Intro to Enterprise Systems

1. E N T E R P R I S E
S Y S T E M S
I N F O R M A T I O N S Y S T E M S C O N C E P T
( I S 1 8 4 1 0 2 )
F a l l S e m e s t e r 2 0 2 0 / 2 0 2 1
Anisah Herdiyanti, M.Sc, ITILF
anisah@is.its.ac.id
Management of Information Systems Laboratory
Department of Information Systems

2. A G E N D A
• Opening: Electronic and Mobile E-Commerce
• An introduction to enterprise systems
• What an ERP system is?
• What an SCM system is?
• What a CRM system is?
• Closing: Suggested materials for further discussion

3. O P E N I N G

4. E - G O V E R N M E N T
Government-to-consumer (G2C)
Government-to-business (G2B)
Government-to-government (G2G)

5. T Y P E S O F E L E C T R O N I C A N D M O B I L E
C O M M E R C E
By Physical locations
• Pure e-commerce
• Partial e-commerce (Click &
Mortar)
• Brick & Mortar
By Interactions
• Business-to-Business (B2B)
• Business-to-Customer (B2C)
• Customer-to-Customer (C2C)
Alibaba.com (B2B) ; Tmall.com (B2C); Taobao (C2C)

7. A N I N T R O D U C T I O N TO
E N T E R P R I S E S Y S T E M S

8. K E Y T E R M I N O L O G I E S
• Enterprise
Large organization such as multinational corporation, university, hospital,
research laboratory, or government organization
• Enterprise system
Ensures information can be shared across all business functions and all levels
of management to support the running and managing of a business
• Examples of Enterprise Systems
• ERP: enterprise resource planning systems
• CRM: customer relationship management systems
• SCM: supply chain management systems

9. S A P E R P
• Company chooses and
integrates building blocks:
• SAP R/3 (Real-Time Tier 3),
• SAP ECC (ERP Central
Component), or
• SAP S/4 (Business Suite 4).
• SAP ERP contains of
technical and functional
SAP
Modules/Components
Source: https://inui.io/sap-modules-components/

10. O R A C L E E R P
• On-Premises Products
• Oracle E-Business Suite
• PeopleSoft
• JD Edwards EnterpriseOne
• Hyperion
• Cloud Products:
Financials, Accounting Hub,
Procurement, Project Management,
Risk Management, Enterprise
Performance Management (EPM), AI
Apps for ERP, Supply Chain
Management, NetSuit
Source: https://www.oracle.com/uk/applications/erp/what-is-erp.html

11. W H AT A N E R P S Y S T E M I S ?

12. E N T E R P R I S E R E S O U R C E P L A N N I N G
• Enterprise resource planning (ERP)
• Set of integrated programs that manage an internal company’s vital
business operations for an entire multisite, global organization
• Provides software applications to coordinate activities of functional units
• Business process
Set of coordinated and related activities that takes one or more kinds of
input and creates an output of value to the customer of that process

13. W H A T I S E R P ?
Source: https://www.youtube.com/watch?v=PVRgIXLWDHs

14. I N T E G R A T I O N
O F B U S I N E S S
F U N C T I O N A L
U N I T S B Y E R P
S O F T W A R E

15. B E N E F I T O F E R P
• Quality and efficiency
Helps improve the quality and efficiency of customer service, production, & distribution by
creating a framework for integrating and improving internal business processes
• Decreased Costs
Reductions in transaction processing costs and hardware, software, and IT support staff
• Decision support
Provides cross-functional information on business performance to assist managers in
making better decisions
• Enterprise agility
Results in more flexible organizational structures, managerial responsibilities, and work
roles

16. P R O S A N D C O N S E R P
Advantages of ERP
• Improved access to data for
operational decision making
• Elimination of costly, inflexible
legacy systems
• Improvement of work processes
• Upgrade of technology
infrastructure
Disadvantages of ERP
• Expense and time in implementation
• Difficulty implementing change
• Difficulty integrating with other
systems
• Difficulty in loading data into new
ERP system
• Risks in using one vendor
• Risk of implementation failure

17. C A U S E S O F E R P F A I L U R E
• Reengineering, Hardware, Software,
Data Conversions including:
• Underestimating the complexity of the
planning, development, and training
required
• Believing everything the software vendors
and/or consultants say
• Training and Change Management,
including:
• Failure to involve affected employees in
the planning & development phases and
change management programs
• Trying to do too much, too fast
• Insufficient training

18. T H E V A R I A T I O N O F E R P
• Make-to-Stock (MTS)
• Assemble-to-Stock (ATS)
• Make-to-Order (MTO)
• Assemble-to-Order (ATO)

19. W H AT A N S C M S Y S T E M I S ?

20. S U P P L Y C H A I N M A N A G E M E N T ( 1 )
• SCM system:
• A cross-functional enterprise system that uses IT to help support & manage
the links between some of a company’s key business processes and those of
its suppliers, customers, & business partners.
• A system that includes:
• Planning, executing, and controlling all activities involved in raw material
sourcing and procurement
• Converting raw materials to finished products and warehousing and
delivering finished product to customers

21. S U P P L Y C H A I N M A N A G E M E N T ( 2 )

22. W H A T I S S C M ?
Source: https://www.youtube.com/watch?v=Mi1QBxVjZAw

23. F O C U S O F S C M
• Helps a company get the right products to the right place at the right
time, in the proper quantity and at an acceptable cost.
• Estimating demmand, control inventory, and improve the network of
relationships with partners

24. B E N E F I T S A N D C H A L L E N G E S
• Can provide faster, more accurate order processing, reductions in
inventory levels, quicker time to market, lower transaction and materials
costs, & strategic relationships with suppliers
• Just In Time (JIT); Fast Moving Parts
https://www.youtube.com/watch?v=-2huDogfXS8

25. C A U S E S O F F A I L U R E S C M
• Lack of proper demand planning knowledge, tools, and guidelines
• Inaccurate or overoptimistic demand forecasts
• Inaccurate production, inventory, and other business data
• Lack of adequate collaboration

26. T R E N D S O F S C M

27. W H AT A C R M S Y S T E M I S ?

28. C U S T O M E R R E L A T I O N S H I P
M A N A G E M E N T ( 1 )
• Provide the customer with a single, complete view of the company and its
extended channels.
• A cross-functional business application that integrates and automates many
customer serving processes in sales, direct marketing, account and order
management, and customer service and support.
• Create an IT framework that integrates all these processes with the rest of a
company’s business operations.
• Example: Siebel vs salesforce.com

29. C U S T O M E R
R E L A T I O N S H I P
M A N A G E M E N T
( 2 )
Key features of a CRM system:
Contact management, Sales
management, Customer support,
Marketing automation, Analysis, Social
networking, Access by smartphones,
Import contact data

30. W H A T I S C R M ?
Source: https://www.youtube.com/watch?v=hnEQq7kNFWo

31. T H E P H A S E S O F C R M
• Acquire (new customers)
By doing a superior job of contact management, sales prospecting,
selling, direct marketing, & fulfillment.
• Enhance (customer satisfaction)
By supporting superior service from a responsive networked team of
sales and service specialists.
• Retain (your customers)
Help identify and reward your most loyal, profitable customers.

32. M A J O R
A P P L I C A T I O N
C O M P O N E N T S

33. 33
C R M - S A L E S
• Cross-selling
• Promoting accessories related to the current choice
• e.g. a cell phone purchase + extra charger
• “Do you want fries with that?”
• Buy ‘A’ offer another ‘B’
• Predict the behavior of end customer → data mining model in back-end system
• Need good communication
• Up-selling
• Promoting a better version of the current choice
• e.g. cell phone → sophisticated video phone
• “Do you want to supersize that?”
• Amount → more and more or high spec

34. B E N E F I T S O F C R M
• Allows a business to identify and target their best customers
• those who are the most profitable to the business
• so they can be retained as lifelong customers for greater and more
profitable services.
• Enables real-time customization and personalization of products and
services based on customer wants, needs, buying habits, and life cycles.

35. F A I L U R E S O F C R M
• Over 50% of CRM projects did not produce the results that were
promised.
• 20% of business surveyed reported that CRM implementation had
damaged long-standing customer relationship.
• Due to lack of understanding & preparation.

37. C LO S I N G

38. R E C O M M E N D E D S O U R C E S O F
L E A R N I N G
• [ARTICLE] CRM Done Right
https://hbr.org/2004/11/crm-done-right
• [ARTICLE] Alphabet Soup, Oh My! What You Really
Need to Know About ERP vs CRM
https://www.softwareadvice.com/resources/erp-vs-
crm/

39. Source: https://slideplayer.com/slide/15098575/
W H A T N E X T ?
W H A T A R E T P S , M I S , D S S

40. U S E F U L R E A D I N G S
• Information Concepts (pp. 356)
Ralph Stair, and George Reynolds. (2010). Part 3 : Business Information
Systems, Chapter 9: Enterprise Systems

42. anisah@is.its.ac.id
check our annual conferences at www.isico.info | www.sesindo.org
https://www.its.ac.id/si/