BT 630: EBusiness, Customer Relationship Management and ERP

1
BT 630 E-Business, Customer Relationship
Management and ERP

• Introductory Remarks
• (and Concluding Remarks)
• by
• Prof. Gemma Welsch, Ph.D, CPA, CMA

2
The enterprise

• Financial Strategy view The purpose of an
  enterprise is to maximize value to its
  shareholders (owners) , largely through excess
  cash flows.
• The view of the 4th course in the program
• SMERP program - four courses
• operational --gt strategic
• ERP --gt Strategic Enterprise Management

3
Enterprise model

• E-Business, CRM and ERP (3rd course)
• Enterprise is viewed as customer value delivery
  system
• Enterprise-wide Information Systems
• Focus on well defined objectives, and refocus the
  organization and its subsystems around the
  achievement of those objectives
• BT630, emphasis on customer value as a primary
  objective

4
Enterprise Systems Not New Concept

• Ludwig von Bertalanffy in General Systems Theory,
  1951
• Total Systems Approach
• Integration of system, subsystems, their
  environment
• Closed and open systems

5
Enterprise Systems in other Disciplines

• Many disciplines have similar approaches
• Accounting Information Systems (AIS), Cost and
  Managerial Accounting, Activity Based Costing
  (ABC)
• Systems Analysis and Design, Business Process
  Engineering
• Industrial Engineering, TQM, Operations and
  Logistics Management

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So Whats New Now?

• Vertical Integration?
• Integrating the Supply Chain?
• UPS customer terminals 15 years ago
• AAIMS reservation system integrates airline,
  hotel and rental cars-late 1970s
• Used to be in Restraint of Trade.
• Horizontal Integration?
• B2B exchanges?
• Always had purchasing coops and formal barter
  groups, since ever in agriculture for example.

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So Whats Really New?

• ?

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So Whats Really New?

• SAP
• Internet
• Inclusiveness
• small, medium and large companies
• global
• Software and consultants that enable
  implementation of the e-enterprise

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SAP

• SAP became the leader in ERP software because
• It is European (German) company
• It is allowed the time (2or3 years 20 years)
  to develop rich applications by its financial
  community
• The US has a very short-term time horizon,
  relative to other industrialized nations
• German quality -- as evidenced in its corporate
  culture, reputation, and know-how

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SAP cont.

• SAP creates software solutions in collaboration
  with its clients (this is not uncommon in the
  software industry)
• obvious case in point industry solutions
• SAP attempts to create best-of-breed software
  using a get it right first model, by working
  with one or two clients first and then rolling
  out its solutions to others.

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SAP cont.

• SAP tends to build its own software solutions,
  rather than acquire other best-of-breed software
  companies.
• This is again part of the European rather than
  the American culture
• e.g., American companies in the e-business
  software arena are attempting to develop
  integrated suite solutions via acquisition
• Again, building takes more time than acquisition.

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Large IT Installations (e.g. ERP) Take Time and
Are Disruptive

• Any large IT system analysis, design and
  implementation effort takes time, 2 to 3 years
  and more - and ERP applications are no exception.
• Also, it is not unreasonable to expect system and
  company performance to be disrupted.
• One reason there are so many failed and abandoned
  IT projects of all types in the US is that the
  financial press, analysts, and markets simply do
  not allow firms the necessary amount of time and
  do not tolerate predictable disruptions in
  performance.

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So What Else is New?

• The concept of the E-Enterprise (Hoque, 2000)
• the whole value chain - from procurement of raw
  materials on the supply side to consumer
  retailing and customer management on the demand
  side - combined with the enterprise systems, the
  intranet, partners and even alliances with
  competitors.
• This is the vision of mySAP

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mySAP

• A concept, a vision
• In the process of implementation
• In the process of evolution
• Right now, a portal software, enabling a common
  interface across applications, i.e.
• storefronts, marketplaces, mobile computing,
  decision support (SEM Financial), etc.