EIP

Enterprise Resource Planning

Business process: Marketing &

Sales Process
Case Study using SAP MS
Dynamics 365 DYNAMICS NAV
Oracle and Sage
Enterprise IT
Planning

CIS 2061 CIS2062

Email:
[email protected]
Web:
conradattard.com/about

By Dr Conrad Attard
 Enterprise IT Planning

Objectives
 Different products from different vendors.
 Why do organisations implement ERPS?
 Marketing & Sales Ordering Process
 Describe how they are part of an information
system, (Exploring modules).
 Integrating Marketing and Sales lead organisations
to lower cost, higher profits and customer
satisfaction.
 Sales and distribution case studies discussed.
 CRM an extension of ERP software.
 Enterprise IT Planning

The focus of ERP systems is on the efficiency and

effectiveness of the internal process.

ERP – Five Major Process

Finance

Human Resources Manufacturing

Knowledge
Management

Sales & Marketing Logistics

 Enterprise IT Planning

ERP – Some software

packages
1. Oracle – Oracle E – business suite
2. Infor Global Solutions
3. The Sage Group – Sage 100 (formerly Sage ERP MAS 90 and 200),
Sage 300 (formerly Accpac), 500 ERP, Sage X3, Sage Intacct
4. Microsoft Dynamics – Dynamics 365, Dynamics Business Central,
Dynamics 365 for Finance and Operations , Microsoft Dynamics
GP is version 18.3 (aka GP 2021)and Microsoft Dynamics 365 / CRM
WAVE 2.
5. Open Source ERP – Opentaps, Compiere, ERP5, OpenMFG,
OpenPro and Odoo
6. Access
7. SAP SAP S/4HANA (Enterprise Resource Planning on-premise and
cloud) SAP Business ByDesign (SME Cloud Enterprise Resource
Planning) SAP Business One (Small enterprise Enterprise Resource
Planning) SAP CRM (Customer Relationship Management) SAP ERP
(Enterprise Resource Planning) SAP PLM (Product Lifecycle
Management) SAP SCM (Supply Chain Management) SAP SRM
(Supplier Relationship Management)
 Enterprise IT Planning

ERP Software Vendors

 Open Source and Commercial ERP systems

1. SAP
2. MS Dynamics 365
3. Oracle
4. Sage
5. Access
6. Acumatica
7. https://www.odoo.com/ (Previously
OpenERP)
 Enterprise IT Planning

ERP – Some software

packages
 Microsoft Dynamics

1. Dynamics 365
2. Dynamics Business Central (25-250 users)
3. Dynamics 365 for Finance and
Operations(100 – 500 users)
4. Microsoft Dynamics GP is version 18.3
(aka GP 2021)– Mainly used in America
5. Dynamics CRM/365 Wave 2
 Enterprise IT Planning

ERP – Some software

packages
 SAP: largest vendor of ERP worldwide - 1972
 Oracle: mostly know for relational database. It
also has an ERP system based upon its own
database called ORACLE ebusiness suite. -
1979
 Sage which was founded in the UK providing
mid size and small companies with business
management software and related products
and services.
 Microsoft Dynamics 365 targets SMB and
larger organisations.
 Enterprise IT Planning

Example: ERP Dynamics

Business Central
 Role and Process
 Functional Modules:
1. Financial Management
2. Sales & Marketing
3. Purchase
4. Warehouse
5. Manufacturing
6. Jobs
7. Resource Planning
8. Service
9. Human Resources
10. Administration
 Enterprise IT Planning

ERP Discussion
 Does the size of an organisation matter?

 Case studies:

 Coca Cola and International Hotels

 Enterprise IT Planning

ERP – Why implement an ERP?

The following are key aspects why
organisations implement an ERP systems:
1. Integration: Provide an integrating
working environment.
2. Process Orientation: Enable automation
3. Openness: Availability of information from
field level until the management level.
 Enterprise IT Planning

ERP - Benefits
4. International Aspects: Flexibility and facility to
standardizing process or to accommodate
changes and globalization.

5. A Balanced between people, process and

technology changes across all areas.

6. Apply planning and program management

practices throughout the program life cycle of
a project.

7. One Vendor.
 Enterprise IT Planning

ERP – Why not!

 Disadvantages of implementing the ERP
systems:
1. High implementation cost.
2. Complexity, especially for new installations.
3. Delay on return on investment. The benefits of
ERP may not be shown until after companies
have had it running for some time.
4. No made to measure solutions
 Enterprise IT Planning

Discussion Point
 Should Every business buy an ERP?
 Imply a way of doing things.
 They require user to follow a way of doing
things
 Operation might not be a good match with
the constraints inherent in ERP.
 Enterprise IT Planning

Discussion Point
 Should Every business buy an ERP?
 A business is expected to analyze its own
business strategy, organisation, culture and
operation before choosing an ERP
approach.
 Enterprise IT Planning

Adopting an ERP?
 Both private and public sector
organizations around the world use ERP
applications to improve operational
efficiency because such systems permit
the seamless flow of information across
the entire organization

(Davenport, 1998 and Klaus et al., 2000).

 Enterprise IT Planning

Adopting an ERP?
 Since the emergence of ERP packages in
the late 1990s, they have become
popular among practitioners and IS
researchers alike.
(Davenport, 1998, Esteves and Pastor, 2001,
Mabert et al., 2003 and Janakiraman, 2011)
 Enterprise IT Planning

Enterprise resource planning (ERP) software

market revenues worldwide from 2019 to 2028
(in million U.S. dollars)

Ref Statista 2023

 Enterprise IT Planning

Business Functions to Business

Process
 A business function is an organisational unit
normally similar activities are performed. Another
name for business function is department.

 Business Process: In 1980 a new trend evolved in

company management.

Michael Porter Introduced the value chain.

Ref to Book
Competitive Advantage: Creating and sustaining superior
performance (1985)
 Enterprise IT Planning

Business Functions to Business Process

 Business processes within an organisation falls

into three levels:

1. Strategic planning
2. Management control
3. Operational control.

 ERP has been promoted as solutions for

sustaining or streamlining business processes
at all levels.
 Enterprise IT Planning

 To understand ERP, you must understand how a

business works
 Functional areas of operation
 Business processes
 Enterprise IT Planning

Business Function- Business Process

Refresh key aspects.

 With the increase of interactions between

departments, it was no longer easy to
deliver sales orders to customers cost-
effectively and in timely fashion.
 VALUE CHAIN!
 So business process is the approach taken
to converting INPUTS to OUTPUTS.
 Business process start with demand and
with a product for a specific customer.
Marketing and
Sales Process:
02C-Cycle
 Enterprise IT Planning

Marketing and Sales Process:

02C-Cycle
 For most companies the Sales process is the
starting point.
 Also know as Order-to-Cash cycle. (02C)
 This cycle includes all activities
from inputting the sales order from customer to
receiving the payment from customer.
 To be sure that Sales Transactions get into the
general ledger…
…Dynamics NAV uses posting groups
 Enterprise IT Planning

How do MS do it?
Posting groups
 When order deliveries, invoices,
payments, credit memos and others are
posted, posting groups are used by the
program to determine which general
ledger accounts have to be changed.

 Reporting.
 Enterprise IT Planning

Marketing and Sales Process:

02C-Cycle
 The Customer:
 Data: Customer Card
1. Master Data
2. Contact Data
3. Transaction data
4. Payment Terms
5. Shipment Terms
 Enterprise IT Planning

CRM
 Shopkeeper in small village example.
 CRM is a strategy which makes it possible for
companies to identify customers satisfaction
and thereby increasing the company
profitability.

 Marketing phrase:
“Know your customer”
 ERP phrase:
“and register his characteristics”
 Enterprise IT Planning

CRM –an extension ERP.

Customer Relation Management…
…is all about the relationships a company
maintains with its customers.

“Keeping existing customers is much easier

than acquiring new customers, and it is a
fact that getting a new customer costs an
average of ten times as much as keeping
an existing customer's business.”
 Enterprise IT Planning

Core CRM activities.

 One-to-one marketing
 Sales Force Automation
 Sales campaign management
 Marketing routed to sales representatives
or customer as needed – encyclopedias
 Call center automation
 Enterprise IT Planning

CRM - benefits
 When properly implemented:

1. Lower costs because of high

operational efficiency.
2. Higher revenue because of a better
segmented market.
3. Better strategy and better possibilities to
measure effects of promotions.
 Enterprise IT Planning

CRM: Case study:

 KLM part of Air France
 In two years since the implementation of CRM KLM
has 20% more customers added to its customer
database of 3.3million customers.
 In 2006 13% of the KLM customers considered
booking a try with KLM more often which lead to a
9% increase in revenue.
 How was this done??
1. Initial Data Source - Customer Card.
2. 11 points of contact such as check –in,
boarding , flight
3. Personalised target mail to customers.
 Enterprise IT Planning

Business Process

Functional Functional Functional

Area 1 Area 2 Area 3

Trigger Step1 Step2 Step3 Outcome

Generic Business Process

 Enterprise IT Planning

Sales Process
Contacting Issuing Sales
the customer Sales Order
Quotation Processing

Delivering
Collecting
and Billing
money
shipping

Working with blanket orders

Return orders and credit memos

 Enterprise IT Planning

The Fulfillment Process

Steps Necessary to take an order from
customer; fill, pack, and ship it
… and receive payment

Example Apple: Sell from stock and

Configure to Order.
 Enterprise IT Planning

Sales Order Processing

 Presales
 Sales Order
 Shipping
 Billing
 Payment
 Enterprise IT Planning

Sales
 A sequence of related functions,
including:
 taking orders,
 setting prices,
 checking product availability,
 checking the customers credit line,
 arranging delivery billing the customer
 collecting payment.
 Enterprise IT Planning

ERP - Sale Process

 How does the ERP - Sales process address
problems that organisations face in there day
to day business activities?

 Some issues!
1. Delays when processing orders
2. Pricing items
3. Missed Delivery dates
4. The need of more “CRM” because
organisation lack in a actualising the
promised service or product
 Enterprise IT Planning

ERP - Sale Process

 What causes these problems?
 Enterprise IT Planning

ERP - Sale Process

 Credit Management Process
 Assume sufficient credit
 Assessment at three key points during
process:
 When the sales order is created or changes
 When the delivery is authorized or changes
 The post goods issue is performed during
shipping.
 Enterprise IT Planning

Sales Process
 Working With Blanket Orders.
 Long Term Relationships with customers.
 Agree to buy in a large quantity of items.

Example: Ordering 15 000 items and wants 2000 items to be

sent in during Second month of the year.

 When using this system quotations are not normally used

as everything would be agreed before and a contract
would be signed once the agreement is finalised.

 ERP systems have supporting functions to calculate the

right price and can keep track of the delivered and
invoiced quantities as well as the quantity which is still to
be delivered to a specific customer.
 Enterprise IT Planning

Sales Process

 Return Orders and Credit Memos

 Customers may return shipments because the
items are damaged upon arrival or wrong
item was delivered.
 RMA procedure – Return Material
Authorisation
 The process looks like a turned-around sales
process.
 A credit memo is created in the ERP system
and sends it to the customer.
 Enterprise IT Planning

Customer Service
 The customer expects that the sales staff will
service him after the goods have been delivered
and have been paid for.

 Dynamic NAV: Service Module.

 The following functions are available:

1. Service order management (info about open
service quotations and services orders)
2. Contract and SLA management (SLA stands for
Service level Agreement)
3. Resources planning and material planning
prioritising of activities and jobs
4. Tracking and tracing of service items (with serial
numbers and stock data)
 Enterprise IT Planning

Preparation session
 Master Data in Sales Process
 Read Chapter 5.
 Enterprise IT Planning

Analyses
 Analyses are only possible if, when posting the
sales orders, all kind of characteristics are entered
into the system.

 Dynamics NAV: dimension

1. It’s a characteristic that can be added to a
posting.
2. Its is possible to sort all kinds of posting to many
different points of view.
3. You can identify trends and compare all kinds of
lists with data on several different dimensions.
 Enterprise IT Planning

Analyses cont.
 Executing all kinds of detailed analyses is
also known as Business Intelligence (BI).
 This causes a lot of computational
activities performed in large numbers of
data within the database.
 Copy of database to process these
activities over night.
 Enterprise IT Planning

Analyses cont.
 Tools Available:
 Sales Budgeting for revenue targets which
have to be achieved.
 Sales analysis account schedules. (Divide
revenues in quantity of items sold)
 Compare them with comparable figures
of other periods regions etc.
 Dimensions are also good tools to use in
order to sort sales figures in different views.
 Enterprise IT Planning

Analyses cont. CRM

 CRM can extract the number of customer visits a
certain sales accountant has made, and the costs
of these visits can extracted from the
HRM/Finance modules
 Analysis at a higher level can include these
examples:
1. Does the number of customer visits influence the
revenue?
2. Does the number of customer contacts
influence the revenue?
3. Which revenue was reached by the leads of
latest sales exposition or sales campaign? Was
this profitable?
 Enterprise IT Planning

Workshop
Understanding how typical Companies work : (SMB)
 Upgrading a company. (PC Maniacs)

 Shop that sells Computer Hardware including

peripherals and PC that are assembled using the
latest components.
 7 Managers representing 7 departments
1. Assembly
2. Repairs
3. Sales department
4. Delivery
5. Procurement/Orders
6. Finance
7. HR
 Enterprise IT Planning

Workshop 1
Understanding Organisations
 Objectives.

 1) Define the key functions of the department assigning roles to

the all members of team.

 2) Identify the module and data relate to your department.

 3) Identify the critical aspects, such as days or deadline that

would require resources
Example rush hours, job completion, agreement SLAs, end of day
report, AGM etc.

 4) Create a estimate budget required to match the process

identified and amount of employees required.

 Discuss how processes between departments will improve day

to day operations and minimise cost and data input.