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Lecture 12

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14 views

Lecture 12

Uploaded by

Iktiaz Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LECTURE 12

ENTERPRISE
APPLICATIONS

James A. O'Brien, and George Marakas.


Management Information Systems
Chapter 8 Enterprise Business Systems 2

Learning Objectives
• Customer Relationship Management
• Components
• Benefits/Roles
• CRM implementation failure factors (challenges)
• CRM trends
• Enterprise Resource Planning
• Components
• Benefits/Roles
• ERP implementation failure factors (challenges)
• ERP trends
• Supply Chain Management
• Components
• Benefits/Roles
• SCM implementation failure factors (challenges)
• SCM trends
Chapter 8 Enterprise Business Systems 3

1. Customer Relationship Management (CRM) -What is it?


• Managing the full range of the customer relationship
involves
• Providing the customer with a single, complete view of the company
and its extended channels

• CRM Clusters/Components
Chapter 8 Enterprise Business Systems 4

Benefits of CRM
• Benefits of CRM
• Identify and target the best customers
• Real-time customization and personalization of products and
services
• Track when and how a customer contacts the company
• Provide a consistent customer experience
• Provide superior service and support across all customer contact
points
CRM Failures
• Lack of understanding and preparation
• Not solving business process problems first
• No participation on part of business stakeholders involved
Chapter 8 Enterprise Business Systems 5

Trends in CRM
• Operational CRM
• Supports customer interaction with greater convenience
through a variety of channels
• Analytical CRM
• Extracts in-depth customer history, preferences, and
profitability from databases
• Collaborative CRM
• Easy collaboration with customers, suppliers, and partners
• Portal-based CRM
• Provides users with tools and information that fit their needs
Chapter 8 Enterprise Business Systems 6

2. Enterprise Resource Planning:


(The Business Backbone)
• ERP is a cross-functional enterprise backbone that
integrates and automates processes within
• Manufacturing/Production
• Logistics
• Distribution
• Accounting
• Finance
• Human resources
Chapter 8 Enterprise Business Systems 7

ERP Application Components


Chapter 8 Enterprise Business Systems 8

Benefits and Challenges of ERP


• ERP Business Benefits
• Quality and efficiency
• Decreased costs
• Decision support
• Enterprise agility
• ERP Costs
• Risks and costs are considerable
• Hardware and software are a small part of total costs
• Failure can cripple or kill a business
Chapter 8 Enterprise Business Systems 9

Causes of ERP Failures


• Most common causes of ERP failure
• Under-estimating the complexity of planning, development, training
• Failure to involve affected employees in planning and development
• Trying to do too much too fast Insufficient training
• Insufficient data conversion and testing
• Over-reliance on ERP vendor or consultants
Chapter 8 Enterprise Business Systems 10

ERP Trends
Flexible ERP
•The first version of popular ERP that deals with the business processes
very flexibly using desktop based applications.

Web-Enabled ERP
•Introduces the intranet version of ERP for mainly internal users such as
operational employees and managers.

Inter-enterprise ERP
• Introduces the extranet version of ERP that can also serve the external
stakeholders such as suppliers, customers and partners.
Chapter 8 Enterprise Business Systems 11

3. Supply Chain Management (SCM)


• Fundamentally, supply chain management helps a company
• Get the right products
• To the right place
• At the right time
• In the proper quantity
• At an acceptable cost
Chapter 8 Enterprise Business Systems 12

Goals of SCM
• The goal of SCM is to efficiently
• Forecast demand
• Control inventory
• Enhance relationships with customers, suppliers, distributors, and
others
• Receive feedback on the status of every link in the supply chain
Chapter 8 Enterprise Business Systems 13

Benefits and Challenges of SCM


• Benefits
• Faster, more accurate order processing
• Reductions in inventory levels
• Quicker times to market
• Lower transaction and materials costs
• Strategic relationships with supplier
• Challenges
• Lack of demand planning knowledge, tools, and guidelines
• Inaccurate data provided by other information systems
• Lack of collaboration among marketing, production, and inventory
management
• SCM tools are immature, incomplete, and hard to implement
Chapter 8 Enterprise Business Systems 14

Trends in SCM
•The organization needs to improve and enhance the internal business
processes related production and supply chain planning and design.

•The organization needs to improve and enhance the external business


processes connected with suppliers, wholesalers, retailer and
customers.

•The organization needs to start implementing the supply chain


management systems with the help of both internal and external
stakeholders.
•
Chapter 8 Enterprise Business Systems 15

Questions
Customer Relationship Management (CRM)
•What do you mean by Customer Relationship Management? Briefly explain CRM with its
application (components/clusters) 3-4
•Explain the Benefits/Roles of CRM and Failures/challenges in implementing CRM. 2-3
•Explain the Trends in CRM. 2-3
Enterprise Resource Planning (ERP)
•What do you mean by Enterprise Resource Planning (ERP)? Briefly explain ERP with its
application (components/clusters) 3-4
•Explain the Benefits/Roles of ERP and Failures/challenges in implementing ERP. 2-3
•Explain the Trends in ERP. 2-3
Supply Chain Management (SCM)
•What do you mean by Supply Chain Management (SCM)? Briefly explain SCM with its
application (components/clusters) 3-4
•Explain the Benefits/Roles of SCM and Failures/challenges in implementing SCM. 2-3
•Explain the Trends in SCM. 2-3

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