Management

Information System
Enterprise Application

Mr. Thien Nguyen

[email protected]
 Agenda
1. Enterprise systems help businesses achieve
operational excellence
2. Supply chain management systems coordinate
planning, production, and logistics with
suppliers
3. Customer relationship management systems
help firms achieve customer intimacy
4. The challenges posed by enterprise applications
and take advantage of new technologies
5. Group Activities
6. Q&A
 Enterprise systems help businesses
1 achieve operational excellence
 What is ERP software?

https://www.youtube.com/watch?v=6qys-562kp4
 Enterprise systems (ERP)

• Enterprise resource planning (ERP)

systems
• Suite of integrated software modules and
a common central database
• Collects data from many divisions of firm
for use in nearly all of firm’s internal
business activities
• Information entered in one process is
immediately available for other processes
The Organization before ERP
The Organization before ERP

Linear Supply Chain (Snake)

Source: Inomata, 2019
The Organization after ERP
The Organization after ERP

Figure 4. Post-Industry 4.0 Omni-directional

Supply Chain (Spider)
Source: Inomata, 2019
Enterprise systems (ERP)
 Enterprise systems (ERP)

Built around thousands of predefined business processes that reflect best

practices:
• Finance and accounting
• Human resources
• Manufacturing and production
• Sales and marketing

To implement, firms:
• Select functions of system they wish to use
• Map business processes to software processes
• Use software’s configuration tables for customizing
Enterprise systems (ERP)
 Enterprise systems (ERP)

Business value of enterprise systems

• Increase operational efficiency
• Provide firm-wide information to support
decision making
• Enable rapid responses to customer
requests for information or products
• Include analytical tools to evaluate
overall organizational performance
 Supply Chain
2 Management
 What is SAP SCM?

https://www.youtube.com/watch?v=XSqIRH2WjuI&t=140s
 Supply Chain Management Systems

Network of organizations and processes for

• Procuring materials, transforming them into products,
and distributing the products

Upstream supply chain

• Firm’s suppliers, suppliers’ suppliers, processes for
managing relationships with them

Downstream supply chain

• Organizations and processes responsible for delivering
products to customers

Internal supply chain

Supply Chain Management Systems
 Supply Chain Management Systems

Information System and Supply chain management help

Inefficiencies cut into a company’s operating costs
• Can waste up to 25 percent of operating expenses
Just-in-time strategy:
• Components arrive as they are needed
• Finished goods shipped after leaving assembly line
Safety stock: Buffer for lack of flexibility in supply chain
 Supply Chain Management Software

Supply chain planning systems

• Model existing supply chain
• Enable demand planning
• Optimize sourcing, manufacturing plans
• Establish inventory levels
• Identify transportation modes

Supply chain execution systems

• Manage flow of products through
distribution centers and warehouses
Push- Versus Pull-Based Supply Chain Models
 The Emerging Internet-Driven Supply Chain

• The emerging Internet-driven supply chain operates like a digital logistics

nervous system.
• It provides multidirectional communication among firms, networks of firms,
and e-marketplaces so that entire networks of supply chain partners can
immediately adjust inventories, orders, and capacities.
 Supply Chain Management Systems

Business value of SCM systems

• Match supply to demand; reduce inventory levels
• Improve delivery service
• Speed product time to market
• Use assets more effectively
• Reduced supply chain costs lead to increased profitability
• Total supply chain costs can be 75 percent of operating budget
• Increase sales
3 CUSTOMER RELATIONSHIP
MANAGEMENT
Introduction Case: Salesforce - You Need a Great
Sales force to Sell Salesforce

https://www.youtube.com/watch?v=SlhESAKF1Tk
 What is CRM Salesforce?

https://www.youtube.com/watch?v=di6iwHhrH6s
 Customer Relationship Management Systems

Customer relationship management (CRM)

• Knowing the customer
• In large businesses, too many customers and too many ways customers
interact with firm
CRM systems
• Capture and integrate customer data from all over the organization
• Consolidate and analyze customer data
• Distribute customer information to various systems and customer touch
points across enterprise
• Provide single enterprise view of customers
 Customer Relationship Management Systems

• CRM systems examine customers from a

multifaceted perspective.
• These systems use a set of integrated
applications to address all aspects of the
customer relationship, including customer
service, sales, and marketing
 CRM Software

More comprehensive have modules for:

Partner relationship management (PRM)
• Integrating lead generation, pricing, promotions, order
configurations,…
• Tools to assess partners’ performances
Employee relationship management (ERM)
• Setting objectives, employee performance
management, performance-based compensation,
employee training
 CRM Software

CRM packages typically include tools for:

Sales force automation (SFA)
• Sales prospect and contact information, sales
quote generation capabilities
Customer service
• Assigning and managing customer service
requests, Web-based self-service capabilities
Marketing
• Capturing prospect and customer data,
scheduling and tracking direct-marketing mailings
or e-mail, cross-selling
 How CRM Systems Support Marketing

Customer relationship management

software provides a single point for users
to manage and evaluate marketing
campaigns across multiple channels,
including email, direct mail, telephone, the
web, and social media
 CRM Software Capabilities

• The major CRM software products

support business processes in sales,
service, and marketing, integrating
customer information from many
sources.
• Included is support for both the
operational and analytical aspects of
CRM
CRM Software Capabilities
 CRM Software Capabilities

Operational CRM:
• Customer-facing applications such as sales
force automation, call center and customer
service support, and marketing automation
Analytical CRM:
• Based on data warehouses populated by
operational CRM systems and customer touch
points
• Analyzes customer data (OLAP, data mining,
etc.)
• Customer lifetime value (CLTV)
 Analytical CRM Data Warehouse

Analytical CRM uses a

customer data
warehouse or analytic
platform and tools to
analyze customer data
collected from the firm’s
customer touch points
and from other sources
 Customer Relationship Management Systems

Business value of CRM systems

• Increased customer satisfaction
• Reduced direct-marketing costs
• More effective marketing
• Lower costs for customer
acquisition/retention
• Increased sales revenue
Churn rate:
• Indicator of growth or decline of firm’s
customer base
 Enterprise Applications: Challenges and
Opportunities

Enterprise application challenges

• Highly expensive to purchase and implement enterprise applications
Ex: Average cost of ERP project in 2014 – $2.8 million
• Technology changes
• Business process changes
• Organizational learning, changes
• Switching costs, dependence on software vendors
Ex: Integrating cloud applications
• Data standardization, management, cleansing
 Enterprise Applications: Challenges and
Opportunities

Next-generation enterprise applications

Enterprise solutions/suites or E-business suites:
• Make CRM, SCM, and ERP systems work closely with each other and link to
systems of customers and supplier
Cloud-based solution and mobile platforms
• Large enterprise: SAP S/4 HANA Cloud, Microsoft Dynamics 365…
• Small and medium enterprise: SAP Business One, SAP Business By Design,
Dynamics 365, Oracle Netsuite…
 Enterprise Applications: Challenges and
Opportunities
Social CRM
• Incorporating social networking technologies
• Company social networks
• Monitor social media activity; social media analytics
• Manage social and Web-based campaigns
Business intelligence
• Inclusion of BI with enterprise applications
• Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data
visualization
• Machine learning to analyze very large bodies of data, make connections, make
predictions, and provide recommendations for operations optimization
4 Group Activities
 Activity 1:
Soma Bay Prospers with ERP in the Cloud

1. Identify and describe the problem discussed in this case. What

management, organization, and technology factors contributed
to the problem?
2. Why was an ERP system required for a solution? How did
having a cloud-based ERP system contribute to the solution?
3. What were the business benefits of Soma Bay’s new enterprise
system? How did it change decision making and the way the
company operated?
 Activity 2: Business Scenario

1. Brainstorm about these business scenario:

2. Cash and Liquidity Management, Financial Closing, Make to
Stock, Procure to Pay with Stock, Marketing to Opportunity,
Customer Return Management, Time and Labor Management,
Workforce Administration
3. Present to class
 Activity 3: Kenya Airways Flies High with
Customer Relationship Management

1. What was the problem at Kenya Airways described in this case?

What management, organization, and technology factors
contributed to this problem?
2. What was the relationship of customer relationship management
to Kenya Airways’ business performance and business strategy
3. Describe Kenya Airway’s solution to its problem. What
management, organization, and technology issues had to be
addressed by the solution?
4. How effective was this solution? How did it affect the way Kenya
Airways ran its business and its business performance?
THANK YOU