CRM ERP SCM

7/30/2019 CRM ERP SCM

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Enterprise Business Systems

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1. Identify and give examples to illustratethe following aspects of Integrated

Information Systems, customer

relationship management, enterpriseresource management, and supply chain

management systems:

• Business processes supported

• Customer and business value provided

• Potential challenges and trends

Learning Objectives

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• "many organizations are using informationtechnology to develop integrated cross-

functional enterprise systems that cross

the boundaries of traditional businessfunctions (such as marketing and finance),

in order to reengineer and improve vital

business processes all across the

enterprise and improve the efficiency andeffectiveness of business objectives.

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• Organizations view cross-functionalenterprise systems as a strategic way to

use IT to share information resources and

improve the efficiency and effectivenessof business processes, and develop

strategic relationships with customers,

suppliers, and business partners.

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• Thus, instead of having functionalmainframe-based legacy systems,

organizations are shifting to integrated

cross functional client/server applications,for example

• ERP, SCM or CRM software systems from

SAP, People Soft, Oracle, etc.

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Why Integrated solutions?

• Enterprise software focuses on supporting integratedgroups of business processes rather than informationprocessing requirements of the respective businessfunction.• ERP focuses on efficiency of a firm’s internal production

logistics distribution, HR, and Financial processes.

• CRM focuses on acquiring and retaining profitablecustomers through marketing, sales and serviceprocesses

• SCM focuses on developing the most efficient andeffective souring and procurement processes with

suppliers for the products and services needed by abusiness.

• Knowledge management (KM) applications focus onproviding a firm’s employees with tools that support groupcollaboration and decision support (Sawhney Mohan, andJeff Zabin, 2001).

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What is Cross – Functional Enterprise

• cross-functional components are a set of extremely powerful components designed

for streamlining, simplifying and handling

critical processes found within mostindustries and businesses.

• These processes include business

performance, customer relationship

management, supply chain management,

business modeling, as well as document,

quality and project management.

• Business Modeler lets companies viewtheir organization in terms of businessprocesses.

• Through its PC-based tools, methods, andgraphical models that make it easier tomatch a company’s existing processeswith the best-practice processes that IFS

Applications supports, it gives insight intoways to re-engineer businesses to bemore efficient, more profitable andfocused on customer satisfaction.

Corporate Performance Management

• Continuous improvement is essential for long-term profitability.

• Corporate Performance Management is

an integrated performance managementsystem for measuring functions and

processes.

• It allows users to analyze areas for improvement and focus on results gained

from changes, in order to make better

strategic and operational decisions.

Customer Relationship Management (CRM)

• Customer Relationship Management isessential for all types of business

situations, enabling support for business

proposals and decisions in everyinteraction with the customer.

Quality Management

• Quality management relies on two major considerations.

• One a proactive decision making process.

• two, failure prevention.

• Therefore to maintain quality you need a

Quality Management system that ensures

you receive a steady flow of data via a

totally integrated and highly accessible

solution.

Document Management

• With Document Management™, you getfull control over your company's

documentation to focus on the things that

really matter:• selling your products and services,

• keeping your plant and equipment in top

shape, and

• ultimately meeting or exceeding your

business goals.

Project Management

• Without a progressive approach to projectmanagement a business runs the risk of

allowing its operational efficiency to

gradually decline.• With the right project management

enterprise tools a company can review its

business projects, both new and old, and

continually raise them to higher levels.

Business Modeling

• Anticipating your customers changingrequirements is the best way to maintain

their loyalty.

• But it can only be successfully achievedwhen you have a business modeling

solution that gives you a precise insight

into what you’ll need to re-engineer your

business to meet the change.

Why Study Customer

Relationship Management?

• It is easier than ever for customers to

comparison shop and, with a click of the

mouse, to switch companies. As a result,

customer relationships have become acompany’s most valued asset.

Definition:• The use of information technology to

create a cross-functional enterprise

system that integrates and automatesmany of the customer-serving processes

in sales, marketing, and customer

services that interact with a company’s

customers

• CRM is application which takes care of the sales activities, customer interactions,

marketing products and customer service.

• The role of CRM is restricted to the salesrelated activities only.

CRM Application Clusters

CRM Application Components

• Contact and Account Management – helpssales, marketing, and service professionals

capture and track relevant data about every

past and planned contact with prospects and

customers, as well as other business and lifecycle events of customers

• Sales – provides sales reps with tools andcompany data sources needed to support and

manage sales activities, and optimize cross-

selling and up-selling

• Marketing Fulfillment – help marketingprofessionals accomplish direct marketing

campaigns by automating such tasks as

qualifying leads for targeted marketing, and

scheduling and tracking direct marketingmailings

• Customer Service and Support – providesservice reps with software tools and real-time

access to the common customer database

shared by sales and marketing professionals

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• Retention and Loyalty Programs – help acompany identify, reward, and market to

their most loyal and profitable customers

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Three Phases of CRM

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Three Phases of CRM

• Acquire new customers by doing a superior jobof contact management, sales prospecting,selling, direct marketing, and fulfillment

• Enhance relationship with customer bysupporting superior service from a responsivenetworked team of sales and service specialistsand business partners

• Retain and expand business with customers byproactively identifying and rewarding the mostloyal and profitable customers

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Benefits of CRM

• CRM allows a business to identify andtarget their best customers so they can be

retained as lifelong customers for greater

and more profitable services.

• CRM makes possible real-time

customization and personalization of products and services based on customer

wants, needs, buying habits, and life

cycles.

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Benefits of CRM

• CRM can keep track of when a customer contacts the company, regardless of the

contact point.

• CRM systems can enable a company to

provide a consistent customer experience

and superior service and support acrossall the contact points a customer chooses.

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CRM Failures

• Lack of understanding and preparation

• Rely on CRM to solve business problemwithout first developing the businessprocess changes and changemanagement programs that are required

• CRM projects implemented without theparticipation of the business stakeholdersinvolved

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Trends in CRM

• Operational

• Analytical

• Collaborative

• Portal-based

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Operational CRM

• Supports customer interaction with greater convenience through a variety of

channels.

• Synchronizes customer interactions

consistently across all channels

• Makes your company easier to do

business with

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Analytical CRM

• Extracts in-depth customer history, preferences,and profitability information from your data

warehouse and other databases

• Allows you to analyze, predict, and derive

customer value and behavior and forecast

demand

• Lets you approach your customers with relevant

information and offers that are tailored to their

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Collaborative CRM

• Enables easy collaboration withcustomers, suppliers, and partners

• Improves efficiency and integrationthroughout the supply chain

• Allows greater responsiveness to

customer needs through sourcing of products and services outside of your enterprise

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Portal-based CRM

• Provides all users with the tools and informationthat fit their individual roles and preferences

• Empowers all employees to respond to

customer demands more quickly and becometruly customer-focused

• Provides the capability to instantly access, link,and use all internal and external customer

information

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Partner Relationship Management (PRM)

Definition:• Applications that apply many of the same

tools used in CRM systems to enhance

collaboration between a company and itsbusiness partners, such as distributors

and dealers, to better coordinate and

optimize sales and service to customers

across all marketing channels

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Enterprise Resource Planning (ERP)

Definition:• A cross-functional enterprise system

driven by an integrated suite of software

modules that supports the basic internalbusiness processes of a company

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Enterprise Resource Planning (ERP)

• ERP is application software, which automatesthe internal functional departments of an

organization. There will be a smooth flow of

information across the functions like accounts,

production, human resource and administration.

• ERP looks after the supply chain management,

production management and accounts

management. There is no such a tool available

in the industry which can cater all the issues

across the company.

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ERP Application Components

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ERP Process & Information Flows

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ERP Benefits

• Quality and Efficiency – ERP creates aframework for integrating and improving a

company’s internal business processes

that results in significant improvements in

the quality and efficiency of customer

service, production, and distribution

• Decreased Costs – Significant reductions

in transaction processing costs and

hardware, software, and IT support staff

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ERP Benefits

• Decision Support – Provides vital cross-functional information on business

performance quickly to managers to

significantly improve their ability to make

better decisions in a timely manner

• Enterprise Agility – ERP breaks downmany former departmental and functional

walls of business processes, information

systems, and information resources

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Costs of ERP

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Causes of ERP Failures

• Business mangers and IT professionalsunderestimate the complexity of the planning,development, and training needed

• Failure to involve affected employees in the

planning and development phases

• Trying to do too much too fast in the conversionprocess

• Failure to do enough data conversion andtesting

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Trends in ERP

Enterprise Resources Planning(ERP) Definition 1 (Cont.)

Includes:Typical MRP II Functions Quality Functions

Sales Force Automation Field Service Functions

Engineering Function / PDM Complete Financial Functions

Advance Manufacturing Function Human Resources Functions

Distribution / Logistics Functions Management Reporting

ERP is a System for the Entire Company – A Global Tightly

Integrated Closed-Loop System

(1) Source: APICS Complex Industries Special Interest Group

Typical ERP Functionality

Engineering / Product Date MGT

Engineering / Product Date MGT.

Document Creation, Management & Control

CAD Interface / Image Management

Configuration Management

- Change Order Creation & Control

- Revision Control

Engineering Data Management

Engineering / Product Date MGT.(Cont.)

Product Information Management

Technical Data Management

Technical Information Management

Engineering Item Data & BOMs

Manufacturing

MRPII Functionality

- MPS, BOM, Routings, MRP, CRP, PAC

Sales & Operations Planning

Integrated Production Configuration

Statistical Inventory Control

Flexible Product & Job Costing Options

Kanban / JIT / Flow Manufacturing Support

Theory of Constraints / Advanced Planning

Systems

Sales and Operations Planning

Balance market demand with resource capability

Develops a contract between Manufacturing and

Marketing

A single set of numbers upon which to base plans

and schedules

Manages Inventory and Backlog

Forecasting

Advance Planning and OptimizingSystems

Supply Chain optimization

Constraint-based multi-location master planning

- Generation of feasible production plans across

multiple plants

Ad Pl i d O ti i i

Advance Planning and OptimizingSystems (Cont.)

Constraint-based factory level scheduling

- Generation of feasible schedules (integrated with

feasible production plan)

Optimized distribution and transportation planning

- Intelligent allocation of inventory through a

network

Distribution / Logistics

Purchasing

Supplier Reliability Analysis

Distribution Requirement Planning

Global Transportation Management

Fleet Management

Shipping & Receiving

Import / Export

Warehouse Management

Human Resources

Requisition Management

Applicant Tracking

Employee Master

Job Descriptions

Employee Evaluations

Training & Certification Management

Payroll Deduction Accounting

Benefits Tracking

Quality

Quality Management Plans

Quality Specifications / Requirements

Test / Inspection Results

Cause and Corrective Action Tracking

Process / Product Certification

Statistical Quality Control

Cost of Quality Reporting

Equipment & Tool Calibration Mgt

Finance Financial Budgets

General Ledger

Accounts Payable

Accounts Receivable

Payroll

Fixed Assets

Cash Management

Activity Based Costing

Financial Statements

Field Service

Installation Management

As-maintained BOM

Warranty Tracking

Preventative Maintenance Scheduling & Control

Service Order Planning & Control

Typical ERP Integration

System Wide Elements

Project Management & Project Costing (EVM)

Executive Management Information System

Work Flow Management

Multi-Company

Multi-Currency

Multi-Lingual

Multi-Mode

EDI / Electronic Commerce

Web Enabled / Internet Communications

Imaging & Multi Media

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Features

• Each application has got its own features andbenefits in a different way.

• With the help of ERP, the business owner

integrates the internal business process byautomating all the departments.

• CRM, tracks the marketing related activates,

individual sales performances, customer

services and all.

• CRM is restricted to only marketing and sales

departments.

Benefits of CRM

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Benefits of CRM

• Automated sales and marketing process

• Regular work tracking of the sales person, which in

turn leads to the higher sales productivity

• Helps the company in cross selling the products, if the

company is into multiple product lines

• Ameliorated customer service as the system will

automatically warns the sales person regarding the

deadlines and this also leads to higher sales closures• Reduced expenses

• Overall, higher profitability

Benefits of ERP

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Benefits of ERP

• Automated business environment leads to effectivecommunication

• Smooth flow of information between the inter-

departments and intra-departments

• Reduced lead time of the manufacturing products

• Availability of relevant and accurate information on

timeliness

• Better decision making

• Helps in improving ROI in the long-run

Supply Chain Management (SCM)

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Supply Chain Management (SCM)

Definition:• A cross-functional interenterprise system

that uses information technology to help

support and manage the links betweensome of a company’s key business

processes and those of its suppliers,

customers, and business partners

SCM Life Cycle

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SCM Life Cycle

Electronic Data Interchange (EDI)

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Electronic Data Interchange (EDI)

Definition:• Involves the electronic exchange of

business transaction documents over the

Internet and other networks betweensupply chain trading partners

EDI Activities

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EDI Activities

Role of SCM

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Role of SCM

SCM Planning Functions

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SCM Planning Functions

• Supply Chain Design – optimize networkof suppliers, plants, and distribution

centers

• Collaborative Demand and Supply

Planning – develop an accurate forecast

of customer demand by sharing demand

and supply forecasts instantaneously

across multiple tiers

SCM Execution Functions

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• Materials Management – share accurate

inventory and procurement order information,

ensure materials required for production are

available in the right place at the right time, and

reduce raw material spending, procurementcosts, safety stocks, and raw material and

finished goods inventory

• Collaborative Manufacturing – optimize plans

and schedules while considering resource,

material, and dependency constraints

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• Collaborative Fulfillment – commit to delivery

dates in real time, fulfill orders from all channelson time with order management, transportationplanning, and vehicle scheduling, and supportthe entire logistics process, including picking,packing, shipping, and delivery in foreigncountries

• Supply Chain Event Management – monitor every stage of the supply chain process, fromprice quotation to the moment the customer receives the product, and receive alerts whenproblems arise

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• Supply Chain Performance Management – report key measurements in the supply

chain, such as filling rates, order cycle

times, and capacity utilization

Porter’s Value Chain Model (1985)

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Porter s Value Chain Model (1985)

PRIMARY ACTIVITIES

• In bound logistics (in puts)• Operations (manufacturing & testing)

• Outbound logistics (storage & distribution)

• Marketing & sales

• Service

Supply

SCM Objectives

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SCM Objectives

Case: How Dell Reengineered its Supply Chain

Problem:

Dell pioneered the mail order approach to selling PCs In 1993, Compaq cuts prices to drive Dell out of the market. Dell experiences

$65 million in losses.

Solution:

Dell implements the following re-engineering strategies: mass customization

just-in-time marketing

electronic orders & shipments

e-collaboration with major buyers

reduction in testing period

monitoring of productivity & returns on investments

(cont.)

Results: In 2001, Dell made over $4 million in computer web sales/ day.

Becomes leader in Customer Relationship Management (CRM)

Online tracking of orders & shipments

Viewer approved configurations and pricing

Customized home pages for clients.

Use of Intelligent Agents in production process.

Increased communication with suppliers.

By 1999, Dell becomes the number two PC seller and is a leader inmanagement & profitability.

Lessons from the Case

By introducing a new business model , one can change the manner in which business is done.

To implement this model on a large scale, one needs to build superbsupply chain management.

Another major success factor in Dell‟s plans was the improvementsmade in its logistics system along the entire supply chain.

Improved communications and customer service, which are part of Dell‟s CRM program, are the cornerstones of its success.

Dell was using c-Commerce with its business partners.

Supply Chain & Value Chain Definitions

SUPPLY CHAIN flow of materials, information, payments, and services from raw material suppliers, through factories and warehouses, to the end customers.

DEMAND CHAIN the process of taking orders.

SUPPLY CHAIN MANAGEMENT (SCM) to plan, organize, and coordinate all the supply chain’s activities.

Benefits of SCM

Contributes to

overall

increase inprofitability &

competitive

advantage.

This positivelyaffects inventory

levels, cycle time,business

processes &customer service.

Reduces

uncertainty

& risks in

the supply

chain.

Components of Supply Chain

Components of Supply Chains

Upstream Supply Chain

Organization‟s first tier suppliers & their suppliers.

Internal Supply Chain

Processes used by an organization to transform their inputs to

outputs.

Downstream Supply Chain

Processes involved in delivering the product to the final

customers.

Th S l Ch i

The Supply Chain

Involves the life of a product from „dirt to dust‟.

Involves movement of tangible & intangible inputs.

Can come in all shapes and sizes and may be fairly complex.

Can be bi-directional and involve the return of products (reverselogistics)

The flow of goods, services, information & financial resourcesmust be followed with an increase in value.

S f S l Ch i P bl

Sources of Supply Chain Problems

UNCERTAINTY

In demand forecast In delivery times &

production delays

POOR COORDINATION

With Internal units andbusiness partners

Ineffective customer service

High inventory costs,loss of revenue & extra

cost for expeditingservices.

The Bull Whip Effect

The most persistent SCM problem.

Erratic shifts in orders up & down the supply chain.

Distributor orders fluctuate because of poor demand forecast,

price fluctuation, order batching & rationing with supply chain.

Example: Porter & Gamble‟s distortion in SCM for manufacturing of disposable diapers.

Avoidable with proper interorganizational EC. EDI, Extranets & Groupware technology

S l i S l Ch i P bl

Solutions to Supply Chain Problems

Vertical Integration

Purchasing & managing the supply source.

Building Inventories

“Insurance” against supply chain shortages.

Main problem: It is difficult to correctly determine inventory

level for each product & part. This can be costly.

CASE H Li l d I d i SCM

CASE: How Littlewoods Improved its SCM

Problem: Littlewoods Large British clothing retailer with 136 stores in the UK &

Ireland. Overstocking problems in the supply chain management.

Solution: Introduced web-based performance reporting system.

Enabled merchandising personnel to make more accurate stock,sales and supplier decisions.

Results:

In 1997, Littlewoods saves $1.2 million as a direct result of its strategicprice merchandizing.

Oth S l ti t SCM P bl

CRM ERP SCM

Documents

Transcript of CRM ERP SCM

Software Consultancy (CRM-ERP-EPM-SCM-SOCIAL CLOUD)

SCM CRP ERP Decision Support

SCM, ERP y CRM

ERP-SCM Delphi

Estrategiasmercadeointerneterp scm-crm-130413171934-phpapp02

SCM Presentation- crm

L22 Erp Scm

Cyber-Attacks on ERP, CRM, SCM and HR Systems ID: Too Critical To Fail Cyber-Attacks on ERP, CRM, SCM and HR Systems HTA-R01 Mariano Nunez CEO Onapsis Inc. @marianonunezdc#RSAC Why

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