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Business Information Systems Management: Dr. Anindita Paul Indian Institute of Management Kozhikode

1) The document discusses key enterprise applications like Supply Chain Management, Customer Relationship Management, and Enterprise Resource Planning. 2) It describes the components and benefits of SCM, CRM, and ERP systems, including improved visibility, profitability, and integration across business functions. 3) The challenges of implementing these complex systems are also addressed, such as high costs, process reworks, and ensuring organizational adoption.

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Shekhar Teny
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58 views

Business Information Systems Management: Dr. Anindita Paul Indian Institute of Management Kozhikode

1) The document discusses key enterprise applications like Supply Chain Management, Customer Relationship Management, and Enterprise Resource Planning. 2) It describes the components and benefits of SCM, CRM, and ERP systems, including improved visibility, profitability, and integration across business functions. 3) The challenges of implementing these complex systems are also addressed, such as high costs, process reworks, and ensuring organizational adoption.

Uploaded by

Shekhar Teny
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BUSINESS INFORMATION

SYSTEMS MANAGEMENT
Dr. Anindita Paul
Indian Institute of Management Kozhikode

ENTERPRISE APPLICATIONS
Session 5

Learning Objective
What is the significance of Enterprise Applications?
What are the components of a Supply Chain Management?
What are the benefits and challenges of a SCM system?
What are the components of a Customer Resource Management?
What are the benefits and challenges of the CRM system?
What are the components of a Enterprise Resource Management?
What are the benefits and challenges of the ERP systems?

Building a Connected Corporation Through


Integrations
Integration Allows separate systems to communicate
directly with each other, eliminating the need for manual
entry into multiple systems
Forward integration
Backward integration

Eintegration
Application Integration
Data Integration

Building a Connected Corporation Through Integrations

Integration Example

Building a Connected Corporation Through Integrations

A Central Information Repository Example

Integration Tools
Enterprise system Provide enterprise-wide support and data access for a firms
operations and business processes

Enterprise application integration (EAI) Term for the plans, methods, and tools
aimed at integrating separate enterprise systems
Middleware Several different types of software that sit between and provide
connectivity for two or more software applications
Enterprise application integration middleware Takes a new approach to
middleware by packaging commonly used applications together, reducing the time
needed to integrate applications from multiple vendors. Eg., applications such as
SCM, ERP, CRM, Payroll, BI, HR applications

Integration Tools

Three Primary Enterprise Systems

Nikes Supply Chain

This figure illustrates the major entities in Nikes supply chain and the flow of information upstream
and downstream to coordinate the activities involved in buying, making, and moving a product. Shown
here is a simplified supply chain, with the upstream portion focusing only on the suppliers for
sneakers and sneaker soles.

Supply Chain Management

The supply chain has three main links


1. Materials flow from suppliers and their upstream suppliers at
all levels
2. Transformation of materials into semifinished and finished
products through the organizations own production process
3. Distribution of products to customers and their downstream
customers at all levels

SUPPLY CHAIN MANAGEMENT


Five basic supply chain activities

SUPPLY CHAIN MANAGEMENT

Supply Chain Example

The Benefits of SCM: Improved Profitability


Common supply chain metrics include:
Back order Unfilled customer order for a product that is out of
stock

Inventory cycle time The time it takes to manufacture a


product and deliver it to the retailer
Customer order cycle time The agreed upon time between
the purchase of a product and the delivery of the product
Inventory turnover The frequency of inventory replacement

Supply Chain Management

Effective and Efficient SCM Systems Effect on Porters Five Forces

The Benefits of SCM: Improved Visibility


Supply chain visibility The ability to view all areas up and down
the supply chain in real time
Supply chain planning system Uses advanced mathematical algorithms
to improve the flow and efficiency of the supply chain while reducing inventory

Supply chain execution system Automates the different activities of the


supply chain. EDI used to route orders from a manufacturer to a supplier

Bullwhip effect Occurs when distorted product demand information ripples


from one partner to the next throughout the supply chain

The Bullwhip Effect

Inaccurate information can cause minor fluctuations in demand for a product to be


amplified as one moves further back in the supply chain. Minor fluctuations in retail
sales for a product can create excess inventory for distributors, manufacturers, and
suppliers.

The Benefits of SCM: Improved Visibility

Supply Chain Planning and Execution

Technologies Reinventing The Supply Chain


Supply chain management disruptive technologies
3D printing (supports procurement)

Maker movement

Makerspace

Radio frequency identification (supports logistics)


Drones (supports logistics)
Robotics (supports materials management) https://www.youtube.com/watch?v=lWsMdN7HMuA

Customer Relationship Management


Customer relationship management (CRM) Involves managing all
aspects of a customers relationship with an organization to increase
customer loyalty and retention and an organization's profitability
Harley Davidson used its CRM systems to improve relation ship with
customers and dealers

Dealers had to check online orders twice daily


Ship orders within 24 hours
Respond to inquiries within 24 hours

The Power of The Customer


The customer is always right and now has more power
than ever

Businesses want to control increasing customer power


CRM systems enable businesses to manage customer relationship
Increase in visibility across various departments ensure proper service
Customer-centricity at every stage of the manufacturing, order-fulfillment
process
Proper handling of dissatisfied customer is also important

Measuring CRM Success

CRM Communication Channels


Text message
Instant message
Voice mail

Voice call
Email letter
Web order

Phone order
Meeting
Customer service call

Twitter
Facebook

The Benefits of CRM


Organizations can find their most valuable customers through
RFM - Recency, Frequency, and Monetary value
How recently a customer purchased items
How frequently a customer purchased items
The monetary value of each customer purchase
CLTV
Relationship between the revenue produced by a customer, the
expense incurred in acquiring and servicing that customer and
expected life of the relationship between customer and company.

Evolution of CRM

Operational and Analytical CRM

Operational and Analytical CRM


Marketing and operational CRM technology
List generator, campaign management, cross-selling and upselling

Sales and operational CRM technology


Sales management, contact management, opportunity
management

Customer service and operational CRM technology


Contact center, Web-based self-service, call scripting

Marketing and Operational CRM

Three marketing operational CRM technologies


1. List generator
2. Campaign management system
3. Cross-selling and up-selling

Sales and Operational CRM

The sales department was the first to begin


developing CRM systems with sales force
automation a system that automatically tracks all of
the steps in the sales process

Sales and Operational CRM

Sales and operational CRM technologies


1. Sales management CRM system
2. Contact management CRM system
3. Opportunity management CRM system

Customer Service and Operational CRM

Three customer service operational CRM technologies


1.
2.
3.

Contact center (call center)


Web-based self-service system
Call scripting system

Common features included in contact centers


Automatic call distribution
Interactive voice response
Predictive dialing

Analytical CRM

Uplift Modeling

Website personalization Occurs when a website


has stored enough data about a persons likes and
dislikes to fashion offers more likely to appeal to
that person

Analytical CRM relies heavily on data warehousing


technologies and business intelligence to glean insights
into customer behavior

These systems quickly aggregate, analyze, and


disseminate customer information throughout an
organization

How can Businesses Reduce the Buyer


Power Using Analytical CRM
Find new profitable customer most profitable market segment and
target them
Exceed customer expectation personalize calls
Discover the activities the firm performs the best focus on the
competencies the firm has
Eliminate competition determine trends and offer deals etc.
Care about customers provide a private sale for the most loyal
customers

Extending CRM

Current trends include

Supplier relationship management (SRM)

Partner relationship management (PRM)

Employee relationship management (ERM)

Enterprise Resource Planning


Enterprise resource planning Integrates all departments
and functions throughout an organization into a single IT
system (or integrated set of IT systems) so that employees
can make enterprisewide decisions by viewing
enterprisewide information on all business operations

Enterprise Resource Planning


Reasons ERP systems are powerful tools
ERP is a logical solution to incompatible applications
ERP addresses global information sharing and reporting

ERP avoids the pain and expense of fixing legacy systems

Enterprise Resource Planning

The Organization Before ERP

ERP Bringing The Organization Together

Enterprise Resource Planning

ERP systems collect data from across an


organization and correlates the data
generating an enterprisewide view

ERP Systems Automate Business Processes

The Benefits of ERP

Extended ERP Components


Extended ERP components include:

Business intelligence
Customer relationship management
Supply chain management

Ebusiness components include


Elogistics
Eprocurement

Measuring ERP Success


Balanced scorecard Enables organizations to clarify their
vision and strategy and translate them into action
Balanced scorecard views the organization from four
perspectives
Learning and growth
Internal business process
Customer
Financial

Measuring ERP Success

Measuring ERP Success


ERP systems contain multiple complex components that are not
only expensive to purchase, but also expensive to implement
Costs include

Software
Consulting fees
Process rework
Customization
Integration
Testing/Training
Data Warehouse integration and data conversions

Organizational Integration with ERP

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