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ERP, CRM, SCMERP, CRM, SCM
Source: O’Brien, James. Introduction to Information Systems, 12e, 2005
Suppliers
Customers
Employees
Partners
Supply Chain Management
Sourcing - Procurement
Enterprise Resource Planning
Internal Business Processes
Customer Relationship Management
Marketing – Sales - Service
KnowledgeManagement
Collaboration–DecisionSupport
PartnerRelationshipManagement
Selling–Distribution
Enterprise Application ArchitectureEnterprise Application Architecture
Enterprise
Business Systems
Production
Planning Integrated
Logistics
Accounting
and FinanceHuman
Resources
Sales,
Distribution,
Order
Management
Customer/
Employee
Enterprise
Resource Planning
The Technological BackboneThe Technological Backbone
of e-Businessof e-Business
Suppliers
Human Resources
Finance and Accounting
Demand
Planning
Manufacturing
Planning
Logistics
Planning
Distribution
Planning
Order
Entry
Enterprise Resource Planning
Customers
Purchasing
& Accounts
Payable
MRP
Inbound
Inventory
Plant Mgmt.
Manufacturing
& Production
Scheduling
Inventory
Control &
Warehousing
Distribution
& Accounts
Receivable
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 FailuresCauses 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 andSupports an Integrated and
Collaborative Relationship BetweenCollaborative Relationship Between
a Business and it’s Customersa Business and it’s Customers
CRM: The Business Focus
Customer
Life Cycle
CRM
Functional
Solutions
CRM
Integrated
Solution
The Internet
Acquire Enhance Retain
Direct Marketing Cross-sell and Up-sell Proactive Service
Sales Force Automation Customer Support
Collaborative
Service
Shared
Customer 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 and
Fulfillment Customer
Service and
Support
Retention
and Loyalty
ProgramsContact and
Account
Management
Sales
•Cross-Sell
•Up-Sell
Prospect or
Employee
Fax e-Mail
Telephone Web
CRM: The Business Focus
Benefits 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: TheTelstra Corporation: The
Business Value of CRMBusiness Value 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 andSCM Software Helps Firms Reengineer and
Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes
Supply Chain
Life Cycle
SCM
Functional
Processes
SCM
Integrated
Solution
Supplier Manufacturer CustomerRetailer
The Internet
Collaborative
Fulfillment
Shared
Market Data
Commit Schedule Make Deliver
Strategic Sourcing
and Procurement
Forecast and Demand Planning
Customer Order Fulfillment Service
Distribution Network and Warehouse Operations
Transportation and Shipment
Management
Production
Logistics
SCM: The Business Network
SCM: The Business Network
Supply Chain Management : aSupply Chain Management : a
top strategic objective for manytop strategic objective for many
firmsfirms
• The Right Products
• The Right Place
• The Right Time
• In the Proper Quantity
• At an Acceptable Cost
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
Coordination of
Manufacturing and
Business Process
Effective
Distribution and
Channel Partnerships
Responsiveness and
Accountability
to Customers
Objectives of Supply ChainObjectives of Supply Chain
ManagementManagement
SCM: The Business Network
SCM: The Business Network
Objective of SCM EfficientlyObjective 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 ofBenefits 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-EAI Software Connects Major e-
Business Applications Like CRMBusiness Applications Like CRM
and ERPand ERP
Front-Office
CRM Applications
Customer Service
Field Service
Product Configuration
Sales Order Entry
Back-Office
ERP Applications
Distribution
Manufacturing
Scheduling
Finance
Enterprise
Application
Integration
EAI

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Erp, crm and scm concept

  • 1. ERP, CRM, SCMERP, CRM, SCM Source: O’Brien, James. Introduction to Information Systems, 12e, 2005
  • 2. Suppliers Customers Employees Partners Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes Customer Relationship Management Marketing – Sales - Service KnowledgeManagement Collaboration–DecisionSupport PartnerRelationshipManagement Selling–Distribution Enterprise Application ArchitectureEnterprise Application Architecture Enterprise Business Systems
  • 4. Suppliers Human Resources Finance and Accounting Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning Customers Purchasing & Accounts Payable MRP Inbound Inventory Plant Mgmt. Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Enterprise Resource Planning The Business Value of ERPThe Business Value of ERP
  • 5. 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
  • 6. Causes of ERP FailuresCauses 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
  • 7. Supports an Integrated andSupports an Integrated and Collaborative Relationship BetweenCollaborative Relationship Between a Business and it’s Customersa Business and it’s Customers CRM: The Business Focus Customer Life Cycle CRM Functional Solutions CRM Integrated Solution The Internet Acquire Enhance Retain Direct Marketing Cross-sell and Up-sell Proactive Service Sales Force Automation Customer Support Collaborative Service Shared Customer Data Partner Company Customer
  • 8. CRM Uses IT to Create a Cross-CRM Uses IT to Create a Cross- Functional Enterprise SystemFunctional Enterprise System CRM: The Business Focus Marketing and Fulfillment Customer Service and Support Retention and Loyalty ProgramsContact and Account Management Sales •Cross-Sell •Up-Sell Prospect or Employee Fax e-Mail Telephone Web
  • 9. CRM: The Business Focus Benefits 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
  • 10. 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
  • 11. Telstra Corporation: TheTelstra Corporation: The Business Value of CRMBusiness Value 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
  • 12. SCM Software Helps Firms Reengineer andSCM Software Helps Firms Reengineer and Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes Supply Chain Life Cycle SCM Functional Processes SCM Integrated Solution Supplier Manufacturer CustomerRetailer The Internet Collaborative Fulfillment Shared Market Data Commit Schedule Make Deliver Strategic Sourcing and Procurement Forecast and Demand Planning Customer Order Fulfillment Service Distribution Network and Warehouse Operations Transportation and Shipment Management Production Logistics SCM: The Business Network
  • 13. SCM: The Business Network Supply Chain Management : aSupply Chain Management : a top strategic objective for manytop strategic objective for many firmsfirms • The Right Products • The Right Place • The Right Time • In the Proper Quantity • At an Acceptable Cost
  • 14. 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 Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability to Customers Objectives of Supply ChainObjectives of Supply Chain ManagementManagement SCM: The Business Network
  • 15. SCM: The Business Network Objective of SCM EfficientlyObjective 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
  • 16. Benefits and Challenges ofBenefits 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
  • 17. Enterprise Application Integration EAI Software Connects Major e-EAI Software Connects Major e- Business Applications Like CRMBusiness Applications Like CRM and ERPand ERP Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry Back-Office ERP Applications Distribution Manufacturing Scheduling Finance Enterprise Application Integration EAI