Information Technology for Management Current Technologies ERP CRM SCM 1 ERP • A business management system that integrates all facets of the business, including planning, manufacturing, sales, and marketing. • As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in business activities such as inventory control, order tracking, customer service, finance and human resources 2 IT Bridges Information Gap Logistics Resource Maintenance Management Human Resource Finance Sales & Distribution Enterprise Resource Planning System Materials Management Manufacturing Quality Management Strategic & Operation Planning 3 An example: order fulfillment Before ERP Sales Production Logistics Billing Order Problems: Delays, lost orders, keying into different computer systems invites errors An example: order fulfillment With ERP Data Analysis Service Finance Manufacturing Sales E Human R Resources P Inventory & Supply Market Share Of ERP Providers SAP, 16.86% People Sof t, 5.71% Oracle, 5.26% McKesson, 4.86% J D Edw ards, 3.54% Misys, 2.80% BaaN, 2.74% GEAC, 2.63% JBA, 2.11% SSA, 1.37% Others, 52.11% SAP People Soft Oracle McKesson J D Edwards BaaN GEAC JBA SSA Others Misys CRM • Customer Relationship Management • Gain more control in interaction with customers • Manage expectations better • Understand what customers really want • Provide products that better serve customers • Increase trust • Competitive advantage 7 Customer Lifecycle Care 8 The Benefits of Customer Relationship Management • In addition to LTV of the customer, likelihood to recommend is another important benefit of CRM. Acquisition Retention Lift/upsell Total Perceived Value Likelihood to Recommend 9 SCM • Materials are any commodities used directly or indirectly in producing a product or service. – Raw materials, component parts, assemblies, and supplies • A supply chain is the way materials flow through different organizations from the raw material supplier to the finished goods consumer • Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. 10 The Supply Chain with Technology Market research data scheduling information Engineering and design data Order flow and cash flow Supplier Inventory Supplier CRM Customer Ideas and design to satisfy end customer Material flow Credit flow Customer Manufacturer Inventory Supplier JIT Inventory B2C ERP B2B Distributor Customer Inventory 11