System Enterprise: ERP, CRM, and SCM
- Systems for Linking the Enterprise
Figure 2.9 Enterprise Application Architecture
Enterprise Systems (Enterprise resource planning (E R P) systems
“Enterprise systems feature a set of integrated software modules and a central database by which business
processes and functional areas throughout the enterprise can share data.”
Why?
• Integrate data from key business processes into single system
• Speed communication of information throughout firm
• Suite of integrated software modules and a common central database
• Collects data from many divisions of firm for use in nearly all of firm’s internal business activities
• Information entered in one process is immediately available for other processes
Benefits
• Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment
• Enable managers to assemble overall view of operations
Enterprise Software
- Built around thousands of predefined business processes that reflect best practices
• Finance and accounting
• Human resources
• Manufacturing an• Sales and marketing
- To implement, firms:
• Select functions of system they wish to use
• Map business processes to software processes
• Use software’s configuration tables for customizing
• Some of the best-known ERP vendors are SAP, Microsoft, and Oracle.
Business Value of Enterprise Systems
SCM
The Supply Chain
- Network of organizations and processes for:
• Procuring materials
• Transforming materials into products
• Distributing the products
- Streams of SC
• Upstream supply chain
• Downstream supply chain
• Internal supply chain
Why SCM?
Supply Chain Management Software
Global Supply Chains and the Internet
- Global supply chain issues
• Greater geographical distances, time differences
• Participants from different countries
• Different performance standards
• Different legal requirements
• Internet helps manage global complexities
• Warehouse management
• Transportation management
• Logistics
• Outsourcing
Demand-Driven Supply Chains: From Push to Pull Manufacturing and Efficient
Customer Response
• Push-based model (build-to-stock)
• Earlier SCM systems
• Schedules based on best guesses of demand
• Pull-based model (demand-driven)
• Web-based
• Customer orders trigger events in supply chain
Internet Supply Chain
• Internet
enables move from sequential supply chains to concurrent supply chains
• Complex networks of suppliers can adjust immediately
Business Value of Supply Chain Management Systems
CRM
Customer Relationship Management
Knowing the customer: Many customers and many ways customers interact with firm
C R M systems
• Capture and integrate customer data from all over the organization
• Consolidate and analyze customer data
• Distribute customer information to various systems and customer touch points across enterprise
• Provide single enterprise view of customers
CRM process example: Customer Loyalty Management Process Map
Operational and Analytical C R M
• Operational CR M
• Customer-facing applications
• Sales force automation call center and customer service support
• Marketing automation
• Analytical CR M
• Based on data warehouses populated by operational CR M systems and customer touch points
• Analyzes customer data (O L A P, data mining, etc.)
• Customer lifetime value (C L T V)
• Churn rate
• Number of customers who stop using or
• purchasing products or services from a company
• Indicator of growth or decline of firm’s customer base
Business Value of CRM Systems
Enterprise Application Challenges
Next-Generation Enterprise Applications
• Enterprise solutions/suites
• Make applications more flexible, web-enabled, integrated with other systems
• S O A standards
• Open-source applications
• On-demand solutions
• Cloud-based versions
• Functionality for mobile platform
• Social CR M
• Incorporating social networking technologies
• Company social networks
• Monitor social media activity; social media analytics
• Manage social and web-based campaigns
• Business intelligence
• Inclusion of BI with enterprise applications
• Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data visualization
