CMBS overcomes resistance to change by concentrating on quantifying customer satisfaction by asking for ratings of each aspect of a system installation after it has been installed. This gives each member of the team a high level of ownership in the metrics being measured, and over time they improve as CMBS system integration teams become more attuned to the unmet needs of their customers purchasing systems. In this regard BSC strategies with accountability for performance lead to continual efforts to improve scores on each metric defined as part of both the customers' expectations and the motivation CMBS integration teams have to improve their performance and gain greater financial results as well. In this way CMBS alleviates resistance to change by focusing on how to motivate employees to become active change agents for the good of the metrics measured on behalf of clients.
Defining BSC Perspectives for CMBS
The four perspectives of a BSC including customer, financial, internal business processes and learning and growth (Liedtka, Church, Ray, 2008), their objectives, and a quantified metric are discussed in this section. CMBS is heavily involved in Business Process Management (BPM) on behalf of its customers in conjunction with streamlining customer-facing processes. This latter aspect of their strategy necessitates that the company also integrate to Customer Relationship Management (CRM) systems as well, many of which are 3rd party, legacy or designed and built by the companies using them. As a result, CRM system integration is a critical aspect of the BSC perspectives for CMBS.
Objectives for the Customer Perspective of CMBS' BSC Model
The first objective of CMBS is to provide reliable and scalable integration between Cincom ERP systems and their customers' many CRM systems. To the extent a CRM system can become an integral part of an enterprise workflow is the extent to which customer-facing strategies can be measured and improved over time (Chang, 2007). The second objective is to significantly improve the performance of channel management, quote-to-order and configure-to-order workflows that are embedded in customers' CRM systems yet rely on tight integration to their ERP systems. Empirical studies have shown the greater the level of integration between quote-to-order, configure-to-order and mass customization systems in CRM systems to ERP systems, the higher the level of organizational performance over time (Kim, Suh, Hwang, 2003). This objective seeks to unify the supply chain centric processes the company has on the customer facing side, specifically their quoting systems, with the ERP systems which will need to fulfill the orders taken. The third objective is to define pricing and revenue management benchmarks and KPIs that will give CMBS the ability to measure he profitability by customer and by engagement or installation over time. When these three objectives are taken into account, the one quantified metric that matters most is increasing customers' percentage of orders that are fulfillment with no modifications -- which are in essence the percentage of orders that attain perfect order levels of performance.
Objectives for the Financial Perspective of CMBS' BSC Model
The three objectives for the financial planning perspective of the BSC Model include the development of revenue management guidelines and KPIs for CMBS to measure profitability by engagement, defining lifetime customer value and measuring how annual license revenues of ERP systems quantify this aspect of the CMBS customer base, and measuring the long-term impacts of indexing employee compensation to long-term customer value over time. In terms of quantifying one metric in this area, measuring lifetime profitability by customer is used. This metric includes lifetime customer revenue net of cost, so that a true measure of profitability by customer over their total time of engagement with Cincom is measured.
Objectives for the Internal Business Process Perspective of CMBS' BSC Model
The three critical objectives for Internal Business Process perspective as part of the BSC model include defining best practices for integrating customer-facing processes including quote-to-order, inquiry-to-order and configure-to-order workflows with ERP systems' components most dependent on these workflows for demand signals. This first process objective aims to interlink the customer-facing processes of advanced product configuration and quoting with ERP back-end systems including supply chain management to measure total process efficiency. The second objective is to define the cumulative effects of attaining best practices in perfect order performance relative to the ROI attained with an ERP system over time. Empirical studies suggest that the greater the level of integration at the process level between demand management and customer facing systems to ERP systems,...
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