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DB-Module 10: Business & Enterprise Systems

Description

DB-Module 10: Business & Enterprise Systems

In this module, we will examine the various functional business systems used by organizations. These include operations management systems, sales and marketing systems, accounting and finance systems, and human resource information systems.We will also examine the different types of enterprise systems. These include enterprise resource planning (ERP) systems, supply chain management (SCM) systems, customer relationship management (CRM) systems, and enterprise social platform (ESP) systems.

Discussion Topic

Impact of Ecommerce and Mobile Commerce

Choose an e-commerce or mobile commerce platform for a business with which you are familiar.

Discuss the impact of e-commerce technology on the business that operates the platform you chose. Consider the following questions:

What strategies has the business used to leverage e-commerce technology to its advantage?
How has the platform affected the business’s revenue, customer base, or market share?
What risks or challenges has the business faced as a result of using e-commerce technology?

Discuss how mobile technology creates commerce opportunities for businesses. Consider the following questions:

d.What are some examples of businesses that have successfully leveraged mobile technology to create new commerce opportunities?

How does mobile technology enable businesses to reach new customers or offer new products or services?
What are some challenges or risks associated with using mobile technology for commerce?

Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.

Your initial post should address all components of the question with a 500 word limit.

Enterprise systems span functional areas across the organization, integrating data from each. As organizations have become increasingly more complex, such systems have become critical to supporting business processes and the flow of information.

Learning Outcomes

Analyze the role of functional business systems.
Justify the use of an enterprise resource planning (ERP) system in a business.
Examine the functions of a supply chain management (SCM) system.
Articulate how customer relationship management (CRM) systems impact an organization’s interactions with its customers.
Examine the ways in which an enterprise social platform (ESP) supports collaboration in an organization.

Readings

Required:

Chapter 9 in Information Technology for Management: On-Demand Strategies for Performance, Growth, and Sustainability
Chapter 10 in Information Technology for Management: On-Demand Strategies for Performance, Growth, and Sustainability
Shajrawi, A., & Aburub, F. (2023). Impact of ERP usage on service differentiation: role of mediating effect of organizational agility. Arab Gulf Journal of Scientific Research, 41(3), 359–375.
View the following videos:
Chapter 9 Whiteboard Animation Videos, part 1
Chapter 9 Whiteboard Animation Videos, part 2
Chapter 9 Whiteboard Animation Videos, part 3
Chapter 10 Whiteboard Animation Videos, part 1
Chapter 10 Whiteboard Animation Videos, part 2
Chapter 10 Whiteboard Animation Videos, part 3

Recommended:

Chapter 9 & 10 PowerPoint Presentations

IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
Twelfth Edition
Turban, Pollard, Wood

Chapter 9
Functional Business Systems

Learning Objectives (1 of 5)
Functional
and CrossFunctional
Business
Processes

Production
and
Operations
Management
Systems

Human
Resource
Information
Systems
(HRIS)

Accounting,
Finance, and
Regulatory
Compliance
Systems

Sales and
Marketing
Management
Systems

Functional and Cross-Functional Business
Processes
An organization is divided into several functional
business units—sometimes known as functional
silos—that it depends on to meet its goals.
Reason: To allow each to operate within its area
of expertise to build efficiencies and
effectiveness across the business as a whole.
Traditionally, this includes production and
operations, sales and marketing, accounting and
finance, and human resources.
Copyright ©2021 John Wiley & Sons, Inc.

Information Systems to Support
Functional Business Units
Functional Business System (FBS) is an IS designed to improve the efficiency
and performance of a specific functional area within an organization.

Breaking
Down
Functional
Business
Silos

Originally, information systems were
designed to only support the
accounting function.

Systems for other functions were
rolled out later.

This fragmented roll-out approach
created data silos and could not
support cross-functional business
processes.
Copyright ©2021 John Wiley & Sons, Inc.

Cross-Functional Coordination and
Integration
A cross-functional business system integrates the endto-end activities of an entire business process and cross
departmental boundaries.

Cross-functional business processes occur when
different departments within the same organization
work together to achieve a common goal.

When FBSs allow for cross-functional coordination, it
becomes possible for the company to monitor and
evaluate progress toward goals and objectives
established during the strategic planning process.
Copyright ©2021 John Wiley & Sons, Inc.

Standard operating procedures (SOPs) is
a set of written instructions on how to
perform a function or activity. SOPs
provide the framework for complex
processes to be managed more
effectively.

Data
Requirement
s
It is critical that businesses have SOPs to
maintain three related data properties
in its IS:

Data
security

Data
validity

Data
integrity
9

Standard Operating Procedures: Data Properties
The SOP documents three related data properties in company
information systems:
• Data security
o

the protection of data from malicious or unintentional corruption,
unauthorized modification, theft, or natural causes such as floods.

• Data validity
o

tests and evaluations used to detect and correct errors, for instance
mistakes that might occur during data entry in fields, such as customer
name and address.

• Data integrity
o

the maintenance of data accuracy and validity over its life-cycle including
the prevention of unintended modification or corruption.

Functional and Cross-Functional Business
Processes: Questions
1. Define the five traditional functional business units.
2. Describe the processes that each traditional
functional business unit performs.
3. Define what an SOP is and give an example.
4. Explain the relationship between TPSs and FBSs.
5. Name the three data properties that an IS must have.

Learning Objectives (2 of 5)
Functional
and CrossFunctional
Business
Processes

Production
and
Operations
Management
Systems

Human
Resource
Information
Systems
(HRIS)

Accounting,
Finance, and
Regulatory
Compliance
Systems

Sales and
Marketing
Management
Systems

Production and Operations
Management Systems
• The productions and operations management (POM)
function is responsible for processes that transform inputs
into value-added outputs.
• These inputs include capital investments, human resources
(workers, staff, and managers); facilities, supplies,
equipment, materials, IT, and information along with the
time and energy needed to manage them.
• These are transformed through inspection and alteration
and subsequent transportation and/or storage.
• The outputs are the goods and services that an
organization produces
Copyright ©2021 John Wiley & Sons, Inc.

Production and operations
management (POM) system
• A production and operations management system assists in
the operation, planning, execution, and ongoing
management of an organization.
• The main objective of POM software is to optimize
workflow in the production of goods and/or the delivery of
services.
• A wide variety of POM systems focus on various aspects of
operations management that are heavily used across
virtually all business functions from project management,
to distributing and managing workloads to fully integrated
enterprise-level solution such as a supply chain (SCM)
system or enterprise resource planning (ERP) system.
Copyright ©2021 John Wiley & Sons, Inc.

Inventory
Control
Systems

• Inventory Control Systems
• Important because they minimize the
total cost of inventory while maintaining
optimal inventory levels. Inventory
control systems minimize the following
three cost categories:
• Inventory holding costs
• Ordering and shipping costs
• Cost of shortages
• Safety Stock
• Extra inventory used as a buffer to
reduce the risk of stockouts. Also called
buffer stock.

• Stockouts
• Inventory shortage arising from
unexpected demand, delays in scheduled
delivery, production delays or poor
inventory management.
Copyright ©2021 John Wiley & Sons, Inc.

Just-in-Time Inventory
Management Systems
• JIT inventory management attempts to minimize holding
costs by not taking possession of inventory until it is
needed in the production process.
• Eliminates costs associated with carrying large inventories
at any given point in time.
• Higher ordering costs because of more frequent orders.
• Higher risk of stockouts.
• Must have cooperative production and/or supply partners
to succeed.

Lean
Manufacturing
Systems

• The main objective of lean
manufacturing is to eliminate waste
of any kind by eliminating any step in
the manufacturing process that does
not add value to the final product.
• Empowers workers so that
production decisions can be made by
those who are closest to the
production processes.
• A lean manufacturing system
streamlines efficiency and processes
by connecting production line
machinery and warehouse
management systems to maximize
productivity.
Copyright ©2021 John Wiley & Sons, Inc.

Quality Management Systems (QMS)
Stand-alone or part of an enterprise-wide total quality
management (TQM) effort providing data about the quality of
incoming materials or parts, as well as the quality of in-process
semi-finished and finished products.

The main objectives of a QMS include improved internal
processes, lower costs, optimization of resource utilization,
continuously improved customer satisfaction, and data
management.

Data collection by sensors or RFID and interpreted in real-time or
stored in a database for future analysis.

Components of a QMS

COMPLIANCE
CONTROL

ANALYTICS TOOLS

CUSTOMER
SATISFACTION
MANAGEMENT

REAL-TIME DATA

RISK MANAGEMENT
TOOLS

DOCUMENT
MANAGEMENT

Computer-integrated
Manufacturing (CIM) Systems
• A management approach that uses computers and
automation systems to control the entire
manufacturing and production process
• CIM is comprehensive and flexible
• CIM helps production managers better use information
to execute manufacturing plans.
• The goal of CIM is to remove all barriers between
functions within an operation and encourage
departments to work closely together throughout the
process.
Copyright ©2021 John Wiley & Sons, Inc.

CIM

• Technology associated with CIM:
CAD/CAM (computer-aided design
and computer-aided manufacturing)
• Advantages gained from using CIM
systems include:
• Reduction in costs
• Improved quality and customer
satisfaction
• Greater production control
• Reduced inventory requirements
• Improved product development
cycles to enable faster response to
market pressures
• Support for manufacturing of
small lots
Copyright ©2021 John Wiley & Sons, Inc.

Manufacturing Execution Systems (MESs)
Systems
• Manage, monitor, and synchronize the execution of realtime,
physical processes involved in transforming raw materials into
intermediate and/or finished goods and execute work orders
with production scheduling and enterprise-level systems.
• Unlike CIM, an MES is based much more on standard reusable
application software, instead of custom-designed software
programs on a contract-by-contract basis.
• MES is a subset of enterprise resource planning (ERP) systems.

Transportation
Management
Systems

• Within POM, transportation
management systems (TMSs)
are relied on to handle:
• transportation planning
which includes shipping
consolidation
• load and trip planning
• route planning
• fleet and driver planning, and
• carrier selection to gain
significant cost savings and
provide better customer
service
Copyright ©2021 John Wiley & Sons, Inc.

Logistics management
• A subset of TMS that deals with the coordination of
several complex inbound logistics, and outbound
logistics processes.
• The main functions of logistics management systems
are:
• Optimize transportation operations.
• Coordinate with all suppliers.
• Integrate supply chain technologies.
• Synchronize inbound and outbound flows of materials or
goods.
• Manage distribution or transport networks
Copyright ©2021 John Wiley & Sons, Inc.

FSM systems optimize routing and
effective fleet use through automatic
territory management, map
visualization, calendar management,
and appointment scheduling.

Field Service
Management
(FSM) System
They also supply customer forms or
notifications such as traffic and
weather updates provided through
client dashboards.
Copyright ©2021 John Wiley & Sons, Inc.

Trends in
TMS
Growth

Factors currently
contributing to the
growth of TMS are:
• Need to upgrade or replace
outdated transportation
systems
• Growth of intermodal
transport
• TMS vendors add capabilities
• TMSs handle big data
Copyright ©2021 John Wiley & Sons, Inc.

Production and Operations Management
Systems: Questions
1.
2.
3.
4.
5.
6.

What is the function of SCM in an organization?
What trends are contributing to the growing use of TMS?
Define logistics management.
What are the three categories of inventory costs?
What are the objectives of JIT?
Explain the difference between EOQ and JIT inventory
models.
7. What is the goal of lean manufacturing?
8. What is CIM?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (3 of 5)
Functional
and CrossFunctional
Business
Processes

Production
and
Operations
Management
Systems

Human
Resource
Information
Systems
(HRIS)

Accounting,
Finance, and
Regulatory
Compliance
Systems

Sales and
Marketing
Management
Systems

Sales and Marketing Systems
• Customer relationships (sales and support)
• Digital advertising
• Social media monitoring and promotions
• Automated ad placement and media buying
• Market research
• Intelligence gathering
• Distributing products and services to customers
• Order tracking
• Online and mobile order processing
• Online and mobile payment methods
Copyright ©2021 John Wiley & Sons, Inc.

Sales
Management
Systems

• Sales management involves sales
procedures and tasks from the
generation of leads and quotes
and moving to customer
conversion, purchases, returns,
and support.
• Sales management systems
combine different sales
procedures and tasks to provide a
detailed overview of a sales team’s
work on different products,
services, location, and customers
to accelerate the tracking of sales
flow and help an organization
achieve its sales targets faster.
Copyright ©2021 John Wiley & Sons, Inc.

Benefits of sales management
systems include:

Sales
Management
Systems

Provides feedback
on sales team
members
performance

Boosts repeat
selling

Increases social
media marketing

Sales management systems can be
deployed in three ways:
On-premise

Software-as-aService (SaaS)

Cloud-hosted

Marketing Management
• Pricing of Products or Services
•

Sales volumes as well as profits are determined by the prices of
products or services.

• Profitability Analysis
•

Profit contribution or profit margin of certain products and services
derived from the cost accounting system.

• Benefits of marketing management systems:
Easier access to customer information
• Improved account planning
• Visual schedules to prioritize work
• Easier communication with other members of the marketing team
• Anytime, anywhere access to customer information, schedules, and
reports
•

Social media provides easy access to a huge
diverse population that is searching for good
online content.

Social Media
as a
Marketing
Management
Strategy

Marketing managers are increasingly using
social media marketing to generate
awareness about their brand and promote
their goods and services.
One of the main features that attracts them
to use social media as a marketing tool is its
faster, spontaneous, and systematic form of
communication.
A chatbot is a service powered by rules and
sometimes artificial intelligence that
simulates a conversation (or chat) with a
customer using a chat interface.
Copyright ©2021 John Wiley & Sons, Inc.

Sales and Marketing Management Systems:
Questions
1. Explain push-through marketing and pull-through
marketing.
2. List two sales and distribution channels.
3. Describe challenges associated with pricing products
and services.
4. Describe profitability analysis.
5. What are the differences between sales management
and marketing management?
6. How do some online businesses determine the prices
they will charge to individual customers?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (4 of 5)
Functional
and CrossFunctional
Business
Processes

Production
and
Operations
Management
Systems

Human
Resource
Information
Systems
(HRIS)

Accounting,
Finance, and
Regulatory
Compliance
Systems

Sales and
Marketing
Management
Systems

Accounting, Finance, and Regulatory
Compliance Systems
• Income Statement

Summarizes a company’s revenue and expenses for one
quarter of a fiscal year or the entire fiscal year.
o Also known as a P&L (profit and loss) or earnings statement.
o

• Compliance
Accounting and finance departments must comply with
generally accepted accounting principles (GAAP) and the
Financial Accounting Standards Board (FASB).
o Corporations whose stock is publicly traded must also comply
with the reporting requirements of the Securities and
Exchange Commission (SEC)
o

Accounting Systems
Most accounting software
packages offer the same basic
features necessary for
managing finances:
• Accounts receivable (A/R)
• Accounts payable (A/P)
• General ledger
• Billing and invoicing
• Purchase and sales orders,
and
• Reporting

Many vendors offer cloudbased accounting solutions
• SaaS accounting software
solutions

Help companies:

Financial
Planning
and
Budgeting
Systems

• Create and manage budgets
• Improve the organization’s ability to
monitor performance
• Quickly identify departures from planned
financial activity when they occur

Five activities that are central to
financial planning and budgeting:
• Budgeting
• Forecasting
• Financial ratio analysis
• Profitability analysis
• Cost control
Copyright ©2021 John Wiley & Sons, Inc.

Budgeting
The best-known part of financial planning is the annual budget, which
allocates the financial resources of an organization among participants,
activities, and projects.

The budget is the financial expression of the enterprise’s plans.

Management allocates resources in the way that best supports the
mission.

Capital budgeting is the process of analyzing and selecting investments
with the highest return on investment (ROI) for the company.
Copyright ©2021 John Wiley & Sons, Inc.

Forecasting

• A major reason why
organizations fail is their
inability to forecast and/or
secure sufficient cash flow.
• Underestimated expenses,
overspending, financial
mismanagement, and fraud can
lead to disaster.
• Good planning is necessary, but
not sufficient, and must be
supplemented by skillful
control.
Copyright ©2021 John Wiley & Sons, Inc.

Ratio
Analysis,
Profitabilit
y Analysis,
and Cost
Control

• Financial Ratio Analysis: used by
external parties when they decide
whether to invest in an
organization, extend credit, or buy
it.
• Profitability Analysis:
understanding the profitability of
individual products or services,
product lines, or the financial
health of the entire organization.
• Cost Control: financial
management of assets, through
proper estimation, to assure
financial health and cash flow.
Copyright ©2021 John Wiley & Sons, Inc.

Financial
Misrepresentations

Occurs when a company
has intentionally
deceived one or more
other parties.

XBRL Tagging
• eXtensible Business Reporting Language (XBRL)
Reporting (disclosure) system designed by the SEC to
eliminate document “search and find” difficulties and improve
how investors find and use information.
o Designed to:
o

• Generate cleaner data, including written explanations and
supporting notes.
• Produce more accurate data with fewer errors that require
follow-up by regulators.
• Transmit data more quickly to regulators and meet deadlines.
• Increase the number of cases and amount of information that
staffers can handle.

XBRL Reporting Compliance
• The SEC requires mutual funds to submit risk return
summaries in XBRL format
• Banks in the United States must submit certain types of
XBRL reports to the Federal Deposit Insurance Corporation
(FDIC).
• Globally, regulators in many other countries require
companies to file reports using XBRL.
• When international firms file XBRL reports, they will
oftentimes use the International Financial Reporting
Standards (IFRS) Taxonomy created by the International
Accounting Standards Board (IASB).

Mishandling Data
Common elements found in regulatory compliance software includes:
• Support for widely adopted standards such as ISO 9000 (quality management); ISO
14000 (environmental management); IS) 31000 (risk management) and OHSAS 18000
(Occupational health and safety management).
• Identify and management regulatory requirements including permits and reports by
country or world region.
• Provide access to regulatory content and compliance requirements of regulatory
agencies.

• Ability to measure compliance and product reports for delivery to agencies,
customers, suppliers, shareholders, etc.
• Management and planning of compliance audits, including scheduling, task
assignments, tracking, and report.
• Measure and assess risk associated with noncompliance.
• Document change to provide a history of regulatory compliance.
• Measure costs of fulfilling regulatory compliance requirements.
Copyright ©2021 John Wiley & Sons, Inc.

Accounting, Finance, and Regulatory
Compliance Systems: Questions
1. Identify five activities that are central to financial planning and
budgeting.
2. Name three features that assist organizations in gaining an
insight into the health of the company and speed up cycle
times.
3. What types of regulatory compliance are organizations
responsible for?
4. What is eXtensible Business Reporting Language (XBRL)?
5. Why does the SEC mandate data disclosure, whereby data
items are tagged to make them easily searchable?
6. Identify three common elements found in regulatory
compliance software.
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (5 of 5)
Functional
and CrossFunctional
Business
Processes

Production
and
Operations
Management
Systems

Human
Resource
Information
Systems
(HRIS)

Accounting,
Finance, and
Regulatory
Compliance
Systems

Sales and
Marketing
Management
Systems

Human Resource Information Systems
(HRIS)
The main goals of human resource management are to support
various facets of the employment process including recruitment;
employee development; HR planning, control, and management;
and HR compliance.

To reduce the workload and improve the effectiveness of the HR
function, organizations need reliable human resource
information systems (HRIS).

A human resource information systems (HRIS) provides a
centralized repository of employee master data that the HR
management group needs for completing HR processes.
Copyright ©2021 John Wiley & Sons, Inc.

Performance Evaluation

Employee
Development

• Corporate managers can analyze
employees’ performances with the help
of intelligent systems, which provide
systematic interpretation of
performance over time.

Training and Human Resources
Development
• Provide career development plan for
each employee. IT can support the
planning, monitoring, and control of
these activities by using workflow
applications.
Copyright ©2021 John Wiley & Sons, Inc.

HR Planning, Control, and Management
• Personnel Planning and HR Strategies
o

Forecasts requirements for people and skills, planning how to
locate sufficient human resources or develop them from
within.

• Benefits Administration
o

Salary/wage, bonuses, and other rewards for service.

• Employee Relationship Management
o

Self-service personal information tracking, online training, and
other employee-focused tasks.

HR Compliance

Human Resource Information Systems
(HRIS): Questions
1. What are the key HR functions?
2. What are the benefits of moving HRISs to intranets or
the cloud?
3. What concerns have deterred companies from
implementing SaaS HR?
4. How can companies reduce the cost of recruiting
qualified employees?
5. Describe IT support for HR planning and control.

Copyright
Copyright © 2021 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Act without the express written permission of the
copyright owner is unlawful. Request for further information should be addressed to the

Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up
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no responsibility for errors, omissions, or damages, caused by the use of these programs
or from the use of the information contained herein.

IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
Twelfth Edition
Turban, Pollard, Wood

Chapter 10
Enterprise Systems

Learning Objectives (1 of 5)

Communicating
and
Collaborating
with
Knowledge
Management,
Content
Management,
and Enterprise
Social
Platforms

Customer
Relationship
Management

Intro to
Enterprise
Systems

Enterprise
Resource
Planning

Supply Chain
Management

Intro to
Enterprise
Systems

• Enterprise System are large
scale application software
packages that supports business
processes, information flows,
reporting, and data analytics in
complex organizations.
• Core business processes:
Include accounting, finance,
sales, marketing, human
resources, inventory,
productions, and manufacturing

Integrating Legacy Systems
• Legacy systems
o

Older information systems maintained over decades because
they fulfill critical needs

• Major reasons why companies replace legacy systems:
High maintenance costs
o Inflexibility
o Integration obstacles (Hardwired, predefined, process flows)
o Lack of staff (qualified/trained professionals)
o Cloud-based enterprise systems are lower in cost
o

Migrating to enterprise systems
• Three typical situations where changes are most
needed:
1. Changes in how people perform their jobs
2. Redesign of business processes
3. Integration of many types of uncoupled legacy
systems

Intro to Enterprise Systems: Questions
1. Explain the purpose of an enterprise system.
2. Describe six types of enterprise systems.
3. What are the five major reasons organizations migrate
to enterprise systems?
4. What are two challenges of legacy systems?
5. Why do companies not replace all of their legacy
systems?
6. Why is it difficult to implement enterprise systems?
7. Explain the three types of changes needed when an
enterprise system is implemented.
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (2 of 5)

Communicating
and
Collaborating
with
Knowledge
Management,
Content
Management,
and Enterprise
Social
Platforms

Customer
Relationship
Management

Intro to
Enterprise
Systems

Enterprise
Resource
Planning

Supply Chain
Management

Automating ERP
• Enterprise resource planning (ERP) is business process
management software that allows an organization to
use tightly integrated applications to manage business
and automate business processes related to services,
technology, and human resources.
• The central feature of all ERP systems is a shared
database that supports multiple business functions
used throughout an organization.

Enterprise Resource Planning Complexity

ERP and the
IT
Infrastructure

• Acquiring an ERP
• ERPs are not usually built inhouse or built using proprietary
software because the costs and
time to do so would be
staggering.
• Typically, ERP systems are
acquired by purchasing or
leasing in a software-as-a-service
(SaaS) arrangement.

Choosing
an ERP
Solution

ERP
Implementation
Critical Success
Factors

ERP: Lessons Learned
• The success of an ERP depends on organizational and
technological factors that occur prior to, during, and after
its implementation.
• Most often when an ERP implementation fails, the ERP is
eventually fixed and remains in use.
• Planning, deploying, or fine-tuning these complex business
software systems for your company is such a large
undertaking that such projects fail more than 50% to 70%
of the time.
• The most important lesson to be learned from these
examples of ERP failures is that when it comes to ERP
selection, you either get it right or pay the price for years to
come!
Copyright ©2021 John Wiley & Sons, Inc.

What’s
New in
ERP
Systems?

• New apps and mobile add-ons enable
the following:
• Sales associates to process orders,
take payments, and collect signatures
with an iPad app
• Field technicians to provide customer
service from anywhere
• Marketing to manage every aspect of
ongoing customer relationships using
a smartphone app
• Production to access to the real-time
information needed to reduce
stockouts and excess inventory
• Customers to access, pay, and view
invoices online
Copyright ©2021 John Wiley & Sons, Inc.

Selecting
an ERP
Vendor,
ValueAdded
Reseller or
Consultant

• ERP vendors: An ERP vendor develops
ERP software and implements and
supports its own product(s). The two
largest ERP vendors are SAP and Oracle.
• Value-added reseller (VAR) customizes
or adds features to a vendor’s software
or equipment and resells the enhanced
product.
• Independent ERP consultant: An ERP
consultant offers customized consulting
services that include identifying and
vetting different ERP options, selecting
the best ERP for the task at hand, and
implementing and supporting the ERP
when it is in operation.

Learning Objectives (3 of 5)

Communicating
and
Collaborating
with
Knowledge
Management,
Content
Management,
and Enterprise
Social
Platforms

Customer
Relationship
Management

Intro to
Enterprise
Systems

Enterprise
Resource
Planning

Supply Chain
Management

Supply Chain
Managemen
t Systems

• Supply Chain Starts with the
acquisition of raw materials or the
procurement (purchase) of
products and proceeds through
manufacture, transport, and
delivery—and the disposal of
recycling products.
• Supply chain management (SCM)
is the efficient management of the
flows of material, data, and
payments among companies in
the supply chain, from suppliers to
consumers.
Copyright ©2021 John Wiley & Sons, Inc.

Automating the Supply Chain
• SCM software focuses around improving business functions such as
the following:
• Inventory optimization to minimize overhead costs and ensure
uninterrupted delivery.
• Warehouse management to track materials and goods within a warehouse
or distribution center.
• Forecasting to reduce uncertainty and variability associated with supply
and demand.
• Optimal cycle time and customer service by increasing control over
processes.
• Supplier management to track performance and compliance, measure
risk, etc.
• Procurement by managing and automating purchase orders and receipts,
creating a transparent audit trail and integrating financial management
systems.
• Logistics planning to ensure that ready-to-ship items are delivered to the
customer as quickly as possible and are handled carefully to ensure they
are undamaged.
Copyright ©2021 John Wiley & Sons, Inc.

Supply Chain Flows
• Material or product flow: the movement of materials
and goods from a supplier to its consumer. Products
that are returned make up what is called the reverse
supply chain because goods are moving in the reverse
direction
• Information flow: the movement of detailed data
among members of the supply chain, for example,
order information, customer information, order
fulfillment, delivery status, and proof-of-delivery
confirmation.
• Financial flow: the transfer of payments and financial
arrangements via electronic funds transfer (EFT).
Copyright ©2021 John Wiley & Sons, Inc.

Electronic
Data
Interchange
in the Order
Fulfillment
and
Logistics
Process:
Terminology

• Order fulfillment is the set of complex
processes involved in providing customers
with what they ordered on time and all
customer services related to on-time delivery
of a product.
• Logistics entails all processes and
information needed to efficiently move
products from origin to destination.
• Back-office operations supports accounting,
inventory management and shipping
processes in the fulfillment of orders.

• Front-office operations involve order
fulfillment activities visible to the customer,
like sales and advertising.
• Electronic data interchange (EDI) involves
electronically communicating information
such as purchase order and invoices.
Copyright ©2021 John Wiley & Sons, Inc.

Supply Chain Management: Order
Fulfillment
• Step 1: Make sure the customer will pay
• Step 2: Check in-stock availability and reorder as necessary
• Step 3: Arrange shipments
• Step 4: Insurance
• Step 5: Replenishment
• Step 6: In-house production
• Step 7: Use suppliers
• Step 8: Contacts with customers
• Step 9: Returns
Copyright ©2021 John Wiley & Sons, Inc.

Achieving a Fully Digitized Supply Chain
• Always-on supply chain is an integrated set of supply
networks characterized by a continuous, high-velocity
flow of information and analytics creating predictive,
actionable decisions to better serve the customer 24/7.
• Always-on supply chains are more connected,
intelligent, scalable, and agile.
• Driven by social media and the IoT, digitized supply
chains have 50 times more data available to them than
just five years ago

Four Technology Stages of Digital Adoption

Lessons
Learned

• Changing business and customer
requirements are putting new and
greater pressures on organizations to
improve on the “Always-On” supply
chain by developing what some are
calling the “NextGen” or “Thinking”
supply chain.

• This new form of supply chain will be
proactive, predictive, and prescriptive.
• It will be tightly connected to data
sources such as social opinion and IoT
outputs and will allow close
collaboration with suppliers and
customers through cloud-based
commerce networks that offer a high
level of security.
Copyright ©2021 John Wiley & Sons, Inc.

Supply Chain Management: Questions
1. What is a supply chain?
2. List four functions carried out by companies in a supply chain.
3. List and describe the three main flows being managed in a
supply chain.
4. Describe SCM.
5. What are the top two strategic priorities of SCM executives?
6. What are the two major barriers preventing innovation in the
supply chain?
7. What are the top innovative digital technologies impacting SCM?
8. Why would companies want to achieve a fully digitized supply
chain?
9. What are the characteristics of the NextGen SCM?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (4 of 5)

Communicating
and
Collaborating
with
Knowledge
Management,
Content
Management,
and Enterprise
Social
Platforms

Customer
Relationship
Management

Intro to
Enterprise
Systems

Enterprise
Resource
Planning

Supply Chain
Management

Customer Relationship
Management
• Customer relationship management (CRM) is the
process of choosing the most suitable and efficient
approach to making and maintaining interactions
with customer and clients.
• Effective CRM can provide managers with a 360degree view of the customer relationship, enable
real-time responses, and improve sales
productivity and predictability.

The CRM
Process

Automating CRM
• A CRM system is a widely used and mature technology that
can be deployed on the premises, in the cloud, or as ondemand SaaS.
• CRM refers to the methodologies and software tools to
leverage customer data in order to achieve the following:
• Identify the appropriate customer experience for a customer.
• Predict and prevent attrition (loss) of a customer, unless he or
she is not worth retaining.
• Acquire new customers who are most likely to become
profitable.
• Up-sell or cross-sell to unprofitable customers to move them
to a profit position.
• Reduce inefficiencies that waste advertising dollars.
Copyright ©2021 John Wiley & Sons, Inc.

Customer Acquisition/Retention
• CRM and Customer Acquisition/Retention
CRM technologies help marketing managers run effective
campaigns, promotions, commercials, and advertisements to
attract new customers, or to increase sales to existing
customers, or to do both.
o Newly acquired customers are unprofitable until they have
purchased enough products or services to exceed the cost to
acquire and service them.
o Some customers can be unprofitable so it’s important to
determine each customer lifetime value (CLV).
o Retaining customers that generate revenues in excess of the
costs is critical.
o

CRM for a Competitive Edge
• Drucker on Marketing Effectiveness
Know your customers
o Understand customer needs
o Communicate intelligently with customers
o

How to Avoid CRM Mistakes
• CRM Mistakes
IT department in charge instead of business users.
o Incorrect CRM requirements by not involving key business
stakeholders from the outset.
o Mobility CRM strategy is an afterthought.
o Taking the wrong approach to CRM training.
o Underestimating users’ resistance to change.
o

Customer Relationship Management:
Questions
1. Explain the four critical success factors for CRM.
2. Why does CRM matter?
3. Discuss how CRM impacts customer acquisition and
retention.
4. According to Peter Drucker, what does marketing
effectiveness depend on?
5. Give three reasons why CRM fails.
6. How can an organization justify implementing a CRM
system?
Copyright ©2021 John Wiley & Sons, Inc.

Learning Objectives (5 of 5)

Communicating
and
Collaborating
with
Knowledge
Management,
Content
Management,
and Enterprise
Social
Platforms

Customer
Relationship
Management

Intro to
Enterprise
Systems

Enterprise
Resource
Planning

Supply Chain
Management

What Is
Knowledge
Management?

• Knowledge management (KM) is
the process of creating, sharing,
using and managing knowledge
and information in an
organization to make the best
use of the knowledge.
• Four operational KM
components:
• Content management
• Expertise location
• Lessons learned
• Community of practice (CoP)
Copyright ©2021 John Wiley & Sons, Inc.

Koenig’s Three Stages of KM Development

• Enterprise knowledge management is
any solution or system that deals with
organizing data into structures that
create business knowledge out of
existing assets while ensuring its security
and managing access.

Automatin
g EKM

• Enterprise knowledge management
(EKM) system is an information system
used to capture, organize and create
knowledge to enhance organizational
processes.
• A sophisticated EKM system also has
powerful search and collaboration
features and can integrate seamlessly
with other systems to share important
information with employees and
customers.
Copyright ©2021 John Wiley & Sons, Inc.

Benefits of EKM System
• Better strategic management
• Increases productivity and productivity
• Increases collaboration, sharing, and teamwork
• Decreases gaps in learning
• Increases accumulation of corporate knowledge
• Accelerates productivity of new employees through
better training based on existing expertise
• Standardizes processes to more easily access
information to improve decision-making
• Protects intellectual capital
Copyright ©2021 John Wiley & Sons, Inc.

Techniques
for
Managing
Knowledge
in Group
Work

Brainstorming is a group
problem-solving technique in
which group members offer up
spontaneous ideas for discussion
to stimulate creative thinking
and develop new ideas.

Mindmapping is a creative and
logical method of note-taking
that maps out ideas on a graph.

Creating a Mind Map
• A mind map starts with a blank sheet of paper or blank
computer screen on which a central theme is drawn as
a single word or image.
• Next, associated representations or major ideas, called
first-level associations, are added. A maximum of seven
first-level associations should be used.
• These are then connected back to the central concept
with curved lines, and other second and third level
associations are represented as branches that emanate
from the related higher-level association.
Copyright ©2021 John Wiley & Sons, Inc.

Enterprise
Content
Management
(ECM)

• Enterprise content management
is a set of defined processes,
strategies, and tools that allow
an organization to effectively
obtain, organize, store, and
deliver critical information to its
employees, stakeholders, and
customers.
• Enterprise content management
(ECM) is one of the operational
components of KM.

Purpose
and
Benefits
of an
ECM
System

• ECM systems enable an organization to
securely store large quantities of
content, distribute information, build
and manage workflows, facilitate team
collaboration, and integrate with other
enterprise systems.

• By eliminating dependence on paper
documents, ECM systems empower
organizations to work more efficiently.
• Other benefits of an ECM system
include:
• Streamlining business processes by
eliminating paper
• Driving improved customer service
• Increased productivity
• Reduced risk
Copyright ©2021 John Wiley & Sons, Inc.

Using an ECM System
• The first step in using an ECM system is the digital capture and
import of information such as vendor invoices, customer
payments, job applicant resumes, vendor contracts,
correspondence with customer and vendors, and research
reports.
• Next, business critical documents are stored in a digital
repository where they can be viewed, edited, and organized.
• Now documents can be retrieved based on a full-text search,
specific words or phrases, and/or preset search options such as
document creation date or names of previous users.
• Finally, an ECM system reduces organizational risk by providing a
safe and secure repository for all corporate content.
Copyright ©2021 John Wiley & Sons, Inc.

Enterprise
Social
Platforms
• Enterprise social
platform is a private,
company-owned
social media software
app that promotes
social connectivity
and collaboration
with an organization
and enhances
productivity and
employee
satisfaction.

Enterprise Social Platforms: SharePoint
• SharePoint is a Microsoft collaboration and document
management platform currently used by 85% to 90% of
Fortune 500 firms.
• The platform is a back-end system that links
employees’ computers and mobile devices to make it
easy to communicate and to synchronize their efforts.
• It has the following social capabilities:
• Intranet and extranet
• Documents: SharePoint provides a shared
space to store documents
• Collaboration and BI
Copyright ©2021 John Wiley & Sons, Inc.

Enterprise Social Platforms: Yammer
• Features similar to Facebook likes, newsfeeds,
threaded conversation, and direct messaging
• This private social channel helps employees, partners,
and customers communicate, exchange information,
and collaborate across departments, locations, and
business apps.
• Includes Enterprise Graph which shows how users are
related to ne another, solving social network sprawl
• Office Graph and Oslo App: Microsoft’s newer project,
code-named Oslo, builds on the concept of the
Enterprise Graph.
Copyright ©2021 John Wiley & Sons, Inc.

Communicating and Collaborating with
Knowledge Management, Content Management,
and Enterprise Social Platforms : Questions
1. What are the basic functions of an ESP?
2. What are the capabilities of SharePoint?
3. In what ways can enterprises realize value from
Yammer or other enterprise social?
4. Why is KM important in an organization?
5. How does Salesforce Chatter enable workers to solve
problems?
6. What are three advantages of online brainstorming?
7. How is mindmapping different from brainstorming?
Copyright ©2021 John Wiley & Sons, Inc.

DB-Module 10: Business & Enterprise Systems
In this module, we will examine the various functional business systems used by
organizations. These include operations management systems, sales and marketing
systems, accounting and finance systems, and human resource information systems.We
will also examine the different types of enterprise systems. These include enterprise
resource planning (ERP) systems, supply chain management (SCM) systems, customer
relationship management (CRM) systems, and enterprise social platform (ESP) systems.
Discussion Topic
Impact of Ecommerce and Mobile Commerce
Choose an e-commerce or mobile commerce platform for a business with which you are
familiar.
1. Discuss the impact of e-commerce technology on the business that operates the
platform you chose. Consider the following questions:
a. What strategies has the business used to leverage e-commerce technology to its
advantage?
b. How has the platform affected the business’s revenue, customer base, or market
share?
c. What risks or challenges has the business faced as a result of using e-commerce
technology?
2. Discuss how mobile technology creates commerce opportunities for businesses.
Consider the following questions:
d. What are some examples of businesses that have successfully leveraged mobile
technology to create new commerce opportunities?
e. How does mobile technology enable businesses to reach new customers or offer
new products or services?
f. What are some challenges or risks associated with using mobile technology for
commerce?
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and
cite any other sources if appropriate.
Your initial post should address all components of the question with a 500 word limit.
Enterprise systems span functional areas across the organization, integrating data from
each. As organizations have become increasingly more complex, such systems have
become critical to supporting business processes and the flow of information.
Learning Outcomes
1. Analyze the role of functional business systems.
2. Justify the use of an enterprise resource planning (ERP) system in a business.

3. Examine the functions of a supply chain management (SCM) system.
4. Articulate how customer relationship management (CRM) systems impact an
organization’s interactions with its customers.
5. Examine the ways in which an enterprise social platform (ESP) supports
collaboration in an organization.
Readings
Required:
• Chapter 9 in Information Technology for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
• Chapter 10 in Information Technology for Management: On-Demand Strategies for
Performance, Growth, and Sustainability
• Shajrawi, A., & Aburub, F. (2023). Impact of ERP usage on service differentiation: role
of mediating effect of organizational agility. Arab Gulf Journal of Scientific Research,
41(3), 359–375.
• View the following videos:
• Chapter 9 Whiteboard Animation Videos, part 1
• Chapter 9 Whiteboard Animation Videos, part 2
• Chapter 9 Whiteboard Animation Videos, part 3
• Chapter 10 Whiteboard Animation Videos, part 1
• Chapter 10 Whiteboard Animation Videos, part 2
• Chapter 10 Whiteboard Animation Videos, part 3
Recommended:
• Chapter 9 & 10 PowerPoint Presentations

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