A little perspective to start us off:
Age of the earth?? 4 Billion
What happened the first 1 billion? Nothing 2d billion? Nothing
About 500 Million years ago – Cambrian Age – Life!
250M to 65M years ago – Jurassic Park (3D coming out!).
100,000 BC – Homo Sapiens, but don’t know much about first 90K years
10,000 BC – First Known History because Agriculture invented –> writing down history
1700s, 1800s – Industrial Age
– Cotton Gin, Printing Press – Other cool inventions, transportation systems.
1950s –> Information Age (1957 in USA) when information became the key tool.
Payroll, G/L, Accounting – Single systems developed but they were “Silos” – stand alone
1970s – Developing Enterprise Level System that were integrated
Umass Systems -
- Email, Wiser, Blackboard, H/R, Phone, Lab Reservations, Financial, Website, etc.
- Some automatically updated, some manual
- Need INTEGRATION of all these systems so we don’t land up with silos.
- Some of the systems are “LEGACY” – Older system that you want to keep around. How to integrate?
3 basic types of systems we will be discussing:
- Customer Relationship Management
- Supply Chain Systems
- Enterprise Resource Planning
CRM – Think of products you are loyal to.
Me – Sony Ericcson Phones, Apple
Others – T-Mobile, Fire&Ice, Lids, Google, Nike, Dunkin DOnuts, Johnny Cupcake, Shake Shack
- You know the product. Quality.
- They’re giving you a deal
CRM focuses on the end user, rather than the product – Promote loyalty, retention, & ultimately profitability.
Think hotels (they know you & your habits) and systems they have vs airlines (they don’t)
Red Sox (Happy Opening day!) – Last week before they opened the season 4-2 on the road:
– Weren’t making playoffs
– Owners just care about selling seats
– Loyal fans of Red Sox Nation were not happy
What to do to build loyalty back:
– Hotdogs are 2 for 1, Beers are $5
– Discounts – Give away tix based on past sales
– Offer STH seats/memorobilia first
– Meet & Greet with players
– Play on field last October after season ended
How to measure customers:
Recency, Frequency, Monetary (RFM) Analysis
115 – Cheap, but come frequently
– Give person a deal / high quality so maybe they’d be “up-sold”.
– Would you like fries with that, Customer who bought this, also bought..
151 – Came back recently after absence, $ alot
– Quickly Expiring coupon – get him to come back soon
551 – Old customer but spends alot
– What happened? And fix it.
Data goes from questions like
“What is our inventory?” –> “What do our customers want”
“Who are our customers” -> “who should our customers be” & “Who is at risk for leaving”
Good CRM Figures out way to properly contact customers (Frequency, Method)
Supply Chain – How it works
Product goes down the chain:
Raw Materials or Other Suppliers (Other companies)
Distributor (Expert at importing, shipping)
Distribution Center (Walmart)