Enterprise Resource Planning and Customer Relationship Management (ERP and CRM). Minder Chen, Ph.D. Professor of MIS Martin V. Smith School of Business and Economics CSU Channel Islands [email protected] ERP Market. ERP: Enterprise Resource Planning.
ERP: Enterprise Resource Planning
Source: http://www.forbes.com/global2000/list/ under software and programming
Harvard Business Review article: "Putting the enterprise into the Enterprise System" by Thomas H. Davenport
Sales, Production, Purch., Warehouse Mgmt
SOP: Sales & Operations Planning; MPS: Master Production Schedule
Outstanding Purchase Orders
Sales Planning & Forecasting
Bill of Materials
LT: Lead Time
Source: Preparing and Evaluating A Request for Proposals: How to Select a Vendor (link)
Assess and explore ERP Packages’ functionality & its underlying Reference Model
Develop a custom-built solution
Consider costs of customization and future upgrades
Select the best fit ERP package
Customize the package
Define business requirements and the firm’s processes / procedures / business rules
Conduct detailed gap analysis & Determine ways to reduce the gap
Redesign the firm’s business processes
Assume the selected ERP package has the best practices
This process assumes that a software package has been selected.
Define project scope & organization
Define & build technical infrastructures
Tune system performance
Perform fit/gap analysis
Build and test prototypes
Train project team
Support system after conversion
Create end-user procedures documentation & training
Source: Shari Shang & Peter Seddon, Assessing and managing the benefits of enterprise systems: the business manager’s Perspective, Info Systems Journal, (2002) 12, pp. 271–299 at http://cba.uah.edu/guptaj/m680/erpbenefits.pdf
Improved financial management
Faster, more accurate transactions
Better managerial decision making
Improved inventory & asset mgt
Ease of expansion & increased flexibility
Cycle time reduction
Improved customer service
Evolutionary Spiral of PEAS & Process Change and Management Initiatives
Distinctive Characteristics of Packaged Enterprise
Application Software (PEAS)
Another cycle of ES Exploration,
Redesign and Use
from ES Use
Achieving Fit between PEAS and Business needs
Assess and Explore PEAS
Changes to PEAS
Changes to Process
Initiatives to Manage the Distinctive Characteristics of the PEA Software
Monitor Changing Conditions & Reevaluate Benefits
Use ES to Generate Benefits
Source: Shari Shang and Peter Seddon
One of the most consistent findings reported in the literature is that there is a dip in organizational performance in the six to twelve months after "go live".
Under Promise and over Deliver
Low employee morale due to extra work, mismatched processes, data errors and change
Source: Ross & Vitale (1998)
Factors that might explain why problems occur after go live (packages or websites):
The star witness HealthCare.Gov went live Oct. 1, 2013
“The purpose of a business is to get and keep customers. ”*
- Peter Drucker
The measures an organization takes to
Companies spend two to 20 times as much finding new customers as they do keeping old ones.
Source: Steve Blank,
The Startup Owners Manual.
Moments of Truth (MOT)
Source: Steve Blank,
The Startup Owners Manual.
ODS: Operational Data Stores
An Open Source CRM Solution realized?
Convert leads into customers
Update deal information, track opportunity milestones, and record all opportunity-related interactions.
Manage customer relationships
Acquire deep knowledge of every account, facilitate collaboration, and build and maintain strong, lasting customer relationships.
Manage the follow-up process
Log calls, send emails, and update the status of your leads so that you never miss an opportunity.
from your Web site
Prospects fill out a Web form, which creates a lead in Salesforce that is routed to your sales team.
People click on your ad
When people search on Google, your ad is displayed and traffic is driven to your site.
Advertise your business on Google
Take five minutes
to write your ad
and select a couple keywords—even target your ad locally.
Close More Dealshttp://www.sugarforge.org/screenshots/screenshot.php/6/1862/fullsize/Home-Dashboard.jpg
Close deals faster by providing a single place for updating deal information, tracking opportunity milestones, and recording interactions.
Easily analyze your sales pipeline so you can quickly identify and eliminate any bottlenecks in the sales cycle.
Top 10 Deals
Closed Business by Month
Top Sales Reps
You can monitor your opportunities reports and dashboards to keep track of your top deals and prioritize your time.
Customize Salesforce to fit your internal sales methodologies and processes, making it easier to monitor your sales pipeline.
Salesforce gives your entire company a 360-degree view of your customers and facilitates collaboration across your organization, helping you build strong, lasting customer relationships.
Keep an archive of your dead opportunities.
Use email marketing and call downs to re-market to your archived opportunities.
Virtual Private Network
Standards based integration
Configurable across applications
Business process oriented
Supports an incremental approach
Scaleable, available, secure, manageable
ERP Application Packages
Source: IDC, at http://resources.idgenterprise.com/original/AST-0104779_IDC_SAP_and_the_transition_to_the_3rd_platform_for_enterprise_applicatio_.pdf