ERP CRM SCM Source OBrien James Introduction to

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

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 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 Cross. Functional Enterprise System Marketing and Fulfillment Fax Sales • Cross-Sell • Up-Sell Customer Service and e-Mail. Support 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 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

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 e. Business 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