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ERP, CRM, SCM. Source: O’Brien, James. Introduction to Information Systems, 12e, 2005. Suppliers. Supply Chain Management Sourcing - Procurement. Partner Relationship Management Selling – Distribution. Enterprise Resource Planning Internal Business Processes. Knowledge Management
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ERP, CRM, SCM Source: O’Brien, James. Introduction to Information Systems, 12e, 2005
Suppliers Supply Chain Management Sourcing - Procurement Partner Relationship Management Selling – Distribution Enterprise Resource Planning Internal Business Processes Knowledge Management Collaboration – Decision Support Employees Partners Customer Relationship Management Marketing – Sales - Service Customers Enterprise Business Systems Enterprise Application Architecture
Enterprise Resource Planning The Technological Backbone of e-Business Production Planning Integrated Logistics Sales, Distribution, Order Management Customer/ Employee Accounting and Finance Human Resources
Enterprise Resource Planning The Business Value of ERP Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning MRP Inbound Inventory Plant Mgmt. Purchasing & Accounts Payable Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Suppliers Customers 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
Acquire Enhance Retain Direct Marketing Cross-sell and Up-sell Proactive Service Sales Force Automation Customer Support Partner Company Customer CRM: The Business Focus Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers Customer Life Cycle CRMFunctional Solutions The Internet Collaborative Service Shared Customer Data CRMIntegrated Solution
CRM: The Business Focus CRM Uses IT to Create a Cross-Functional Enterprise System Marketing and Fulfillment Customer Service and Support e-Mail Fax • Sales • Cross-Sell • Up-Sell Prospect or Employee Web Telephone Retention and Loyalty Programs Contact and 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
Commit Schedule Make Deliver Retailer Supplier Customer Manufacturer SCM: The Business Network SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes Supply Chain Life Cycle Strategic Sourcing and Procurement Forecast and Demand Planning SCMFunctional Processes Customer Order Fulfillment Service Distribution Network and Warehouse Operations Production Logistics Transportation and Shipment Management The Internet Collaborative Fulfillment Shared Market Data SCMIntegrated Solution
SCM: The Business Network Supply Chain Management : atop 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 Customer Value Goals Give customers what they want, when and how they want it, at the lowest cost Business Value Goals Rapid Demand Fulfillment Collaborative Supply Chain Planning and Execution Interenterprise Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability 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 Application Integration Back-Office ERP Applications Distribution Manufacturing Scheduling Finance Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry EAI