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ERP, CRM, SCM Source: O’Brien, James. Introduction to Information Systems, 12e, 2005.

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Presentation on theme: "ERP, CRM, SCM Source: O’Brien, James. Introduction to Information Systems, 12e, 2005."— Presentation transcript:

1 ERP, CRM, SCM Source: O’Brien, James. Introduction to Information Systems, 12e, 2005

2 Enterprise Business Systems
Enterprise Application Architecture Suppliers Employees Partner Relationship Management Selling – Distribution Partners Collaboration – Decision Support Knowledge Management Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to explain the component parts of an enterprise's architecture-ranging from suppliers to customers and employees to partners. Customer Relationship Management Marketing – Sales - Service Customers

3 Enterprise Resource Planning
The Technological Backbone of e-Business Production Planning Integrated Logistics Sales, Distribution, Order Management Customer/ Employee PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to explain the technological backbone of e-Business. The model puts the customer or employee at the center of the various activities that occur technologically within a business. Take the time to describe each of the functions represented by the wedges of the pie chart as they individually enter. Accounting and Finance Human Resources

4 Enterprise Resource Planning
The Business Value of ERP Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to further explain the components and interrelationships in the Colgate-Palmolive ERP. MRP Inbound Inventory Plant Mgmt. Purchasing & Accounts Payable Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Suppliers Customers Finance and Accounting Human Resources

5 Enterprise Resource Planning
Benefits of ERP Quality and Efficiency Decreased Costs Decision Support Enterprise Agility Failures in ERP Do Exist Continue the discussion of ERP citing the benefits that can be realized in quality, efficiency, and decreased costs. Explain how ERP can enhance enterprise agility. Make the point that failures do exist in ERP implementations.

6 Enterprise Resource Planning
Causes of ERP Failures Underestimating the Complexity of Planning, Development, and Training Needed Failure to Involve Affected Employees Trying to do Too Much Too Fast Over Reliance by Company on Claims of Software Companies Continue the discussion of ERP citing the reasons for failures. Underestimating the complexity of the project is a dominant theme. Of particular interest should be noted the lack of human participation and training so that they would buy into the changed process.

7 CRM: The Business Focus
Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers Acquire Enhance Retain Customer Life Cycle Direct Marketing Cross-sell and Up-sell Proactive Service CRM Functional Solutions Sales Force Automation Customer Support PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM functional solutions and a CRM integrated solution address the stages in a customer's life cycle. Take the time to explain each of the components and their actions. The Internet Shared Customer Data Collaborative Service CRM Integrated Solution Partner Company Customer

8 CRM: The Business Focus
CRM Uses IT to Create a Cross-Functional Enterprise System Marketing and Fulfillment Customer Service and Support Fax Sales Cross-Sell Up-Sell Prospect or Employee PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM uses IT to create a cross-functional enterprise system. Explain each of the component parts and the roles they play. Telephone Web Retention and Loyalty Programs Contact and Account Management

9 CRM: The Business Focus
Benefits and Challenges of CRM Identify and Target the Best Customers Customization and Personalization of Products and Services Track Customer Contacts CRM Failures 50% of Applications Fail to Meet Expectations 20% of the Time CRM Damaged Customer Relationships Lack of Understanding and Preparation is Blamed This slide features the benefits and challenges of CRM along with problems of CRM failures. It was useful in targeting prime customers and personalizing products and services to them. CRM failures are significant in number and often are cited for damaging customer relationships. The case blames a lack of understanding for the failures.

10 CRM: The Business Focus
Gevity HR and Monster.Com: Failures in CRM Implementation Employees Undercut the System Believing Their Jobs Threatened by CRM On-Line Customer Problem Solutions. Complex Installation Since it Touches So Many Legacy Systems Failures Lead to Loss of Customer Goodwill and Business and Negatively Affects Employees Also Mini-case on Gevity HR and further examines failures in CRM implementation. Employees who felt threatened by CRM vigorously worked to sabotage its implementation. The failures very often led to a loss of customer good will and negatively affected the employees also.

11 CRM: The Business Focus
Telstra Corporation: The Business Value of CRM Provides Fixed, Wireless, and e-Commerce Services to Customer Base in 19 Countries Offers Voice, Data, Internet, Multimedia and Communications Services Sought CRM Solution to Integrate More than 20 Core Legacy Databases Across the System Benefits Quickly Followed Reduced Training Time This mini-case on the Telstra Corporation shows how significant efficiencies and savings can be realized with CRM. Activities were integrated so that substantial benefits were realized.

12 SCM: The Business Network
SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes Commit Schedule Make Deliver Supply Chain Life Cycle Strategic Sourcing and Procurement Forecast and Demand Planning SCM Functional Processes Customer Order Fulfillment Service Distribution Network and Warehouse Operations Production Logistics Transportation and Shipment Management PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic shows how SCM functional processes and an SCM integrated solution address the supply chain life cycle. Take the time to define and explain each of the component parts and their interrelationships. The Internet Shared Market Data Collaborative Fulfillment SCM Integrated Solution Supplier Manufacturer Retailer Customer

13 SCM: The Business Network
Supply Chain Management : a top strategic objective for many firms The Right Products The Right Place The Right Time In the Proper Quantity At an Acceptable Cost Introduce and define supply chain management. Demonstrate how SCM is designed to get the right product to the right place at the right time in the proper quantity at an acceptable cost. Point out the savings in inventory carrying costs including storage, handling, as well as money invested.

14 SCM: The Business Network
Objectives of Supply Chain Management Business Value Goals Rapid Demand Fulfillment Collaborative Supply Chain Planning and Execution Customer Value Goals Give customers what they want, when and how they want it, at the lowest cost PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to demonstrate the objectives of supply chain management moving from Business Value Goals to Customer Value Goals. The component parts are self explanatory. Interenterprise Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability to Customers

15 SCM: The Business Network
Objective of SCM Efficiently Manages this Process by: Forecasting Demand Controlling Inventory Enhancing Business Relationships Receiving Feedback and Status of Every Link of the Chain Continue discussion of SCM explaining how its objectives are managed by the system. For example, forecasting demand, controlling inventory, etc., while receiving feedback at every step of the chain.

16 SCM: The Business Network
Benefits and Challenges of SCM Lack of Proper Planning Knowledge, Tools, and Guidelines Inaccurate Demand Forecasts Lack of Adequate Collaboration Software Itself Immature Challenges of SCM include lack of proper planning knowledge, inaccurate demand forecast, lack of adequate collaboration, as well as the fact that the SCM software itself is immature.

17 Enterprise Application Integration
EAI Software Connects Major e-Business Applications Like CRM and ERP Enterprise Application Integration Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry Back-Office ERP Applications Distribution Manufacturing Scheduling Finance PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic is designed to show enterprise application integration. The integration occurs in the example between front-office CRM applications and back-office ERP applications. EAI

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