Integration, ERP, CRM, and SCM Notes

Integration Overview

• Integration relates to how various information systems (IS) interact within an organization.

• It allows data to be entered once and shared seamlessly across different departments.

• Prevents information silos where departments operate with isolated data, leading to miscommunication.

Information Silos

• Defined as data being isolated in separate information systems, leading to inefficiencies.

• **Causes of Information Silos: **

  • IT/IS departments support departmental processes instead of enterprise-wide processes.

  • Creation of workgroup support applications over time without integration.

  • Mergers or acquisitions that bring together disparate systems without immediate integration.

Importance of Integration

• All departments can communicate effectively since they share the same information.

• Reduces manual data entry across multiple systems, minimizing errors.

• Subsequently, it enhances organizational efficiency and improves decision-making.

ERP (Enterprise Resource Planning) Systems

• Definition: A platform used for consolidating various business operations under one consistent computing environment.

• Major characteristics and considerations include:

  • High Costs: ERP systems are generally expensive, often suitable only for larger organizations.

  • Complex Deployment: Implementing ERP systems is risky, often leading to delays and budget overruns.

• Key Elements of ERP:

  • Hardware: Necessary infrastructure to support the system.

  • Applications: Various software solutions tailored to specific needs like marketing (CRM), supply chain management (SCM), etc.

  • Databases: Robust data management capabilities to support integration.

  • Business Processes: Clearly defined procedures to ensure effective operation of the ERP system.

  • Training and Consulting: Continuous support and education for employees adapting to the new system.

  • Common Modules:

  • Supply Chain Management (SCM)

  • Customer Relationship Management (CRM)

  • Human Resource Management

  • Accounting Management

CRM (Customer Relationship Management) Systems

• Focuses on managing the relationship with customers and understanding customer behavior.

• Examples include Salesforce, which helps businesses market and provide customer support by segmenting customers based on their engagement.

SCM (Supply Chain Management)

• Involves actively managing supply chain activities to maximize customer value and gain competitive advantage.

• Best Buy Example: The company uses SCM to monitor inventory levels across stores, ensuring replenishment occurs frequently to prevent stockouts.

Exam Preparation

• Topics for the Final Exam:

  • Concepts covered from the week after the midterm until the present, primarily focusing on integration, ERP, CRM, and SCM.

• Structure:

  • 25 multiple choice questions with 2 attempts; last attempt graded.

  • Topics include Microsoft Excel skills, Microsoft Access, scenario-based questions on integration and data management concepts.

Additional Project Submission Reminders

• Group project deadline is on a defined Wednesday before 05:55 PM.

• Peer evaluation forms are crucial; they carry an easy 10 points but must be submitted on time for credit.