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Enabling Innovation and Change
ERP II

ERP
MRP II
MRP
Inventory
Control

1960

1970

1980

1990

2000

2010
Functional Information Systems
(Financial Accounting)
Database Systems
A/R
G/L

A/P
ERP Systems
• An integrated systems that allow information to
enter at a single point in the process (e.g., at the
materials receiving stage of a manufacturing process)
and update a single, shared database for all functions
that directly or indirectly depend on this information
• This integration should take place in real-time, not
through interfaces or programs that transfer
information to one or more modules only after the
information has already been processed and updated
in the module through which it entered the system
•Once placed into the system, the information should
be available in all the necessary forms through which
it may be accessed, throughout the system
IS
Industry Solutions

CO

FI

AA

Costing & controlling

Financial Accounting

Asset Accounting

MM

HR

Materials
Management

Human Resources

PP
Production Planning

Central
Enterprise
Database

RM
Reports Management

QM

SM

Quality Management

Service Management

PM
Plants Maintenance

SD
Sales & Distribution

PS
Project Systems

CS
Country Specific
Solutions

ERP: Functional View
What does ERP do for an Enterprise?
 Work as a transactional Information Systems to

- enable enterprise wide shared and integrated database
i. improved decision making
ii. improved MIS reporting
- enable enterprise wide cross functional
work flow automation for:
i. improving intra-organizational transactions
ii. reducing in business processes lead times
iii. improved inventory and working capital managem
iv. improved financial reconciliation
ERP enables improving
Business Process Performance
•Automation of business processes
• Simplification of business processes
• Elimination of non-value adding
business processes
• Reengineering of business processes
Getting to ERP II
Industry
Class A

Industry
Sector Q

ERP Declared
“Dead”

Industry X

ERP II
Industry
Segment
Z

Extended
ERP
Functionality
Deepens

ERP
MRP II
MRP
Source : Gartner Group

Functionality
Broadens

Technology
Infrastructure

Increasing External Connectivity
e-Business Scope
At Macro Level, Organizations can be viewed to
have following four environments

Buy side
(Supplier,
Service Providers
e.g. transporters)

Inside
(Employee)

Sale side
(Customers, Dealers,
Distributors)

Marketing side
(Customers, R&D
Partners)

As you move up beyond “Publish stage”- you need to
deepen
your Electronic interaction with customers, suppliers &
business partners on a 24x7 basis
e-Business Scope with examples
e-Business
Models

Buy Side

Inside
HLL, M&M,
BPCL, HPCL
IOC, TATA,
BHEL, ONGC
Reliance, etc.

Sale side Marketing

ICICI, HLL
Samsung,
LG, HLL,
MUL, Hundai
ICI, Sony

Enabler
Model

BPCL, BHEL,
TELCO, SAIL,
TISCO, ICI,
MUL,

Creator
Model

Dell, Amazon, Fedex, eSteel, eBay, Expedia

Destroyer
Model

CISCO, Intel, British Petroleum, …
How does e-Procurement function?
E-Procurement
• Reverse Auction

- companies are experimenting and tasted success with
Reverse Auction using B2B Portals: FreeMarkets,
Commerce One, Trade2Gain, 01 Markets, IndiaMarkets,
MatexNet etc
- reverse auction comes at the end of the procurement cycle
and easy to implement
- speeds up slow negotiation price process
- entry cost low, low risk of exposing internal supply
chain processes to the security concern of the Web.
- effective in markets which are buyer led and supplier base
is fragmented
- transparent price setting mechanism
- market making / new supplier validation process
CRM
„Customer Relationship Management is the practice
of identifying, attracting and retaining the best
customers to generate profitable revenue growth‟

Why CRM ?
1. Customer loyalty is the key differentiating factor as
other factors like product quality, price, distribution,
features, technology etc. are no more unfathomable.
2. It costs 10 times as much to bring in a new
customer than it is retain one.
3. The need for accurate and timely information to
the sales team is really important. With sales
representative’s mobility increasing by the day, it is
difficult to expect the same person to come in contact
with the customer all the time.
… IS infrastructure for e-CRM
Home/Office PC
Internet

ATMs &
Enterprise
Kiosks
Intranet

RemoteBranch
Agents Offices

Host
Mainframe

Extranet
Network

Corporate
Channel Integration Systems Customer
s
 CTI applications
 Channel integration
middleware

 Contact management software
 Messaging applications
 Security services
 Intelligent agents

PSTN

Contact Center

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Mis jaiswal-chapter-07

  • 1.
  • 2. Enabling Innovation and Change ERP II ERP MRP II MRP Inventory Control 1960 1970 1980 1990 2000 2010
  • 3. Functional Information Systems (Financial Accounting) Database Systems A/R G/L A/P
  • 4. ERP Systems • An integrated systems that allow information to enter at a single point in the process (e.g., at the materials receiving stage of a manufacturing process) and update a single, shared database for all functions that directly or indirectly depend on this information • This integration should take place in real-time, not through interfaces or programs that transfer information to one or more modules only after the information has already been processed and updated in the module through which it entered the system •Once placed into the system, the information should be available in all the necessary forms through which it may be accessed, throughout the system
  • 5. IS Industry Solutions CO FI AA Costing & controlling Financial Accounting Asset Accounting MM HR Materials Management Human Resources PP Production Planning Central Enterprise Database RM Reports Management QM SM Quality Management Service Management PM Plants Maintenance SD Sales & Distribution PS Project Systems CS Country Specific Solutions ERP: Functional View
  • 6. What does ERP do for an Enterprise?  Work as a transactional Information Systems to - enable enterprise wide shared and integrated database i. improved decision making ii. improved MIS reporting - enable enterprise wide cross functional work flow automation for: i. improving intra-organizational transactions ii. reducing in business processes lead times iii. improved inventory and working capital managem iv. improved financial reconciliation
  • 7. ERP enables improving Business Process Performance •Automation of business processes • Simplification of business processes • Elimination of non-value adding business processes • Reengineering of business processes
  • 8. Getting to ERP II Industry Class A Industry Sector Q ERP Declared “Dead” Industry X ERP II Industry Segment Z Extended ERP Functionality Deepens ERP MRP II MRP Source : Gartner Group Functionality Broadens Technology Infrastructure Increasing External Connectivity
  • 9. e-Business Scope At Macro Level, Organizations can be viewed to have following four environments Buy side (Supplier, Service Providers e.g. transporters) Inside (Employee) Sale side (Customers, Dealers, Distributors) Marketing side (Customers, R&D Partners) As you move up beyond “Publish stage”- you need to deepen your Electronic interaction with customers, suppliers & business partners on a 24x7 basis
  • 10. e-Business Scope with examples e-Business Models Buy Side Inside HLL, M&M, BPCL, HPCL IOC, TATA, BHEL, ONGC Reliance, etc. Sale side Marketing ICICI, HLL Samsung, LG, HLL, MUL, Hundai ICI, Sony Enabler Model BPCL, BHEL, TELCO, SAIL, TISCO, ICI, MUL, Creator Model Dell, Amazon, Fedex, eSteel, eBay, Expedia Destroyer Model CISCO, Intel, British Petroleum, …
  • 12. E-Procurement • Reverse Auction - companies are experimenting and tasted success with Reverse Auction using B2B Portals: FreeMarkets, Commerce One, Trade2Gain, 01 Markets, IndiaMarkets, MatexNet etc - reverse auction comes at the end of the procurement cycle and easy to implement - speeds up slow negotiation price process - entry cost low, low risk of exposing internal supply chain processes to the security concern of the Web. - effective in markets which are buyer led and supplier base is fragmented - transparent price setting mechanism - market making / new supplier validation process
  • 13. CRM „Customer Relationship Management is the practice of identifying, attracting and retaining the best customers to generate profitable revenue growth‟ Why CRM ? 1. Customer loyalty is the key differentiating factor as other factors like product quality, price, distribution, features, technology etc. are no more unfathomable. 2. It costs 10 times as much to bring in a new customer than it is retain one. 3. The need for accurate and timely information to the sales team is really important. With sales representative’s mobility increasing by the day, it is difficult to expect the same person to come in contact with the customer all the time.
  • 14. … IS infrastructure for e-CRM Home/Office PC Internet ATMs & Enterprise Kiosks Intranet RemoteBranch Agents Offices Host Mainframe Extranet Network Corporate Channel Integration Systems Customer s  CTI applications  Channel integration middleware  Contact management software  Messaging applications  Security services  Intelligent agents PSTN Contact Center