Prof. Anatoly Sachenko
I. LECTURE OVERVIEW
Foundation Concepts: Enterprise e-Business Systems
outlines the goals and components of customer relationship management, enterprise resource planning, and supply chain management, and discusses the benefitsand challenges of these major enterprise e-business applications.
Customer Relationship Management: The Business Focus -
Customer relationship management is a cross-functional enterprise system that integrates and automates many of the customer serving processes in sales,marketing, and customer service that interact with a company’s customers. CRM systems use informationtechnology to support the many companies who are reorienting themselves into customer-focused businesses as atop business strategy. The major application components of CRM include contact and account management, sales,marketing and fulfillment, customer service and support, and retention profitable relationships with its customersas a primary business goal. However, many companies have found CRM systems difficult to properly implementdue to lack of adequate understanding and preparation by management and affected employees. Finally, manycompanies are moving toward collaborative CRM systems that support the collaboration of employees, business partners, and the customers themselves in enhancing profitable customer relationships.
Enterprise Resource Planning: The Business Backbone -
Enterprise resource planning is a cross-functionalenterprise system that integrates and automates many of the internal business processes of a company, particularlythose within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business. Thus, ERP serves as the vital backbone information system of the enterprise, helping a company achievethe efficiency, agility, and responsiveness required to succeed in a dynamic business environment. ERP softwaretypically consists of integrated modules that give a company a real-time cross-functional view of its core business processes, such as production, order processing, and sales, and its resources, such as cash, raw materials, production capacity, and people. However, properly implementing ERP systems is a difficult and costly processthat has caused serious business losses for some companies, who underestimated the planning, development, andtraining that were necessary to reengineer their business processes to accommodate their new ERP systems.However, continuing developments in ERP software, including Web-enabled modules and e-business softwaresuites, have made ERP more flexible and user-friendly, as well as extending it outward to a company’s business partners.
Supply Chain Management: The Business Network
- Supply chain management is a cross-functionalinterenterprise system that integrates and automates the network of business processes and relationships between acompany and its suppliers, customers, distributors, and other business partners. The goal of SCM is to help acompany achieve agility and responsiveness in meeting the demands of their customers and needs of their suppliers, by enabling it to design, build, and sell its products using a fast, efficient, and low cost network of business partners, processes, and relationships, or supply chains. SCM is frequently sub-divided into supply chain planning applications, such as demand and supply forecasting, and supply chain execution applications, such asinventory management, logistics management, and warehouse management. Developing effective supply chainsystems and achieving the business goals of SCM has proven to be a complex and difficult challenge for manyfirms. But SCM continues to be a major concern and top e-business initiative as companies increase their use of Internet technologies to enhance integration and collaboration with their business partners, and improve theoperational efficiency and business effectiveness of their supply chains.
II. LEARNING OBJECTIVES
Identify each give examples to illustrate the following aspects of customer relationship management,enterprise resource management, and supply chain management systems:
Business processes supported
Customer and business value provided
Potential challenges and trends