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L 6 part 1 summary

Enterprise systems are designed to integrate business processes across various functions to enhance operational efficiency and decision-making. The main types include ERP, SCM, and CRM systems, each with specific functions and benefits, such as data integration and improved customer relationships. However, challenges like high costs and the need for employee training can complicate their implementation.

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6 views

L 6 part 1 summary

Enterprise systems are designed to integrate business processes across various functions to enhance operational efficiency and decision-making. The main types include ERP, SCM, and CRM systems, each with specific functions and benefits, such as data integration and improved customer relationships. However, challenges like high costs and the need for employee training can complicate their implementation.

Uploaded by

demro channel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

Introduction to Enterprise Systems


Enterprise systems are information systems designed to integrate business processes across various functions within a
company (such as sales, marketing, production, human resources, accounting, etc.). These systems aim to improve
operational efficiency and decision-making by providing accurate and timely information.
Main Types of Enterprise Systems:
1. Enterprise Resource Planning (ERP) Systems
2. Supply Chain Management (SCM) Systems
3. Customer Relationship Management (CRM) Systems

2. Enterprise Resource Planning (ERP) Systems


What are ERP Systems?
• ERP systems are integrated software modules that consolidate data from various business processes into a
single system.
• Data is stored in a centralized database, allowing real-time information sharing across different departments.
• The primary goal is to improve operational efficiency and increase flexibility in responding to customer
requests.
Benefits of ERP Systems:
• Data Integration: Data is entered once and becomes available to all departments.
• Process Improvement: Provides a comprehensive view of business operations, helping managers make better
decisions.
• Increased Flexibility: Enables faster and more accurate responses to customer requests.
Functions of ERP Systems:
• Finance and Accounting: Managing cash, accounts receivable, revenues.
• Human Resources: Managing work hours, labor costs, job skills.
• Manufacturing and Production: Managing materials, production schedules, shipping dates.
• Sales and Marketing: Managing orders, sales forecasts, return requests.
Challenges of Implementing ERP Systems:
• High Costs: ERP systems are expensive to purchase and implement.
• Business Process Changes: Implementing the system may require significant changes to existing processes.
• Training and Learning: Employees need training to use the new system effectively.
3. Supply Chain Management (SCM) Systems
What are SCM Systems?
• SCM systems focus on managing the flow of materials, information, and finances across the supply chain,
from suppliers to customers.
• The goal is to improve supply chain efficiency and reduce costs.
Supply Chain Issues:
• Inefficiencies: Companies can waste up to 25% of their operating costs due to supply chain inefficiencies.
• Bullwhip Effect: Demand information becomes distorted as it moves through the supply chain, leading to
excess inventory or shortages.
Types of SCM Systems:
1. Supply Chain Planning Systems: Used to model the current supply chain, plan demand, and optimize
manufacturing processes.
2. Supply Chain Execution Systems: Focus on managing the flow of products through distribution centers and
warehouses.
Global Supply Chain Management:
• With globalization, supply chains have become more complex due to greater geographical distances, time
differences, and varying legal requirements.
• The internet has helped manage this complexity by improving warehouse management, transportation, and
logistics.

4. Customer Relationship Management (CRM) Systems


What are CRM Systems?
• CRM systems focus on managing a company’s interactions with current and potential customers.
• Data is collected from all customer touchpoints (such as sales, customer service, and marketing) and stored in
a centralized database.
Functions of CRM Systems:
1. Sales Force Automation (SFA): Managing lead information, generating sales quotes.
2. Customer Service: Managing customer service requests, providing web-based self-service.
3. Marketing: Managing marketing campaigns, analyzing data, and cross-selling.
Types of CRM:
1. Operational CRM: Focuses on customer-facing applications, such as sales automation and customer service.
2. Analytical CRM: Uses data analysis to understand customer behavior, predict trends, and improve customer
retention (e.g., Customer Lifetime Value (CLTV) and Churn Rate).
Benefits of CRM Systems:
• Increased Customer Satisfaction: By providing better service and understanding customer needs.
• Increased Sales: By improving customer relationship management and offering personalized offers.
• Reduced Costs: By improving marketing and customer service efficiency.
5. Challenges of Implementing Enterprise Systems
• High Costs: Enterprise systems are expensive to purchase and implement.
• Business Process Changes: Implementing the system may require significant changes to existing processes.
• Training and Learning: Employees need training to use the new system effectively.
• Vendor Dependence: Companies may become dependent on software vendors, making future changes
difficult.

6. Next-Generation Enterprise Applications


• Cloud-Based Applications: Enterprise systems are becoming more flexible and adaptable to modern business
needs.
• Social CRM: Integrating social networking technologies into CRM systems to monitor customer interactions
on social media.
• Business Intelligence (BI): Integrating analytics tools into enterprise systems to improve decision-making.

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