Logistics CRM System Architecture based on Integrated Collaborated Mode

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1 Logistics CRM System Architecture based on Integrated Collaborated Mode LIU Chang Shi,LAI Ming Yong Economics and Trade College, Hunan University, P.R.China, Abstract In order to satisfy new requirements of Logistics Customer Relationship Management (LCRM) system from network, integration and customer information analysis, we proposed a new LCRM architecture based on integrated collaborated mode. The main functions of supporting layer, operation layer, analysis layer and collaboration layer in the five-layer B/S frame were discussed. The data analysis and process based on data warehouse, data mining and On-Line Analytical Processing (OLAP) in LCRM were analyzed. The integrated collaborated mode of LCRM system with the original application system frame was proposed. Key words Collaboration, Customer relation management, Data mining, Integration 1 Introduction Customer Relation Management (CRM) is used to differentiate, obtain, keep and add beneficial customer. In order to improve the enterprise competition ability and profit ability, logistics enterprise adopts CRM to provide the service of the superior quality, credibility and low price for customer. The Logistics Customer Relationship Management (LCRM) pays more attention to customer problem, has more and more new requirements from network, integration and customer information analysis. For example, the LCRM architecture has to be developed from C/S frame to B/S frame to improve customer access ability and response ability; the vast and disperse customer's data must be transformed into analytical data in order to facilitate customer's knowledge analysis and establish customer strategy to satisfy customer; LCRM integrates with Enterprise Resource Planning (ERP), Electronic Commerce (EC), Supply Chain Management (SCM) and Geography Information System (GIS) in order to achieve good effect. A lot of work has been done about CRM theory and its applications in recent years. For instance, Cai Shu-qin et al designed the data models of the CRM-oriented sale information system, and analyzed two crucial issues in the system development [1] ; Kang Jian et al developed a decision tree algorithm based on the D3 algorithm and applied it to a banking CRM system [2] ; Yang Xu and Liu Reng-kui proposed methods of design and implementation of express marketing information system based on CRM [3]. Also many studies have concentrated on CRM architecture and CRM system integration. For example, Qi Jia-yin et al have proposed CRM frame and architecture limited to enterprise internal functions, but it is not integrated architecture based on internet [4]. Zhong Qiu-yan and Xiao Nan have presented CRM functional architecture in electronic commerce environment [5]. ADRIAN P and PENNIE F have discussed the channel of CRM integration [6]. Wu Liang-gang et al have investigated integration requirement of between CRM and ERP in internet environment [7]. Liu Jun-zheng et al have discussed different methods of CRM integration [8]. However, to the author s knowledge, there has been few researcher who has considered LCRM system integrating with the original application system frames and its collaboration mode between different enterprises in the literature. In this paper, based on integrated collaborated mode, we present a new LCRM Architecture to satisfy new requirements of LCRM system from network, integration and customer information analysis. We also analyze data analytical process, and propose a common integrated collaborated mode of LCRM system with the original application system frame. The result shows the LCRM architectuer can dynamically create and update integration and improve real time integration and collaboration effect. This paper is supported by the national 15 significant projects [2003BA808A13]. Corresponding author: Lai Ming Yong

2 2 LCRM architecture based on integrated collaborated mode LCRM architecture is divided into supporting layer and application layer because that LCRM integrating with ERP, EC,GIS and SCM can achieve good effect (Figure1). Application layer is divided into operation layer, analysis layer and collaboration layer. The difference between LCRM architecture and the former is that LCRM architecture possesses a collaboration layer which integrates with other systems and clients. Figure 1 LCRM architecture based on integrated collaborated mode Supporting layer provides the foundational functions of internet / intranet service, database, data warehouse, data mining, OLAP and Web service for application layer. Operation layer realizes operational process automation of supervision, storage, distribution, customer service and call center, and it satisfies requirements of customer effectively to keep and develop further customer relationship. Analysis layer utilizes customer data warehouse to integrate customer information with supervision information, storage information, distribution information and call center information of operation layer. It integrates customer interactive information of whole logistics enterprise to change former customer contact of each section into harmonized customer interaction of whole enterprise. Furthermore, based on uniform customer data and analytical circumstance of whole integrating application system, analysis layer processes customer information and produces customer intelligence in order to provide customer credit, profit and anticipation for administrators to make out logistics plan and decision. Collaboration layer realizes the integration and collaboration with ERP, SCM, EC, GIS, customer and collaborator through Simple Object Access Protocol (SOAP), Universal Description, Discovery and Integration (UDDI), work flow management, transaction management, security and performance management, and so on. 3 Techniques of integrated collaborated mode of LCRM system 3.1 Five-layer B/S frame We present an integrated collaborated LCRM architecture (Figure 2) which is a five-layer B/S frame, and it can satisfy the special requirements of LCRM system development, maintenance and platform independent. LCRM architecture adopts Java and data connectivity to divide the service layer of traditional three-layer B/S architecture into expressing logic layer, business logic layer and data connectivity layer. In this way the process of service request and response is divided into the following steps: 1Browser utilizes Hyper Text Markup Language (HTML) to send client request to application server. 1289

3 2Servlet in business logic layer processes the request and uses Enterprise Java Beans (EJB) module to realizebusiness logical process. 3EJB utilizes Java DataBase Connectivity (JDBC) in connectivity pool to access database and take needed data out, then returns JDBC to connectivity pool, releases its possessive resource. 4Servlet uses JSP to format gained data. 5JSP forms the data into HTML page and sends it to client. The merits of LCRM architecture are below: 1 B/S architecture facilitates all customer visit LCRM system. 2Java is platform independent, and it supports multithreading, separates business logic and web coding, improves repeat performance and flexibility of the module, improves expansibility of LCRM system. 3Connectivity pool manages data connectivity, and improves system performance and efficiency to satisfy visit requests of a great lot of customer. Figure 2 Five-layer B/S frame 3.2 Data Analysis and processing Analysis layer analyzes vast customer data to find customer knowledge, and helps logistics enterprise make out customer decision. We present a LCRM data analysis and processing model (Figure 3) that adopts data warehouse to carry out the mission of customer data s storage and integration, uses OLAP to realize multidimensional analysis, utilizes data mining to find valuable customer knowledge and to predict customer action. Figure3 Data analysis and processing flow of LCRM The model has model database, knowledge database and method database. The model database realizes integrated and assistant decision by multi-generalized models. The knowledge database accesses some rules, modes and regulations of simulated intelligence action in the course of human decision-making process. The method database provides universal decision-making methods, optimization techniques and software. 1290

4 The data analysis and processing flow of LCRM is divided into the following steps: 1Data collection and pretreatment is the process of taking out from customer and market data, throwing out the data inconsistency, transforming data structure and type, aggregating and accessing the data on multidimensional data warehouse. 2Data warehouse utilizes OLAP and data mining tools to survey customers, and analyze and predict their credit and commercial profit based on model database, knowledge database and method database, and it provides the analytical results that are presented by figures for administrator and decision maker. 3Decision maker and operation administrator transform customer data and knowledge into enterprise stratagem, decision and action to affect market and customer. 3.3 LCRM system integration and collaboration techniques Collaboration layer must solve the problem of different systems integration and collaboration. We present a new integrated collaborated mode of LCRM system with the original application system frame through web service and other techniques (Figure 4). Figure 4 Integrated collaborated mode of LCRM system First, different functional modules are encapsulated by requires into two kinds of web services, i.e. internal service and external service. Web service is described by Web Service Description Language (WSDL) and is issued in UDDI center for query. External user crosses Fire Wall by internet, and browses UDDI center to obtain web service locality and WSDL description file after right check and identity validation. Client of intranet obtains the file by UDDI API. Then, web service of client automatically loads the WSDL description file, creates relevant call interface, and builds SOAP client. Finally, the process of SOAP client interacting with SOAP server is divided into the following steps: 1SOAP client encapsulates request into SOAP package by SOAP protocol, and sends it to SOAP server. 2SOAP server takes over the SOAP package by dictograph and sends it to SOAP processor in web 1291

5 service integrated system. 3SOAP processor uses XSLT to read request information, utilizes relevant web service to process the request information by corresponding file in UDDI, and returns responding SOAP package to SOAP client by information encapsulation module and information transmission module. 4Client parses responding SOAP package to choose different response way. In this way SOAP client and SOAP server are all transparent, the communications process of request and response is mutually realized based on SOAP protocol, the LCRM integration and collaboration is changed into web service connection. The features of integrated collaborated mode are below: 1Web service is easier to design, develop, use and maintain than traditional distributed techniques. Now there are many tools that encapsulate different modules into web services and deploy them. It is easy to create crossing multiprogram business flow, thus makes integration easy and cuts integration budget. 2This mode is based on existing hardware, software and architecture, supports UDDI, SOAP, HTTP and XML, and it can adopt different platform, language and object model to realize system integration with the original application system frame. 3 This mode makes use of SOAP, Common Object Request Broker Architecture (CORBA) and Distributed Component Object Model (DCOM) to avoid the difficulty of direct transform between protocols. 4It can realize web service integration of business logic and business flow, can use dynamic service interface and service issuance, service discovery and binding mechanism to dynamically create and update integration, and can improve real time integration and collaboration effect. 4 Conclusion Logistics enterprise develops LCRM system to effectively manage its customer. Proper system architecture, data analysis technique, integration and collaboration techniques are the keys of LCRM effective realization. In this paper, based on integrated collaborated mode, we present a new LCRM architecture to satisfy new requirements of LCRM system from network, integration and customer information analysis. Meanwhile, we analyze the data analysis and processing based on data warehouse, data mining and OLAP in LCRM, and put forward the integrated collaborated mode of LCRM system with the original application system frame. The result shows that the LCRM architecture can not only dynamically create and update integration, but also help a lot to the logistics operation management and decision process. References [1]Cai Shu-qin,Wang Qing-guo,Jin Peng,Huang Ying,SHI Shuang-yuan. Enterprise sale information systems based on the customer relation management. System Engineering Theory and Practice, 2002:69~73(in Chinese) [2]Kang Jian,Liang Yun-rong. Application of classification data mining in financial customer relationship management. Transactions of Beijing Institute of Technology, 2003,2(23): 207~211(in Chinese) [3]Yang Xu,Liu Reng-kui. Design and implementation of express marketing information system based on CRM. Journal of Beijing Jiaotong University, 2006: 27~30(in Chinese) [4]Qi Jia-yin,Li Huai-zu. Analysing the systematic framework of CRM. Industrial Engineering Journal, 2002(5): 42-45(in Chinese) [5]Zhong Qiu-yan,Xiao Nan. Architecture of CRM in E-commerce environment. Journal of Dalian University of Technology ( Social Sciences), 2002(13):5~10(in Chinese) [6]ADRIAN P,PENNIE F. The role of multichannel integration in customer relationship management. Industrial Marketing Management, 2004(33):527~528 [7]Wu Liang-gang,Liu Hong-lin,Zhao Yan-xi. The integration between ERP and CRM under the circumstance of Internet. Chinese Journal of Management Science, 2002(10):69~73(in Chinese) [8]Liu Jun-zheng,Dong An-bang. Integration in CRM application. Industrial Control Computer,2003: 4~6(in Chinese) The author can be contacted from

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