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