CHAPTER
[7]
AUTOMOTIVE EXAMPLES
[1]

Manufacturing and marketing cars used to be relatively
straightforward:
in a manufacturer-driven market, consumers were content to buy
what was being produced. But times have changed. Intense, global
competition and increased market transparency have given buyers
more choices and more leverage. In this consumer-driven market,
manufacturers must make
every conceivable effort to please their customers, take their
wishes and concerns seriously, anticipate market trends and
respond swiftly. Now more than ever the
automotive industry is looking for opportunities to speed innovation,
shorten product lifecycles, reduce costs, and collaborate with new
partners...all on a global basis.
Consultants must deliver leading vehicle capabilities in strategy,
operations and technology to OEMs, suppliers, systems integrators,
dealer groups and aftermarket retailers through in depth knowledge of
all sides of the market. They must provide leading edge thinking
supported with exclusive research, proprietary automotive databases,
global benchmarks and best practices.
Almost anyone who has been following the auto industry, especially
in the U.S., will agree that lately it has had a bumpy ride. For one
thing, the difficulties of GM and Ford have filled the headlines for
several months now, and there has been lots of speculation about how
severe these problems are. As a recent example, the auto parts maker
Delphi, which was spun off from GM in 1999, was in the midst of
bankruptcy proceedings and actively negotiating with both the United
Auto Workers union and GM. Yet another challenge is growing global
competition: Virtually all the Japanese brands are showing an increase
in market share in the U.S. And finally, questions continue to persist
about advances in technology, especially as they concern the new hybrid
models. The turmoil and uncertainty among auto manufacturers
and their suppliers have left people wondering when a shakeout can be
expected. Experts who follow the auto sector say consolidation will take
place among suppliers to a much greater extent than among carmakers,
which may not experience mergers and acquisitions at all in the near
term but will be engaged in ever-shifting strategic alliances and joint
ventures. Now, more than ever, customer relationship management
(CRM) is a critical component of any successful business operation.
A key goal of CRM is to create a truly customer-centric approach
–one that empowers the enterprise and its ecosystem to
orchestrate all employees, partners, and resources
so that they focus on delivering visibility and value around
customers. Another goal is to enable a dynamic enterprise to
seamlessly and quickly perceive, adapt, and respond –
before its competitors – to changing market conditions,
customer needs, and opportunities. For an enterprise to be
successful, it needs a CRM solution that delivers more than just
efficiencies from the automation of transactions and interactions.
The solution must also support every customer interaction intrinsic
to a customer life cycle and intuitively provide employees with
clear customer information relevant to role and responsibility.
Integration into current systems is also key to leveraging existing
IT investments and supporting collaborative processes across suppliers
and partners. Customer Relationship Management solutions provides
today’s market-leading companies with everything they need to become
customer-centric enterprises.
These solutions provides comprehensive, easy-to-use core capabilities
across the breadth of CRM, including marketing, sales,
service, and channel management for Web, call center,
and indirect channels – complemented by powerful analytics.
CRM processes are not limited to just the front office. They also
provide – out of the box – the seamless incorporation of tasks in
supply chain, financials, and human resources –
across departmental boundaries and to your customers and partners.
CRM solutions must provides a flexible foundation that enables multiple
deployment options, adaptability, and fast time to value. When you put a
good CRM solution to work for you, your enterprise can determine, at
a glance, which of your customers are most profitable. You can measure and monitor the lifetime value of your customers
and deliver levels of service appropriate to each. You can leverage
market insights and drive innovation within your product and service
functions while increasing your manufacturing efficiencies. Quite
simply, you need to employ smart solutions that leverage existing
investments and extend the capacity for clear customer visibility
throughout your organization.
Faced with the increasingly complex and
competitive environment
that characterizes the automotive industry – with challenges
ranging from tighter profit margins to new entrants in the
new
vehicle
and aftermarket service business – original equipment
manufacturers (OEMs) and dealers are turning more aggressively
to customer relationship management (CRM) to help attract
new customers, increase brand loyalty, reduce costs,
increase
efficiency, and maintain a competitive advantage.
Today’s automotive consumers are increasingly well-informed
and have an unprecedented level of choice in the marketplace.
Customer loyalty is no longer a given and forward-looking
automotive
companies have to work harder than ever to earn and
retain it. To respond to high customer expectations, companies
are finding they have to use both traditional and emerging
channels
to deliver more effective, efficient, and profitable marketing,
sales, and customer service.
To truly get to know and understand their customers, automotive
companies are looking for ways to gather and analyze vital
data about their customers, their vehicles, and their
transactions
with dealers. Only then can they effectively match their
products
and service offers with the customers they want to target. So
companies need to be able to track customer behaviors and then
to link that information to not only the production scheduling
process – to build the right products now – but also to the
product
development cycle – to bring new products to market faster.
And because OEMs and dealers now often need to collaborate
closely, they need to be able to share information with greater
visibility in real time.
Acting on these imperatives is hampered by the reality that
heterogeneous systems preclude a single view of the customer
or vehicle, resulting in a poor understanding of customer
preferences, higher costs, decreased responsiveness, and
eroding brand
equity. A single, integrated solution can help connect disparate
sources of relevant data and lead to a better understanding of
the automotive customer and to improved implementation and
execution of the processes involved in serving that customer.
A correct CRM Automotive solution portfolio can help. With this
solution companies like yours
can integrate different solutions to improve
relationships
with customers and dealers, enhance communication,
and increase profitability. In addition, the correct solutions can
help
global companies understand and adapt to shifting demands
and service preferences across all regions. This could be
achieved with one
integrated suite of applications extending across departments to
facilitate the sharing of knowledge and encourage collaboration.
The correct solution must supports key automotive business processes including:
- brand and customer management,
- vehicle
life-cycle management,
- leasing and financing,
- dealer channel
management,
- vehicle sales and distribution,
- interaction center,
- service parts management,
- warranty management,
- dealer business
management,
- analytics and business process visibility.
This solution in brief must focuses on the core CRM processes.
Car distribution.
A study of Volvo cars owners examined the links
between customer satisfaction with three attributes – car purchase,
workshop service and the vehicle itself – and loyalty and
dealer
business performance. The results indicated that a one scale-point
increase in overall customer satisfaction was associated with a 4
per cent increase in dealer profitability at next car purchase.
Increasingly, many brand owners are leveraging partners to drive revenue and
meet customer demands. In fact, partner-generated revenues now account for a
growing share of total brand owner revenues. Many industry segments drive
significantly more than 40 percent of revenue through the partner channel. The
Automotive industry, for example, sells as much as 90 percent of
products through indirect channels. As competition intensifies and globalization continues, the use of partnering
will only continue to increase, helping brand owners increase revenue and
profits, decrease costs, and enhance customer satisfaction and loyalty. In a
survey conducted by Accenture, approximately 82 percent of executives believed
alliances would be a prime vehicle for future growth. The same study
predicted that by late 2004, the average company would derive 16 to 25
percent of shareholder value from partnerships, representing between
US$25 trillion and US$40 trillion. As former General Electric CEO Jack
Welch has observed, “If you think you can go it alone in today’s global
economy, you are highly mistaken.” The expanding role of partnering in today’s business environment brings with it
a new set of opportunities and challenges. Accordingly we need to examine these
facets of business partnering and identifies the key business benefits of
enabling a partner value network by deploying a comprehensive partner
relationship management (PRM) strategy. |
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Customer Success Guide
This comprehensive reference guide shows how customers of all sizes are
benefiting from mySAP CRM.
Read the guide
(PDF, 21 MB).
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Now, more than ever, customer relationship management (CRM) is a
critical component of any successful business operation. A key goal
of CRM is to create a truly customer-centric approach –one that
empowers the enterprise and its ecosystem to orchestrate
all employees, partners, and resources so that they
focus on delivering visibility and value around customers.
Another goal is to enable a dynamic enterprise to seamlessly and
quickly perceive, adapt, and respond – before its
competitors – to changing market conditions, customer needs,
and opportunities. For an enterprise to be successful, it needs a
CRM solution that delivers more than just efficiencies from the
automation of transactions and interactions. The solution must also
support every customer interaction intrinsic to a customer life cycle
and intuitively provide employees with clear customer information
relevant to role and responsibility. Integration into current
systems is also key to leveraging existing IT investments and
supporting collaborative processes across suppliers and partners.
The mySAP™ Customer Relationship Management (mySAP CRM) solution
provides today’s market-leading companies with everything they need to
become customer-centric enterprises.
mySAP CRM provides comprehensive, easy-to-use core capabilities across
the breadth of CRM, including marketing, sales, service,
and channel management for Web, call center, and
indirect channels – complemented by powerful analytics. mySAP
CRM processes are not limited to just the front office. They also
provide – out of the box – the seamless incorporation of tasks in
supply chain, financials, and human resources –
across departmental boundaries and to your customers and partners. In
addition, mySAP CRM end-to-end processes are defined by industry.
More than 25 different SAP industry business units consolidate and
prioritize requirements, leveraging years of experience with the largest
customer base in the software industry. And with the SAP NetWeaver®
platform, mySAP CRM provides a flexible foundation that enables multiple
deployment options, adaptability, and fast time to value. When you put
mySAP CRM to work for you, your enterprise can determine, at a
glance, which of your customers are most profitable.
You can measure and monitor the lifetime value of your customers
and deliver levels of service appropriate to each. You can leverage
market insights and drive innovation within your product and service
functions while increasing your manufacturing efficiencies. Quite
simply, you can employ smart solutions that leverage existing
investments and extend the capacity for clear customer visibility
throughout your organization.
SAP – as a trusted adviser – offers mySAP CRM as a long-term solution
and backs it with a deep commitment to customer-focused processes,
unparalleled industry expertise, and a 30-year track record of
delivering compelling solutions to today’s business challenges. The
stories in this book demonstrate the real value of mySAP CRM to
businesses of every type and size around the world.
I am sure you will be inspired, as we have been, by the insight and
ingenuity of our customers.
We invite you to learn about mySAP CRM from the people who are
benefiting from it – our customers.
Sincerely,
Shai Agassi
Member of the Executive Board, SAP AG


mySAP Customer Relationship Management:
Features & Functions
mySAP Customer Relationship Management (mySAP CRM)
includes features and functions to support core business processes in
the following areas:
-
Marketing
-- Improve the effectiveness of your marketing
activities, maximize resource efficiencies, and
empower marketers to acquire and develop
long-term customer relationships. mySAP CRM provides
comprehensive support for marketing resource management,
segment and list management, campaign management,
trade promotion management, lead management, and
marketing analytics.
-
Sales
-- Eliminate productivity barriers, enforce
consistency across all selling channels, and increase overall
performance within your sales organization. mySAP CRM
empowers sales professionals with comprehensive support
for sales planning and forecasting, territory management,
account and contact management, lead and opportunity
management, quotation and order management,
configuration, contract management, incentive and
commission management, time and travel management, and
sales analytics.
-
Service
-- Transform service into a profitable line of
business with a broad range of functionality to enable
customer service and support, field service, e-service,
service sales and marketing, service-contract management,
warranty and claims management, depot repair,
channel service, and service analytics.
-
E-commerce
-- Turn the Internet into a profitable sales and
interaction channel for both business customers and consumers.
mySAP CRM delivers broad functionality to enable business
processes in the areas of e-marketing, e-selling,
e-service, and e-analytics.
-
Interaction
center operations and management -- Enhance the
performance of your interaction center with support for
telemarketing, telesales, customer service,
e-service, and interaction center analytics, as well as
for the management of interaction centers.
-
Channel
management --
Optimize your indirect channels with support for partner
management, channel marketing, channel sales,
channel service, channel commerce, and partner and
channel analytics.
mySAP CRM also supports several
industry-specific
processes with functionality
designed to meet the individual needs of diverse industry groups.

Automotive -- Sales and service organizations gain support for
channel
management
as well as
brand and customer
management.
mySAP CRM: Customer Successes for Automotive
Explore how companies in the automotive industry are achieving their
customer satisfaction goals with mySAP CRM:
-
Arctic Cat Inc.
(PDF, 193 KB), United States -- Examine how Arctic Cat
put the "fun" back into its business by implementing mySAP Customer
Relationship Management, which forms the foundation for the
company's state-of-the-art call center that has dramatically boosted
support for independent dealers and distributors.
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-
ESA
(PDF, 174 KB), Switzerland -- Learn how this leading
Swiss automobile industry supplier implemented mySAP CRM to keep a
competitive edge well into the future. Members of the ESA sales team
can now access up-to-date information about customers, products, and
markets at the click of a button -- anywhere, anytime.
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-
GRAMMER
(PDF, 200 KB), Germany -- Learn about GRAMMER's aggressive supply
chain initiative to consolidate its position as a world leader in
the development and manufacture of innovative components and systems
for automobile interiors and seats. The initiative involved setting
up a Web shop using the mySAP CRM application.
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-
Hero Honda
Motors, Ltd. (PDF, 112
KB), India -- Discover how India's largest motorcycle manufacturer,
commanding a 48-percent share of the national market, used SAP
solutions to introduce leading-edge supplier and customer
relationship management capabilities -- improving information
exchange with its many partners.
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-
Volkswagen AG
(PDF, 338 KB), Germany -- Explore how this global
automobile manufacturer improved customer communications, retention,
and satisfaction by choosing mySAP CRM to gain a holistic view of
customers and vehicles, enable one-to-one marketing through powerful
analytics, and integrate IT for effective data exchange.
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-
Volkswagen Gruppe
(PDF, 82 KB), Germany -- Consider how this global auto
producer achieved its goal of developing a uniform system to improve
customer satisfaction by implementing mySAP CRM across its
enterprise. The company successfully established a new service
center and a new call center at different locations.
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Sales, Marketing, and Service -- On Demand
As part of the family of SAP CRM on-demand solutions, the
SAP Sales on-demand solution
and
SAP Marketing on-demand solution, and the
SAP Service on-demand solution
are available globally today.
Solution Briefs
-
"Customer Relationship Management -- On Demand"
(PDF, 173
KB) -- Learn how SAP CRM on-demand solutions provide a virtually
seamless migration path from a hosted customer relationship
management solution to an on-premise application -- enabling you
to act quickly and grow strategically, without disruption.
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-
"mySAP CRM -- E-Commerce"
(PDF, 93 KB) -- Discover how you
can increase sales and reduce transaction costs with the
e-commerce functionality in mySAP CRM. Learn how you can turn
the Internet into a sales and interaction channel for business
customers and consumers.
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-
"mySAP CRM -- E-Mail Response Management"
(PDF, 150 KB) --
Discover how mySAP CRM can help transform your e-mail channel
into a strategic asset for increasing customer loyalty and
revenues. mySAP CRM's e-mail response management system combines
advanced functionality with knowledge management and centralized
administration.
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-
"mySAP CRM -- Interaction Center Management and Operations"
(PDF, 258 KB) -- Discover how mySAP CRM delivers interaction
center functionality that you can use as a strategic delivery
channel for service, sales, and marketing. Maximize customer
loyalty, reduce costs, and boost revenue with the only fully
integrated CRM application.
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-
"mySAP CRM -- Marketing"
(PDF, 180 KB) -- Discover how you
can make a greater contribution to corporate revenue with fewer
marketing resources using the mySAP Customer Relationship
Management (mySAP CRM) application. Learn how you can acquire
and retain more profitable customers and maximize organizational
efficiency.
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-
"mySAP CRM -- Partner Channel Management"
(PDF, 178 KB) --
Learn how you can build a more profitable and loyal indirect
channel by strengthening your channel partnerships and
optimizing channel operations. Use mySAP CRM as a partner
relationship management solution to work in closer harmony with
critical partner organizations.
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-
"mySAP CRM -- Sales"
(PDF, 188 KB) -- Learn how mySAP CRM
helps your sales team acquire and cultivate profitable
relationships with customers. Discover the tools mySAP CRM
provides to power your sales reps' efforts and actions
throughout the complete sales cycle.
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-
"mySAP CRM -- Service"
(PDF, 151 KB) -- Explore how mySAP
CRM can help you improve your organization's service quality --
which drives customer loyalty -- while boosting your bottom
line. Learn how mySAP CRM advances customer loyalty, efficiency,
and revenue.
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White Papers
-
"Integrated Service Life-Cycle Management"
(PDF, 681 KB) --
Learn how comprehensive service life-cycle management can help
maximize existing service profits and create new sources of
revenue. Discover functionalities in mySAP CRM that enable
businesses to deploy, measure, and analyze business practices
for service delivery.
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-
"SAP for Consumer Products -- SAP Trade Promotion Management"
(PDF, 280 KB) -- Read how consumer product firms use this SAP
application set to manage trade promotions by supporting
strategic and tactical marketing; total sales volume planning;
and implementation, validation, and analysis of sales promotion
tactics.
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-
"Supply Chain and Demand Chain Integration: The Pathway to
Profit and Competitive Advantage"
(PDF, 330 KB) -- Explore
how enterprises face the challenge of integrating supplier- and
customer-facing activities -- and how SAP shares and supports a
visionary strategy for integrating CRM and SCM processes.
Log-in required.
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Server
-
"The Challenge to Achieve Perfect Order Management"
(PDF,
246 KB) -- Explore how to improve order management. With mySAP
CRM, you can cost-effectively streamline planning, forecasting,
and collaboration -- and create accurate orders and contracts,
handle order changes, and resolve fulfillment issues. Log-in
required. Our Server

SAP NetWeaver
SAP NetWeaver
-- Your Foundation for
Enabling and Managing Change
With the SAP NetWeaver
platform, you can align IT
with business requirements.
SAP combines composition
technologies and application
functionality to reduce IT
complexity and increase
business flexibility. With
SAP NetWeaver, you can
compose applications using
enterprise services,
orchestrate business
processes and events, manage
enterprise information, and
deliver applications and
content to users more
quickly and
cost-effectively.
Read an overview of the SAP
NetWeaver platform (PDF,
682 KB).
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SAP NetWeaver COMPONENTS
SAP NetWeaver means you get a single platform with all
components synchronized into a single package. It means
one installation process, one integrated platform, and
one resource to turn to when you need support.
SAP NetWeaver is provided as a general-purpose platform.
Its capabilities are delivered by the following components:
• SAP Enterprise Portal provides a complete portal
infrastructure along with knowledge management and
collaboration software.
• SAP Business Intelligence makes information
actionable by helping companies identify, integrate,
and analyze disparate business data from heterogeneous
sources.
• SAP Master Data Management is the foundation
for providing harmonized, consistent information to
heterogeneous applications across the enterprise.
• SAP Exchange Infrastructure provides open integration
technologies that support process-centric
collaboration among SAP and non-SAP components
both within and beyond enterprise boundaries.
• SAP Mobile Infrastructure supports multichannel
access through voice and mobile technology, so people
can stay connected to the information they need, offline
or online.
• SAP Auto-ID Infrastructure provides a complete
auto-ID middleware solution. It connects radio
frequency identification (RFID) data directly from
auto-ID data capture sources, such as RFID readers,
and integrates the data directly into enterprise
applications.
• SAP Web Application Server is a development and
deployment platform that supports Web services,
business applications, and standards-based development
based on key technologies such as J2EE
and ABAP™.
SAP NetWeaver also includes the following tools:
• SAP Solution Manager provides centralized management
for all stages of the software life cycle, from design
to development, deployment, implementation, versioning
and testing, and ongoing operations.
• SAP Composite Application Framework provides the
environment for building composite applications and
comprises design tools, methodologies, services and
processes, an abstraction layer for objects, and user
interface patterns.
• SAP NetWeaver Developer Studio enables a model driven
development methodology for building professional
Web user interfaces.
Flexible, Step-by-Step Approach
By implementing crucial IT practices with SAP
NetWeaver, you can address your immediate IT needs first, then
expand your practice projects over time within a sustainable
cost structure. The SAP NetWeaver platform enables:
See the complete list of IT practices. SAP NetWeaver: IT Practices
With the SAP NetWeaver platform, your
organization can implement crucial IT practices in a
flexible, step-by-step approach at low cost. You can
address your immediate IT needs first and, since the
platform components are tightly integrated, you can
expand your practice projects over time within a
sustainable cost structure.
SAP NetWeaver enables the following IT practices.
For each practice, SAP NetWeaver supports a variety
of key IT activities -- all of which are easy to
perform using the platform's integrated components.
-
User productivity enablement
-- Help users
and groups improve their productivity through
enhanced collaboration, optimized knowledge
management, and personalized access to critical
applications and data.
-
Data unification
-- Consolidate,
rationalize, synchronize, and manage all master
data for improved business processes.
-
Business information management
-- Increase
the visibility, reach, and usefulness of
structured and unstructured enterprise data.
-
Business event management
-- Ensure that
business events from multiple systems are
distributed to the appropriate decision makers
in the context of the relevant business
processes.
-
End-to-end process integration
-- Make
disparate applications and systems work together
consistently to perform business processes.
-
Custom development
-- Rapidly create new
enterprise-scale applications that drive you
company's differential advantage.
-
Unified life-cycle management
-- Automate
application management processes and optimize
all facets of an application's life cycle.
-
Application governance and security management
-- Maintain an appropriate level of security and
quality in your intellectual property and
information assets.
-
Consolidation
-- Deploy a consolidated
technology platform with the ability to allocate
computing power according to changing business
needs.
-
Enterprise service-oriented architecture design
and deployment
-- Consolidate and
standardize your basic processes and leverage
existing investments to compose new, distinctive
business processes.
mySAP CRM: Demos
Experience
firsthand the features, functionality, and benefits of mySAP Customer
Relationship Management (mySAP CRM). These brief, user-friendly demos
show how mySAP CRM performs in a real-world environment:
Complaint Handling for Logistics Service Providers
Discover how mySAP Customer Relationship Management allows you to
aggregate customer information from disparate systems, integrate
processes to improve customer service, resolve customer problems in real
time, and provide services that enhance customer relationships.
Watch the demo.
-- Log-in required.
mySAP CRM: Improving Order Management
Find out how mySAP CRM enables your sales staff to create sales orders,
check product availability in real-time, and change orders on-the-fly --
so you can drive effective sales processes, respond to changing customer
needs, and achieve a faster time to value.
Watch the demo.
-- Log-in required.
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