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1 TheDecliningCostofEnablingTechnology 1 000 000 100 000 10 000 1 000 10 1 1980 1990 2000 Mainframes PCs CostperMIP LogarithmicScale Source GartnerGroup 2 CustomerTransactionCostsAreDecliningWithTheWeb 1IncludesInternet based FAX E mail E Form FileTransfer WebEDI WWWServices Voice PhoneSource ThompsonECResources PwCanalysis AverageInternetTransactionPenetrationAcrossIndustries InternetTransaction1Share percent AverageTransactionCostForecastAcrossIndustries AverageTransactionCost dollars Averagetransactioncostdecreases36 Averageshareincreasesfrom10 to32 3 TheBusinessModelHasChangedConsiderably Retailers Customers Adaptedfrom InformationArchitects RichardSaulWurman editor 1994 Manufacturer Truckers Distributors Management Truckers OldModel Controlofthesystemisdividedamongthecustomer retailer distributorandmanufacturer Knowingcontextoftransactionisasvaluableasthetransactionalone NewModel ControlandProductFocus OneWayLinearFlow Continuousfeedbackthroughoutthesystem 4 TheCustomerInteractionValueModelHasInverted Today sCustomers MorePriceSensitiveMoreChoicesMoreSophisticatedMoreConvenienceHigherStandardsDifferentwaysofInteracting HighEndSolutionsSelling Support Value TheAgeofManufacturing 1950 s 80 s WEBBasedSales CustomerCare HighEndSolutionsSelling Support Value TraditionalSales CustomerCare TheAgeoftheConsumer Mid1990 s Beyond LowCostChannels TraditionalSales CustomerCare 5 TheSoftUnderbellyofEstablishedCorporateInfrastructures Thisisaterrifyingscenarioformostfirms costsarerising justtomaintaincompetitiveparity whilebrandequityisdiminished atrueprisoner sdilemma CostPerCustomer MarketingSpending CostPerCustomer CustomerSupportSpending CostPerCustomer SalesForceSpending 6 CustomerRelationshipManagement TheEssentialElementsofCRM 7 ACompany sBrandIsTheAggregationOfAllCustomerExperiences Consumers Brand Producers ServiceExperiences BuyingExperiences ProductExperience InformationExperiences SupplyChainDialogProcesses CustomerFacingDialogProcesses Feedback DialogueProcesses Producers Consumers ManagingtheDialogue 8 ACompany sBrandIsNowDependentOnAllCustomerExperiences ConsistentmessagesacrosstheenterpriseControlledcontactandcampaignmanagement ServiceDimensions Thecustomerviewstheorganizationasacoordinatedandintegratedentity Customer Enterprise Availability i e openandoperating Accessibility i e hasslefreeaccess Deliveryexperience Productexperience Customerinteractionexperience Returnexperience 9 TheCustomerInvestmentFramework Minimizenewmarketingandsalesinitiatives CommunicatemorefrequentlyCollectpredictiveinformation assessriskIncreasebrandidentity DrivehandraisingIdentifyrespondentstomarketingprogramsQualifyandrankleadsNurtureprospectsInitiatewin backstrategiesfordefectors Recognizecustomervalue e g rewards EncouragereferralsExploreotherrevenueopportunitiesReinforcebrandidentity Recognizecustomervalue e g selectedrewards MaintainbrandidentityDriveinitiativestocross sellandup sell Diffuse distractcustomer sangstGainclosureonreasonfordissatisfactionMinimizenewmarketingandsalesinitiatives 10 ProactiveUp SellingAndCross SellingByLifeStage INVESTMENTPRODUCTSILLUSTRATIVE LifeStage AnnualConsumerExpenditures AverageAnnualConsumerExpendituresatAllProducts SingleAdults particularlyyoungmales ChildlessCouples Renters YoungFamilies EstablishedFamilies EmptyNesters MatureAdults ChildlessCouples Owners Teenagers students Savings CreditcardIRAeducation401KDisabilityinsurance MoneyMarket401KLowvalueinvestingLowvaluelifeinsurance GoldcreditcardHighvaluelifeinsuranceIRA IRAHighvaluelifeinsuranceSamplesavings PrivatebankingHighvaluelifeinsuranceHighvalueinvesting HeavyretirementinvestingIRArolloverTrustplanning EstateplanningAnnuityTrustAdministration Lifestageeventspredictbuyingevents 11 CustomersMustBeManagedForProfitableBehavior Lifestage channelandloyaltymigration LoyaltySegment Channel Thegoalistomotivatecustomers notreinforcestaticbehavior SingleAdults ChildlessCouples YoungFamilies EstablishedFamilies MatureAdults Prospect Supporter Customer Advocate RetailStore DirectMail Phone Internet LifeStage 12 TheWebIsFastBecomingTheCriticalCustomerInteractionChannel Webstore Infrastructure Technology OldWorldTransactionfocusedPushingProducts selling LoyaltyProgramsfortoptierclientsProductcentricSilo dfrontofficeBuilding mega warehouses NewWorldInteractionfocusedPersonalizedbuying1 1PersonalizationforallcustomersContentcentricIntegratedfrontoffice thenintegratedw BOLeveragingcustomerinformationw scaleablearchitectures Sales Marketing CustomerService 13 CustomerRelationshipManagement CRMImplementationChallenges 14 DataWarehouse OperationalStores RemoteSales ServiceSynchronization MarketingWorkbench CampaignManagement OpportunityManagement ProposalGeneration MarketingEncyclopedia SalesWorkbench KnowledgeManagement CaseManagement Configuration Pricing Service SupportWorkbench LEADS OPPORTUNITIES CUSTOMER LegacyApplications TouchPoints Applications DataStores DataMining DatabaseMarketing Accounting HR Procurement Manufacturing Distribution Logistics OrderManagementBilling FrontOffice BackOffice IntegratedCustomerInformationIsANecessityForCRM 15 CustomerInformationMustBeBothBroadAndDeepToBeUseful CustomerInformationIntegration ARetailExample Retail Catalog Mail Internet WWW Kiosks GranularCustomerInformation EnhancedCustomerInformation ServiceBureau ExternalDatabases Merchandising Marketing Distribution CustomerService Operations DATAWAREHOUSE SalesForce CustomerSupport TargetedpromotionsLoyaltyprogramsVendorco opprogramsCustomersegmentationCustomertrends Buying replenishmentReturncodeanalysisAssortmentplanningCategorymanagementDepartmentadjacencies RefinedlogisticsSupportinginventoryreduction InventoryplanningSiteselectionDepartmentadjacenciesCategorymanagement Service supportReturnminimizationCustomersatisfaction HumanresourcesFinancialdecisions 16 ACompany sProcesses OrganizationAreSignificantlyImpactedByImplementingCRMSolutions Typicallyrequiredare NeworenhancedbusinessprocessesModifiedorganizationalstructuresand orskillsSupportingandintegratedenablingtechnology Process EnablingTechnology Organization CoreCompetencies 17 CRMBeginsWithClearlyUnderstandingTheBusinessStrategyAndDefiningTheNewBusinessProcessesToBeEnabled Willrequireprocessestosupportleveragingofcustomerinformationandintegrationwithstrategy Example Marketinginitiatives BusinessStrategy 18 TheOrganizationStructureWillBeImpactedByTheNewBusinessProcesses Manageintegratedcustomerdatabase Optimizereturnondataenhancementandprospecting Fulfillonaone to onebasis Minedatatorevealhighpotentialsegments clustersfortargeting Derivecustomerprofitabilityandlifetimevaluefromactivitybasedcostingmeasures Capturecustomerandtransactiondataatgranularlevels Manageinboundandoutboundtelemarketingactivities Mayrequireneworganizationalstructureandskillsetstosupportprocesses BusinessStrategy 19 TechnologyEnablesTheChangesToTheBusinessProcessAndOrganization Clusteringtechnologies e g fuzzylogic neuralnet Datawarehousing Recognitiontechnologies Webencryptionandelectroniccommerce Break packfulfillmentanddropshipment Telephonyandcomputingconvergence Datamining Atechnologyinfrastructuretofacilitateandsupportprocessesandcorecompetencies BusinessStrategy 20 CRMBusinessStrategyMustBeDefinedInTermsOfConsumerExperiencesandFeaturesandFunctionsToEnable InformationandData EnablingTechnologies ConsumerInformation ConsumerExperience Segmentationdimensions demographics socio economic expectations psychographics attitudinal synchographics lifestage geographic LTV Purchasehistory spend visit quantity items category frequency patterns Channelpreference bycategory pricerange 21 CustomerRelationshipManagement CRMProjectsLessonsLearned 22 ImplementingCRMIsAJourney BuildMarketIntelligentoperations Collectcustomerinformationasastrategicasset EmbraceMarketIntelligentTechnologies ManageCustomerExperiences MeasureCustomerOngoingValue AlignStrategieswithCustomerValueandExpectations IdentifyCustomerExpectations 23 MostInternetbusinesseffortshavebeenadhoc opportunistic andsomewhatchaoticCompaniesusuallychasetoomanyopportunitieswithoutaclearsenseofdirectiondifficultyforseniormanagementtofocusbigopportunitiesareoftenhiddenmetoostrategiesOftentimese businessinitiativesaredevelopedandfundedbytheITdepartmentlackingsupportandcommitmentfromthebusinessunits ProjectPitfalls 24 PrioritizeProjectsOnASimpleScale BusinessImpact EaseofImplementation Hard Easy High Low MustDo BigPayoffs MoneyPit LowHangingFruit 25 ImplementRapidlyByPhase 4 6Weeks 6 12Weeks 6 20Weeks CriticalSuccessFactors AligningStrategicBusinessImperativesw TechnologydecisionsSpeedisvital DeliverrapidbenefitscapturewithstagedmilestonesTightlyArchitectedforscaleandflexibility 26 AboutPwC AboutPwC MCS 27 AboutPwC PricewaterhouseCoopersistheworld slargestprofessionalservicesorganisation createdfromthemergerofPriceWaterhouseandCoopers Lybrand Wehelpclientsbuildvalue manageriskandimproveperformance Largestprofessionalservicesorganisationintheworld 150 yearhistoryofdeliveringvalue 155 000peopleinover150countries ofwhichover25 000workinAsiaPacific GlobalannualrevenueofUS 15 3billionOurclientsareleadingglobal national localcompaniesandpublicinstitutions 28 OurServices Ourfirm whichisorganisedonaglobalbasis has6linesofservice AssuranceServicesTransactionsSupportFinancialRiskManagementOperational SystemsRiskManagementInternalAuditServices Assurance BusinessAdvisoryServices Mergers AcquisitionsProjectFinancePrivatisationsValuationsShareholderValueServicesDisputeAnalysisValueStudiesBusinessRecovery Restructuring FinancialAdvisoryServices Cross borderTaxAdviceDomesticTaxAdviceHRRelatedTaxAdviceCorporateLegalServices Tax LegalServices Long termoutsourcingofcompanies businessprocessestoenhanceshareholdervalue StrategicChangePerformanceImprovementTechnologySolutions ManagementConsultingServices ActuarialBenefits InsuranceHumanResources BenefitsOutsourcingHumanResourceInformationSystemsOrganisationalEffectiveServicesWorkforceSolutions HumanResourceSolutions 29 PwC ManagementConsultingServices SomeKeyfacts US 3 97billioninrevenueRegularlyworkingwithmorethathalfoftheglobalFortune500companiesLargestERPimplementor 10 000consultantsworldwideSecondlargeststrategicconsultingservicesproviderintheworld Servingclientswherevertheyare 31 000peopleworldwide3 800inAsiaPacificincludingover1 000inEastAsia 30 OurGlobalLeadershipintheInfocomsSector OurGlobalInfocomsConsultingGroupcomprisesover3 000specialistconsultantsonfivecontinents dedicatedtoservingtelecomsclients Wehaveextensiveconsultingexperienceinallsub sectorsoftheindustry wireline satellite internet datacom equipmentandwireless WehaveextensiveexperienceatdevelopingandimplementingstrategiestoanticipateandsurmountthedriversofindustrychangeInternationally PwChasbuiltaleadershippositionwithinthetelecomsindustryforbothauditandconsultingservices 10ofthetop20globalcommunicationsplayersareauditedbyPricewaterhouseCoopers Ourclientsgenerateover70 oftelecommunicationsrevenueworld wide Weprovidemajorconsultingservicesto18ofthetop20globaltelecomplayersinvirtuallyalltheworldsmarketareasincludingEurope theAmericas Africa theMiddleEastandofcourseAsiaPacificPwChasplayedamajoradvisoryroleinover60telecomsprivatisationsandrestructurings Aleaguetablepublishedyearlyby PrivatisationInternational confirmsthatPwChasworkedonmoreprivatisations manyintelecoms thananyothercompanyineightconsecutiveyears 31 OurGlobalLeadershipintheInfocomsSector PricewaterhouseCoopersisthepre eminentprofessionalservicesfirmservingtheinformationandcommunicationsindustries PwCisconsidered 1inMarket CustomerManagementImplementation Lastyear theGartnerGroupidentifiedPwC sic asaleaderinvisionandabilitytoexecuteMarketandCustomerManagementInitiatives callcenterimplements datawarehousing datamining salesforceproductivity etc Withincreasingcompetition theimpactoftheinternetande business thisisanareaofincreasingimportancetoourclients Fromstrategytoimplementation Wehavedevelopedand orimplementedover200businessandmarketentrystrategiesworldwide ConsultingNews anindustrypublication recentlyplacedusasthe 2providerofstrategicadvice includingfirmsspecializinginstrategyadvice Wehavevariousinternal e g visioning scenariodevelopment etc andexternalinitiativestomaintainleadingpositionasproviderofindustryspecificstrategyadvicetoourclients Wealsohaveaproventrackrecordoftranslatingthoughtintoactionthroughorganisation process andtechnologyimplementationandchange Infact weprideourselvesbeingofbeingintheuniquepositiontoprovideseamlessintegrationofstrategy performanceimprovementandtechnologysolutionsSince1982 wehavebeenorganisingtheAnnualInternationalTelecomManagementForum Thisconferenceattractstheleadersfromtheindustryworldwidetodiscusstopicalissues learnfrombestpracticesandobtainvaluablenewinsightsfromacademics ThelastForumfocusedontheeffectoftheInternetandE businessonInfocomsclientsandandenabledattendantstodiscusshowtomaintainleadershipinthenewcommunicationsenvironment specificallyorganisationalleadership financeleadership andmarketingleadership 32 AboutPwC PwCBSCS CRMTelcoQualifications 33 TechnologySolutionsServices CustomerRelationshipMarketingSystemsimplementation SelectionandimplementationofSiebel Vantative etcsystemsenablingcustomerrelationshipmarketing EnterpriseResourcePlanning Providingfullbusinesssolutionsthroughtheentireprojectlifecyclefrompackageselection throughimplementationandchangemanagementtopost implementationandchangemanagementtopost implementationsupport SAP PeopleSoft OracleandBaan DataWarehousing Makingmostofoperatorsfinancialandcustomerinformationsystem Useoftechniquessuchasdataminingtoidentifynewsegments needsElectronicBusiness implementinge commerceapplicationsenablingtouncoverexcitingnewbusinessopportunitiesinthemosteffectivewayITandSystemsIntegration Identifying co ordinating deliveringandimplementingthelifecyclesupportofhardware softwareandsolutionssets singleproviderservicesandmostcost effectiveselectionofhardwareandsoftwareavailable Wedealwithmultiplevendorsforclients vendorneutralapproach negotiatingwithvendors leveragingonourhighvolumeandpassinganydiscountstoclients TechnologySolutions 34 CallCenter RelationshipMarketing DataWarehousing DataMining SalesForceProductivity NichePlayers Visionaries Leaders Challengers Ernst Young KPMGPeatMarwick JamesMartin Co AndersenConsulting Deloitte Touche DMR CSCConsulting MCISystemhouse IBM Agilis PricewaterhouseCoopers AbilityToExecute CompletenessofVision TheGartnerGroupidentifiedPricewaterhouseCoopersastheleaderinvisionandinabilitytoexecuteMarketandCustomerManagementinitiatives PwCisconsidered 1inmarketandcustomermanagementimplementation 35 Relationshipmarketing Technologyenabledselling E business Callcentres AllianceswithMarketingandCustomerManagementVendors Allianceshavebeendevelopedwithkeymarketingandcustomermanagementvendorsandmorearebeingformed 36 PwCandSiebel PricewaterhouseCoopersandSiebelSystemshaveestablishedaglobalalliancedesignedtohelpcompaniesbalancetheircustomermanagementactivitieswithprofitablegrowthstrategies Siebel sworldclasscustomermanagementapplicationscombinedwithPricewaterhouseCoopers experienceindevelopingandimplementingcustomer orientedstrategiesandenterprise wideinformationsystems providecompaniespowerfulnewtoolstosatisfycustomers increaseprofitability andaddvalue AsaSiebelGlobalStrategicPartner PwChasalonghistoryofsuccessfulSiebelimplementations andhasdedicatedaninfrastructureofprogramsandcenterstoserveitsSiebelclients Industry specificsolutionthatcompaniescanuseto jumpstart theirindividualcustomermanagementprogramsSiebelCentersofExpertisethroughoutEuropeandtheUS whereconsultantscanaccesscustomermanagementbestpractices Siebel specifictoolsandtrainingprogramsTheSiebelGlobalTrainingCenterinPhiladelphia thatofferstheonlySiebelCertifiedTrainingClassesforsystemsintegratorstodaySiebelSystemsandPwCareengagedinanumberofactivitiesthatcreatevalueforjointclients including ThejointdevelopmentofSiebelforSAP thatallowsglobalSAPclientstointegratetheirback officesystemtoSiebel smarket leadingsuiteoffrontofficeapplications quicklyandseamlessly Thisinterfacewillhelpglobalcompaniesbettermanagethesalesprocessbyofferingquickandeasyaccesstocustomer productandpricingdata monitoringthestatusoftheproductorder andimprovingtheefficiencyandaccuracyoftheorderentryprocess AdedicatedproductandmarketingalliancewithSiebelonSiebelInsurance thatallowsglobalinsurancecompaniestosolvespecificcustomerrelationshipneedsmorequicklyanddeeply 37 BillingandCustomerCare Experience Ourexperiencewithbillingandcustomercareprojectsinthetelecommunicationsindustryisdirectlyrelevanttotelco srequirementsinEastAsia Projectafterproject PwC slarge scaleprojectmanagement packageimplementationandsystemsintegrationexperiencehasresultedinsuccessfuldeliveryofcustomermanagementsolutions Mostimportantly weintegrateourexperienceandskillsforseamlessdeliveryand one stopshopping andbelievethatthisintegrationisnecessaryforthesuccessofsuchlargescaleprojects BelowwelistsomeselectedexamplesofPwCsuccessfullyimplementedthebillingandcustomercaresystemsforourclients Notethatbesidesbillingandcustomercaresystems PwChasdonemanysystemsimplementationsinotherareassuchasERP financialmanagement networkmanagement etcforalargerangeoftelco andnon telcoclients 38 BillingandCustomerCare Alliances Wehaveenteredstrategicallianceswithkeyvendorsinthebillingandcustomercaredomain 39 BillingandCustomerCare Alliances KENANPwCandKenanSystemshaveanestablishedworldwidepartnershiptargetingbillingandcustomercareapplicationsforthecommunicationsindustry ThefocusofthepartnershipistoenablePwCandKenanSystemstodeployArbor BP Kenan sbilling customercareandbusinessanalysissoftwareplatformatcompaniescompetingintherapidlyconvergingcommunicationsmarketworldwide ThestrategicrelationshiphasestablisheddedicatedconsultingandapplicationcustomisationteamsatPwC Together KenanandPwCcanprovideafullrangeofprofessionalservices productcustomisation systemintegrationandmaintenancesupportforArbordeploymentsaroundtheworld VANTIVEPwChasVantivetrainedconsultantswithsignificantexperienceincustomandpa
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