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The Right Path to SCM-CRM Integration
Abstract
Growing competitive pressures and escalating customer demands have led businesses to sophisticated information technology to manage costs and enhance revenues. Two popular initiatives are supply chain management (SCM) and customer relationship management (CRM). SCM focuses on optimizing the materials, information, services, and financial flows through a supply network. CRM focuses on marketing, sales, and customer service, and aims to maximize the value of customer relationships. Furthermore, the real potential lies in the integration of SCM and CRM. Disconnected implementations can result in IT “silos” with redundancies in hardware, software and staff, breaks in the information chain, and disappointing performance. There are different paths to integration. The right path depends on the organization’s relative maturity on 6 key factors: 1) interconnectivity, 2) interoperability of systems’ functionality, 3) information integrity, 4) interorganizational competence, 5) intellectual capital, and 6) innovative capability.
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