1. Cross-Functional Systems: CRM, ERP, and EAI
Chapter Extension 10
Cross-Functional Systems: CRM, ERP, and EAI
© 2006 Prentice Hall, Introduction to MIS: A Modular Approach, David Kroenke

2. Study Questions What is the importance of inherent processes?
What are the characteristics of customer relationship management (CRM) systems?
What are the characteristics of enterprise resource planning (ERP) systems?
How is an ERP system implemented?
What are the characteristics of enterprise application integration (EAI) systems?

3. Business Process Design
Business process redesign
Organizations should not automate or improve functional systems
Organizations should create new business processes
Came from idea that information systems should support linkages across departments and activities

4. Challenges of Business Process Design
Projects expensive and difficult
Systems analysts interview personnel, document existing systems
Managers review results, develop new process
New information systems developed
Takes time
Underlying systems constantly changing
Employees resist change
Outcome uncertain

5. Benefits and Disadvantages of Inherent Processes
Business applications
Processes for using software are inherent
Integrate activities across departments
Benefits
Saves time
Saves money
Reduces design process problems
Disadvantages
Organizations must conform activities to processes
May have to change substantially

6. Organizational Change
Common problem has produced change management industry
Blend of business, engineering, sociology, psychology
Strives to understand dynamics of change
Develop theories, methods, techniques
Employee resistance
Need to understand rationale for new system
Fear of unknown
Increase employees’ sense of self-efficacy
Bosses’ behavior and communication important

7. Customer Relationship Management Systems (CRM)
Support processes of attracting, selling, managing, delivering, and supporting customers
Addresses all activities that touch customers
Single repository for customer data
Customer life cycles
Marketing sends messages to target market
Prospects order and need to be supported
Support and resale increases value to existing customers
Win-back processes categorize customers according to value

8. Components of CRM System
Solicitation
Supporting system is and organization’s Web site
Lead-tracking
Presale applications turn prospects into customers
Relationship management
Maximize value of existing customers
Sales management applications help develop strategies for regaining lost customers

9. Enterprise Resource Planning Systems (ERP)
Support business processes, human resources, account support processes
Enterprise-wide
Cross-departmental process systems
Based on documented, tested business models
Process blueprint
Comprehensive set of inherent processes for all business activities
Formally designed
Organizations must adapt to blueprint

10. Benefits and Problems of ERP
Processes effective and efficient
Organizations do not need to reinvent processes
Reduce lead time
No data inconsistency problem
Lower costs
Higher profitability
Problems
Costly
Change is challenging

11. Implementing ERP Tasks in implementation Difficult, time-consuming
Model current business processes
Compare these to ERP blueprint processes
Eliminate differences
Implement new, revised system
Train users
Difficult, time-consuming

12. Enterprise Application Integration (EAI) Systems
Solves problems of isolated systems
Provides layers of software that connect applications together
Enables existing applications to communicate
Provides integrated information
Leverages existing systems
Enables gradual move to ERP
No centralized database
Files of metadata describing where data kept

13. Active Review What is the importance of inherent processes?
What are the characteristics of customer relationship management (CRM) systems?
What are the characteristics of enterprise resource planning (ERP) systems?
How is an ERP system implemented?
What are the characteristics of enterprise application integration (EAI) systems?