2. What is ERP?
• Enterprise resource planning is a cross-functional
enterprise system
– An integrated suite of software modules
– Supports basic internal business processes
– Facilitates business, supplier, and customer information
flows
• For e.g. software for a manufacturing company will
typically process the data and track the status of
sales, inventory, shipping, and invoicing, as well as
forecast raw material and human resource
requirements.
8-2
5. ERP
• ERP is the technological backbone of e-business, and
enterprise wide transaction framework with links into sales
order processing, inventory management and
control, production and distribution planning, and finance.
• ERP gives a company an integrated real time view of its
core business processes, such as production, order
processing, and inventory management tied together by
the ERP application software and a common database
maintained by a database management system.
• ERP software suites typically consist of integrated modules
of manufacturing, distribution, sales, accounting, and
human resource applications.
6. • Example of manufacturing processes supported
are material requirements planning, production
planning and capacity planning.
• Sales and marketing processes supported by ERP
are sales analysis, sales planning, and pricing
analysis.
• ERP support many vital human resource
processes, from personnel requirements planning
to salary and benefits administration, and
accomplish most required financial record
keeping and managerial accounting applications
7. Benefits of ERP
• ERP Business Benefits
– Quality and efficiency: ERP creates a framework for
integrating and improving a company’s internal business
processes that results in significant improvements in the
quality and efficiency of customer service, production, and
distribution.
– Decreased costs: companies significant reductions in
transaction processing costs and hardware, software, and
IT support staff compared to the nonintegrated legacy
systems that were replaced by their new ERP systems
8-7
8. Benefits of ERP
– Decision support: ERP provides vital cross functional
information on business performance to managers quickly
to significantly improve their ability to make better
decisions in a timely manner across the entire business
enterprise.
– Enterprise agility: implementing ERP systems breaks down
many former departmental and functional walls of
business processes, information systems, and information
resources. This results in more flexible org structures,
managerial responsibilities, and work roles and therefore a
more adaptive organization and workforce that can work
more easily capitalize on new business requirements.
9. Challenges of ERP
• ERP Costs
– Risks and costs are considerable
– Hardware and software are a small part
of total costs, and that the costs of developing new
business processes and preparing emp for the new system
make up the bulk of implementing a new ERP system.
– Converting data from previous legacy systems to the new
cross functional ERP system is another major category of
ERP implementation costs.
– Failure in implementing a new ERP system can cripple or
kill a business
11. Causes of ERP Failures
• Most common causes of ERP failure
– Under-estimating the complexity of
planning, development, training
– Failure to involve affected employees in
planning and development
– Trying to do too much too fast
– Insufficient training
– Insufficient data conversion and testing
– Over-reliance on ERP vendor or consultants
12. ERP Implementation
• Erp implementation, generally follows the
waterfall mode approach.
• Once a firm order is received, the
implementation begins with meeting between
the vendor and the org.
• ERP implementation process model, it is a
nine step approach for successful
implementation of ERP
13. Nine steps approach to ERP
implementation
1. RDD ( requirement definition and description)
2. Product mapping to RDD
3. Gap analysis for review
4. ERP product configuration
5. Functional implementation
6. Technical implementation
7. User feedback and review
8. Deploy fully and go live as planned
9. Project and process review
14. ERP implementation
Product
mapping to
RDD (2)
RDD (1) GAP Analysis
for review (3)
User training
ERP product Functional * Deploy
configuration implementation (5) Hand holding fully and Project
(4) * go live and
Critical process process
as review
testing planned
Technical *
(9)
(8)
implementation (6) User feedback
and review (7)
15. ERP implementation
• The model is built on three reviews.
– First review product vs. RDD results into ‘gap analysis’ showing
what ERP package offers and RDD states. This confirms the
utility of ERP product and makes a clear prescription of
changes, which are must in the ERP solution.
– Second review is ERP ‘ configuration review’ to confirm that
configured ERP for customer specific requirement is useful to
the users.
– Third and final review is after six months usage, to confirm that
RDD is fully implemented and the solution meets all
requirements, namely functions, features, facilities, technology
interface, information requirements and reports and queries.
• Nine steps implementation model is dynamic where each
step is checked, reviewed and confirmed.
16. What is a Supply Chain?
• The interrelationships
– With suppliers, customers, distributors, and
other businesses
– Needed to design, build, and sell a product
• Each supply chain process should add value to the
products or services a company produces
– Frequently called a value chain
17. Supply Chain Management (SCM)
• Fundamentally, supply chain management
helps a company
– Get the right products
– To the right place
– At the right time
– In the proper quantity
– At an acceptable cost
18. SCM
• Major functions of supply chain are
marketing, manufacturing, procurement,
operations, inventory, warehousing,
distribution and customer service.
• The process begins with customer order and
ends with delivery of goods and services.
• These functions are managed through supply
chain participants who could be many at each
stage in the chain.
19. SCM
• Supply chain consist of all stages involved in servicing the
customer to fulfill the expectations.
• A supply chain is an extended enterprise where participants in
the chain have specific contributing roles to the goal of
reaching the customer.
• Table shows supply chain models and participants
Manufacturing
Trading Service
business
• Customer • Customer • Customer
• Retailer • Retailer • consultant
• Distributor • Transporter • Service provider
• Transporter • warehouse
• warehouse • supplier
• supplier
21. Goals of SCM
• The goal of SCM is to efficiently
– Forecast demand
– Control inventory
– Enhance relationships with
customers, suppliers, distributors, and others
– Receive feedback on the status of every link in the
supply chain
24. Planning Function of SCM
• Planning
– Supply chain design
• optimize network of suppliers, plants and distribution centers
– Collaborative demand and supply planning
• Develop an accurate forecast of customer demand by sharing
demand and supply forecasts instantaneously across multiple tiers
• Internet enabled collaborative scenarios, such as collaborative
planning, forecasting and replenishment (CPFR), and vendor
managed inventory
25. Execution function of SCM
• Execution
– Materials management
• Share accurate inventory and procurement order information
• Ensure materials required for production are available in the right
place at the right time
• Reduce raw material spending, procurement costs, safety stocks,
and raw material and finished goods inventory
– Collaborative manufacturing
• Optimize plans and schedules while considering resources,
material, and dependency constraints
26. Execution function of SCM
– Collaborative fulfillment
• Commit to delivery dates in real time
• Fulfill orders from all channels on time with order
management, transportation planning, and vehicle scheduling
• Support the entire logistics process, including
picking, packing, shipping, and delivery in foreign countries.
– Supply chain event management
• Monitor every stage of the supply chain process, form price quotation
to the moment the customer receives the product, and receive alerts
when problem arises
– Supply chain performance management
• Report key measurements in the supply chain, such as filling
rates, order cycle times, and capacity utilization.
27. Benefits of SCM
• Key Benefits
– Faster, more accurate order processing
– Reductions in inventory levels
– Quicker times to market
– Lower transaction and materials costs
– Strategic relationships with supplier
28. Challenges of SCM
• Key Challenges
– Lack of demand planning knowledge, tools,
and guidelines
– Inaccurate data provided by other information systems
– Lack of collaboration among marketing, production, and
inventory management
– SCM tools are immature, incomplete, and
hard to implement
29. Integrated Supply Chain
Phase 1:
Independent
Suppliers Purchasing Production Distribution Customers
supply-chain
entities
Phase 2:
Internal Suppliers Purchasing Production Distribution Customers
integration
Internal supply chain
Materials management department
Phase 3: Internal
Supply-chain Suppliers supply Customers
integration chain
Integrated supply chain
30. • Today supply chain management has become a
matter of survival for corporate sector
• Companies are discovering this much to their dismay.
• Real time decision making
• Rapid changes in supply & demand
31. SCM – SUCCESS
THE STEPS TO SUCCESS IN SUPPLY CHAIN MANAGEMENT
1.Integrating Information
2.Analyzing This Information To Trigger A Corresponding
Product Transition
3. Creating A Nimble And Responsive Planning And
Execution Process
4. Enabling Global Process Visibility And Co-ordination
Between All Supply Chain Partners
5. Improving Overall Throughput And Asset Utilization
6. Empowering People To Identify And Solve Problems
Proactively
32. SCM - TOOLS
• Online real-time available to promise (ATP)
• Online real-time commit to promise (CTP)
• Accurate forecasting (AF)
• Closed loop corporate to enterprise to department to
work cell planning, optimization and execution
• Reactive dynamic scheduling
• Concurrent and collaborative planning
• Web-enabled communication of planning and
inventory information between suppliers and
customers.
33. Future of Competition
Supplier Inbound Manufacturing Distribution Outbound Ultimate
Transport Transport Customer
My Supply Chain vs. Your Supply Chain
Supplier Inbound Manufacturing Distribution Outbound Ultimate
Transport Transport Customer
34. Customer Relationship Management
• A customer-centric focus
– Customer relationships have become a company’s
most valued asset
– Every company’s strategy should be to
find and retain the most profitable
customers possible
35. What is CRM?
• Managing the full range of the customer relationship
involves
– Providing customer-facing employees with a single, complete
view of every customer at every touch point and across all
channels
– Providing the customer with a single, complete view of the
company and its extended channels
• CRM uses IT to create a cross-functional enterprise
system that integrates and automates many of the
customer-serving processes
36. What is Customer Relationship Management (CRM)?
CRM is “the development and maintenance of mutually beneficial
long-term relationships with strategically significant customers”
(Buttle, 2000)
CRM is “an IT enhanced value process, which identifies, develops,
integrates and focuses the various competencies of the firm to the
‘voice’ of the customer in order to deliver long-term superior
customer value, at a profit to well identified existing and potential
customers”.
(Plakoyiannaki and Tzokas, 2001)
37. Customer Relationship Management
“Process of creating and maintaining relationships
with business customers or consumers”
“A holistic process of
identifying, attracting, differentiating, and retaining
customers”
“Integrating the firm’s value chain to create enhanced
customer value at every step”
“An integrated cross-functional focus on improving
customer retention and profitability for the
company.”
38. Areas of CRM Activity
Sales Force Automation (SFA)
Customer Service and Support (CSS)
Help Desk
Field Service
Marketing Automation
40. Contact and Account Management
• CRM helps sales, marketing, and service professionals capture
and track relevant data about
– Every past and planned contact with prospects and customers
– Other business and life cycle events of customers
• Data are captured through customer touch points
– Telephone, fax, e-mail
– Websites, retail stores, kiosks
– Personal contact
41. Sales
• A CRM system provides sales reps with the tools and
data resources they need to
– Support and manage their sales activities
– Optimize cross- and up-selling
• CRM also provides the means to check on a
customer’s account status and history before
scheduling a sales call
42. Marketing and Fulfillment
• CRM systems help with direct marketing campaigns
by automatic such tasks as
– Qualifying leads for targeted marketing
– Scheduling and tracking mailings
– Capturing and managing responses
– Analyzing the business value of the campaign
– Fulfilling responses and requests
43. Customer Service and Support
• A CRM system gives service reps real-time access to the same
database used by sales and marketing
– Requests for service are created, assigned,
and managed
– Call center software routes calls to agents
– Help desk software provides service data
and suggestions for solving problems
• Web-based self-service enables customers to access
personalized support information
44. Retention and Loyalty Programs
• It costs 6 times more to sell to a new customer
• An unhappy customer will tell 8-10 others
• Boosting customer retention by 5 percent can boost profits by
85 percent
• The odds of selling to an existing customer are 50 percent; a
new one 15 percent
• About 70 percent of customers will do business with the
company again if a problem is quickly taken care of
45. Retention and Loyalty Programs
• Enhancing and optimizing customer
retention and loyalty is a primary
objective of CRM
– Identify, reward, and market to the most
loyal and profitable customers
– Evaluate targeted marketing and relationship
programs
46. The three phases of CRM
• We can view CRM as an integrated system of
web enabled software tools and databases
accomplishing a variety of customer focused
business processes that support the 3 phases
of the relationship between a business and its
customers.
– Acquire
– Enhance
– Retain
48. Acquire
• A business relies on CRM software tools and
databases to help it acquire new customers by
doing a superior job of contact
management, sales prospecting, selling, direct
marketing, and fulfillment.
• The goal of these CRM functions is to help
customers perceive the value of a superior
product offered by an outstanding company.
49. Enhance
• Web-Enabled CRM account management and
customer service and support tools help keep
customers happy by supporting superior service
from a responsive networked team of sales and
service specialists and business partners.
• CRM sales force automation and direct marketing
and fulfillment tools help companies to increase
their profitability to the business.
• The value of the customers perceive is the
convenience of one stop shopping at attractive
prices
50. Retain
• CRM analytical software and databases help a
company proactively identify and reward its
most loyal and profitable customers to retain
and expand their business via targeted
marketing and relationship marketing
programs.
• The value the customers perceive is of a
rewarding personalized business relationships
with their company.
51. Benefits of CRM
• Benefits of CRM
– Identify and target the best customers
– Real-time customization and personalization
of products and services
– Track when and how a customer contacts
the company
– Provide a consistent customer experience
– Provide superior service and support across
all customer contact points
52. CRM Failures
• Business benefits of CRM are not guaranteed
– 50 percent of CRM projects did not produce
promised results
– 20 percent damaged customer relationships
• Reasons for failure
– Lack of understanding and preparation
– Not solving business process problems first
– No participation on part of business stakeholders
involved
53. Trends in CRM
• Operational CRM
– Supports customer interaction with greater
convenience through a variety of channels
– Synchronizes customer interactions consistently
across all channels
– Makes the company easier to do business with
54. Trends in CRM
• Analytical CRM
– Extracts in-depth customer history, preferences,
and profitability from databases
– Allows prediction of customer value
and behavior
– Allows forecast of demand
– Helps tailor information and offers to
customer needs
55. Trends in CRM
• Collaborative CRM
– Easy collaboration with customers,
suppliers, and partners
– Improves efficiency and integration
throughout supply chain
– Greater responsiveness to customer needs
through outside sourcing of products
and services
56. Trends in CRM
• Portal-based CRM
– Provides users with tools and information
that fit their needs
– Empowers employees to respond to
customer demands more quickly
– Helps reps become truly customer-faced
– Provides instant access to all internal and
external customer information
58. What is Knowledge
• Knowledge is justified true belief. Ayer, A.J.
(1956).
• Knowledge is a fluid mix of framed
experience, values, contextual
information and expert insight that
provides a framework for evaluating
and incorporating new experience and
information.
59. • KM is the process of capturing and making use
of a firm’s collective enterprise anywhere in
the business- on paper, in document, in
databases (called explicit knowledge) or in
people’s heads (called tacit knowledge).
60. What is Knowledge Management?
• Defined in a variety of ways.
• KM in education: a strategy to enable people to
develop a set of practices to
create, capture, share & use knowledge to
advance.
• KM focuses on:
– people who create and use knowledge.
– processes and technologies by which knowledge is
created, maintained and accessed.
– artifacts in which knowledge is stored
(manuals, databases, intranets, books, heads).
61. What is Knowledge Management?
• “Knowledge management is a discipline that
promotes an integrated approach to
identifying, managing and sharing all of an
enterprise’s information needs.
62. Where does KM come from?
• Technology
– Infrastructure, Database, Web, Interface
• Globalization
– World wide markets, North American integration
• Demographics
– Aging population, workforce mobility, diversity
• Economics
– Knowledge economy
• Customer relations
– Quality
• Increase in information
– Specialization, Volume, Order
63. Data, Information & Knowledge
DATA INFORMATION KNOWLEDGE
Definition Raw facts, figures Data placed into Information in
and records a form that is context to make
contained in a accessible, timely it insightful and
system. and accurate. relevant for
human action.
Reason Processing Storing / Insight,
Accessing. innovation,
improvement.
64. Two types of knowledge
Know-how & learning
Documented information embedded within the minds
that can facilitate action. people.
Explicit knowledge Implicit (Tacit) knowledge
– Formal or codified – Informal and uncodified
– Documents: reports, policy – Values, perspectives & culture
manuals, white – Knowledge in heads
papers, standard procedures
– Databases – Memories of staff, suppliers and
– Books, magazines, journals vendors
(library)
Knowledge informs decisions and actions.
65. Knowledge type Nature Owners of knowledge Source
Skills Tacit Individual Individual
Capability Tacit Individual or groups Individual or groups
Knowhow Tacit Individual or groups Individual or groups
Information Explicit Individual Individual
Organised Explicit Databases System
information
Facts Explicit Databases/individual System
Process Explicit Organisation System
Proprietary (Patent) Explicit Organisation System
66. Need for KM
• Increase profits of revenues
• Retain key talent and expertise
• Improve customer retention and satisfaction
• Defend market share against new entrants
• Accelerate time to market with product
• Penetrate new market segments
• Reduce costs
• Develop new products and services
67. Forces driving KM initiatives
External Internal
Pressure to
Cut throat
increase
competition
effectiveness
Understanding
Insistence on
of cognitive
customization
behavior
Need of
Continuous tech-
breakthroughs
knowledge
intensive work
Changing Need to move
capabilities of to shared
business partners intelligence
68. Knowledge Management
• KM has following processes
– Define, capture, manipulate, store and develop.
– Develop IS for knowledge creation
– Design applications for improving org
effectiveness
– Create knowledge set, i.e.., intellectual capital to
increase economic value of the org
– Keep on upgrading to use it as a central resource
– Distribute and share to concerned.
69. The Knowledge Process Cycle
Apply existing knowledge to generate Harvest, or extract, tacit or
more knowledge, make informed explicit knowledge by
decisions and (explicitly or implicitly) prompting the source, or
lead to innovation. Can happen in real- “knower‟‟ to communicate
time (e.g. in conversation), or with time and share. (Explicit
elapse (e.g. applying lessons learned knowledge is codified in
over time). paper or electronic form.
Use & Tacit knowledge is more
e complex that has been
Innovat developed over time and
internalised by the „‟knower‟‟)
C
Ca
p
ptur
ur
Access
Use the organisation
e
e
structure and the storage
medium to retrieve the
knowledge. This can be
automatic with “push”
technology (e.g. Portal),
e
where the user profile or
is
an
event triggers knowledge
Sto
rg
retrieval and display.
r e Categorise and sort
O
knowledge (e.g., by assigning
metadata, synthesising,
codifying) with consideration
for future Access and Use
Place knowledge in a format
requirements.
that enables it to be
accessed (e.g., computer
file/database, policy, training,
or subject matter expert‟s
head)
70. Information management represents the foundation for effective governance. But service innovation
requires integrated processes creating value from isolated data and information by the application of
knowledge
Receive/Gather Data Implement Services & Policies
Information Value Chain
Capture Store Update Query Distribute Analyze Act Learn
Manage Information Analyze Information Use Knowledge
Use Knowledge to Improve Process
71. Knowledge management system
architecture
KMS
Identification of Knowledge creation Knowledge delivery
knowledge
Definition and Processing for
Access control
categorization acquisition
Surveying and Manipulation and
locating Application methods
modeling
Build knowledge
structure Creation of KDB Storage and security
72. E-governance
• Before going into the question of
strategies, you must be aware of WHY some
country wants to put effort into e-
government. Which are their motives? What
driving forces make a country work with e-
government?
• No matter what motive you have, you should
be aware of it, because the answer to the
question WHY do have a great impact on your
strategy
73. Why e-government?
“Everyone else is doing
it, so its probably
“Its hype”
important and useful”
“We don‟t want to
“We think it will provide faster, more
fall behind all others”
convenient government services”
“We think it will reduce costs for ”We think it will reduce costs for
individuals and businesses to deal government (reduced data entry
with government” costs, lower error rates)”
“We think it will
”To reduce corruption improve
democratic
and fight poverty” process”
”We need to reach out to a broader
”We think it‟s a tool for transformation of part of population”
public administration from bureaucracy to
service provider”
74. E-governance
• E-governance is the public sector's use of
information and communication technologies
with the aim of improving information and
service delivery, encouraging
citizen participation in the decision-making
process and making government more
accountable, transparent & effective.
75. Goals
• To extend the reach of government services
• To promote equal access to government services
• To increase constituency satisfaction with government
services
– in particular: to reduce transaction costs for citizens
• To reduce government costs
75
76. E-Government Strategy
a. Defining worthwhile goals
b. Demonstrating financial feasibility
and sustainability
d. Developing incentive scheme
76
77. Conceptual Framework for E-Government
Strategy
Dimensions Outputs Goals
E-Governance:
Leadership •Legal Framework, TRANSPARENCY
•ICT Policies - Standards
Human
Connectivity & Data
Resource Dev.
Processing infrastructure SERVICE
Policy &
Institutional Institutional Infrastructure
for Service Delivery
Reform
EFFICIENCY
Client-Oriented Service
Technology Applications
ECONOMY
Back-End Government
Financing Applications
78. Incentives
• Individuals: skills upgrading, professional
development, increased
autonomy, international exposure
• Departments: Increased budgetary
control, organizational visibility, economic
rewards, e.g. share of profits/savings, etc.
78
79. Measurement of results
Output Indicators
• Infrastructure
– Improvement in connectivity and data processing capacity
• Governance
– E-government management framework in place
– Policy and regulatory framework in place
• Institutional Capacity
– Geographical reach of government services
– Training imparted
– Business processes reengineered
– Number of Government systems operating at service standards
79
80. Measurement of results
Impact Indicators
• Constituency satisfaction with government services
(opinion surveys, citizen report cards)
• Access by the poor and rural population
• Client orientation in public service
– Data sharing across information systems
– transparency of government organization to service
recipients
80
82. India’s e-Government strategy
• Provision of improved, more convenient government services
countrywide through on-line delivery at local service centers.
• It is fully recognized as key part of national development plans.
• Involves central and all state governments. Will be led centrally and
implemented locally.
• Will be implemented over an 8-year period (FY2006-2013) at a cost
of roughly USD 4 billion.
• To be supported by proposed USD 1 billion, Bank project in two
phases
82
83. Scope of Outputs
Central State Integrated
Services to Income Tax Land records
Common Services Centres:
Citizens (G2C) Passport, visa and Property registration
Single-window public service
immigration Road transport delivery points eventually
E-Posts Agriculture reaching all the 600,000 villages
Municipalities in India
Panchayats State Wide Area Network
SWAN: fiber optic connectivity up
Police
to block level
Employment Exchange
Countrywide State Data Centers
Education
All India Portal
Health
National E-Governance Gateway
Food Distribution & other
welfare programs
Services to Excise Commercial Taxes EDI (customs & foreigh trade)
Business (G2B) Company affairs E-BIZ
E-Procurement
Other National ID Treasuries E-Courts
National GIS for
planning
