Construction of Marketing Informatization Platform Based on System
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1 Construction of Marketing Informatization Platform Based on System Integration 1 Jian-sen Liu, 2 Kun Zhai, 3 Bin Liu 1, Xuzhou Construction Machinery Group (XCMG Co.), *2, Xuzhou Construction Machinery Group,kunzhai2008@163.com 3 Xuzhou Construction Machinery Group Abstract After comprehensive analysis of enterprise management model, we present the framework of marketing informatization platform based on system integration to create an efficient operational and executive tool, which supports the enterprise s proposition of strategies and sustainable development. Applied with the actual background of a certain company, we also elaborate the platform s main meanings and detailed steps, and show the validity and practicability of the marketing informatization platform based on system integration according to its effects on economic and social benefits. Keywords: Marketing Informatization Platform, System Integration, Platform Framework 1. Introduction The enterprise management model is mainly composed of three levels: strategy level, operation level and execution level. Enterprise strategies need comprehensive management and control of the operational level and detailed implementation of the executive level. Nowadays, the relationship between suppliers and consumers is changed from a supplier-oriented market to a consumer-oriented market [1]. For winning a place in the fierce market competition and realizing the enterprise strategy, the enterprise is in urgent need of a powerful operational and executive tool to improve the operation efficiency and management level so that costs are reduced and service mechanism is sooner. At the same time, the enterprise helps its dealers to grow and expand by offering efficient management tool. To create an innovative market information system can achieve this goal [2]. The marketing informatization platform based on system integration is a great project on the basis of analysis and summary of internal and external environment, which aims to independently research and construct an efficient operational and executive tool to support the enterprise strategy. This is to set up a collaborative service and management mechanism among clients, product dealers, marketing centers, product suppliers, service providers, and etc. through centering on customer relationship management and using information technology. This paper is going to firstly present the framework of marketing informatization platform based on system integration, then elaborates platform s main meanings and detailed steps, and finally displays its economic and social effects based on the actual background of a certain company. 2. Framework of marketing informatization platform based on system integration In marketing informatization platform, it is very important to construct the system framework considering the actual situation and specific requirements of the enterprises, and combining with norms and standards of the advanced management [3]. In the information and technology age, lots of enterprises have developed and practiced some information systems. How to greatly upgrade and seamless integrate the existing systems has become the first problem in the construction of marketing informatization platform. System integration is an effective approach to solve this problem. System integration works to combine every separated subsystem into an integrative, powerful and new one, which makes them collaboration to achieve the overall benefit. There are internal and external information exchange, sharing and system interconnection among these subsystems [4]. The marketing informatization platform centers on Customer Relation Management system (CRM), and integrates the current Enterprise Resource Plan (ERP), Supplier Relation Management (SRM), Advances in information Sciences and Service Sciences(AISS) Volume5, Number4, Feb 2013 doi: /AISS.vol5.issue
2 Manufacturing Execution System (MES), Production Data System (PDS) and so forth to realize seamless connection, which provides the marketing with all-dimensional collaborative management and support of personnel flow, logistics, capital flow, service flow and information flow. The framework of marketing informatization platform based on system integration is shown in Figure 1. Figure 1. Framework of marketing informatization platform based on system integration Customer Relationship Management is a strategy implemented for managing a company s interactions with dealers, customers, clients and sale prospects [5]. Preparing an effective CRM system may create a good environment for client s requirement [6]. Hence, CRM system in the marketing informatization platform is like a direct door between the enterprise and its dealers and clients. CRM system helps to dealers and clients with product information retrieval, orders issuing, contract tracking, service process management and so on. For improving feasibility and timeliness of the above functions, it is necessary to construct global electronic business system and completely integrates the enterprise information systems, such as ERP, SRM, MES, PDS, etc. [7] [8]. This can connect the enterprise with clients, dealers, suppliers, service providers and interested parties to enhance the effective collaboration of different business objects, seamless integration of coherent units, and full share of information resources. 388
3 3. Construction of marketing informatization platform based on system integration 3.1. Construction of before-sale management in the informatization platform Before-sale management is the first phrase to construct the marketing informationization platform. The platform function consists of opportunity management, dealer management, market management and so on. (1) Opportunity management 1 Phrase definition of opportunity management By opportunity management, it is clear about the main phrases and steps from clients inquiring to contracts signing. A certain company defines business opportunity as six phrases concluding potential business opportunity, intention identification, project approving, program planning, business negotiation, and sale result, each of which contains some detailed working standards or institutions. 2 Sale funnel management Sale funnel is a kind of sale management models that reflects the opportunity status and sale efficiency, and includes a few management functions such as sale forecasting and sale analysis. The forecasting function is mainly on the forecast of winning order rates and sale results. The sale funnel model belongs to a progressive relationship model, whose each phrase corresponds to the rate or amount of certain business indicators. It is supposed to link with historical data or sale experience to estimate the rate of winning orders of every phrase. When it comes to forecast sale results, sale indicators like sale amount and sale volume are selected. The analysis function of the sale funnel model is shown by displaying business opportunity data according to the dimensions of time, products, sale regions and others, which can be seen in Figure 2. What s more, it helps to balance the salesmen s burden and allot the sale regions. Figure 2. Management function of sale funnel model in informatization platform 3 Collaboration of enquiry management and business opportunity management Compared with business opportunity management, enquiry management is easier to get data and clearer to see the results. However, the two are not opposed but connected with each other, and even the former contains the latter. As a source and a channel to collect business opportunities, enquiry management is also a main phrase of business opportunity management. Not only does enquiry management record the relation between numbers of enquiry and contract signing and what is the most popular product among clients, but also helps salesmen and service men to manage service processes. Moreover, besides enquiry, the sources of business opportunities can be from projects, marketing campaigns, Internet media, call center connections, dealer and client feedbacks, and so on. CRM System of the marketing informatization platform has realized the classification management to above business opportunities, which is shown in Figure 3. When orders are won, the sale contracts show the sources of business opportunity to reinforce the company s opportunity management. When orders are failed, the competitor s information is recorded for further analyzing reasons. 389
4 Figure 3. Category management of opportunity source in informatization platform (2) Dealer management 1 Classification of dealer models Generally, there are direct sale, general agency, authorized agency and regional exclusive agency. The marketing channel has turned transactional channel relationship into partners channel relationship. That is to say, authorized agency is mainly used in the company with regional exclusive agency, general agency and direct sale. CRM system of the marketing informatization platform provides the classification function of channel management. 2 Dealer access approval Conditions and elements for dealer access are contained in CRM system to achieve the evaluation management of dealer access by scoring mechanism and approval process. This ensures that dealers can submit access application in the platform and fill in information according to the company s requirements and upload related qualified files that are six important elements: enterprise scale, facility and equipment, client communication, technology level, marketing skill and service ability. Every element is scored in terms of Likert scale. The higher the scores get, the more dealers accord with the access standards. 3 Dealer evaluation mechanism Strict evaluation on a regular basis for dealers of comprehensive performance includes the following three aspects. The first is whether the annual performance of dealers is in line with the stated sale task in the agreement, and matches up the business indicators like rental income, spare parts income, and so on. The second is the dealers annual financial credits, including status of sending and receiving goods, situation of returned money, etc. The third is dealers comprehensive performance in the after-market, including the evaluation made by customers to dealers in the repair maintenance, credit financing, customer communication, promotion strategy, etc. CRM system in the marketing information platform based on the above mechanism, realizes the company task allotting and issuing, which is shown in Figure 4. According to the actual performance of dealers, they are divided into A, B or C levels, and adjusted regularly and dynamically. Each level is corresponding with the company s related policies, such as the price preferential policies. Namely, products price are different in marketing informatization platform, because the dealer corresponding levels are different. Figure 4. Dealer evaluation management in informatization platform 390
5 (3) Market management 1 Market activity management Market activities refer to exhibition conferences and public market activities, including kinds of seminars, clients communication conference, exhibition, new products launching events, and so forth. Market activity as the contacting part of the company plays an important role. The function of market management in CRM system realizes the business process of market activity, which is the whole process management from application for market promotion, examination, track and settlement. It can not only control and balance departments and dealers application for market activities but also support it with the company resources, which can be seen in Figure 5. Figure 5. Market activity management in informatization platform 2 Advertisement service management In the company's original management model, annual investment of advertisement was according to the fixed expense proportion shared by print, network, TV, radio and other media. There is no convenient tool which is able to analyze the advertisement investment effects about the different market regions and media ways. The marketing informatization platform installs the feedback function, which works on the basis of comprehensive analysis to realize the dynamic matching between advertisement investment amount and different media ways, which can allot the company limited resources to the fullest effect. What s more, it also builds the function of information promotion. Certain staffs in market department are responsible for typing information. It comes true to issue the information about market, activity and advertisement to clients, dealers and company employees according to their platform s user roles Construction of in-sale management in the informatization platform In-sale management is a critical stage for establishing the marketing information platform, the functions of which include the management of products, purchase, stock and delivery. In order to improve the response speed of the customers demands, the company has integrated the idea of supply chain management, which means controlling the cost of the whole supply chain, including the economic costs and time costs, to the least by meeting the demands of certain group of customers; Meanwhile, suppliers, producers, warehouses, delivery centers and distributers should be organized effectively to deal with the products of manufacturing, transportation and distribution. According to the sales features in construction machinery industry, there are usually two categories: machine products sales and spare parts sales. When it comes to the marketing information platform, it becomes supply chain management of machine products and supply chain management of spare parts, accordingly. 391
6 Considering the major differences of marketing environment and technology factors among all areas, the company has agreed on two selling methods: one is off-line business, which means dealers make contracts with a company in print version, concerning specifically the items of the exact selling product, delivery date, payment type and transportation way. Under this condition, the one who s in charge of the regional sale inputs the content into the CRM system of the marketing information platform according as the print version contracts. The other is on-line business. The dealer submit the information of the sale orders in the marketing information platform, which include all the major contents from choosing the selling products, making sure of the delivery date, to filling the payment type and the transportation way. If there s a special need, a specific explanation can also be added to the reference column. Then the orders are checked and supplemented by the regional sale manager. For on-line business, in order to achieve the wise choice and the exact purchase of a product between dealers and clients, the platform provides the picture display function of machine products and spare parts through integrating PDS system, which includes the two dimensional display of an actual picture, three dimensional display of designing engineering drawings, and the assemble BOM information of level, standard, dimension, number, price and so on. It is shown in Figure 6. Figure 6. Product display function in informatization platform (1) Supply chain management of machine products 1 Product data management of machine products Machine products consist of 14 categories, 40 series, and more than 390 patterns, including hoisting machine, road building machine, road maintenance machine, compacting machine, earthmoving machine, concrete machine, and so on. The data of machine products are described by key information consisting of categories, series, patterns and configurations. 2 Process of supply chain management of machine products When the order is submitted, it is the first to check dealers or clients credits and payment status in the CRM system of marketing informatization platform. Then company s commerce department types in purchase orders, which include manufacturing plant, purchase products, delivery date, product material ID, special demands and other configuration requests. At the same time, the above information is synchronized and transferred into ERP system of platform. When manufacturing plant receives the purchase order in ERP, they check the inventory status. If the inventory is enough, they will end the purchase process. Otherwise, they make the producing plan. According to the plan, material-supply 392
7 department in the manufacturing plant is responsible for purchasing and supplying materials. Manufacturing department is responsible for production scheduling and product manufacturing. Quality department is responsible for inspecting products and putting the qualified one into storage. The whole manufacturing process is traced and recorded by MES system of platform. And then ERP system of platform accounts for costs and expenses, which also registers the end information of purchase orders and uploads them to CRM system of platform to mark the completed status of ordered products. At last, after financial department in the company examines and approves the payment situation, commerce department organizes shipping agencies and settles bills to complete delivery work. Figure 7-12 shows some interfaces of supply chain management process of machine products. Figure 7. Sale contract information of machine products in informatization platform Figure 8. Purchase information of machine products in informatization platform Figure 9. Inventory information of machine products in informatization platform 393
8 Figure 10. Production information of machine products in informatization platform Figure 11. Billing information of machine products in informatization platform Figure 12. Delivery information of machine products in informatization platform (2) Supply chain management of spare parts 1 Product data management of spare parts Spare parts include engine system, frame assembly, hydraulic system, working device, brake system, cab assembly, electrical system, engine cover, air-conditioning system, and other tools. There are 10 categories, more than 3000 series, and hundreds of thousands of patterns. Spare parts are classified into home-made parts, outsourcing parts, cooperation parts and so forth in terms of the ways of parts sources. In the marketing informatization platform, products data of spare parts can be managed according to different categories and different dimensionalities. 2 Process of supply chain management of spare parts When the order is submitted, it is the first to check dealers or clients credits and payment status in the CRM system of marketing informatization platform. Then company s commerce department types 394
9 in purchase orders, which include manufacturing plant, purchase products, delivery date, spare parts material ID, special demands and other configuration requests. The commerce department also internally inquires whether there are matching inventory products in the company s center of spare parts. If there are, the company will be responsible for transferring and dispatching the spare parts product according to regional convenience and efficiency principle. If there are not, the staffs will synchronize and transfer the above information into ERP system of platform. When manufacturing plant receives the purchase order in ERP, they check the inventory status. If the inventory is enough, they will end the purchase process. Otherwise it is necessary to make it clear that spare parts products are direct purchased parts, or homemade parts. If the former happens, the purchasing department of raw material in the manufacturing plant is responsible for purchasing and supplying materials directly. If the latter happens, they make the producing plan. According to the plan, material-supply department in the manufacturing plant is responsible for purchasing and supplying materials. Manufacturing department is responsible for production scheduling and product manufacturing. Quality department is responsible for inspecting products and putting the qualified one into storage. The whole manufacturing process is traced and recorded by MES system of platform. And then ERP system of platform accounts for costs and expenses, which also registers the end information of purchase orders and uploads them to CRM system of platform to mark the completed status of ordered products. At last, after financial department in the company examines and approves the payment situation, commerce department organizes shipping agencies and settles bills to complete delivery work. Most of the function interface in the process of supply chain management of spare parts is accordant with machine products one, except the difference product categories. In addition, whatever the machine products sales or spare parts sales have already had their approval process, in which departments and leaders will examine and approve step by step to inspect and control the whole supply chain for reducing the possible operation risks and management risks Construction of after-sale management in the informatization platform After-sale management is the ending phrase to construct the marketing informatization platform, including service management, warranty management and so on. In normal situations, warranty belongs to service management, but the former is explained by the platform as an important functional module due to the special status of the quality claims covered by the warranty management. (1) Service management Service management realizes the standard service process of service staff and strengthens the ability to manage them to improve positive service quality and request speed for dealers and clients. In addition, it helps company s service department construct collection platform of service information from clients and customers, which can optimize the product mix, improve the product quality and enhance the service management level. Through the strong support of the marketing informatization platform, the company creates an active service mechanism, where CRM system of the platform, for the sold products, automatically reminds salesmen and service staff to actively contact dealers and clients every three months. In this way, salesmen and service staff can enquire the product using situation, and do regular product maintenance and collect client feedback for recording the whole service process and results as their evaluation contents and the improvement of product quality and product innovation. During the service management, when receiving the client s service request, firstly a passive service record should be written in the CRM system of platform that consists of service claimer, request content (e.g. product instruction, breakdown maintenance, parts replacement and so on), service type, service place and some other key information. If field service is needed, the system will search and send service staff in line with the principle of regional convenience and economy. After the task is finished, the service card is supposed to be completed for recording the service result and feedback. If it is not field service, request content, solving process and other information are to be recorded in detail. The service management information can be seen in Figure
10 Figure 13. Service management in informatization platform (2) Warranty management Warranty management realizes business process of quality problems such as client claims, which can judge and determine the reason and attribution of quality problems. It could reduce the risk of losing clients in use of timely feedback and compensation. When dealers or clients need warranty claim, a warranty request record is generated in CRM system of platform including quality request, request content (such as spare parts claims, machine products return, etc.), warranty manual, support materials (breakdown parts photo, breakdown description), and other key information. Then the staff of company s department of spare parts service is in conjunction with the staff of technology department to discuss and analyze what have caused quality problems, and to make the conclusion that who is supposed to be responsible for quality problems. If it is in the warranty guarantee, according to the dealer and client request, the company will work with relevant manufacturing plant to return machine products or spare parts compensation, and organize shipping work, as shown in Figure 14. If a claim is refused, the company should specify the reason and provide substantial support materials in order to reduce the risks of losing customers. Figure 14. Warranty management in informatization platform There are two points to explain on the marketing informatization platform. Firstly, functions such as single sign-on access platform and personalized page configuration come true by means of user right management and role assignment. For instance, company users could jump randomly on systems as CRM, PDS, ERP and SRM by typing keys only once. Dealers and clients could check status of orders and logistics instantly on it. Secondly, the platform realizes the function of multi-language version. For example, in order to meet demands of global regional dealers and clients, it could translate the same information into multilingual one through comparison table technology. 4. Implementation effect of the marketing informatization platform based on system integration 4.1. Economic effect (1) Sale revenue growth Cumulative effect of the marketing informatization platform makes the sale revenue increase from 3.5 billion in 2010 to 7.1 billion in 2011, growing by %. It doubles the company s sale scale and makes great contribution to keeping the company s leading position and enhancing company s international influence. (2) Sale profit growth 396
11 Due to enterprises product similarity and competition in construction machinery industry, the product profits change little during the certain time, so the main reason for the obvious profit increase is usually the costs decrease, which is because technological upgrading project reduces product costs, or management innovation improves the operational efficiency. The marketing informatization platform based on system integration belongs to the latter. It has totally taken 10 million to implement the platform, but its cumulative effect leads the sale profits to increase %. It is an excellent realization of co-current multiplication of sale revenue and sale profit Social effect (1) To achieve the management informatization innovation The marketing informatization platform based on system integration arranges and optimizes the current business and management processes of the company in every aspect. It also establishes a series of chained programs from the dealer management to the marketing management, commercial opportunity management to sale management, product management to inventory management, purchase management to delivery management, credit management to service management, etc. Therefore it realizes the cross and collaboration of multidisciplinary management areas, which has certain innovation values in management application and practice. A great many enterprises are actively looking for a model from which to learn the innovative ability, especially the management informatization innovation. The marketing informatization platform that has been successfully constructed and become an excellent example, which helps to improve the management level and boost the enterprise efficiency and the social economy growth. (2) To improve the national brand popularity The building of the world-class brand is a systems engineering, which needs to be done from different aspects such as product quality, customer service, market response, innovation management and brand marketing, etc. To achieve this goal, a supportive information technology has to be brought up. The construction of the marketing informatization platform provides an efficient tool in the multilateral management promotion, and presents a powerful platform for the enterprise brand to be world-known, and produces a great progress in making the national brand into the world-class level. 5. Conclusion In the new era of knowledge economy, the powerful tool of operation and execution is strongly related to informationalized methods. The marketing informatization platform based on system integration firstly centers on CRM system, and firmly integrates the existing enterprise information systems including ERP, SRM, PDS, MES, etc. Then applied with the actual business background of a certain company, we elaborate the whole construction processes about before-sale, in-sale and aftersale management of the marketing informatization platform. Finally, the platform s validity and practicability have been proved according to its effects on economic and social benefits, which can be referred and applied by other enterprises. 6. References [1] Sungyeol Yu, The CRM Strategy of a Korean Duty-Free Shop Based on the RFM Model, AISS: Advances in Information Sciences and Service Sciences, vol. 4, no. 14, pp , [2] Kyung-Min Min, Nam-Hyuk Ham, et al, An Application Strategy for PLM in Construction Industry, JDCTA: Digital Content Technology and its Applications, vol. 2, no. 1, pp.4-10, [3] Wei Min, Construction of Marketing Management Information System of Travel Agency Based on Customer Relationship Management, JCIT: Convergence Information Technology, vol. 5, no. 8, pp , [4] Xi Li, Xiaoning Zhu, Guoqiang Cai, Research on System Integration Alliance of Urban Rail Transit Safety Monitoring, JCIT: Convergence Information Technology, vol. 5, no. 7, pp.36-41,
12 [5] Arwa M. Al-Safi, Lilac Al-Safadi, Abdullah Al-Mudimigh, CRM Scorecard - CRM Performance Measurement, IJNCM: Networked Computing and Advanced Information Management, vol. 2, no. 1, pp.8-21, [6] Alireza Faed, Afsaneh Ashouri, Chen Wu, Maximizing Productivity Using CRM Within the Context of M-Commerce, IJIPM: Information Processing and Management, vol. 2, no. 1, pp.33-42, [7] Ming-Chang Lee, Jung-Fang Cheng, Development Multi-Enterprise Collaborative Enterprise Intelligent Decision Support System, JCIT: Convergence Information Technology, vol. 2, no. 2, pp.64-69, [8] Jing-tao Zhou, Hai-cheng Yang, et al, A Review of Enterprise Information Integration from Content Level and System Level Perspectives, IJACT: Advancements in Computing Technology, vol. 2, no. 4, pp.17-29,
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