cycle and changeover times Conclusion:This truly is an extraordinary success story. 1KEY BI was the major element that enabled everything to happen. It is not the only reason it all happened, but it was an important factor in our success, but the fact is we couldnt have gotten these amazing results without it. It was a critical enabling tool for us. Productivity: Real-time reports for departments like Production, Finance, Sales & Distribution and Marketing.

2)What are the functional areas you have to consider during implementation of CRM, take an example of any company and explain? CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners.

Many organizations turn to CRM software to help them manage their customer relationships. CRM technology is offered on-premise, on-demand or through Software as a Service (SaaS) CRM, depending on the vendor. Recently, mobile CRM and the open source CRM software model have also become more popular. Business Benefits
o

Increase sales revenues: spot CRM gives you a powerful technology platform which you can leverage to grow your sales revenues. An easy access to all the information related to marketing of your products and services along with 360-degree view of your customers increases the productivity of your sales team resulting in more effective marketing campaigns and better sales conversions.

Improve Profitability: CRM solution helps you in increased profitability by focusing on the most profitable customers and opportunities available. Increase productivity of your Marketing, Sales and Support staff: With our CRM solution, a smaller team can process a very large number of enquiries, manage leads and close more sales than before. Integrated helpdesk enables your support staff to provide effective service to your customer and close more service calls than before. This can help you to significantly reduce your sales and support costs and improve margins. Build strong and lasting relationship with your customer: Implementation of spot CRM solution helps you anticipate customers needs and respond to the same in time. Integrated Service platform empowers your support staff to deliver efficient after-sales service. This leads to an overall improvement in customer experience, resulting in strong and lasting relationship with your customer which you can leverage for generating more up-sell and cross-sell opportunities. A highly satisfied customer will also lead to a higher share of repeat and reference business which will to increased sales revenues.

CRM DASH BOARD

Key Concept OF CRM Comprehensive strategy:

CRM at one end links itself to SCM supply chain management and on the other hand the customer service and customer care. This makes a comprehensive strategy. Acquiring : This is about prospecting. Using effective sales promotion methods, prospective buyer can be acquired. It is about developing new customer as well as converting competitors customers. Se lection: You cant please all people at all times. You may not be able to serve and satisfy all the customers at the same time. There may be customers who may not be willing to have long time relationships with you. As a consequence you need to have selectivity in the customers as well.

Retaining: Once a right customer is selected, we need to provide the customer with a good product and a better service which exceeds the customer requirements. Only then can the customer be satisfied and retention of a customer ca n be possible. Partnering: Partnership is about constantly striving to create better value for each other i.e. the buyer and the seller. Interactive Communication: A clearly planned and focused two way, interactive communication is a very essential ingredient of CRM. A meaningful communication will always be an interactive communication. Technology + people : CRM is all about people and relating people to technology. This is all automation of people is all about? Mutually Beneficial Long-term Relationship: It is all about the long-term relationship of the buyer and the seller. This overall results in the mutual benefit of both resulting in a long term relationship ABOUT AXIS BANK Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.

The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 crores with the public holding (other than promoters and GDRs) at 53.63%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 7591 ATMs (as on 30th September, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Role of CRM in bank: The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues. The organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently us ed. Role of CRM in banking sectors are as follows: Consumers largely select their banks based on how convenient is the location of bank to their homes or offices. The pressures of competitive and dynamic markets have contributed to the growth of C RM in the financial Services Sector. Analysis suggest that a 5% increase in customer retention can increase profitability by 35% in banking business,50% in insurance and brokerage and 125% in the customer credit card market. Private Banks have traditionally viewed themselves as exceedingly C ustomer Centric offering what they believe to be highly personalized services to the high net worth customers. CRM Objectives In Banking sector Objective of CRM in Banking Sector are as follows: Responses to campaigns Shipping and fulfillment dates Sales and purchase data Account information Web registration data Service and support records

Demographic data Web sales data

CRM would also make Indian bankers realize that the purpose of their business is to create and keep the customer and to view the entire business process as consisting of a tightly integrated effort to discover, create and satisfy customer needs. References:http://images.wtnmedia.com/docs/DHC08-Hansmann.pdf http://www.maia-intelligence.com/casestudies.htm