ERPENTERPRISE APPLICATIONS AND BUSINESS PROCESS INTEGRATION

WHAT WE WILL LEARN TODAY

ENTERPRISE SYSTEMS WHAT ARE ENTERPRISE SYSTEMS?

HOW ENTERPRISE SYSTEMS WORK (CONTINUED)

SUPPLY CHAIN MANAGEMENT SYSTEMS DEFINITION

PROCESSES

KEY MANAGEMENT PROCESSES

SUPPLY CHAIN MANAGEMENT APPLICATIONS

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) DEFINITION

CRM systems

The Importance of CRM Performance Measurement

Management Challenges

Solution Guidelines

OBJECTIVES

1. Assess how enterprise systems provide value for businesses and describe how they work.

2. Assess how supply chain management systems provide value for businesses and describe how they work.

3. Assess how customer relationship management systems provide value for businesses and describe how they work.

4. Explain how enterprise applications can be used in platforms for new cross-functional services.

5. Identify the challenges posed by enterprise applications and management solutions.

ENTERPRISE SYSTEMS

What Does ERP Stand For and what do you know about it?

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS

Interdependent Software Modules With A Common Central Database That Support Basic Internal Business Processes For Finance And Accounting, Human Resources, Manufacturing And Production, And Sales And Marketing

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS

Human Resource Management

Financial Management Customer Relationship Management

Supply Chain Management

Hours Worked Cash on Hand Customer Management Materials

Labor Cost Account Receivable Partner Management (PRM)

Production Schedules

Job Description Account Payable Employee Management (ERM)

Shipment dates

Performance Revenue Production Capacity

Self Services Purchases

Leave Management

TOP 3 ERP SOLUTIONS PROVIDER

This company is the largest player in the ERP market. Their name has been synonymous with ERP products. The company is the pioneer in the ERP market. The products offered by the company are in the high-price band.

This company is 2nd largest player on the ERP market and the current number 1 in the CRM market. The company has over 30 years of proven record on the ERP market. The products offered by the company have a very flexible module, therefore, open to much customization. The products offered by the company are in the high-price band.

This company is 3rd largest player on the ERP market. The company was founded in 2002. The company has introduced enterprise software for financial systems, supply-chain management and customer relationship management. The company has more than 70,000 customers all over the world. The company is known to provide vertical ERP solutions and boast key strength in manufacturing solutions. It provides ERP solutions for complex and non-continuous manufacturing. The products sold by the company are low to moderately price.

SUPPLY CHAIN MANAGEMENT

(SCM)

SUPPLY CHAIN MANAGEMENT SYSTEMS PROCESSES

Network of organizations and business processes for procuring raw materials, transforming into products, and distributing them to customers

Materials, information, and payments flow through the supply chain in both directions.

SUPPLY CHAIN MANAGEMENT SYSTEMS PROCESSES

5 Major Supply Chain Processes

Plan:Balancing demand and supply to meet sourcing, production, and delivery requirements

Source: Procurement of goods and services needed to create a product or service

Make: Processes that transform a product into a finished state

Deliver:Processes to manage order transportation and distribution

Return: Processes associated with product returns and post delivery customer support

Plan

Source

Make

Deliver

Return

Plan

• Balance Resources with requirements

• Align supply chain plan with business financial

Source

• Identify supplier• Manage

Inventory• Schedule

deliveries

Make

• Schedule production

• Evaluate quality & Performance

• Manage work in process

Deliver

• Select carriers• Route Shipment• Manage

warehouses• Invoice

customers

Return

• Authorize return• Schedule Return• Receive Return• Issue Return

Credit

SUPPLY CHAIN MANAGEMENT SYSTEMS PROCESSES

Supply chain management systems: Automate flow of information between company and supply chain partners

Supply chain planning systems: Generate demand forecasts for a product (demand planning) and help develop sourcing and manufacturing plans for that product

Supply chain execution systems: Manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner

SUPPLY CHAIN MANAGEMENT SYSTEMS APPLICATION

Improved customer service and responsiveness

Cost reduction

Cash utilization

SUPPLY CHAIN MANAGEMENT SYSTEMS BUSINESS VALUE

CUSTOMER RELATIONSHIP MANAGEMENT

(CRM)

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)DEFINITION

Business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention

Capture and integrate customer data from all over the organization

Consolidate and analyze the data

Distribute results to various systems and customer touch points across the enterprise

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)CRM SYSTEMS

Can range from niche tools to large-scale enterprise applications

Can link to other major enterprise applications, such as supply chain management

Can include modules for partner relationship management (PRM) and employee relationship management (ERM)

Typically include capabilities for 1. Sales Force Automation (SFA)

2. Customer service

3. Marketing

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)CRM SOFTWARE

Successful CRM implementations require that financial and operation goals, and metric for evaluation, are clearly defined at outset of project

Metrics for CRM may include

1. Cost per lead

2. Cost per sale

3. Number of repeat customers

4. Reduction of churn

5. Sales closing rate

Customer Lifetime Value (CLTV):

1. Difference between revenues and expenses minus the cost of promotional marketing used to retain an account

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)THE IMPORTANCE OF CRM

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMSMANAGEMENT CHALLENGES:

High total cost of ownership

Organizational change requirements

Realizing strategic value

ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMSSOLUTION GUIDELINES:

Look at business objectives first

Attention to data and data management

Senior management commitment and employee support

Education and training

Thank You