CHAPTER 8 ENTERPRISE SYSTEMS CHAPTER OBJECTIVES Define the
CHAPTER 8 ENTERPRISE SYSTEMS
CHAPTER OBJECTIVES • Define the term business process; • Define the term ERP, CRM, and SCM; • Understand the evolution of enterprise systems and their role in the organization; • Describe the software suites (SAP) for enterprise systems; • Identify the challenges that an organization face while implementing enterprise systems
BUSINESS PROCESS • It is a set of tasks or activities that produce desired outcomes or achieve a business goal. • For example, the procurement process (buy) refers to all activities involved in buying the materials used by an organization, such as office supplies requested by the marketing department, raw materials needed by manufacturing plant, or trading goods by the sales department. . .
BUSINESS PROCESSES • Procurement process • Fulfillment process • Production process • Human capital management process • Projects management process • Warehouse management process
ENTERPRISE SYSTEMS • Enterprise systems are the most complex information systems that ensure information can be shared and integrated across all business functions and all levels of management to support the running of a business.
EVOLUTION OF ENTERPRISE SYSTEMS
ENTERPRISE RESOURCES PLANNING SYSTEMS (ERP) • What is ERP? • ERP systems are the largest and most complex enterprise systems that manage cross -functional business processes for an entire organization. • A standard software package that must be configured to meet the needs of an organization • Database programs with input, storage/retrieval, manipulation and output
WHO ARE THE BIG ERP VENDORS? • SAP, the German juggernaut • Systems, Analysis, and Products in Data Processing • Oracle/People. Soft • Microsoft Dynamics, aimed at smaller companies
SAP • SAP serves > 350000 customers in > 180 countries • 80% of SAP customers are SMEs • SAP customers include: • 87% of the Forbes Global 2000 companies • 98% of the 100 most valued brands • 100% of the Dow Jones top scoring sustainability companies • SAP customers produce • 78% of the world’s food • 82% of the world’s medical devices • 76% of the world’s transaction revenue touches an SAP system
SAP ERP SAP can use a number of different database programs to actually store the data
ERP SYSTEM COSTS Depends on the size and complexity of the software package, which is a function of the size of the firm Includes new hardware required to run the system Includes consultant and business analyst fees Includes the time required for implementation Includes training costs (cost to develop and deploy training plus employees time away from their job) A large company, with over 1, 000 employees, can spend from $50 million to $500 million on a complex implementation.
Improved process ERP BENEFITS Better decision making Global integration Reduced IT maintenance Provides information so that an organization can be managed, not just monitored
CHALLENGES IN IMPLEMENTIN G ERP • High cost and long implementation time • Difficulty in implementing change • Customization of software • User training and frustration with the new system
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) • What is CRM: A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support to understand support existing and potential customer needs. It includes account management, catalog and order entry, payment processing, credits and adjustments, and other related functions.
SAP BUSINESS BYDESIGN CRM
SAP BUSINESS BYDESIGN CRM
SUPPLY CHAIN MANAGEMENT (SCM) • What is SCM: The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.
SAP SUPPLY CHAIN MANAGEMENT (SCM)
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