2. 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
3. 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.
5. 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
6. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
Human Resource Financial Management Customer Relationship 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
7. 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
9. 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.
10. 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
11. 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
Retur
n
•Authorize return
•Schedule Return
•Receive Return
•Issue Return Credit
SUPPLY CHAIN MANAGEMENT SYSTEMS
PROCESSES
12. 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
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
products are delivered to the right locations in the most efficient manner
SUPPLY CHAIN MANAGEMENT SYSTEMS
APPLICATION
13. Improved customer service and responsiveness
Cost reduction
Cash utilization
SUPPLY CHAIN MANAGEMENT SYSTEMS
BUSINESS VALUE
15. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
DEFINITION
Business and technology discipline for managing customer
relationships to optimize revenue, profitability, customer
satisfaction, and customer retention
16. 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
17. 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
18. 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
19. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
MANAGEMENT CHALLENGES:
High total cost of ownership
Organizational change requirements
Realizing strategic value
20. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
SOLUTION GUIDELINES:
Look at business objectives first
Attention to data and data management
Senior management commitment and employee support
Education and training