NAME: SHABAN REHEMA REG: BIT/11/47099 STREAM: A GROUP: 1VBUSINESS INFORMATION SYSTEM- CIT 711SYSTEM FOR ENTERPRISE WIDE PROCESS INTERGRATIONMany companies have moved from functional mainframe based legacy systems to integratecross functional client server applications. This typically has involved installing. Enterprise resource planning Supply chain management and Customer relationship management softwareInstead of focusing on the information processing requirements of business functions, such asenterprise software focuses on supporting integrated clusters of business processes involved inthe operations of a business.ENTERPRISE SYSTEMS/ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMSEnterprise systems also known as enterprise resource planning systems. Enterpriseapplications are designed to support organization wide process coordination and integration.Business of all types implemented Enterprise Resource Planning system. Enterprise ResourcePlanning serves as a cross functional enterprise backbone that integrates and automates manyinternal business processes and information systems within the manufacturing, logistics,distribution, accounting, finance and human resource functions of a company.Large companies throughout the world began installing Enterprise Resource Planning systemsin the 1990’s as a conceptual frame work and catalyst for reengineering their businessprocesses.Enterprise Resource Planning served as vital software engine needed to integrate andaccomplish the cross functional processes that resulted.Enterprise Resource Planning is recognized as a necessary ingredient that many companiesneed in order to gain efficiency business environment.
What is ENTERPRISE RESOURCE PLANNING?Definition: this is a technological backbone of e-business, an enterprise wide transactionframework with links into sales order processing inventory management and control,production and distribution planning and finance.Enterprises resource planning is a cross functional enterprise system driven by an integratedsuite of software modules that supports the basic internal business processes of a company.Enterprise Resource Planning gives a company an integrated real time view of its corebusiness processes such as production, order processing and inventory management tiedtogether by Enterprise Resource Planning application software and common databasemaintained by database management system.Enterprise Resource Planning tracks business resources such as cash, raw materials andproduction capacity and the status of commitments made by the business such as customerorders, purchase orders and employee payroll.Enterprise Resource Planning software suites typically consist of integrated modules ofmanufacturing, distribution sales, accounting and human resource application e.g. ofmanufacturing processes supported are material requirement planning, Production planningand capacity planning.Some of the sales and marketing processes supported by Enterprise Resource Planning aresales analysis, sales planning and pricing analysis while typical distribution applicationsinclude order management, purchasing and logistic planning.People, processes, policies and company culture are all factors in a successful EnterpriseResource Planning implementation.The major application components of enterprises resource planning are:- production planning,integrated logistics and finance, customer or employee. Information that was previouslyfragmented in various systems can flow throughout the firm so that it can be shared bybusiness processes in manufacturing, accounting, human resources and other areas.Companies are finding major business value in installing Enterprise Resource Planningsoftware in two major ways:-
Enterprise Resource Planning creates a framework for integrating and improving their back office systems that results in major improvements in customers’ service, production and distribution efficiency. Enterprises Resource Planning provides vital cross functional information quickly on business performance to managers to significantly improve their ability to make better business decisions across the enterprise.Components of Enterprise Resource Planning management Sales, distribution, order management Production planning Integrated logisticsCAUSES OF ENTERPRISE RELATIONSHIP PLANNING FAILURESThe business managers and information technology professionals of these companiesunderestimated the complexity of the planning development and training that were needed toprepare for a new Enterprise Resource Planning system failure to involve affected employeesin the planning and development phases.Insufficient training in the new work tasks required by Enterprise Resource Planning systemand failure to do enough data conversion and testing.Enterprise Resource Planning failures were due to over reliance by company or informationtechnology management on the claims of Enterprise Resource Planning software vendors.Expense and time in implementation getting the full benefits of Enterprise ResourcePlanning is not simple or automatic. Although Enterprise Resource Planning offers manystrategic advantages by streamlining a company’s transaction processing system, EnterpriseResource Planning is time-consuming, difficult, and expensive to implement.Difficulty integrating with other systems most companies have other systems that must beintegrated with the ERP. These systems can include financial analysis programs, Internetoperations, and other applications. Many companies have experienced difficulties makingthese other systems operate with their Enterprise Resource Planning.
Difficulty implementing change in some cases ,a company has to make radical changes inhow to operate to conform with the work processing supported by ERP. These changes can beso drastic to long-time employees that they retire rather than go through the change.Risk in using one vendor: the high cost to switch to another vendors enterprise resourceplanning system makes it extremely unlikely that a firm will do so. Thus, the initial enterpriseresource management vendors knows it has a captive audience. The high cost to switch toalso create a high level of risk if the enterprise resource planning vendors allow its product tobecome outdated or goes out of business.SUPPLY CHAIN MANAGEMENTA successful supply chain management strategy is based on accurate order processing just intime inventory management and timely order fulfillment. Supply Chain Management’sincreasing importance illustrates how a tool that was a theoretical process 10 years ago is nowa hot competitive weapons.That’s why many companies today are making supply chain management a top strategicobjective and major e-business application development initiative.Supply chain management helps a company to get right products to the right place at the righttime, in a proper quantity and at an acceptable cost.Legacy supply chains are clogged with unnecessary steps and redundant stockpile for instancea typical box of breakfast cereal spends an incredible 10 days getting from factory tosupermarket, struggling, its way through an unbelievable maze of wholesalers, distributors,brokers and consolidators each of which has a warehouse.The e- commerce opportunity lies in a fusing of each company’s internal system to those ofits suppliers, partners, and customers. This fusion forces company to better integrate interenterprises supply chain processes to improve manufacturing efficiency and distributioneffectiveness.The goal of Supply Chain Management is efficiently manage this process by forecastingdemand, controlling, inventory, enhancing network of business relationships a company haswith customers, suppliers, distributors, and others.Another goal is receiving feedback on the status of every link in the supply chain.
In order to achieve this goal, many companies are turning to internet technology to web-enable their supply chain processes, decision making and information flows.What is supply chain management?Supply chain management is a cross-functional enterprises system that uses informationtechnology to help support and manage the links between some of a company’s key businessprocesses and those of its suppliers, customers, and business partners.The goal of supply chain management (SCM) is to create a fast, efficient, and low costnetwork of business relationships or supply chain to get a company’s products from conceptto market.Supply Chain Management involves close linkage and coordination of activities involved inbuying , making, and moving a product.Supply Chain Management helps to integrate suppliers, manufacturers, distributors andcustomer logistics time.What is a company’s supply chain? Let’s suppose a company wants to build and sell aproduct to other businesses. Then it must buy raw materials and a variety of contractedservices from other companies. The interrelationships with suppliers, customers, distributorsand other businesses that are needed to design, build, and sell a product make up the networkof business entities, relationships and processes that is known as supply chain.Supply chain management is a top strategic objectives of their e-business initiatives. It’s anabsolute requirement if they want to meet their e-commerce customer value imperative. Whatthe customer wants, when and where it’s wanted, at the lowest possible cost. Companies arereengineering their supply chain processes aided by internet technologies and supply chainmanagement software.Supply chain management software and internet technologies can help companies reengineerand integrate the functional Supply Chain Management processes that support the supplychain life cycle.Electronic Data Interchange (EDI) was one of the earliest uses of information technology forsupply chain management.
Electronic Data Interchange (EDI) involves the electronic exchange of business transactiondocuments over the internet and other networks between supply chain trading partners.OBJECTIVES OF SUPPLY CHAIN MANAGEMENTThe objective is to significantly reduce costs, increase efficiency and improve their supplychain cycle times.Supply Chain Management software can also help to improve enterprises coordination amongsupply chain process players. The result is much more effective distribution and channelnetworks among business partners.Supply chain management is aimed at achieving agility and responsiveness in meeting thedemands of a company’s customers and the needs of their business partners.Achieving the objectives of Supply Chain Management enables a company to reach its e-business and customer value goals.E-business goals give rapid demand fulfillment collaborative supply chain planning andexecution.Customer value goals give customers what they want, when and how they want it, at thelowest cost.Inter enterprise coordination of manufacturing and business processes, effective distributionand channel partnerships responsiveness and accountability to customersCross-functional e-business systems like Supply Chain management reengineer andstreamline traditional supply chain processes, for example the demand of e-commerce arepushing manufactures to use their intranets, extranets and e-commerce web portals to helpthem reengineer their relationship with their suppliers, distributors and retailers. THE ROLE OF SUPPLY CHAIN MANAGEMENTSupply chain management helps us to understand the roles and activities of Supply ChainManagement in business more clearly.
Another role of Supply Chain Management is that, it assists in close linkage and coordinationof activities involving in buying, making and moving products.Role of Information Technology in Supply Chain Management is to support these objectiveswith enterprises information system that produce many of the outcomes a business needs toeffectively manage its supply chain.Supply Chain Management helps in procurement of materials, transformation of raw materialsinto intermediate and finished goods.Supply Chain Management plays a great role in helping firms in reducing inventory,transportation and warehousing costs.BENEFITS AND CHALLENGES OF SUPPLY CHAIN MANAGEMENTCompanies known that supply chain management can provide them with key businessbenefits such as faster, more accurate order processing, reductions in inventory levels, quickertimes to markets, lower transaction and material costs and strategic relationships with theirsuppliers.CUSTOMER RELATIONSHIP MANAGEMENT(CRM)Customer relationship management involves two related objectives such as:-Customer Relationship Management are required to provide organization and all of itscustomer facing employees with a single complete view of company and its extendedchannels.Companies are turn to Customer Relationship Management to improve their customer focus,Customer Relationship Management uses information technology to create cross-functionalenterprises system that integrates and automates many of the customer-serving processes insales, marketing and customer services that interact with a companies’ customers. CustomerRelationship Management create an information technology framework of web-enabledsoftware and database that integrates these processes with the rest of company’s businessoperations.
Customer Relationship Management includes family of software modules that provide toolsthat enable a business and its employees to provide fast, convenient, dependable andconsistence service to its customers.Siebel systems, oracle, people software , SAP AG, and Epiphany are some of leading vendorsof customer relationship management software.Customer Relationship Management consolidate customer data from multiple sources andprovide analytical tools for answering questions.Customer Relationship Management helps in managing all ways used by firms to deal withexisting and potential new customers and also it uses information system to coordinate entirebusiness process of a firm.There are major applications components of customer relationship management systems suchas the contact and account management, sales, marketing and fulfillment, customer serviceand support, retention and loyalty programs.PHASES OF CUSTOMER RELATIONSHIP MANAGEMENTCustomer Relationship Management are viewed as an integrated system of web-enabledsoftware tools and databases accomplishing a variety of customer focused business processesthat support the three phases of the relationship between a business and its customers such asacquire, enhance and retain.Acquire: a business relies on Customer Relationship Management software tools anddatabases to help it acquire new customers by doing a superior job of contact management,sales prospecting, selling, direct marketing and fulfillment. The goal of CustomerRelationship Management functions is to help customers perceive the value of superiorproduct offered by an outstanding company.Enhance: web-enabled Customer Relationship Management account management andcustomer service and support tools help keep customers happy by supporting superior servicesfrom a responsive networked team of sales and services specialist and business partners.
Retain: Customer Relationship Management analytical software and database help acompany proactively identify and reward its most loyal and profitable customers to retain andexpand their business via targeted marketing and relationship marketing programs.BENEFITS AND CHALLENGES OF CUSTOMER RELATIONSHIPMANAGEMENTThe potential business benefits of customer relationship management are many which are asthe followings:-.Customer Relationship Management allows a business to identify and target their bestcustomers those who are most profitable to a business.Customer Relationship Management makes possible real-time customization andpersonalization of products and services based on customer wants, needs, buying habits andlife cycle.Customer Relationship Management keeps track of when a customer contacts the companyregardless of the contact points.Customer Relationship Management also enables a company to provide a consistent customerexperience and superior services and support across all the contact points a customer chooses.Customer Relationship Management is also accounting for the cost of system and managingdemands for systems. Given the large number of various type of system in a firm, and thelarge number of customers. It is a complex task to understand which systems are trulynecessary and productive with high returns on investments.TYPES OF CUSTOMER RELATIONSHIP MANAGEMENTOperational customer relationship management: this is the type of Customer RelationshipManagement that supports customer interaction with greater convenience through a variety ofchannels, include phone, fax, email, chat, and mobile devices. This helps make your companyeasier to do business with.Analytical customer relationship management: this is another type of CustomerRelationship Management that extracts in-depth customer history, preference, and
profitability information from your data warehouse and other databases. This type ofCustomer Relationship Management allows you to analyze, predict and derive customer valueand behavior and forecast demand, this also lets you approach your customers with relevantinformation.Collaborative customer relationship management: it is the type of Customer RelationshipManagement which enables easy collaboration with customers, suppliers and partners. Itimproves efficiency and integration throughout the supply chain and allows greaterresponsiveness to customer needs through sourcing of products and services outside of yourenterprise.Portal-based customer relationship management: this is the type of Customer RelationshipManagement in which it provides all users with the tools and information that fits theirindividual roles and preferences. It empowers all employees to respond to customer demandsmore quickly and become truly customer focused and provides the capability to instantlyaccess, link and use all internal and external customer information.CUSTOMER RELATIONSHIP MANAGEMENT FAILURESSurveys by industry research groups include report that over 50 percent of CustomerRelationship Management projects did not produce the results that were promised. In anotherresearch report, 20 percent of businesses surveyed reported that Customer RelationshipManagement implementation had actually damaged long- standing customer relationships.The reasons for such a high rate of failure or dissatisfaction with Customer RelationshipManagement initiatives are:-Research shows that the major reason is familiar one, that is lack of understanding andpreparations.; that is business managers rely on the major new application of informationtechnology like Customer Relationship Management (CRM) to solve a business problemwithout first developing the business process changes and change management programs thatare required, example in many cases, failed Customer Relationship Management projectswere implemented without participation of business stakeholders involved.Therefore, employees and customers were not prepared for new processes or challenges thatwere part of Customer Relationship Management implementation.