mba- managment information system Module 6.ppt

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mba- managment information system Module 6.ppt

  1. 1. Enterprise Applications Systems that can co-ordinate activities, Decisions, & knowledge across many diff. functions, levels & business units in a firm. It includes enterprise systems or ERP, SCM, CRM, & KMS.
  2. 2. Suppliers SCM Sourcing & Procurement ERP Internal business processes CRM Marketing, sales & service E M P L O Y E E s P A R T N E R s Customers Knowle dge Mgt Collaboration & Decision support Partners Relationship Mgt Enterprise Application Architecture
  3. 3. Web User Enterprise Knowledge Portal Structured data source Unstructured data source Enterprise knowledge ERP DB CRM DB Other DB E-mail Group ware File system Web Net work Enterprise Knowledge base Portal server with KM engine/server
  4. 4. Supply Chain Mgt <ul><li>SCM; </li></ul><ul><li>Integrating mgt & IT to optimize information & product flows among </li></ul><ul><li>the processes & business partners within a supply chain. </li></ul><ul><li>Supply Chain; </li></ul><ul><li>The network of business processes & inter-relationships among </li></ul><ul><li>business that are needed to build, sell, & deliver a product to its final </li></ul><ul><li>customer. </li></ul><ul><li>A successful SCM strategy is base on accurate order processing, </li></ul><ul><li>just-in-time Inventory mgt, & timely order fulfillment. </li></ul><ul><li>Goal of SCM; </li></ul><ul><li>To create a fast, efficient, & low-cost network of business relationships, </li></ul><ul><li>to get a company’s products from concept of market. Supply chain processes </li></ul><ul><li>should add value to the products (or) services a company produces, a </li></ul><ul><li>supply chain called a value chain . </li></ul><ul><li>Objective of SCM; </li></ul><ul><ul><li>To reduce costs </li></ul></ul><ul><ul><li>Increase efficiency & improve supply chain cycle times </li></ul></ul><ul><ul><li>Effective distribution </li></ul></ul><ul><ul><li>Channel networks among business partners </li></ul></ul>
  5. 5. SCM life cycle; commit schedule make deliver Main Goal of SCM; Business Value Goals Rapid demand fulfillment Collaborative supply chain Planning & execution Customer Value Goals Give customer what they want When & how they want it At the lowest cost Inter-enterprise Co-ordination of Mgt & business processes Responsiveness & Accountability To customers Effective Distribution & Channel partnership
  6. 6. Customer Relationship Mgt [CRM] <ul><li>CRM; </li></ul><ul><li>Across-functional e-business application that integrates & automates </li></ul><ul><li>many customer serving processes in sales, direct-marketing, </li></ul><ul><li>accounting & order mgt & customer service & support, retain </li></ul><ul><li>loyal customers. </li></ul><ul><li>Goal of CRM; </li></ul><ul><li>To understand & anticipate the needs of current & potential customers </li></ul><ul><li>to increase retention & loyalty while optimizing the way that products </li></ul><ul><li>& services are sold. </li></ul><ul><li>Benefits to Organization; </li></ul><ul><ul><ul><li>Improve customer satisfaction </li></ul></ul></ul><ul><ul><ul><li>Increase customer retention </li></ul></ul></ul><ul><ul><ul><li>Reduced operating costs </li></ul></ul></ul><ul><ul><ul><li>Ability to meet customer demand </li></ul></ul></ul><ul><ul><ul><li>Automate & integrate the function of marketing </li></ul></ul></ul><ul><ul><ul><li>Data about customer contact of a company CRM system </li></ul></ul></ul>
  7. 7. Customer life cycle; Acquire Enhance Retain Application of CRM; Prospects Or customers Fax E-mai l Web Telephone Marketing & Fulfillment Customer service & support Retention & Loyalty programs Contact & A/C mgt Sales
  8. 8. ENTERPRISE RESOURCE PLANNING <ul><li>ERP is a cross functional enterprise systems driven by an integrated </li></ul><ul><li>suite of S/W modules that supports the basic internal business process </li></ul><ul><li>of a company. </li></ul><ul><li>ERP provides a support systems in the transaction processing, updating, </li></ul><ul><li>& reporting across the functions. ERP is a package encompassing all major </li></ul><ul><li>Functions of the business. </li></ul><ul><li>ERP packages build information base & provide knowledge base </li></ul><ul><li>business function mgt. The ERP is the main system, interfaced (or) assisted </li></ul><ul><li>by the other systems in the org. These systems provide the DB to the ERP. </li></ul><ul><li>Basic features of ERP; </li></ul><ul><ul><li>1 Separation of the program code & the data areas </li></ul></ul><ul><ul><li>2 Command language </li></ul></ul><ul><ul><li>3 Screen based flow control </li></ul></ul><ul><ul><li>4 Common service functions </li></ul></ul><ul><ul><li>5 Transaction flow control & help functions </li></ul></ul><ul><ul><li>6 Word processing, text editing & action message </li></ul></ul><ul><ul><li>7 Diagnostic functions </li></ul></ul>
  9. 9. BENEFITS OF THE ERP <ul><li>Better mgt of resources </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Business operation transparency b/w business partners </li></ul><ul><li>The process become faster due to work group technology </li></ul><ul><li>The ERP scope enlarged through the internet/intranet access </li></ul><ul><li>Due to the client/server, the application of object technology & use of the front end tools, the process changes can be easily carried out. </li></ul><ul><li>The ERP design is proactive, it make mgt alert at a no. of points like demanding the decisions. </li></ul><ul><li>ERP still remain a valid solution with the expansion of business as it is a scalable architecture. </li></ul>
  10. 10. Features of ERP <ul><li>Business values embedded in the process </li></ul><ul><li>Extensive use of stored procedures, triggers & alerts </li></ul><ul><li>Stragewise cost data capture for analysis & decision making </li></ul><ul><li>Resources planning, scheduling & optimization </li></ul><ul><li>Can run in different network environment </li></ul>
  11. 11. ERP SELECTION <ul><li>The market offers a no. of ERP packages, the buyers has a </li></ul><ul><li>choice to make. Each product has its own USP & differs in a no. </li></ul><ul><li>of ways in content, scope, in case of implementation etc. The </li></ul><ul><li>selection can be made on 3 dimensions. It as follows; </li></ul><ul><li>1. Vendor Evaluation </li></ul><ul><li>2. Technology Evaluation </li></ul><ul><li>3. ERP solution Evaluation </li></ul><ul><li>Vendor Evaluation; </li></ul><ul><ul><li>Business strength of the vendor </li></ul></ul><ul><ul><li>Product share in total business of the vendor </li></ul></ul><ul><ul><li>Future plans of the vendor </li></ul></ul><ul><ul><li>Market reach & resource strength of the vendor </li></ul></ul><ul><ul><li>Ability to execute the ERP solution </li></ul></ul><ul><ul><li>Perspective plan of the ERP improvement with technology </li></ul></ul><ul><ul><li>development </li></ul></ul><ul><ul><li>Business philosophy of the vendor </li></ul></ul>
  12. 12. TECHNOLOGY EVALUATION <ul><li>Client server architecture & its implementation 2 tier or 3tire </li></ul><ul><li>Object orientation in development & methodology </li></ul><ul><li>Interface mechanism: data transfer, real time access </li></ul><ul><li>Support system technology like bar coding, EDI, imaging, comm., network </li></ul><ul><li>H/W – S/W configuration mgt </li></ul><ul><li>Operating system & its levels of usage in the system </li></ul><ul><li>Use of case tool, screen generators, report writers, screen printers & batch processor </li></ul><ul><li>Handling of client/server data & application logic </li></ul>
  13. 13. ERP Solution Evaluation <ul><li>ERP fit for the business of the org in terms of the functions, features & processes </li></ul><ul><li>Degree of deviation from the standard ERP product </li></ul><ul><li>Ease of use: easy to learn, implement & train </li></ul><ul><li>Flexible design & ability to migrate to the ERP environment </li></ul><ul><li>Rating on performance, response & integration </li></ul><ul><li>product quality in terms of security, reliability, & precision in results </li></ul><ul><li>Solution architecture & technology </li></ul><ul><li>Documentation for system handling & administration </li></ul>
  14. 14. Issues & Challenges of ERP implementation <ul><li>Expensive & time in implementation </li></ul><ul><li>Difficulty implementation change </li></ul><ul><li>Risks in using one vendor </li></ul><ul><li>Risk of implementation failure </li></ul>

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