Chapter 9 Enterprise Resource Planning Basics Quiz

Information Systems: Theory & Practice - TU 9

• The topic is Achieving Operational Excellence and Customer Intimacy: Enterprise Applications.
• The presenter is Prof. Dr. Paul Drews.
• The organization is Leuphana University Lüneburg.

Introduction Case Study - Lenzing Group

• Business Challenges: High environmental standards, global operations, inefficient supply chains, and manual processes.
• Management: Establish sustainability goals, promote innovation, select new technologies, and revise supply chain processes.
• Organization: Deploy JDA Sales & Operations Planning.
• Technology: Information systems (for sales, operations, planning, and reducing inefficiencies).
• Business Solutions: Reduce costs, increase sales, and minimize environmental impact.

Learning Objectives

• Understand how enterprise systems help achieve operational excellence.
• Explain how supply chain management systems coordinate planning, production, and logistics with suppliers.
• Describe how customer relationship management systems help firms achieve customer intimacy.
• Identify challenges posed by enterprise applications and how they leverage new technologies.

Agenda

• Enterprise Systems
• Supply Chain Management Systems
• Customer Relationship Management Systems
• Enterprise Applications: Challenges and Opportunities

Enterprise Systems

• Enterprise resource planning (ERP) systems are suites of integrated software modules with a common central database.
• ERP systems gather data from multiple firm divisions for internal business activities. Information input in one process becomes immediately available for other processes.
• ERP systems are a set of integrated software modules with a central database to share data across business processes and functional areas.

How Enterprise Systems Work

• ERP systems integrate finance, accounting, sales, marketing, manufacturing, and human resources into a central database.

Enterprise Systems (Continued)

• Enterprise software is built around predefined business processes reflecting industry best practices including areas in finance, accounting, human resources, manufacturing, and production, and sales and marketing.
• Firms implement these systems by selecting features, mapping business functions to software processes, and using configuration tables for customization.

Business Value of Enterprise Systems

• Increase operational efficiency and provide firm-wide information for decision-making.
• Enable rapid responses to customer requests for information or products.
• Include analytical tools to evaluate organizational performance and improve decision-making.

Prominent Vendors of ERP Systems (Global Top 5)

• Companies present include SAP, Oracle, Microsoft, Infor, and Epicor.
• Specific features and details are provided for each vendor in terms of market share, number of customers served, pricing, technologies utilized, and other specifics.

Supply Chain Management Systems

• Supply Chain: A network of organizations and processes for procuring materials, transforming materials into products, and distributing products.
• Supply Chain Types: Upstream supply chain (firm's suppliers, etc), downstream supply chain (organizations delivering products to customers), and internal supply chain.
• Nike's Supply Chain: A diagram depicting the major units in Nike's supply chain and the flow of information.

Supply Chain Management Systems

• Challenges: Inefficient use can lead to cut in operational costs by 25%. Just-in-time strategy leads to materials arriving as needed. Safety stock is a buffer for lack of flexibility.
• Bullwhip Effect: Inaccurate information amplifies minor fluctuations in demand as the supply chain continues backward toward suppliers.
• Software: Supply chain planning systems, model existing supply chains, enable demand planning, optimize sourcing, establish inventory and transportation levels, supply chain execution systems managing flow to distribution centers, and warehouses.

Supply Chain Management Systems

• Global Issues: Geographical distances, time differences, diverse countries, cultural and legal differences, and technology usage.
• Managing Global Complexity: Internet, Warehouse management, Transportation management, Logistics & outsourcing.

Supply Chain Management Systems (Continued)

• Push-based Model: Schedules products based on best guesses of demand.
• Pull-based Model: Customer orders trigger events in the supply chain and adjust immediately.
• Internet's Impact: Enables moving from sequential to concurrent supply chains.

Customer Relationship Management Systems

• CRM: Capture and integrate customer data from across the enterprise to analyze data. Distribute data across different systems and customer touchpoints. Provide single view of customers.
• Functions**: CRM software packages enable sales force automation, sales prospect to contact information, creating sales quotes, customer service requests, self-service capabilities, marketing campaign information management, capturing prospect and customer data, and tracking marketing mailings or emails.

Customer Relationship Management Systems

• CRM capabilities: Data collection from numerous sources; support for both operational and analytical aspects of CRM (e.g., sales, marketing, service).
• Types of CRM systems: Operational (front-office) CRM systems supporting sales, service, and customer support. Analytical CRM systems based on data warehouses, analyzing customer data using tools like OLAP, data mining, and customer lifetime value (CLTV) analysis.

Customer Relationship Management Systems

• CRM Business Value: Increased customer satisfaction, reduced direct-marketing costs, improved effectiveness of marketing, lower costs, and increased sales revenue.
• Customer Churn Rate: The number of customers who stop using or purchasing from a company.
• Example: Salesforce CRM system with product and pricing options given.

Enterprise Applications

• Challenges: Expensive to implement, long project duration, cost overruns, technology changes, business process changes, organizational learning, switching costs, dependence on vendors, data standardization.
• Next-generation applications: More flexible, web-enabled, integrated with other systems, cloud-based versions, mobile functionality, suitable for small and medium businesses.

Enterprise Applications (cont.)

• Next-generation applications (cont.): incorporate social networking technologies (social CRM), manage social, monitor social media, and conduct business intelligence analytics.

Tasks for the Week

• Actively read chapter 9 including case studies (3-4 hours).
• Watch promotional videos regarding ERP, SCM, and CRM (provided by Moodle).

Contact Information

• Prof. Paul Drews' contact details and university information are provided.