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Introduction
to
Enterprise
Resource
Systems



2

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
  

2


Customer
Relationship
Management
(CRM)
 –
The
Business
Focus



What
Does
CRM
Do
For
An
Organization?


4


5

What
Does
CRM
Do
For
An
Organization?
   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
   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
company’s
business
operations
 5


6

6


7

7


8

CRM
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
   Enables
a
company
to
provide
consistent
customer
 service
experience
across
the
organization


8


9

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


9


10

Trends
in
CRM
   Operational
CRM
   Analytical
CRM
   Collaborative
CRM
   Portal‐based
CRM


10


Enterprise
Resource
Planning
(ERP):
 The
Business
Backbone



How
Does
An
ERP
Help
An
Organization?


12


13

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
   Gives
a
company
an
integrated
real‐time
view
of
its
 core
business
processes


13


14

Enterprise
Resource
Planning
(continued)
   ERP
software
suites
typically
consist
of
integrated


modules
of…


Manufacturing
   Distribution
   Sales
   Accounting
   Human
Resource
Management
  

14


15

Benefits
of
ERP
Systems
  

Quality
and
efficiency
  

 

Decreased
Costs
  

 

Reductions
in
transaction
processing
costs
and
hardware,
software,
 and
IT
support
staff


Decision
support
  

 

Helps
improve
the
quality
and
efficiency
of
customer
service,
 production,
&
distribution
by
creating
a
framework
for
integrating
 and
improving
internal
business
processes


Provides
cross‐functional
information
on
business
performance
to
 assist
managers
in
making
better
decisions


Enterprise
agility
  

Results
in
more
flexible
organizational
structures,
managerial
 responsibilities,
and
work
roles
 15


16

Biggest
Challenge
of
ERP
   Costs
of
ERP
  

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


16


17


18

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
  

18


19

Trends
In
Enterprise
Resource
Planning
   Flexible
ERP
   Web‐enabled
ERP
   Inter‐Enterprise
ERP
   E‐Business
Suites


19


Supply
Chain
Management:
 The
Business
Network



What
Is
Supply
Chain
Management?



22

Supply
Chain
Management
   A
cross‐functional
inter‐enterprise
system
that
uses


IT
to
help
support
&
manage
the
links
between
some
 of
a
company’s
key
business
processes
and
those
of
 its
suppliers,
customers,
&
business
partners.
   Goal
is
to
create
a
fast,
efficient,
&
low‐cost
network
 of
business
relationships.


22


23

23


24

What
Do
Supply
Chain
Management
Tools
Do?


Supply Chain Management Definition

Supply Chain Management Overview

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

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

24


25

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

“How do I decide what to do on which piece of equipment, and when?”

Can only drill one piece of metal at a time

-- OR --

Computer processing and storage capacity not infinite

Supply Chain Manager

25


26

SCM
Tools
levels
 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

Real time / Minutes

Hours / Days

Weeks / Months

Supply Chain Planning Tools

Quarters

Years

Supply Chain Execution Tools

Source: BAH

26


27

Supply
Chain
Planning
Process
 Demand Planning  Anticipate

Network Design  Design

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

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

Supply Planning

Production Planning  Decompose

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

Production Scheduling  Optimize

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

 Balances

unconstrained demand against high level supply chain constraints  Reflect order priority and due dates

Planning Years Horizon

Quarters

Weeks / Months

Hours / Days

27


28

Supply
Chain
Execution
Process
 Order Management  Record

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

Inventory Management  Streamline

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

Warehouse

Management  Optimization

and management of warehouse processes

Transportation

Management

 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

28


29

SCM
Vendors
  

 

   

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


Leading SCM Vendors ERP Focused

SCM Focused

 Oracle

 i2

 SAP

 Manugistics

 JD

 Aspentech

Edwards

 Peoplesoft  Invensys

 Logility

/ Baan

29


30

Benefits
of
Supply
Chain
Management
   Can
provide
faster,
more
accurate

          

order
processing

 reductions
in
inventory
levels

 quicker
time
to
market

 lower
transaction
and
materials
costs

 strategic
relationships
with
suppliers


30


31

Challenges
of
Supply
Chain
Management
   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


31


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Introduction to Enterprise Resource Systems