ERP, CRM, SCM

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

 Enterprise
Business Systems
Enterprise Application Architecture
Suppliers

Partner Relationship Management

Collaboration – Decision Support
Knowledge Management Supply Chain Management
Sourcing - Procurement

Selling – Distribution
Employees

Partners
Enterprise Resource Planning
Internal Business Processes

Customer Relationship Management

Marketing – Sales - Service

Customers
 Enterprise
Resource Planning
The Technological Backbone of
e-Business

Production
Planning Integrated
Sales, Logistics
Distribution, Customer/
Order Employee
Management Accounting
Human and Finance
Resources
 Enterprise
Resource Planning
The Business Value of ERP

Demand Manufacturing Logistics Distribution Order

Planning Planning Planning Planning Entry
Enterprise Resource Planning

Customers
Suppliers

Purchasing MRP Manufacturing Inventory Distribution

& Accounts Inbound & Production Control & & Accounts
Payable Inventory Scheduling Warehousing Receivable
Plant Mgmt.

Finance and Accounting

Human Resources
 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 Acquire Enhance Retain
Life Cycle

Direct Marketing Cross-sell and Up-sell Proactive Service

CRM
Functional
Solutions Sales Force Automation Customer Support

The Internet
Shared Collaborative
CRM Customer Data Service
Integrated
Solution
Partner Company Customer
 CRM: The Business Focus
CRM Uses IT to Create a Cross-
Functional Enterprise System

Marketing and
Fulfillment Customer
Service and
Fax e-MailSupport
Sales Prospect or
•Cross-Sell Employee
Web
•Up-Sell Telephone Retention
and Loyalty
Contact and Programs
Account
Management
 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 Commit Schedule Make Deliver

Life Cycle

Strategic Sourcing Forecast and Demand Planning

SCM and Procurement Customer Order Fulfillment Service
Functional
Processes Distribution Network and Warehouse Operations
Production Transportation and Shipment
Logistics Management

The Internet
SCM Shared Collaborative
Integrated Market Data Fulfillment
Solution
Supplier Manufacturer 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 Customer Value Goals
Rapid Demand Fulfillment Give customers what they
Collaborative Supply want, when and how they
Chain Planning and want it, at the lowest cost
Execution
Interenterprise Effective
Coordination of Responsiveness and
Distribution and
Manufacturing and Channel Partnerships Accountability
Business Process to Customers
 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

Enterprise
Front-Office Application Back-Office
CRM Applications Integration ERP Applications
Customer Service Distribution
EAI
Field Service Manufacturing
Product Configuration Scheduling
Sales Order Entry Finance