Untitled Flashcards Set

Integration, Integration, Integration! Tools, Data, Processes:

• Prevent Information Silos

• Increase operational efficiency

• Accurate, complete, and timely data across entire enterprise

• Provide complete organizational information to support decision making

• Enable rapid responses to customer requests for information or products

• Include analytical tools to evaluate overall organizational performance

• Enables Business Intelligence and accurate Analytics

ERP Solution Components:

ERP Hardwire:

• Servers, Databases - Local, Oustsourced, or Cloud

• Workstations- Local Or Remote, Device

ERP Application Programs:

• Configure vendor applications

• Can be tailored to be industry specific

ERP Databases:

• Computer program within database to keep database consistent when certain conditions arise

• Database Management System: Database program to keep database consistent when certain conditions arise

• Stored procedure: Database program to enforce business rules

Business Processes and Procedures:

• Adapt to inherent processes and procedures, or design new ones?

• Pre-Designed Processes derived from industry best practices

Automated Controls, Workflow, and Approvals:

• Enforces business rules

Training & Consulting:

• Training to implement, Training to use

• Top management support, preparing for change, dealing with resistance 

Vendor applications: 
Configurable, can be altered without changing program code. Set configuration parameters specifying how ERP application programs will operate: Hourly payroll application configured to specify number of hours in standard workweek, hourly wages for different job categories, wage adjustments for overtime and holiday work, etc.

ERP Application Integration:

• The primary purpose of an ERP system is integration (applications, processes, data)

• Creation of Data

  • Transaction Processing Systems (Blue) – Usually comprise ERP system components

  • Measurement within an activity of a process

• Use of integrated data in operations

  • CRM uses (and creates) data from the transaction processing systems and the production

Business Analytics – Create Information to enable objective, data-driven business decision-making.

Accounting and Finance Systems:

Accounting Entries – Debits and Credits:

Implementation Considerations:  Chart of Accounts, Departments

Financial Reporting and Analysis:

Implementation Considerations:  Business Intelligence, Visualization

Accounts Receivable Management:

Implementation Considerations:  Customers, Products/Services/Charges

Treasury – Disbursement, Reconciliation:

Implementation Considerations:  Banking

Asset Management – Depreciation, Maintenance:

Implementation Considerations:  Capital and Equipment

Budgeting and Forecasting/Planning:

Implementation Considerations:  Business Intelligence, Funding

Auditability and Controls:

Implementation Considerations:  Workflow, Employees

Primary Measures of Organizational Health:

Business Intelligence – Analytics:

Descriptive –Reports, Visualization

Predictive - Forecasting

Prescriptive – Optimization

Profit/Loss Statement – Periodic Look at Profitability:

Revenues – Sales, Investment Interest

Expenses – Supplies, Human Resources, Debt Interest

Balance Sheet – Snapshot of Organization:

Assets – Cash, Receivables, Equipment

Liabilities – Debts, Payables

Equity- Contributed Assets, Goodwill, Reinvested Profits

Human Resource Systems:

Recruiting – Internal and External:

Implementation Considerations:  People, Sources

HR Actions – Hire/On-Board, Positions, Evaluations, Terminations:

Implementation Considerations:  People, Departments, Positions

Time and Attendance – Pay Practices, Vacations, Time Clock, Scheduling:

Implementation Considerations:  People, Positions, Shifts, Departments

Benefits Administration – Eligibility/Enrollment, Corporate Payments:

Implementation Considerations:  People, TPAs, Banking

Payroll – Salary Administration, Taxes, Disbursements:

Implementation Considerations:  People, Govt/Tax, Banking, Positions

The Supply Chain:

Network of organizations and processes for:

• Procuring materials, transforming them into products, and distributing the products

Upstream supply chain 

• Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them

Downstream supply chain 

• Organizations and processes responsible for delivering products to customers

Internal supply chain

• Internal warehouse

Supply Chain Systems:

Requisitions/Orders:

Implementation Considerations:  Items

Purchasing – Purchase Orders, Vendor Management:

Implementation Considerations:  Items, Vendors, Departments

Inventory/Warehousing – Stock, Replenishment, Fulfillment:

Implementation Considerations:  Items, EOQ, Demand/Analytics, Chart of Accounts

Shipping and Receiving – Receipts and Returns, Distribution:

Implementation Considerations:  Items, Chart of Accounts, Departments

Accounts Payable – Invoice Matching, Vendor Payments:

Implementation Considerations:  Banking, Vendors, Items

What is Customer Relationship Management:

Customer relationship management (CRM)

• Knowing the customer

• In large businesses, too many customers and too many ways customers interact with firm

CRM systems

• Capture and integrate customer data from all over the organization

• Manage all interactions with customer 

• Consolidate and analyze customer data

• Distribute customer information to various systems and customer touch points across enterprise

Customer Relationship Systems:

Sales Force Automation – Contacts and Prospects, Leads

• Implementation Considerations:  Customers

Marketing – Prospect Data, Campaigns, Cross Sell

• Implementation Considerations:  Customers, Products

Customer Service - Requests

• Implementation Considerations:  Customers

Business Value of Customer Relationship Management Systems:

Business value of CRM systems

• Increased customer satisfaction

• Reduced direct-marketing costs

• More effective marketing

• Lower costs for customer acquisition/retention

• Increased sales revenue

Churn rate

• Number of customers who stop using or purchasing products or services from a company

• Indicator of growth or decline of firm’s customer base

Challenges of Implementing Enterprise Systems:

• Very Expensive to Purchase and Implement Enterprise Applications

• High Risk to Organization, High Visibility

• Technology Changes

• Business Process Changes

• Requirements Gaps

• Transition Issues (Internal and External)

• Organizational Learning, Resistance to Changes

• Switching Costs, Dependence on Software Vendors

• Data Standardization, Management, Cleansing

Trends in Enterprise Applications:

• Service Oriented Architecture standards

• Open-source applications

• On-demand solutions (vs On-Premise)

• Cloud-based versions

• Functionality for mobile platform

• Social CRM

• Incorporating social networking technologies

• Company social networks

• Monitor social media activity; social media analytics

• Manage social and web-based campaigns

• Business intelligence

• Inclusion of BI and AI with enterprise applications

• Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data visualization

Businesses often extend ERP applications by linking to function-specific web services such as employee recruiting, or collections management provided by other vendors.

• Service Oriented Architecture (SOA) = Style of software design where services are provided to the other components by application components, through a communication protocol over a network. Architecture is independent of vendors, products and technologies

• Open-Source = Source code generally available to public

• On-Demand Solutions (vs On Premise) = On Premise is situation where hardware and software reside locally.  On-Demand is a “pay-as-you-go” with vendors offering software as a service (SaaS).