1. Thinking about Information Systems
Session 2

2. Decentralised v/s Centralised Systems
“ERP covers all the techniques and the concepts for the integrated management of the business as a whole, from the viewpoint of the efficient use of resources , to improve the efficiency of an enterprise”
“ ERP is an integrated information system built in on a centralized database and having a common computing platform that helps in effective usage of enterprise’s resources and facilitates the flow of information between all business functions of the enterprise and with external stakeholders ”
“Software solution that addresses the organizations needs to plan their resources effectively or optimally by taking a complete process view of the overall organization to meet the goals by tightly integrating all the functions (finance, operations, materials, human resource , etc.) and by building a common data model to deliver a single version of truth”

3. Need for ERP From Department to Enterprise (Conflicting objectives)
From Function to Process (Order Fulfilment)
From Information Silos to Integrated Information System
Duplication of data
No integration between these different systems
Systems can not update online all the relevant information
From Departmental Database to Companywide Integrated Database
No data Duplication
Data Standardization
Data Tracking
Source: Enterprise Resource Planning, by Ray

4. ERP Market Infor SAP Microsoft Oracle (PeopleSoft, JD Edwards) Lawson
IFS
QAD
Infor
Microsoft
Lawson
Epicor

5. Advantages & Disadvantages Of ERP
Business Integration
Flexibility
Better analysis and Planning capabilities
Use of latest technology
Huge investments in terms of time and money
Slow benefit realization
High risk implementation and operation
Costly failures
Source: Alexis Leon
Tangible :
Reduced inventory & Inventory carrying costs
Reduced manpower costs
Reduced material costs
Improved Sales and Customer Service
Efficient Financial Management
Intangible :
Accounting
Product and Process Design
Production and materials management
Sales

6. Benefits of ERP Systems
Tangible
intangible
Inventory Reduction
Personnel Reduction
Productivity Improvements
IT Cost Reduction
Transportation/Logistics Cost Reduction
Maintenance Reductions
On-time delivery Improvements
Revenue/ Profit Increase
Cash management Improvements
Information Visibility
New Improved Process
Customer Responsiveness
Cost Reduction
Integration
Standardization
Flexibility
Globalization
Technology
Source: Alexis Leon

7. ERP Challenges Implementation Challenges
Scope Changes
Huge budget
Long timeline
Process Redesign Challenges
Unrealistic Expectations
Support / Maintenance Challenges
Getting right people
Managing multiple vendors
Managing regular updates
Technology Obsolesce
Managing People
Managing Change
Managing Large Project Team
Managing employee retention and relocation
Top Management Support
Source: Enterprise Resource Planning , By Ray

8. ERP and Enterprise Applications –Emerging Trends
ERP vendors are coming with more enterprise applications making life difficult for niche
SME’s is everyone’s focus
Going Vertical
Vendor consolidation
New deployment models
Maintenance is the new focus area

9. Features of ERP II E-Commerce (Electronic Commerce)
M-Commerce (Mobile & Wireless Technologies)
Web Services
RFID
Analytical Capabilities (Data Warehousing & Data Mining)
CRM, SCM, SRM
Knowledge Management
Business Intelligence

10. Customer Relationship Management
CRM automates business processes related to marketing sales and customer service and technical support
Involves redesigning of business processes to find, attract , win new customers
CRM can bring together information from all data sources within the organization and give a holistic view of customer in real time
Build Brand Loyalty Growth
Personalized Marketing, Sales Automation, Personalized Customer Service
Process Efficiency, Holistic View of Customer Relationship Value
When we hear the term customer relationship management, it automatically brings to our mind the names of software vendors such as Siebel and Salesforce.com. A true CRM integrates corporate strategy, business methodology and technology to accomplish a myriad of goals for company that want to operate in a customer-driven environment.
CRM evolution :
It costs 6 times more to sell to a new customer than to sell to an existing one.
A typical diss
Capture Data for analysis, Cost Control, Track preferences
Evolution of CRM Programs

11. The major application clusters in CRM
Marketing and Fulfilment
Customer Service and Support
Retention and Loyalty Programs
Contact and Account Management
Sales
Up-sell
Cross-sell
Sales : Provides Sales representatives with the software tools and company data sources they need to support and manage their sales activities and maximize their up-selling and cross-selling.
Marketing And Fulfilment : Helps accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing and scheduling and tracking direct marketing mailings.
Customer Service and Support : Provides service reps with software tools and real-time access to common customer database shared by sales and marketing professionals
Fax
Customer
Web
Telephone
CRM software helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers . Information is captured from all customer touch-points such as telephone, fax, and the company’s website, retail stores, kiosks and personal contact. CRM system stores the data in a common customer database that integrates all customer account information and makes it available throughout the company via Internet, intranet or other network links for sales, marketing, service, and other CRM applications.

12. The Three phases of CRM
Acquire : Acquire new customers by contact management, sales prospecting, selling, direct marketing
Enhance : CRM sales force automation and direct marketing and fulfilment tools help companies cross sell and up-sell to their customers, thus increasing their profitability to their business. The value for customers is convenience of one-stop shopping at attractive prices
Retain : Identify and reward the most loyal and profitable customers, retain and expand their business via targeted marketing and relationship marketing programs.
It usually costs more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell 8 to 10 people about his/ her experience. A company can boost its profit by 85 percent by increasing its annual customer retention by only 5 percent. The odds of selling to a new customer are 15 percent and the odds of selling to an existing customer are 50 percent.
Retain
Acquire
Enhance

13. Trends in CRM Types of CRM Business Value Operational CRM
Supports greater customer interaction with greater convenience through a variety of channels, including phone, fax, , chat and mobile devices
Synchronizes customer interactions consistently across all channels
Makes your company easier to do business with
Analytical CRM
Extracts in-depth customer history, preferences, and profitability information from your data warehouse and other databases
Allows you to analyze, predict and derive customer value and behavior and forecast demand
Lets you approach your customers with relevant information
Collaborative CRM
Easy collaboration with customers, suppliers and partners
Improves efficiency and integration throughout the supply chain
Allows greater responsiveness to customer needs through sourcing of products and services outside of your enterprise
Social CRM
Use of social media to engage with customers

14. CRM Benefits Higher Productivity for the sales team
Better cross selling and up-selling opportunities
Improved customer service and customer satisfaction
Better opportunity close rates
More focussed customer targeting and focussed marketing campaigns
Reduced marketing, sales, support and service expenses
Better profitability and revenue per customer
Increased Customer Retention and Loyalty

15. Supply Chain Management
Supply chain management (SCM) is the management of the flow of goods and services
It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
SCM is a cross-functional, inter-enterprise system that uses information technology to help support and manage links between some of a company’s key business processes and those of its suppliers

16. Need of IT in Supply Chains
To gain efficiencies from procurement, distribution and logistics
To make outsourcing more efficient
To reduce transportation costs of inventories
To meet competitive pressures from shorter development times, more new products, and demand for more customization
To meet the challenge of globalization and longer supply chains
To meet the new challenges from e-commerce
To manage the complexities of supply chains
To manage the inventories needed across the supply chain

17. Key Issues in Supply Chain Management
Distribution network configuration
Inventory control
Distribution strategies
Supply chain integration and strategic partnering
Distribution network configuration
How many warehouses do we need?
Where should these warehouses be located?
What should the production levels be at each of our plants?
What should the transportation flows be between plants and warehouses?
Inventory control
Why are we holding inventory? Uncertainty in customer demand? Uncertainty in the supply process? Some other reason?
If the problem is uncertainty, how can we reduce it?
How good is our forecasting method
Distribution strategies
Direct shipping to customers?
Classical distribution in which inventory is held in warehouses and then shipped as needed?
Supply chain integration and strategic partnering
Should information be shared with supply chain partners?
What information should be shared?
With what partners should information be shared?
What are the benefits to be gained?