Enterprise Applications and Management Systems

Enterprise Systems

• Also known as Enterprise Resource Planning (ERP) systems.

• Integrated software modules with a common central database.

• Data from various divisions is shared across internal business activities.

Enterprise Software Overview

• Built around predefined best practice processes.

• Includes tasks for specific business functions (e.g., sales, finance).

• Implementation involves mapping business processes to software processes.

Business Value of Enterprise Systems

• Enhance operational efficiency and standardize processes.

• Provide firm-wide information for decision-making.

• Support rapid response to customer requests.

Supply Chain Management (SCM)

• Network for procuring, transforming, and distributing products.

• Upstream: Suppliers and their processes.

• Downstream: Customer delivery processes.

• Issues: Inefficiencies can cut operating costs by up to 25%.

Supply Chain Management Software

• Planning systems optimize sourcing and inventory levels.

• Execution systems manage product flow through distribution.

Customer Relationship Management (CRM)

• Integrates customer data across the organization to improve intimacy.

• Provides a comprehensive view of customer interactions.

CRM Software Components

• Includes tools for sales, customer service, and marketing automation.

• Analytical CRM helps in data analysis and customer lifetime value assessment.

Operational vs. Analytical CRM

• Operational CRM: Customer-facing applications.

• Analytical CRM: Data analysis from operational systems for insights.

Business Value of CRM Systems

• Increases satisfaction and reduces marketing costs.

• Affects customer acquisition, retention, and sales revenue positively.

Challenges in Enterprise Applications

• High costs of implementation (average ERP cost: $7 million).

• Lengthy completion times (average over 17 months).

• Complex technology and business process changes.