ERP, CRM, SCMERP, CRM, SCM

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

Suppliers

Customers

Em

plo

yees

Par

tner

s

Supply Chain ManagementSourcing - Procurement

Enterprise Resource PlanningInternal Business Processes

Customer Relationship ManagementMarketing – Sales - Service

Kn

owle

dge

Man

agem

ent

Col

labo

rati

on –

Dec

isio

n S

uppo

rt

Par

tner

Rel

atio

nshi

p M

anag

emen

tSe

llin

g –

Dis

trib

utio

n

Enterprise Application ArchitectureEnterprise Application Architecture

Enterprise Business Systems

ProductionPlanning Integrated

Logistics

Accounting and FinanceHuman

Resources

Sales,Distribution,

OrderManagement

Customer/Employee

Enterprise Resource Planning

The Technological Backbone The Technological Backbone of e-Businessof e-Business

Su

pp

liers

Human ResourcesFinance and Accounting

DemandPlanning

Manufacturing Planning

LogisticsPlanning

DistributionPlanning

OrderEntry

Enterprise Resource Planning

Cu

stom

ers

Purchasing& Accounts

Payable

MRPInbound

InventoryPlant Mgmt.

Manufacturing& Production

Scheduling

InventoryControl &

Warehousing

Distribution& AccountsReceivable

Enterprise Resource Planning

The Business Value of ERPThe Business Value of ERP

Benefits of ERPBenefits of ERP• Quality and Efficiency

• Decreased Costs

• Decision Support

• Enterprise Agility

Failures in ERP Do ExistFailures in ERP Do Exist

Enterprise Resource Planning

Causes of ERP Failures 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

Enterprise Resource Planning

Supports an Integrated and Supports an Integrated and Collaborative Relationship Between Collaborative Relationship Between a Business and it’s Customersa Business and it’s Customers

CRM: The Business Focus

CustomerLife Cycle

CRMFunctionalSolutions

CRMIntegratedSolution

The Internet

Acquire Enhance Retain

Direct Marketing Cross-sell and Up-sell Proactive Service

Sales Force Automation Customer Support

CollaborativeService

SharedCustomer Data

Partner Company Customer

CRM Uses IT to Create a Cross-CRM Uses IT to Create a Cross-Functional Enterprise SystemFunctional Enterprise System

CRM: The Business Focus

Marketing andFulfillment Customer

Service andSupport

Retentionand LoyaltyProgramsContact and

AccountManagement

Sales•Cross-Sell•Up-Sell

Prospect orEmployee

Fax e-Mail

Telephone Web

CRM: The Business FocusBenefits and Challenges of CRMBenefits and Challenges of CRM• Identify and Target the Best Customers• Customization and Personalization of

Products and Services• Track Customer Contacts

CRM FailuresCRM Failures• 50% of Applications Fail to Meet

Expectations• 20% of the Time CRM Damaged

Customer Relationships• Lack of Understanding and Preparation

is Blamed

Gevity HR and Monster.Com: Gevity HR and Monster.Com: Failures in CRM ImplementationFailures in CRM Implementation

CRM: The Business Focus

• 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

Telstra Corporation: The Business Telstra Corporation: The Business Value of CRMValue of CRM

CRM: The Business Focus

• 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 Software Helps Firms Reengineer and SCM Software Helps Firms Reengineer and Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes

Supply ChainLife Cycle

SCMFunctionalProcesses

SCMIntegratedSolution

Supplier Manufacturer CustomerRetailer

The Internet

CollaborativeFulfillment

SharedMarket Data

Commit Schedule Make Deliver

Strategic Sourcingand Procurement

Forecast and Demand Planning

Customer Order Fulfillment Service

Distribution Network and Warehouse Operations

Transportation and ShipmentManagement

ProductionLogistics

SCM: The Business Network

SCM: The Business Network

Supply Chain Management : aSupply Chain Management : a top strategic objective for many top strategic objective for many firms firms

• The Right Products• The Right Place• The Right Time• In the Proper Quantity• At an Acceptable Cost

Business Value GoalsRapid Demand Fulfillment

Collaborative SupplyChain Planning and

Execution

Customer Value GoalsGive customers what theywant, when and how theywant it, at the lowest cost

InterenterpriseCoordination of

Manufacturing andBusiness Process

EffectiveDistribution and

Channel Partnerships

Responsiveness andAccountabilityto Customers

Objectives of Supply Chain Objectives of Supply Chain ManagementManagement

SCM: The Business Network

SCM: The Business Network

Objective of SCM Efficiently Objective of SCM Efficiently Manages this Process by: Manages this Process by:

• Forecasting Demand• Controlling Inventory• Enhancing Business

Relationships• Receiving Feedback and Status

of Every Link of the Chain

Benefits and Challenges of Benefits and Challenges of SCMSCM

SCM: The Business Network

• 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 ERPEAI Software Connects Major e-Business Applications Like CRM and ERP

Front-OfficeCRM ApplicationsCustomer Service

Field ServiceProduct Configuration

Sales Order Entry

Back-OfficeERP Applications

DistributionManufacturing

SchedulingFinance

EnterpriseApplicationIntegration

EAI