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ITM ASSIGNMENT

1) What is SCM-Supply chain Management?

Supply chain Management is a cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a companys key business processes and those of its suppliers, customers, and business partners. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

2) What is CRM?

Customer relationship management is the use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a companys customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

3) What is ERP? List major applications of ERP?

Enterprise resource planning is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. Financial Accounting

Management Accounting

Human Resources

Manufacturing

Supply Chain Management

Project Management

Customer Relationship Management

Data Services

Access Control

4) What is SCM? How information system can facilitate SCM? Explain Briefly.

Supply chain Management is a cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a companys key business processes and those of its suppliers, customers, and business partners. It is the integration and management of supply chain organizations and activities through collaboration, effective business processes and high level of information sharing. The supply chain concept has become a concern due to global competition and increasing customer demand for value. Thus, the

information must be available in real time across the supply chain and this can not be achieved without integrating software system for supply chain management. Supply chain members have to collaborate, sharing information for improving customer satisfaction. Web technologies enable enterprises to become more effective, to trade with suppliers and customers over the internet in real time. For this, business has to integrate their information systems and applications with those of their suppliers and customers. First, companies have to redesign their supply chain to create an integrated value system and afterwards, companies can develop business to business applications across supply chain structure for the optimization of the supply chain. The implementation of the supply chain information systems in companies facilitates an increase in their competitiveness and their profits.

5) Explain three major phases of CRM with a neat diagram.

Acquire : Acquiring customers is, obviously, the means for business survival and growth; thus, the initial stage of customer relationship management is acquiring the customers to manage. This may be achieved through one or more effective marketing techniques, including advertisements, sales and events held in-store. Collect personal information and organize it into a database to keep customers abreast of future marketing efforts, therefore growing these initial customers into a loyal client base that returns to the store or website for more than one purchase. Use secure measures to keep from allowing sensitive customer information to be released.

Enhance : The firm attempts to widen each customer's purchasing trends by introducing him to additional product lines and persuading him to purchase other items. The customer expands his trust, preferred products, company loyalty and overall satisfaction with the company. These expanded purchases are often referred to as supplemental purchases. The goal of the company is to keep each customer purchasing the original item, the new item and all similar items.

Retain: Retaining the customers is the common "phase two" of customer relationship management, and involves the effort necessary to keep

customers returning to the store for their purchases of either the same product or something similar. Companies often use this stage of CRM to create brand or company loyalty among customers. Sales associates may use marketing tactics such as VIP memberships, coupon strategies and other enticing methods of attracting the consumers to purchase additional products. This phase increases the trust that the customer grows for the business, if applicable.

6) What is GDSS? Explain the components of GDSS.

Decision support system designed for a manager who is a sole decision maker. However many decision making situations call for involvement of a number of persons , each contributing towards the decision process. Information technology supports such decision-making where there is group participation. Such decision support system is termed as Group Decision Support System (GDSS).

There are four fundamental types of components that compose GDSS:

Software The software part may consist of the following components: databases and database management capabilities, user/system interface with multiuser access, specific applications to facilitate group decision-makers activities, and modeling capabilities.

Hardware The hardware part may consist of the following components: I/O devices, PCs or workstations, individual monitors for each participant or a public screen for group, and a network to link participants to each other. People The people may include decision-making participants and /or facilitator. A facilitator is a person who directs the group through the planning process. Procedures This refers to the methods that have been used in holding meetings.

7) Explain the components of Enterprise Management System? 10

8) What is GDSS?

Decision support system designed for a manager who is a sole decision maker. However many decision making situations call for involvement of a number of persons, each contributing towards the decision process. Information technology supports such decision-making where there is group participation. Such decision support system is termed as Group Decision Support System (GDSS).

9) List out the benefits of ERP?

Quality and Efficiency ERP creates a framework for integrating and improving a companys internal business processes that results in significant improvements in the quality and efficiency of customer service, production, and distribution Decreased Costs Significant reductions in transaction processing costs and hardware, software, and IT support staff Decision Support Provides vital cross-functional information on business performance quickly to managers to significantly improve their ability to make better decisions in a timely manner

Enterprise Agility ERP breaks down many former departmental and functional walls of business processes, information systems, and information resources Streamlining processes and workflows with a single integrated system. Reduce redundant data entry and processes and in other hand it shares informartioin across the department. Establish uniform processes that are based on recognized best business practices Improved workflow and efficiency Improved customer satisfaction based on improved on-time delivery, increased quality, shortened delivery times Reduced inventory costs resulting from better planning, tracking and forecasting of requirements Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors Decrease in vendor pricing by taking better advantage of quantity breaks and tracking vendor performance Provide a consolidated picture of sales, inventory and receivables

10) Explain various types of information systems that support the business functions with a neat diagram?

Marketing systems: they are concerned with Planning, promotion, and sale of existing products in existing markets, Development of new products and new markets, Better attracting and serving present and potential customers CRM: provide better goods and services to customers, acquiring retaining and partnering with a selective group of customer. Interactive Marketing: A customer-focused marketing process, Uses the Internet, intranets, and extranets, Establishes two-way transactions between a business and its customers or potential customers Sales force automation: Outfit sales force with notebook computers, web browsers, and sales contact software, Connect them to marketing websites and the company intranet

Manufacturing information system: It supports production/operation functions, It includes all activities concerned with planning and control of the processes producing goods or services Human resource management: Information systems designed to support, Planning to meet personnel needs, Development of employees to their full potential, Control of all personnel policies and programs Accounting information systems: The oldest and most widely used information system in business, It records and reports business transactions and economic events, Produces financial statements, Forecasts future conditions. It consists of order processing, inventory control, accounts receivable, accounts payable, payroll & general ledger systems. Finance management: these systems support business managers and professionals in making decisions concerning the financing of the business and allocation and control of financial resources within a business.

11)

Explain applications of CRM?

Contact and Account Management: It helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers Sales: It provides sales reps with tools and company data sources needed to support and manage sales activities, and optimize cross-selling and upselling Marketing Fulfillment: It helps marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailings Customer Service and Support: It provides service reps with software tools and real-time access to the common customer database shared by sales and marketing professionals Retention and Loyalty Programs: It helps a company identify, reward, and market to their most loyal and profitable customers

12) What is SCM? Explain the entities of SCM, with a neat diagram, depicting the upstream and the downstream activities.

Supply chain Management is a cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a companys key business processes and those of its suppliers, customers, and business partners. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Request orders: represent customer or replenishment orders for physical goods. These entities carry order information from customers to manufacturing and distribution functions and from manufacturing and distribution functions to other manufacturing and distribution functions. Filled orders: represent customer or replenishment orders for which physical goods have been provided. These entities carry order physical goods from manufacturing and distribution functions to customer manufacturing and distribution functions. Filled orders may pass through transportation functions where aggregate and transport occurs. Shipments: represent a group of filled orders in transport. These entities carry filled orders from transportation function to customer, manufacturing and distribution functions. Forecasts: represent demand forecasts for customer and replenishment orders. These entities often carry demand forecast information from forecasting functions to supply planning, manufacturing and distribution functions. It is also possible for a customer, manufacturing, or distribution function to have its own local forecasting process. If such a function shares its forecasts with other supply chain functions, it would do so by sending forecast entities.

Supply plans: represent production and procurement plans generated by a supply planning functions, often based on forecast information. These entities usually carry information from supply planning functions to distribute and manufacturing functions.

13)

Explain Benefits and failures of SCM?

Benefits are as below:

With the increased visibility into the supply chain and adaptive supply chain network, you can be more responsive. You can sense and respond quickly to changes and quickly capitalize on new opportunities. By offering a common information framework that supports communication and collaboration, SCM enables you to better adapt to and meet customer demands. You can track and monitor compliance in areas as environment, health and safety. Information transparency and real-time business intelligence can lead to shorter cash-to-cash cycle times. Reduced inventory levels and increased inventory turns across the network can lower overall costs. With SCM, you can lower operational expenses with timelier planning for procurement, manufacturing and transportation. Better order, product and execution tracking can lead to improvements in performance and quality and lower costs. You can also improve margins through better coordination with business partners. Tight connection with trading partners keep your supply chain aligned with current business strategies and priorities, improving your organization's overall performance and achievement of goals. Failures of SCM:

Lack of proper demand planning knowledge, tools and guidelines

Inaccurate or overoptimistic demand forecasts Inaccurate production, inventory and other business data provided by a companys other information systems Lack of adequate collaboration among marketing, inventory management departments within a company production, and

Immature, incomplete or hard to implement SCM software tools

14) How GDSS can enhance group decision making? What are the limitations of GDSS?

GDSS help to enhance group decision making by following ways: 1. Improved pre-planning: Improved preplanning forces an agenda to keep the meeting on track. 2. Increased participation: More number of persons, result more effective contribution towards decisions. 3. Open, collaborative meetings atmosphere: GDSS help to provide open, and collaborative meeting atmosphere which provide non judgmental input by all attendees. 4. Criticism free idea generation: GDSS provide criticism free idea generation with more inputs and better ideas. 5. Documentation of meeting: GDSS help for effective documentation of meetings which are used for further discussion and use. 6. Setting priorities and making decisions: GDSS help to set the priorities and give importance to those problems which are more critical. Limitations of GDSS Cost: Infrastructure costs to provide the hardware software/room/network connectivity can be very expensive. and

Security: especially true when companies rent the facilities for GDSS also the facilities may be lower level employee who may leak information to peers. Technical failure: Power loss, loss of connectivity, relies heavily on bandwidth and LAN/WAN infrastructure properly setup system should minimize this risk

Keyboarding skills: reduced participation may result due to frustration. Training: learning curve is present for users, varies by situation Perception of message: lack of verbal communication could lead to misinterpretation.

15) Describe how firms can benefited from Supply chain Management?

Lower Costs - By adding an effective SCM system to a business, the added global efficiency can lead to lower costs of raw materials. This system efficiently plans for materials to be brought to your company from the lowest cost provider possible and at just the right time to ensure there is no excess or deficiency in the material. A SCM system can improve your company's relationship with vendors so that there are opportunities to cut costs like through a volume discount. Improved Collaboration - A SCM system wired in to the latest software allows you to know the position your raw materials and your finished products are in by tracking both your suppliers and your distributors. These companies can also track where you are at in receiving or sending those materials. This knowledge can keep relationships between these businesses strong. This system often includes the development of reports on how the chain of goods progresses from supplier through distributor. These reports help your businesses to determine potential areas of improvement. Cycle Times - The cycle time can be defined as the time it takes your business to turn over a product from raw materials, give it to your distributor to sell and then make enough money to purchase new raw products to start the cycle over. If at any point it takes too long to obtain these raw materials, production may have to stop which will slow down your organisation. A SCM system improves cycle times and ensures that raw materials are provided when your business needs them so that you never have to stop production. Response to Conflict - Unfortunately, a business cannot always run smoothly and there are a number of factors that can lead to problems in the production of a product. If an issue occurs with the suppliers of your company, you may have to change how you produce your product. If the

distributor goes out of business, you will have to find another way to sell the product. A SCM system lets your company better cope with problems at either side of the production spectrum. You can quickly and easily figure out a response to the problem instead of being surprised by it at a later time.

16)

What are the evaluation dimensions for selecting an ERP? 7

17)

What are cross functional systems? Explain with a diagram.

Cross functional enterprise systems are those systems that cross the boundaries of traditional business functions to re-engineer and improve vital business processes all across the enterprise.

The cross functional systems are: Enterprise resource planning: It concentrates on the efficiency of internal production, distribution, and financial processes Customer relationship management: It focuses on acquiring and retaining profitable customers via marketing, sales, and services

Supply chain management: It focuses on developing the most efficient and effective sourcing and procurement processes Partner relationship management: It aims at acquiring and retaining partners who can enhance the selling and distribution of products and services Knowledge management: It focuses collaboration and decision support. on facilitating internal group

18) Explain Enterprise Application Architecture with neat diagram?

Enterprise application architecture provides a conceptual framework that helps visualize the basic components, processes and interfaces of major ebusiness application. It also focuses on accomplishing fundamental business processes in concert with customers, suppliers, employees and partners.

The various units which is part of the architecture are:

Enterprise Resource Planning (ERP) Concentrates on the efficiency of internal production, distribution, and financial processes

Customer Relationship Management (CRM) Focuses on acquiring and retaining profitable customers via marketing, sales, and services

Partner Relationship Management (PRM) Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services

Supply Chain Management (SCM)

Focuses on developing the most efficient and effective sourcing and procurement processes Knowledge Management (KM) Focuses on facilitating internal group collaboration and decision support

19)

a)Define CRM. Explain the trends of CRM.

b) Explain data driven CRM model and Process driven CRM model. 10

Customer relationship management is the use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a companys customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.
Trends in CRM Operational Supports customer interaction with greater convenience through a variety of channels. Synchronizes customer interactions consistently across all channels Makes your company easier to do business with Analytical Extracts in-depth customer history, preferences, and information from your data warehouse and other databases profitability

Allows you to analyze, predict, and derive customer value and behavior and forecast demand Lets you approach your customers with relevant information and offers that are tailored to their needs Collaborative Enables easy collaboration with customers, suppliers, and partners

Improves efficiency and integration throughout the supply chain Allows greater responsiveness to customer needs through sourcing of products and services outside of your enterprise Portal-based Provides all users with the tools and information that fit their individual roles and preferences Empowers all employees to respond to customer demands more quickly and become truly customer-focused Provides the capability to instantly access, link, and use all internal and external customer information