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concept of ERP
ERP is an enterprise wide information system designed to coordinate all the resources information and activities needed to complete business process such as order fulfilment or billing.
An ERP system support most of the business system that maintains in and single database the data needed for a variety of business functions such as manufacturing supply chain management HR and CRM.
An ERP system is based on common database and modular software design. the common database can allow to every department of a business to store and retrieve information in real-time .
the information should be reliable accessible and easily shared.
The modular software design should mean a business can select a module they need mix and match or modules from different Wenders and add new modules of their own to improve business performance today’s ERP system can cover a wide range of function and unigate them into unified database.
* architecture of enterprise resource planning that is ERP ERP system architecture helps management and the implementation teams understand in detail the feature and the components of entire system
it provides a visual representation of a computer system unit new faces among the ERP application and database
following are the types of ERP architecture
1) two tire implementation
in two tire architecture the server handles both application and database.
the clients are responsible for presenting the data and passing user input back to the server
while there will be a multiple servers and clients may be distributed across several several types of local and wide area links this distribution of processing responsibilities remains the same . some of the benefits of this implementations are easy to use and access low-cost and high performance
Three tire implementation
in three tire layer architecture the database and application function are separated into independent operating units.
sometimes satisfying clients request requires two or more network connections.
initially the client as establish communication with the application server.
the application server then creates a second connection to the database server.
some of the benefits of this implementation are
enterprise resource planning ERP generic module
the generic ERP package represent the commonly operated business model of the organisation.
it is built with the function model like
sales and their submodels
these modules are then integrated to perform ensuring data and information consistency and on currency .
the seamless integration of modules allows the user at any level to take a micro and macro view of function and process view of transaction across the function
general accounting functions
hedger payables and receivables
cash flow management
loan management fund management
budgeting planning and control et cetera
purchasing and procurement
goods receipt and issue system
stock management and variation
inventory analysis et cetera
marketing and sales
basic data management
dispatching and involving
order analysis and forecasting
dealer distributor management system et cetera
bill of material classification
work order generation
scheduling and control
production planning interface of CAD and cam
break down ,preventive ,conditional, maintenance ,monitoring ,performance for maintenance actions as all kind of production assets
ERP implementation life-cycle
ERP implementation life-cycle is the process of implementation of the enterprise resource planning in any organisation .
it involves many steps and stages in general right from the start planning for project implementation analysis design , implementation transition and operations.
ERP implementation life-cycle highlights different phases of implementing and ERP system .
it started from the projection of the ideal ERP package that is suitable for the company.
the technical phases of the ERP life-cycle are described as follows :
selection of packages
selection of package
this is the first step of the life-cycle where the ERP package has to be selected in agreement that fits your business environment.
in selection process the ERP package that are not suitable are eliminated .
the package has to carefully selected and testified .
the right choice will determine the success of the ERP implementation.
a proper study and research should be done before selection .
proper planning of implementation process of the project shall be made and designed .
resources should be allocated and team members have to be selected.
gap and analysis
it is an important step in the life-cycle of ERP implementation .
it is performed to analyse the current situation of the organisation and future position as needed .
this is needed to make the implementation process and involve many changes and alterations .
the job responsibility of employees and the number of employees can be altered as well .
this step is done to make the business process more efficient
application of ERP
ERP software is considered to be a type of enterprise application that is software designed to be used by larger businesses and often required dedicated teams to customise and analyse the data to handle upgrades and developments.
in contrast small business ERP applications are lightweight business management software that often customise for a specific business industry
today most of the organisation implement ERP system to replace legacy software or to incorporate ERP application because no system currently exist
most of the organisation implement ERP for the following reasons
1st to replace outdated ERP software
2nd to replace accounting software
3rd to replace other non-ERP system
*extended ERP (XRP) extended ERP XRP facilitates more efficient business process in the finance manufacturing distribution sales and other core business areas
XRP also include the other software and business processes .
integration with ERP is usually required to eliminate redundant information and process .
software is sold and supported as integrated may reduce ongoing maintenance cost .
ERP system can be eatened with the third party software often via vendor supply interfaces
extensions offer features such as
customer relation management
product life-cycle management
product data management
supply chain management data mining
E procurement e-commerce
Cloud computing often referred to as the cloud
in simple terms it means sorting or accessing your data and programs over the internet rather than on your own hard drive .
everything nowadays is moved to the cloud running in the cloud excessed from the cloud or maybe stored in the cloud .
the services it offers has been divided into three different models
1) software as a service
2)platform as a service
3)infrastructure as a service
1) software as a service
in the service the cloud provider leaves applications for software which are owned by them to its client .
the client can access these software or any device which is connected to the internet using tools such as web browser or any application et cetera
for example software.com provides the CRM on the cloud infrastructure to its clients and charges them for it but the software is owned by the sales force company only
2) platform as a service
in this service the cloud provider gives the ability to the consumer to deploy customer created application using programming language tools et cetera that are provided by the cloud provider .
the customer cannot control underlying architecture including operating systems storage service et cetera
this service would make sense to your only if your a developer since this service provides you a platform for developing applications like Google app engine
3) infrastructure as a service
in this service the cloud provider provides the customer with a vital machines and other resources as a service they abstract the user from the physical machine location data participating et cetera
in the user if the user wants a Linux machine he gets the same he will not Worry about the physical machine or the networking of the system on which the operating system is installed
for example Amazon web services is an infrastructure as a service
Features of various commercial ERP software
1) SAP system application product
2) Oracle E business suite
3) Microsoft’s dynamic
sap is an ERP software designed for specific needs.
this solution can be deployed as software as a service on premises or as a hybrid model that offers the benefits of both .
which ever may you choose to go you will have two full web enabled support for the modules and services provided ensuring full access to the system function at work at home or on the go. sap ERP helps you better manage your entire business from initial product planning to end of year general ledger reporting.
in addition SAP ERP supports business of every size in virtually every industry around the world
2) Oracle E business suite
this is the most comprehensive suite of integrated global businesses application that enable organisation to make better decisions reduce cost and increase performance.
with 100’s of cross industry capabilition spanning enterprises resource planning customer relationship management and supply chain planning
Oracle e business suite application helps customers manage the complexities of global business city environment no matter if the organisation is small medium or large in size
this is referred to as multi currently multi language ERP solution .
this is targeted free primarily at small and mid size business particularly those in the manufacturing and distribution sectors .
the software helps such business in accounting operations and supply chain management .
the application ability to integrate organisation system with data and business processes make it the ideal ERP software
it also allows team collaboration without having to switch application
Microsoft’s dynamic is generated to enrich user experience which will enable employees to complete task anytime and anywhere
Oracle is PeopleSoft application are designed to address the most complex business requirement .
they provide comprehensive businesses and industry solution enabling organisations to increase productivity accelerate business performance and provide cover cost of over ownership
Oracle is PeopleSoft human capital management enable you to architect a global foundation for HR data and improved business processes
Introduction to electronic CRM (customer relationship management)
electronics CRM is the application of internet-based technologies such as emails, websites, chat rooms forums and other channels to achieve CRM objectives.
electronic CRM is a well-defined structure and coordinated process that automates the process in marketing sales and other customer service .
An effective electronic CRM increases the efficiency of the process as well as improves the interactions with customer and enables business to customise product and service that meet the customers individual need .
the process combines software hardware process and procedure supporting enterprise wide CRM business strategies .
it is not complete software however but rather the utilisation of web-based technologies to interact understand and ensure customer satisfaction.
a typical electronic CRM strategy involves collecting customer information transaction history and product information click stream and content information .
electronic CRM software system may contain a selection of the following features
3) account management
6)reporting and analysis
1) customer management
provide access to all customer information including enquiry status and correspondence .
A centralised knowledge based that handles and shared customer information.
3) account management
access to customer information and history allowing sales team and customer service team to function efficiently .
4) case management
captures enquiries escalates priority cases and notifies management and unresolved issues .
blend with other systems such as billing inventory and logistic through relevant customer contact points such as websites and call centres
6)reporting and analysis
report generation on customer behaviour and business criteria
Business benefit of electronic CRM
implementation of electronic CRM system enables an organisation to streamline processes and provide sales marketing and service personal with better more complete customer information
the result is that electronic CRM allows organisation to build more profitable customer relationship and decrease operating cost
Direct benefit of an ECRM SYSTEM
1)service never improvement
using an integrated database to deliver consistent and improved customer responses
2) revenue growth
decrease in the cost by focusing on retaining customer and using interactive service tools to sell additional product
consistent sales and service procedure is to create efficient work process
automatic customer tracking and detection will ensure enquiries are met and issues are managed
this will improve the customer overall experience in dealing with the organisation
electronic CRM software helps automatic campaigns including
opportunity management quota and order configuration
working of CRM
1)nowadays customers interact with an organisation via multiple communication channel that is WWW call centres fields sales people dealers and partner network.
2) many organisation also have multiple wires of business that interact with same customer .
3)electronics CRM system enables customer to do business with the organisation the way the customer wants that is anytime via channel any language and currency and to make customer feel that they are dealing with a single unified organisation that recognise them every step of the way .
4)the electronic CRM system does this by creating a central repository for customer records and providing a portal on each employee‘s computer system allowing access to customer information by any member of the organisation at any time .
5) through this system electronic CRM gives the ability to know more about customer product and performance result using real-time information across your business.
Advantages and disadvantages of electronic CRM
1) dynamic content
Contents of knowledge base are united only by what is thought will not be asked .
therefore self help tools are often very robust , cover a wide range of topics and must be constantly updated by adding new articles and removing articles determined by user survey as incomplete incorrect and irrelevant
2) good coverage
many topics can we can be covered and many users can use the tool
relative to other electronic channels the cost of purchasing implementing and administrating is low
1) mixed resolution rate
some questions due to their nature may not be answered
no humar follow-ups or clarities what you see in what you get .
3)impersonal does not easily recognise user or patterns of user .
primary issues in CRM
to concern with regard to electronic CRM
1) customer privacy
2)accuracy of information collected
follow following are the certain factors that need to be considered with right to privacy in CRM
1) collecting customer data
ethical issues originating with the collection of customer data for the CRM are related to secure collection method and do the verification of the information.
ethical companies ensures that sensitive information such as credit card number medical histories et cetera are collected in secure environment and transmitted back to the database securely .
during data collection it’s also critical to verify the identity of customer and accuracy of information being submitted
2)storing CRM data
one customer data is safely stored in company database ethical companies adhere to 4 principles regarding storage
data is only stored with agreement of customer. customers must be able to view their data and either change or ask for it to be changed
customer can withdraw from the program and such withdrawal caused the data to be erased
3) using CRM data
given that much time of the customer data for CRM is sensitive ethical companies ensure the data is kept private to the maximum extent possible to achieve this the company must store the data in form or in location not generally accessible.
4) disposing of CRM data
since customer must be able to withdraw from CRM program and since the data is then erased the company needs a procedure in place for safely destroying customer data when it is no longer needed
CRM and work flow automation
the ECRM helps you cut your admin work in half with workflow automation
1)auto send emails to anyone
electronics CRM technique constantly monitor CRM activity in content of your work flow rules
when a rule is met it sends the emails for you messages can go out to your Leads clients vendors contractors and in house staff without opening your inbox
2)automate data entry
to bring your workflow to life it lets you build your own template emails .
template can pull it first link last link organisation details and other field data
as emails go out unsightly insert the values from each recipient record
work flow can even update other records in the CRM
example application can mark lead as contacted once an email workflow has run
3)assign task to any other team member
this improves productivity through automated delegation
CRM application will assign task in sequence for each new lead ensuring your representatives remember to follow up
4) third-party app integration
it can automate other aspects of your business to in addition to sending emails and updating records workflow can also add and interact bot also known as web robot or simply bot is a software application that runs automated task over the internet
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