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The document discusses enterprise resource planning (ERP) systems and supply chain management. It defines ERP as a cross-functional system that integrates various business processes, including manufacturing, distribution, sales, accounting, and human resources. The document also discusses how supply chain management aims to create an efficient network of business relationships to move products from concept to market. Common challenges with implementing ERP systems include underestimating complexity, insufficient training, and difficulty integrating with other systems.
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- 1. NAME: SHABAN REHEMA REG: BIT/11/47099 STREAM: A GROUP: 1V BUSINESS INFORMATION SYSTEM- CIT 711 SYSTEM FOR ENTERPRISE WIDE PROCESS INTERGRATION Many companies have moved from functional mainframe based legacy systems to integrate cross functional client server applications. This typically has involved installing. Enterprise resource planning Supply chain management and Customer relationship management software Instead of focusing on the information processing requirements of business functions, such as enterprise software focuses on supporting integrated clusters of business processes involved in the operations of a business. ENTERPRISE SYSTEMS/ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS Enterprise systems also known as enterprise resource planning systems. Enterprise applications are designed to support organization wide process coordination and integration. Business of all types implemented Enterprise Resource Planning system. Enterprise Resource Planning serves as a cross functional enterprise backbone that integrates and automates many internal 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 systems in the 1990’s as a conceptual frame work and catalyst for reengineering their business processes. Enterprise Resource Planning served as vital software engine needed to integrate and accomplish the cross functional processes that resulted. Enterprise Resource Planning is recognized as a necessary ingredient that many companies need in order to gain efficiency business environment.
- 2. What is ENTERPRISE RESOURCE PLANNING? Definition: this is a technological backbone of e-business, an enterprise wide transaction framework 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 integrated suite 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 core business processes such as production, order processing and inventory management tied together by Enterprise Resource Planning application software and common database maintained by database management system. Enterprise Resource Planning tracks business resources such as cash, raw materials and production capacity and the status of commitments made by the business such as customer orders, purchase orders and employee payroll. Enterprise Resource Planning software suites typically consist of integrated modules of manufacturing, distribution sales, accounting and human resource application e.g. of manufacturing processes supported are material requirement planning, Production planning and capacity planning. Some of the sales and marketing processes supported by Enterprise Resource Planning are sales analysis, sales planning and pricing analysis while typical distribution applications include order management, purchasing and logistic planning. People, processes, policies and company culture are all factors in a successful Enterprise Resource Planning implementation. The major application components of enterprises resource planning are:- production planning, integrated logistics and finance, customer or employee. Information that was previously fragmented in various systems can flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources and other areas. Companies are finding major business value in installing Enterprise Resource Planning software in two major ways:-
- 3. 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 logistics CAUSES OF ENTERPRISE RELATIONSHIP PLANNING FAILURES The business managers and information technology professionals of these companies underestimated the complexity of the planning development and training that were needed to prepare for a new Enterprise Resource Planning system failure to involve affected employees in the planning and development phases. Insufficient training in the new work tasks required by Enterprise Resource Planning system and failure to do enough data conversion and testing. Enterprise Resource Planning failures were due to over reliance by company or information technology management on the claims of Enterprise Resource Planning software vendors. Expense and time in implementation getting the full benefits of Enterprise Resource Planning is not simple or automatic. Although Enterprise Resource Planning offers many strategic advantages by streamlining a company’s transaction processing system, Enterprise Resource Planning is time-consuming, difficult, and expensive to implement. Difficulty integrating with other systems most companies have other systems that must be integrated with the ERP. These systems can include financial analysis programs, Internet operations, and other applications. Many companies have experienced difficulties making these other systems operate with their Enterprise Resource Planning.
- 4. Difficulty implementing change in some cases ,a company has to make radical changes in how to operate to conform with the work processing supported by ERP. These changes can be so 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 resource planning system makes it extremely unlikely that a firm will do so. Thus, the initial enterprise resource management vendors knows it has a captive audience. The high cost to switch to also create a high level of risk if the enterprise resource planning vendors allow its product to become outdated or goes out of business. SUPPLY CHAIN MANAGEMENT A successful supply chain management strategy is based on accurate order processing just in time inventory management and timely order fulfillment. Supply Chain Management’s increasing importance illustrates how a tool that was a theoretical process 10 years ago is now a hot competitive weapons. That’s why many companies today are making supply chain management a top strategic objective and major e-business application development initiative. Supply chain management helps a company to get right products to the right place at the right time, in a proper quantity and at an acceptable cost. Legacy supply chains are clogged with unnecessary steps and redundant stockpile for instance a typical box of breakfast cereal spends an incredible 10 days getting from factory to supermarket, 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 of its suppliers, partners, and customers. This fusion forces company to better integrate inter enterprises supply chain processes to improve manufacturing efficiency and distribution effectiveness. The goal of Supply Chain Management is efficiently manage this process by forecasting demand, controlling, inventory, enhancing network of business relationships a company has with customers, suppliers, distributors, and others. Another goal is receiving feedback on the status of every link in the supply chain.
- 5. 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 information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners. The goal of supply chain management (SCM) is to create a fast, efficient, and low cost network of business relationships or supply chain to get a company’s products from concept to market. Supply Chain Management involves close linkage and coordination of activities involved in buying , making, and moving a product. Supply Chain Management helps to integrate suppliers, manufacturers, distributors and customer logistics time. What is a company’s supply chain? Let’s suppose a company wants to build and sell a product to other businesses. Then it must buy raw materials and a variety of contracted services from other companies. The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build, and sell a product make up the network of 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 an absolute requirement if they want to meet their e-commerce customer value imperative. What the customer wants, when and where it’s wanted, at the lowest possible cost. Companies are reengineering their supply chain processes aided by internet technologies and supply chain management software. Supply chain management software and internet technologies can help companies reengineer and integrate the functional Supply Chain Management processes that support the supply chain life cycle. Electronic Data Interchange (EDI) was one of the earliest uses of information technology for supply chain management.
- 6. Electronic Data Interchange (EDI) involves the electronic exchange of business transaction documents over the internet and other networks between supply chain trading partners. OBJECTIVES OF SUPPLY CHAIN MANAGEMENT The objective is to significantly reduce costs, increase efficiency and improve their supply chain cycle times. Supply Chain Management software can also help to improve enterprises coordination among supply chain process players. The result is much more effective distribution and channel networks among business partners. Supply chain management is aimed at achieving agility and responsiveness in meeting the demands 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 and execution. Customer value goals give customers what they want, when and how they want it, at the lowest cost. Inter enterprise coordination of manufacturing and business processes, effective distribution and channel partnerships responsiveness and accountability to customers Cross-functional e-business systems like Supply Chain management reengineer and streamline traditional supply chain processes, for example the demand of e-commerce are pushing manufactures to use their intranets, extranets and e-commerce web portals to help them reengineer their relationship with their suppliers, distributors and retailers. THE ROLE OF SUPPLY CHAIN MANAGEMENT Supply chain management helps us to understand the roles and activities of Supply Chain Management in business more clearly.
- 7. Another role of Supply Chain Management is that, it assists in close linkage and coordination of activities involving in buying, making and moving products. Role of Information Technology in Supply Chain Management is to support these objectives with enterprises information system that produce many of the outcomes a business needs to effectively manage its supply chain. Supply Chain Management helps in procurement of materials, transformation of raw materials into 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 MANAGEMENT Companies known that supply chain management can provide them with key business benefits such as faster, more accurate order processing, reductions in inventory levels, quicker times to markets, lower transaction and material costs and strategic relationships with their suppliers . CUSTOMER RELATIONSHIP MANAGEMENT(CRM) Customer relationship management involves two related objectives such as:- Customer Relationship Management are required to provide organization and all of its customer facing employees with a single complete view of company and its extended channels. Companies are turn to Customer Relationship Management to improve their customer focus, Customer Relationship Management uses information technology to create cross-functional enterprises system that integrates and automates many of the customer-serving processes in sales, marketing and customer services that interact with a companies’ customers. Customer Relationship Management create an information technology framework of web-enabled software and database that integrates these processes with the rest of company’s business operations.
- 8. Customer Relationship Management includes family of software modules that provide tools that enable a business and its employees to provide fast, convenient, dependable and consistence service to its customers. Siebel systems, oracle, people software , SAP AG, and Epiphany are some of leading vendors of customer relationship management software. Customer Relationship Management consolidate customer data from multiple sources and provide analytical tools for answering questions. Customer Relationship Management helps in managing all ways used by firms to deal with existing and potential new customers and also it uses information system to coordinate entire business process of a firm. There are major applications components of customer relationship management systems such as the contact and account management, sales, marketing and fulfillment, customer service and support, retention and loyalty programs. PHASES OF CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management are viewed as an integrated system of web-enabled software tools and databases accomplishing a variety of customer focused business processes that support the three phases of the relationship between a business and its customers such as acquire, enhance and retain. Acquire: a business relies on Customer Relationship Management software tools and databases to help it acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing and fulfillment. The goal of Customer Relationship Management functions is to help customers perceive the value of superior product offered by an outstanding company. Enhance: web-enabled Customer Relationship Management account management and customer service and support tools help keep customers happy by supporting superior services from a responsive networked team of sales and services specialist and business partners.
- 9. Retain: Customer Relationship Management analytical software and database help a company proactively identify and reward its most loyal and profitable customers to retain and expand their business via targeted marketing and relationship marketing programs. BENEFITS AND CHALLENGES OF CUSTOMER RELATIONSHIP MANAGEMENT The potential business benefits of customer relationship management are many which are as the followings:-. Customer Relationship Management allows a business to identify and target their best customers those who are most profitable to a business. Customer Relationship Management makes possible real-time customization and personalization of products and services based on customer wants, needs, buying habits and life cycle. Customer Relationship Management keeps track of when a customer contacts the company regardless of the contact points. Customer Relationship Management also enables a company to provide a consistent customer experience 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 managing demands for systems. Given the large number of various type of system in a firm, and the large number of customers. It is a complex task to understand which systems are truly necessary and productive with high returns on investments. TYPES OF CUSTOMER RELATIONSHIP MANAGEMENT Operational customer relationship management: this is the type of Customer Relationship Management that supports customer interaction with greater convenience through a variety of channels, include phone, fax, email, chat, and mobile devices. This helps make your company easier to do business with. Analytical customer relationship management: this is another type of Customer Relationship Management that extracts in-depth customer history, preference, and
- 10. profitability information from your data warehouse and other databases. This type of Customer Relationship Management allows you to analyze, predict and derive customer value and behavior and forecast demand, this also lets you approach your customers with relevant information. Collaborative customer relationship management: it is the type of Customer Relationship Management which enables easy collaboration with customers, suppliers and partners. It improves efficiency and integration throughout the supply chain and allows greater responsiveness to customer needs through sourcing of products and services outside of your enterprise. Portal-based customer relationship management: this is the type of Customer Relationship Management in which it provides all users with the tools and information that fits their individual roles and preferences. It empowers all employees to respond to customer demands more quickly and become truly customer focused and provides the capability to instantly access, link and use all internal and external customer information. CUSTOMER RELATIONSHIP MANAGEMENT FAILURES Surveys by industry research groups include report that over 50 percent of Customer Relationship Management projects did not produce the results that were promised. In another research report, 20 percent of businesses surveyed reported that Customer Relationship Management implementation had actually damaged long- standing customer relationships. The reasons for such a high rate of failure or dissatisfaction with Customer Relationship Management initiatives are:- Research shows that the major reason is familiar one, that is lack of understanding and preparations.; that is business managers rely on the major new application of information technology like Customer Relationship Management (CRM) to solve a business problem without first developing the business process changes and change management programs that are required, example in many cases, failed Customer Relationship Management projects were implemented without participation of business stakeholders involved. Therefore, employees and customers were not prepared for new processes or challenges that were part of Customer Relationship Management implementation.