Erp, Crm, Scm: Source: O’brien, James. Introduction To Information Systems, 12e, 2005

ERP, CRM, SCM

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

Enterprise Business Systems Enterprise Application Architecture

Enterprise Resource Planning Internal Business Processes

Customer Relationship Management Marketing – Sales - Service

Customers

Partners

Supply Chain Management Sourcing - Procurement

Partner Relationship Management Selling – Distribution

Knowledge Management Collaboration – Decision Support

Employees

Suppliers

Enterprise Resource Planning The Technological Backbone of e-Business Production Planning Integrated Logistics Sales, Distribution, Customer/ Employee Order Accounting Management Human and Finance Resources

Enterprise Resource Planning The Business Value of ERP

Distribution Planning

Order Entry

Enterprise Resource Planning Purchasing & Accounts Payable

MRP Manufacturing Inventory Distribution Inbound & Production Control & & Accounts Inventory Scheduling Warehousing Receivable Plant Mgmt.

Finance and Accounting Human Resources

Customers

Suppliers

Demand Manufacturing Logistics Planning Planning Planning

Enterprise Resource Planning Benefits of ERP • • • •

Quality and Efficiency Decreased Costs Decision Support Enterprise Agility

Failures in ERP Do Exist

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

CRM: The Business Focus Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers Customer Life Cycle CRM Functional Solutions

Acquire

Enhance

Direct Marketing

Cross-sell and Up-sell

Sales Force Automation

Retain Proactive Service

Customer Support

The Internet CRM Integrated Solution

Shared Customer Data

Partner

Collaborative Service

Company

Customer

CRM: The Business Focus CRM Uses IT to Create a CrossFunctional Enterprise System Marketing and Fulfillment Fax

Sales •Cross-Sell •Up-Sell

Customer Service and e-MailSupport

Prospect or Employee Telephone

Web

Contact and Account Management

Retention and Loyalty Programs

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

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

CRM: The Business Focus Telstra Corporation: The Business Value of CRM • Provides Fixed, Wireless, and eCommerce 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

SCM: The Business Network SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes Supply Chain Life Cycle SCM Functional Processes

Commit

Schedule

Make

Deliver

Strategic Sourcing Forecast and Demand Planning and Procurement Customer Order Fulfillment Service Distribution Network and Warehouse Operations Production Transportation and Shipment Logistics Management

The Internet Shared Market Data

SCM Integrated Solution Supplier

Manufacturer

Collaborative Fulfillment Retailer

Customer

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

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

Interenterprise Effective Responsiveness and Coordination of Distribution and Manufacturing and Channel Partnerships Accountability to Customers Business Process

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

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

Enterprise Application Integration EAI Software Connects Major eBusiness Applications Like CRM and ERP Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry

Enterprise Application Integration EAI

Back-Office ERP Applications Distribution Manufacturing Scheduling Finance