2. Agenda
• Wrap up: electronic and mobile commerce
• What: an introduction to enterprise systems
• What an ERP system is?
• What an SCM system is?
• What a CRM system is?
• Suggested materials for further discussion
5. Types of electronic and mobile commerce
BY PHYSICAL LOCATIONS
• Pure e-commerce
• Partial e-commerce (Click & Mortar)
• Brick & Mortar
BY INTERACTIONS
• Business-to-Business (B2B)
• Business-to-Customer (B2C)
• Customer-to-Customer (C2C)
Alibaba.com (B2B) ; Tmall.com (B2C); Taobao (C2C)
6.
7.
8. GROUP ASSIGNMENT
Types: IS Diary – O4
Topics: E-commerce
How to:
1. Read the case study on Wayfair.com
2. Browse Wayfair.com website
3. Answer the following questions:
a) List 4 (four) strategies that Wayfair can apply to increase visitors using its e-commerce portal!
4. Update your SWAY before the next meeting starts!
LINK
https://intip.in/2019ISCONCEPTBANKING
https://intip.in/2019ISCONCEPTMANUFACTURES
https://intip.in/2019ISCONCEPTOILANDGAS
https://intip.in/2019ISCONCEPTTELECOMMUNICATION
10. Introduction
• Enterprise
Large organization such as multinational corporation, university,
hospital, research laboratory, or government organization
• Enterprise system
Ensures information can be shared across all business functions and all
levels of management to support the running and managing of a
business
• Examples of Enterprise Systems
• ERP: enterprise resource planning systems
• CRM: customer relationship management systems
• SCM: supply chain management systems
11. SAP ERP
• Company chooses and
integrates building blocks:
• SAP R/3 (Real-TimeTier 3),
• SAP ECC (ERPCentral
Component), or
• SAP S/4 (Business Suite 4).
• SAP ERP contains of
technical and functional
SAP Modules/Components
Source: https://inui.io/sap-modules-components/
14. Enterprise Resource Planning
• Enterprise resource planning (ERP)
• Set of integrated programs that manage an internal
company’s vital business operations for an entire multisite,
global organization
• Provides software applications to coordinate activities of
functional units
• Business process
Set of coordinated and related activities that takes one or more
kinds of input and creates an output of value to the customer of
that process
17. Benefit of ERP
• Quality and efficiency
Helps improve the quality and efficiency of customer service, production, & distribution by
creating a framework for integrating and improving internal business processes
• Decreased Costs
Reductions in transaction processing costs and hardware, software, and IT support staff
• Decision support
Provides cross-functional information on business performance to assist managers in
making better decisions
• Enterprise agility
Results in more flexible organizational structures, managerial responsibilities, and work
roles
18. Pros and Cons ERP
ADVANTAGESOF ERP
• Improved access to data for operational
decision making
• Elimination of costly, inflexible legacy
systems
• Improvement of work processes
• Upgrade of technology infrastructure
DISADVANTAGESOF ERP
• Expense and time in implementation
• Difficulty implementing change
• Difficulty integrating with other systems
• Difficulty in loading data into new ERP
system
• Risks in using one vendor
• Risk of implementation failure
19. Causes of ERP Failure
• Reengineering, Hardware, Software, Data
Conversions including:
• Underestimating the complexity of the
planning, development, and training required
• Believing everything the software vendors
and/or consultants say
• Training and Change Management,
including:
• Failure to involve affected employees in the
planning & development phases and change
management programs
• Trying to do too much, too fast
• Insufficient training
22. Supply Chain Management (1)
• SCM system:
• A cross-functional enterprise system that uses IT to help support
& manage the links between some of a company’s key business
processes and those of its suppliers, customers, & business
partners.
• A system that includes:
• Planning, executing, and controlling all activities involved in raw
material sourcing and procurement
• Converting raw materials to finished products and warehousing and
delivering finished product to customers
25. Focus of SCM
• Helps a company get the right products to the right
place at the right time, in the proper quantity and at
an acceptable cost.
• Estimating demmand, control inventory, and
improve the network of relationships with partners
26. Benefits and Challenges
• Can provide faster, more accurate order processing,
reductions in inventory levels, quicker time to market,
lower transaction and materials costs, & strategic
relationships with suppliers
• Just InTime (JIT); Fast Moving Parts
https://www.youtube.com/watch?v=-2huDogfXS8
27. Causes of Failure SCM
• Lack of proper demand planning knowledge, tools, and
guidelines
• Inaccurate or overoptimistic demand forecasts
• Inaccurate production, inventory, and other business data
• Lack of adequate collaboration
30. Customer Relationship Management (1)
• Provide the customer with a single, complete view of
the company and its extended channels.
• A cross-functional business application that integrates
and automates many customer serving processes in sales,
direct marketing, account and order management, and
customer service and support.
• Create an IT framework that integrates all these
processes with the rest of a company’s business
operations.
• Example: Siebel vs salesforce.com
31. Customer
Relationship
Management (2)
Key features of a CRM system:
Contact management, Sales management,
Customer support, Marketing automation,
Analysis, Social networking, Access by
smartphones, Import contact data
33. The Phases of CRM
• Acquire (new customers)
By doing a superior job of contact management, sales
prospecting, selling, direct marketing, & fulfillment.
• Enhance (customer satisfaction)
By supporting superior service from a responsive networked team
of sales and service specialists.
• Retain (your customers)
Help identify and reward your most loyal, profitable customers.
35. 35
CRM - sales
• Cross-selling
• Promoting accessories related to the current choice
• e.g. a cell phone purchase + extra charger
• “Do you want fries with that?”
• Buy ‘A’ offer another ‘B’
• Predict the behavior of end customer → data mining model in back-end system
• Need good communication
• Up-selling
• Promoting a better version of the current choice
• e.g. cell phone → sophisticated video phone
• “Do you want to supersize that?”
• Amount → more and more or high spec
36. Benefits of CRM
• Allows a business to identify and target their best
customers
• those who are the most profitable to the business
• so they can be retained as lifelong customers for greater
and more profitable services.
• Enables real-time customization and
personalization of products and services based on
customer wants, needs, buying habits, and life cycles.
37. Failures of CRM
• Over 50% of CRM projects did not produce the
results that were promised.
• 20% of business surveyed reported that CRM
implementation had damaged long-standing
customer relationship.
• Due to lack of understanding & preparation.
40. Recommended sources of learning
• [ARTICLE] CRM Done Right
https://hbr.org/2004/11/crm-done-right
• [ARTICLE] Alphabet Soup, Oh My!WhatYou Really Need to
Know About ERP vs CRM
https://www.softwareadvice.com/resources/erp-vs-crm/
42. Useful readings
• Information Concepts (pp. 356)
Ralph Stair, and George Reynolds. (2010). Part 3 :
Business Information Systems, Chapter 9: Enterprise
Systems
43.
44. anisah@is.its.ac.id
check our annual conferences at www.isico.info | www.sesindo.org
DEPARTMENT OF INFORMATION SYSTEMS | INSTITUT TEKNOLOGI SEPULUH NOPEMBER
