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Enterprise e-Business Systems

Learning Objectives


Identify the following aspects of customer relationship management (CRM), enterprise resource management (ERP), and supply chain (SCM) mgt systems:
  

Business processes supported Customer and business value provided Potential challenges and trends
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Customer Relationship Management (CRM): The Business Focus

Customer Relationship Management



Provides customer-facing employees with a single, complete view of every customer at every touch point and across all channels Provides the customer with a single, complete view of the company and its extended channels
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Customer Relationship Management (continued)



CRM..


Integrates and automates many of the customer serving processes Creates an IT framework of Web-enabled software & databases that integrates these processes with the rest of the companys business operations
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Customer Relationship Management (continued)

Customer Relationship Management (continued)

Customer Relationship Management (continued)



Benefits and Challenges



Allows a business to identify its best customers Makes possible real-time customization & personalization of products & services based on customer wants, needs, buying habits, & life cycles

Customer Relationship Management (continued)



Benefits and Challenges (continued)



Enables a company to provide a consistent customer service experience

Failures


Due to lack of understanding & preparation. CRM is not a silver bullet

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Customer Relationship Management (continued)



Trends
   

Operational CRM Analytical CRM Collaborative CRM Portal-based CRM

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Enterprise Resource Planning (ERP): The Business Backbone

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Enterprise Resource Planning



Serves as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems Helps companies gain the efficiency, agility, & responsiveness needed to succeed today
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Enterprise Resource Planning (continued)



Gives a company an integrated real-time view of its core business processes ERP software suites typically consist of integrated modules of
    

Manufacturing Distribution Sales Accounting Human Resource Management

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Enterprise Resource Planning (continued)



Benefits


Quality and efficiency



Helps improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processes Reductions in transaction processing costs and hardware, software, and IT support staff
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Decreased Costs


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Enterprise Resource Planning (continued)



Benefits


Decision support


Provides cross-functional information on business performance to assist managers in making better decisions Results in more flexible organizational structures, managerial responsibilities, and work roles
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Enterprise agility


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Enterprise Resource Planning (continued)



Challenges


Costs of ERP


The costs and risks of failure in implementing a new ERP system are substantial.

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Enterprise Resource Planning (continued)

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Enterprise Resource Planning (continued)



Causes of ERP failures



Underestimating the complexity of the planning, development, and training required Failure to involve affected employees in the planning & development phases and change management programs

Trying to do too much, too fast Insufficient training Believing everything the software vendors and/or consultants say

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Enterprise Resource Planning (continued)



Trends
   

Flexible ERP Web-enabled ERP Interenterprise ERP E-Business Suites

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Supply Chain Management: The Business Network

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Supply Chain Management



A cross-functional interenterprise system that uses IT to help support & manage the links between some of a companys key business processes and those of its suppliers, customers, & business partners. Goal is to create a fast, efficient, & low-cost network of business relationships.
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Supply Chain Management (continued)

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What do supply chain management (SCM) tools do?

 Supply
Supply Chain Management Definition

chain management tools enable managers to make informed business decisions about the operation of their supply chain

 Supply
Supply Chain Management Overview

chain management tools facilitate planning and production scheduling based on known business constraints
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SCM capacity constraints

How do I decide what to do on which piece of equipment, and when? Can only drill one piece of metal at a time

Managing a supply chain would be easy if we had unlimited resources

-- OR --

Computer processing and storage capacity not infinite

Supply Chain Manager

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SCM Tools levels

Supply Chain Elements SCM Service Offering

Strategic Planning

Network Design Demand Planning Supply Planning Production Planning

Tactical Planning Warehouse Management Transportation Management Order Management Operational Planning Inventory Management Event Management

Supply Chain Planning services configure operations to best meet projected demand levels The planning horizon ranges from developing a long term strategic outlook to developing a short term tactical production schedule Supply Chain Execution services monitor and control production operations They provide real time 25 tracking and alert notification


Weeks / Months Quarters Years

Real time / Minutes

Hours / Days

Supply Chain Planning Tools

Supply Chain Execution Tools


Source: BAH

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Supply Chain Planning Process

Demand Planning


Network Design


Design where to place production facilities and optimize the end to end chain Construct alternate flow scenarios that incorporate associated constraints


Anticipate demand based on historical trends and current conditions Perform what if analysis - highlight the impact of changing demand drivers

Production Planning


Production Scheduling


Supply Planning Balances unconstrained demand against high level supply chain constraints Reflect order priority and due dates

Decompose the supply plan into sub assembly / production needs by site Balance production capacity across sites

Optimize processing flows, sequence, and timing Produce a finite capacity production schedule

Planning Years Horizon

Quarters

Weeks / Months

Hours / Days
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Supply Chain Execution Process

Order Management


Inventory Management


Warehouse

Transportation

Management


Management


Record customer orders and track status from receipt to final delivery Direct efficient response to orders with dynamic cost / benefit analysis of options

Streamline information movement and provide tight inventory control Inventories replenished using kanban, min-max, or reorder point

Optimization and management of warehouse processes

Optimize and track outbound and inbound shipping

Event Management
 

Monitor and manage critical planning and event information Broadcast alert notification and present response alternatives based on pre determined business rules

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I2 >master production schedule

Source: i2 Technologies

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SCM vendors


Although each of the vendors claim to provide an end to end solution, they actually fall into two distinct camps


Leading SCM Vendors

ERP Focused Oracle SAP JD Edwards Peoplesoft Invensys / Baan
   

SCM Focused i2 Manugistics Aspentech Logility

First are the ERP vendors who provide a strong solution for integrating the data environment and providing visibility Second are the SCM vendors who provide robust optimization solutions In combination, with an ERP vendor providing the data environment and a SCM vendor providing the optimization solution, you can achieve a very elegant solution

   

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Source: Gartner

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Supply Chain Management (continued)

Benefits and Challenges


Can provide faster, more accurate

    

order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliers
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Supply Chain Management (continued)



Problem causes


Lack of proper demand planning knowledge, tools, and guidelines Inaccurate or overoptimistic demand forecasts Inaccurate production, inventory, and other business data Lack of adequate collaboration
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Supply Chain Management (continued)



Trends

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Mitsubishi Motor Sales

 

Multivendor CRM system Benefits to a business and its customers of a CRM system like Mitsubishis Mitsubishis modular approach to acquiring and installing CRM system


Prevention of large scale failures

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Agilent Technologies & Russ Berrie

 

Failures in implementing ERP systems Causes of the major failure of Agilents ERP implementation Russ Berrie

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TaylorMade Golf & HON Industries



Moving business information systems with suppliers and distributors to the Web resulted in dramatic business benefits

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H-P, Eastman Chemical, & Others



What is the business value to Eastman Chemical and W.W. Grainger of their initiatives to help their suppliers and customers do business online? Why are many small suppliers reluctant to do business online with their large customers? What can be done to encourage small suppliers to get online?
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Wal-Mart & Mattel



Wal-Mart as the best supply chain operator of all time? What can other businesses learn from the experiences of Wal-Mart and Mattel that could improve their supply chain performance?
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