Chapter 8 - Enterprise applications: Business communications. When you finish this chapter, you should: Explain integrations and the role they play in connecting a corporation, describe supply chain management along with its associated benefits and challenges, describe customer relationship management along with its associated benefits and challenges, describe enterprise resource planning along with its associated benefits and challenges.
1 CHAPTER EIGHT ENTERPRISE APPLICATIONS BUSINESS COMMUNICATIONS © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part CHAPTER OVERVIEW SECTION 8.1 – Enterprise Systems and Supply Chain Management • • • • • Building a Connected Corporation Through Integrations Supply Chain Management The Benefits of SCM The Challenges of SCM The Future of SCM CHAPTER OVERVIEW SECTION 8.2 – Customer Relationship Management and Enterprise Resource Planning • • • • • • • • Customer Relationship Management The Benefits of CRM The challenges of CRM The Future of CRM Enterprise Resource Planning The Benefits of ERP The challenges of ERP The Future of Enterprise Systems, Integrating SCM, CRM, and ERP SECTION 8.1 Enterprise Systems and Supply Chain Management © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part LEARNING OUTCOMES Explain integrations and the role they play in connecting a corporation Describe supply chain management along with its associated benefits and challenges BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS Integration – Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems • Forward integration • Backward integration BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS Integration Example BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS A Central Information Repository Example Integration Tools Enterprise system – Provide enterprisewide support and data access for a firm’s operations and business processes Enterprise application integration (EAI) – Connects the plans, methods, and tools aimed at integrating separate enterprise systems 10 Integration Tools Middleware – Several different types of software that sit between and provide connectivity for two or more software applications Enterprise application integration middleware – Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors 48 THE BENEFITS OF ERP Core ERP component – Traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP component – Extra components that meet the organizational needs not covered by the core components and primarily focus on external operations 49 THE BENEFITS OF ERP 50 THE BENEFITS OF ERP 51 Core ERP Components Three most common core ERP components Accounting and finance Production and materials management Human resource 52 Accounting and Finance ERP Components Accounting and finance ERP component – Manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management 53 Production and Materials Management ERP Components Production and materials management ERP component – Handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control 54 Human Resource ERP Component Human resource ERP component – Tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 55 Extended ERP Components Extended ERP components include: • Business intelligence • Customer relationship management • Supply chain management • Ebusiness components include Elogistics Eprocurement 56 Measuring ERP Success Balanced scorecard – Enables organizations to clarify their vision and strategy and translate them into action Balanced scorecard views the organization from four perspectives • Learning and growth • Internal business process • Customer • Financial 57 Measuring ERP Success 58 THE CHALLENGE OF ERP ERP systems contain multiple complex components that are not only expensive to purchase, but also expensive to implement Costs include • Software • Consulting fees • Hardware expenses • Training fees 59 THE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERP SCM, CRM, and ERP are the backbone of ebusiness Integration of these applications is the key to success for many companies Integration allows the unlocking of information to make it available to any user, anywhere, anytime 60 THE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERP 61 THE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERP SCM, CRM, and ERP Integration 62 LEARNING OUTCOME REVIEW Now that you have finished the chapter please review the learning outcomes in your text ... challenges of ERP The Future of Enterprise Systems, Integrating SCM, CRM, and ERP SECTION 8. 1 Enterprise Systems and Supply Chain Management © 2014 by McGraw-Hill Education This is proprietary material...2 CHAPTER OVERVIEW SECTION 8. 1 – Enterprise Systems and Supply Chain Management • • • • • Building a Connected Corporation... through the implementation of CRM systems 28 CUSTOMER RELATIONSHIP MANAGEMENT 29 THE BENEFITS OF CRM Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary