Chapter 10 Enterprise Systems: From Supply Chains to ERP to CRM Learning Objectives ก ก (enterprise systems) ก (computerized supply chain management) (supply chain) ก supply chain innovative solutions. ก ก supply chain ก (integrated software) ERP CRM ก ก IT. 1
IT-Performance Model ChevronTexaco Modernized Its Supply Chain With IT The Business Problem ChevronTexaco US ก ก ก ก ก ก ก ก (Run-out) ก ก (Retain) ก Supply Chain ก Supply Chain ก ก ก ก ก ก ก ก ก ก ก ก match Supply Chain ก ก ก ก ก 2
ChevronTexaco ก ก ก (peak demand) ก ก ก ก ก Spot market ก ก ChevronTexaco ก (mass production) ก ก ก (Supply-driven strategy) ก ก ก ก Supply Chain IT Solution business model ก Push ( ก ก ก ก ก ) Pull ( ก ก ก ) Electronic Monitor ก (real time) IT ก main inventory system main office Advanced DSS-based planning system ก ก ก ก logistic ก ก DSS ก (Trucking company) ก (airline company) ก ก 3
ก Enterprise Resource Planning (ERP) Business Planning System ก Spot market ก Supply Demand ก ERP ก (Planner) Supply Chain ( refinery, terminal management, station management, transportation, production) ก ก ก IT ก ก e-business ก ก The Results (integrated system) ก ก ก ก ก ก ก ก Supply Chain ก ก กก 300 1999 ก กก 100 ก ก Worthen (2002) 20% ( ก ) ก Supply Chain inventory ก (20% กก ) ก ก minimize ก 4
8.1 Essentials of Enterprise Systems and Supply Chains Enterprise systems ( ก Enterprisewide system) ก ก ก ก ก functional system ก Enterprise system ก Enterprise resource planning (ERP): Supply Chain enterprise Extended EPR: ERP ก Customer relationship management (CRM): ก Knowledge management (KM) systems: ก ก ก ก ก Partner relationship management (PRM): ก ก ก Business process management (BPM): ก ก ก ก Reengineering ก ก (flow) ก ก Product life cycle management (PLM): ก ก ก ก ก ก ก Decision support systems (DSSs): ก ก ก ก Executive information system (EIS) Intelligent Systems ก ก ก (knowledge component Expert system Neural network Business intelligence (BI) ก ก 5
Roadmap: Overview of enterprise system What is a supply chain? Supply chain ก (flow) ก ก ก ก ก ก ก ก Supply chain management (SCM) ก SCM ก ก ก Optimize ก ก ก ก supply chain ก(goal) Supply Chain Management (SCM) ก (Uncertainty) (Risk) Supply Chain ก (inventory level), (cycle time) ก ก ก ก ก ก ก ก 6
The Flows in the Supply Chain ก Supply Chain ( ก ) ก 1) ก (Materials flows) ก materials flows reverse flows-returned products, recycled products disposal of materials or products. 2) ก (Information flows) ก ก ก ก ก ก (schedule) ก ( model ก ก ) 3) ก (Financial flows) ก ก ก ก ก ก Supply Chain ก ก ก ก ก ก (Service industry) ก ก ก ก ก กก (hard and/or soft copies) ก ก ก ก Supply chain ก replaces materials flow ( digitized software) supporting information ( orders billing ) 7
The structure of a typical supply chain Supply chain ก Inventory 8
IT ก SC ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก (Production) ก ก ก ก ก (Distribution) ก ก ก (Information support) ก ก ก ก (Material flow) ก ก ก ก (Cash flow) SCM Software ก Supply Chain ก ก ก ก ก decision making optimization analysis E-supply chain Supply chain ก ก Web-based software ก Digital supply chain 9
The Structure and Components of Supply Chains Supply chain ก ก ก Supply chain ก ก ( ) : (Upstream) sourcing procurement ก ก external suppliers (Internal) ก ก packaging, assembly, manufacturing (Downstream) ก ก distribution dispersal ก ก ก external distributors Supply chain ก ก ก ก ก ก 10
SC ก ก ก (Upstream) (Internal) ก (Downstream) ก ก (Flow diagram) ก ก ก ก ก Linear Supply Chain 10.2 Supply Chain Management and Its Business Value Managing Collaboration ก ก supply chain ก : 1) (Uncertainties) 2) ก ก ก ( ก) ก supply chain ก ก ก ก (demand forecast) ก ก ก ก ก ก ก ก ก ก ก 11
Trust and Collaboration ก ก supplier buyer SC ก ก ก ก (predict process) ก ก ก (forecast) ก ก ก SC ก ก ก ก (demand forecast) ก ก ก (sharing information) ก ก collaborative supply chain Collaborative Planning, CPFR and Collaborative Design Collaborative Planning ก ก ก ก ก ก ก ก ( ) ก ก ก ก ก ก ก ก ก ก ก ก ก ก (common view) ก ก ก ก ก electronic link 12
Collaborative planning, forecasting and replenishment (CPFR) CPFR ก ก (retailer) ก ก ก ก ก SC ก ก ก CPFR ก ก (streamline) ก ก ก CPFR Model CPFR Model 13
1) ก ก (Strategy & Planning) ก ก supply and inventory level 2) ก ก demand & supply (Demand & Supply Management) ก ก ก ก ก ก ก supply inventory 3) ก ก (Execution) ก ก ก 4) ก (Analysis) ก ก Managing Information ก ก ก master data management (MDM) supplier (inventory replenishment) ก supplier ก ก Vendormanaged inventory (VMI) 14
MDM Framework E-Business Systems and the Supply Chain ก E-Commerce ก ก ก ก SC ก ก ก ก ก ก ก ก ก ก ก กก ก ก ก ก ก ก ก Online ก กก ก SC 15
Cycle time ก ก ก ก SC ก ก ก ก e-business SCM Collaborative fulfillment networks (CFN) ก ก ก ก ก SC Electronic marketplaces ก upstream supplier ก ก ก ก Electronic Data Interchange (EDI) Expanded version of EDI ก ก Advanced Shipping Notice (ASN) vendor shipping notice purchaser Electronic ordering and funds transfer (EOFT) ก E- business transaction 16
Managing Inventory ก ก ก ก (building inventories) ก ก ก ก ก ก ( ก ก ก ก supply chain ก bullwhip effect ) ก ก ก ก ก ก ก Managing E-Procurement ก ก ก Managing Other IT-Assisted Solution ก SC: ก ก linear SC hub SC Team SC Team ก tightly integrated businesses ก ก ก ก ก ก ก (Virtual factory): ก ก ก ก IT ก ก ก ก 17
Mobility and Wireless Solution IT at Work 10.2 Peacocks retails uses wireless to smooth its supply chain, page 378 The Leaning of Supply Chain Business value of SCM 377-378 Supply Chain and Information Integration 20 Functional oriented ( ก ก ก ก) 21 ก ก ก ก ก ก ก ก ก platform ก ก ( ก (integrate) ก (systems) ก ก ) Sandoe (2001) major benefits ก ก (systems integration): (Tangible benefits) ก inventory, ก ก (Intangible benefits) ก ก ก ก ก ก 18
Internal versus external integration ก ก) Internal integration ก ก ( ก ) ( ก )ก ก / ก ก ก ก ก ก CRM ก ก ) External integration ก ก ก ก ก ก ก ก supplier ก buyer s e-procurement Ethical issues related to supply chain solutions ก SCM Project ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก ก 19
10.3 Enterprise Resource Planning (ERP) Systems ERP? enterprisewide client/server computing ก ก ก ก ก ก กก ERP Enterprise resource planning (EPR): ก ก ก ก ก ก ก ก ERP ก ERP ก ก ก ก ก ก ก IT at Work 10.3 381 Capabilities of ERP (Third-Generation ERP) ก ก ก ก (distribution center) truckloads Dynamically sourcing products ก Shared services for manufacturing Global order management ก ก ก / ก Supplier portals 20
ERP Implementation ก 380-381 SAP R/3 EPR software ( ก SAP AG Crop.): ก ก กก 115 business activities modules ก Generations of ERP ERP ก ก ก ก ERP ก ก ก ก ก ก ก e-business. ERP ก ก ก ก ก ก ก SCM ก SC 21
ERP Application modules ก ERP ก SCM ก ERP SCM ก ก ก ก ก ก (Order processing) ERP How can I best take or fulfill you order? ( ) SCM Should I take your order? ( ก ( ) ก ก) SCM ก ก optimization ก Supply chain ERP ก ก ก ก ก ก ( ก ก ก ) 22
ก ก ERP ก SCM ก SAP ERP SCM ก ก ก ( middleware vendor ) decision support analysis ERP กก Business Intelligence (BI) DSS, ESS, data mining Intelligent system (ก business intelligence function ก ก second generation ERP decision support CRM, e-commerce data warehouse ก data mining knowledge management ) 23
10.4 Customer Relationship Management (CRM) Customer relationship management (CRM): enterprisewide ก ก ก IT CRM ก IT Operational CRM: ก ก ก customer services, order management, invoice /billing sale/marketing automation management. Analytical CRM: ก ก capture, store, extract, process, interpret, report customer data a corporate user. Collaboration CRM: ก ก all the necessary communication coordination collaboration vendors ก customers. CRM Application 24
Classification of CRM Application 1) Customer-facing applications ก ก ก 2) Customer-touching applications ก ก ก ก self-service, e- commerce application 3) Customer-centric intelligence applications ก operational processing ก CRM Application 4) Online networking applications ก ก online E-CRM (Electronic CRM) ก web browsers, Internet electronic touch-points ก ก ก E-CRM E-CRM ก ก 1) Foundational service (minimum necessary services) 2) Customer-centered services (focus on customer need) 3) Value-added services (extra service) Royalty Programs ก ก ก ( ) IT at Work 10.4 386 25
Customer Service on the Web ก e-crm ก ก Web ก 1) ก 2) ก ก ก ก 3) ก 4) ก ก ก ก 5) ก ก ก Other tools for customer service ก 1) Personalized Web pages 2) FAQs 3) E-mail and automated response 4) Chat rooms 5) Call center 6) Troubleshooting tools 26
Wireless (Mobile) CRM CRM Successes and Failure ก IT at Work 10.5 389 ก ก CRM ก 1) ก ก ก 2) ก ก ก CRM ก 3) ก ก ก ก 4) ก 5) ก ก ก ก ก ( ก CRM ) 27
Business Value of CRM ก 3 1) ก 2) ก 3) ก ก 28
Potential Pitfalls and Risks of e-crm Taking on more than can be delivered ก ก ก ก ก ก ก ก ก ก ( CRM ก ก ) Garbage in garbage out ก On-demand CRM On-premise CRM On-demand CRM ASP (Application Service Provider) Vendor On-demand CRM 1) ASP ก ก ก ก ก 2) ก ( ) ก ก hosted software 3) ก Upgrade ก 4) ก host 5) ก ก 29
On-demand CRM 1) 2) ก 3) ก ก ก 4) (Fast time-to-market) 5) ก ก 10.5 Knowledge Management and IT Concepts and Definitions: ก ก (Knowledge management (KM)) ก ก ก ก ก ก (organization s memory) ก : ก ก ก (dynamic learning) ก ก (strategic planning) ก (decision making) 30
Knowledge management (identifying knowledge) ก ก (leveraging its value through reuse) Knowledge management ก ก ก (promote organizational learning) ก (help solve problems) Data, Information and Knowledge Data ก : (Facts) ก (Measurements) (Statistics) Information ก ก : ก (Timely) (Accurate) 31
Knowledge : (Contextual) ก (Relevant) ก (Actionable) ก ก ก (Knowledge) ก ก กก ก ก Knowledge Corporate Asset ( ก ก ก ) ก ก ( ก ) ก ( ก ) ( ก ) ก ก ก refresh ก ก ก dynamic ก ก ก refresh ( ) ก ก 32
ก ก ก ก ก intangible aspects ก ก (Uncertain value of sharing) ก ก ก ก กก ก ก (Rooted in time) ก Intellectual capital (intellectual assets)( ): knowledge. A Closer Look 10.1 393 Knowledge Explicit knowledge (Explicit knowledge) ก ก ก ก ก Explicit knowledge ( leaky knowledge) deals with objective, rational, and technical knowledge - (Data) - (Policies) - (Procedures) - (Software) - ก (Documents) - (Products) -ก (Strategies) - (Goals) - ก (Mission) - ก ก (Core competencies) Leaky knowledge ก ก 33
(Tacit knowledge) ก subjective, cognitive experiential learning ก ก ก ก ก ก embedded knowledge ก ก ก ก business unit Tacit knowledge ก ก - ก -Mental maps - ก (Insights) - (Acumen) - (Expertise) -Know-how - ก (Trade secrets -ก ก (Skill sets) -ก ก - ก The need for Knowledge Management Systems knowledge management ก ( ก ก ) ก ก ก ก ก ก explicit tacit knowledge (formal information systems) ก Knowledge Management System (KMS) IT at Work 10.6 395 34
Knowledge Management System Cycle ก ก knowledge management system 6 ก 1) (Create knowledge) ก ก (know-how) ก ก 2) (Capture knowledge) ก (valuable) 3) (Refine knowledge) tacit explicit 4) ก (Store knowledge) ก access Knowledge Management System Cycle 5) ก (Manage knowledge) ก ก ก 6) ก (Disseminate knowledge) ก ก ก ก ก ก 35
Knowledge Knowledge Management Systems Knowledge Management Cycle Component of Knowledge Management Systems ก ก กก technology product ก ก ก business practices ก information technology ก ก (Knowledge Management Systems) Knowledge Management Systems ก ก (Communication technologies) users access ก ก ก ก ก ก ก (Collaboration technologies) ก ก Storage retrieval technologies (database management systems) ก 36
Knowledge Management System Implementation Technology tools ก ก ก knowware. Knowledge management software packages ก ก tools ( กก ): Collaborative computing tools Groupware transfer tacit knowledge Knowledge servers knowledge management software ก Enterprise knowledge portals (EKP) ก Web browser database Electronic document management systems (EDM) Electronic Document Management ( ก content management system (CMS)) Knowledge harvesting tools capture knowledge Search engines ก ก ก Knowledge management suites. Consulting Firms ก ก : ก vertical market software 37
Application service providers (ASPs) KMS outsourcing Web complete knowledge management solution KM suite set up. Finding Experts Electronically and Using Expert Location System IT at Work 10.7 397 Enterprise Knowledge Portal (EKP) 397 Using KM in Training and Learning 398 Expert Location System os AskMe Corp. ELS = Expert (or expertise) location system 38
Knowledge Management Integration Knowledge management systems enterprise-wide ก ก ก Decision Support Systems (DSS) Artificial Intelligence Customer Relationship Management Systems (CRM) Supply Chain Management Systems (SCM) Corporate Intranets Extranets Knowledge Management Integration Knowledge management systems integration. 39
MANAGERIAL ISSUES Ethical issues. ก supply chain management project ก ก lay off, retrain, transfer employees ก ก ก ก ก retrain ก ก How much to integrate? ก ก project ก ERP, SCM, e-commerce ก ก long complex supply chain segments ก ก upstream, inside-company, downstream ก ก MANAGERIAL ISSUES Role of IT. ก major SCM projects IT ก ก IT ก ก ก ก ก ก ก IT SCM ก Organizational adaptability. ERP ก ก ก software software ก ก ก ก 40
MANAGERIAL ISSUES Going global EC ก ก ก ก ก ก ก long and complex supply chains logistics supply chain ก regulations payment issues. The Customer is king/queen. ก IT application ก customer/end-user ก Set CRM policies with care. CRM ก ก ก ก ก ก ก ก ก MANAGERIAL ISSUES Organizational culture change. ก strong executive leadership, clearly expressed goals, user involvement in the system, ก ก ก ก How to store tacit knowledge. ก KMS ( network storage model) ก explicit knowledge tacit knowledge ก ก ก ก ก tacit knowledge ก ก 41
MANAGERIAL ISSUES The lasting importance of knowledge management. Knowledge management ก ก ก know-how ก ก ก ก ก ก ก KM ก Implementation in the face of quickly changing technology. ก IT ก ก makes sense 10.. 42