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ERPENTERPRISE APPLICATIONS AND BUSINESS PROCESS INTEGRATION
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
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.
ENTERPRISE SYSTEMS
 What Does ERP Stand For and what do you
know about it?
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
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
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
SUPPLY CHAIN MANAGEMENT
(SCM)
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.
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
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
 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
 Improved customer service and responsiveness
 Cost reduction
 Cash utilization
SUPPLY CHAIN MANAGEMENT SYSTEMS
BUSINESS VALUE
CUSTOMER RELATIONSHIP
MANAGEMENT
(CRM)
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
DEFINITION
Business and technology discipline for managing customer
relationships to optimize revenue, profitability, customer
satisfaction, and customer retention
 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
 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
 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
ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
MANAGEMENT CHALLENGES:
High total cost of ownership
Organizational change requirements
Realizing strategic value
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
Thank You

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Erp System

  • 1. ERPENTERPRISE APPLICATIONS AND BUSINESS PROCESS INTEGRATION
  • 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.
  • 4. ENTERPRISE SYSTEMS  What Does ERP Stand For and what do you know about it?
  • 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