Chapter 10
Enterprise Systems:
From Supply Chains to ERP to CRM
Learning Objectives
!"#$%&'(%ก*"+,--./" 0 123"4%2%5"*"6ก+ (enterprise systems) ;(, ก+-+<'+'/"=>/*?#4=@&3*A<.*+6 (computerized supply chain management)
*G<-& !"+H#;--./"0 *"'/"=>/*?#4 (supply chain)
*G<-& !"#$I'*"ก+-+<'+ supply chain ;(, innovative solutions. *G<-& !"#+,K*">*L6;+6'(%ก 0 12M4%-M4?4ก+4<4"4./"0*"
supply chain
*G<-& !".*"ก+*">*L6;+6+ (integrated software) ;(, ERP S@ *&/"S+
IT-Performance Model
ChevronTexaco Modernized Its Supply Chain With IT
The Business ProblemChevronTexaco #]4-+<^%45%44@'I/4 US G?+ก<'(%ก`*ก+?@,45%4 #+%-;./" 4M/" ;(, &45%4 4G?+ก<121ก+;/"%4;--415 ก+#+,'&%@"<4S@ '4!2"4M12*"A441./*;ก((*4 +0;(,#+,'&%@S@'(&+*&(4'+1&I #$I''(%กM*"*`* S/145%44;./(,#$a (Run-out) 121ก&'(&#$a ;(,
'&?@ก+%@M/"A+,;b"612M 41&45%4.b (Retain)
#$I'M*"*M+ ;กS=@&3 Supply Chain =@&12ก+S'(*"45%44 Supply Chain +<212 ก+4'45%4 ก+?@, ;(, ก+@H@45%4 '(%"ก4%54 %4 , Hก((1&"S#ก(%24;(,ก(%24 %@กb- ;(,&12M?@กbS#MH/(Hก
ChevronTexaco 1%5"?/"-/*45%4;(,=+"ก(%24'(&0;'/" &%">`5*%5"45%4@<- ;(, 45%412ก(%24;(A`2*+*"+%-.*"ก+MH"M?@ (peak demand)
ก+%@>`5*M*";--`* ก+M%II>`5*4+,&,& ;(, ก+>`5*`2*.*"ก+ก Spot market 4+12MH"ก/ก+M%II>`5*;--+,&,&
43/"12e/4 ChevronTexaco .%#]4-+<^%eHe(<.;--e(<.44ก (mass production) `* ก+e(<.ก0;(A&&&'S@ก0 (Supply-driven strategy)
#$I'*"ก+e(<.4(%ก^f,415`* e(<.ก'+`*4*&ก<4S# /4,1.4?4A<2 S#4 Supply Chain
IT Solution
-+<^%S@.%@M<4#(12&4 business model ก gPush (e(<.S@ก/@ กbe(%กS#MH/ (Hกก/4%54)h #]4 gPull ((Hก.*"ก+/@ กbe(<./4%54)h
-+<^%S@.<@.%5";./(,;;b"6*";./(,M 41.<45%4@& Electronic Monitor A`2* %@ก+M/"M+M4i*"+,@%-45%4.(+<" (real time) e/4"M&4M%IIf S#MH/+,-- IT *"M 41.<45%4 ;(M+M4i415, HกM/"e/4"@1&S# &%" main inventory system 12 main office *"-+<^%
Advanced DSS-based planning system ,ก+#+,(*H(A`2*ก+.%@M<4 "@4ก+#+%-;./" ก+.(@ ;(, logistic 4*กก4%54 DSS &%"+S# !"ก++- +M+M4i*"-+<^%4M/"(Trucking company);(,M&ก+-<4(airline company)
=@&ก+3 Enterprise Resource Planning (ERP) ;(, Business Planning System -+<^%M+ 'S@/,.*"#+%-;./"#]444/@ ,.*">`5*ก Spot market /@ ,.*"M/"S#12M 41.<45%4;./(,;'/"/@
`2*+*H(%5"'@@&ก%4 #]4.*"++,--M+M4i*" Supply ;(, Demand @&ก%4 >!2">*L;+6 ERP 3#+,=&346S@@1 *H('(/415 Hก3=@&eH ";e4 (Planner) 12'(&0?@*" Supply Chain (3/4 refinery, terminal management, station management, transportation, production) >!2"#+,(;(,3 *H(+/ก%4
4*กก4%54+,-- IT ,M4%-M4?4'ก<@=+"ก+./"0"@4 e-business *1ก ก&
The Results
+,--+ (integrated system) 'M+ 3*H(+/ก%4S@ %2%5"-+<^%M/"e( 'ก<@ก+#+%-#+?"ก+.%@M<44?ก0?@12ก12&*"ก%-(Hก;(,M/4./"012.*" #+,(e(4 Supply Chain M/"e('A<2กS+'ก%--+<^%กก/ 300 (4'+1&I 4#n 1999 ;(,A<2!54ก@<กก/ 100 (4'+1&I4#n./*0
=@&ก+i!ก^*" Worthen (2002) A-/ 20% *"-+<^%45%4 (4%-ก@4,;44 MH") M+ @4<4ก+@4 Supply Chain 1#+,M<G<KA#]4M*"/*"/q(12&*" -+<^%./"0 ;(, 1 inventory 4*&ก/-+<^%%20S#+!2"'4!2" ;(,M+ .*-M4*" .*"45%412A<2!54 (20% '+`* กก/) S@+bก/ !"M*"/ ;(,&%"+H/ ,
8.1 Essentials of Enterprise Systems and Supply Chains
Enterprise systems (-"1+1&ก Enterprisewide system) `* +,--'+`*ก+,-4ก+ ./"012%2%5"*"6ก+'+`*3qA,M/4'(%ก0 >!2",'b4/%4./"ก functional system >!2"34;./(,;e4ก .%*&/"12A-'b4%20S#*" Enterprise system S@;ก/
Enterprise resource planning (ERP): M4%-M4?4 Supply Chain K&4 enterprise Extended EPR:ERP 12M4%-M4?4A%4G<.+G?+ก<*`240@&
Customer relationship management (CRM): 3A`2*@H;((Hก
Knowledge management (KM) systems: M4%-M4?4ก+M+"*"6+H ก+%@กb- ;(, ก+ก+,&*"6+H
Partner relationship management (PRM): Hก**ก;--A`2*@H;(A%4G<.+G?+ก< ./"0 Business process management (BPM): ;(,#+%-#(12&4ก+,-4ก+./"
0 4*"6ก+ %5"415+ !" ก+ Reengineering ;(, ก+-+<'+ก+S'( (flow) *" ก<ก++;(,"4./" 0
Product life cycle management (PLM): 3(@.4?4;(,+,&,(4ก+**ก;--e(<.K%fv6'+`*-+<ก+'/ 0 =@&+<2.%5";./;4<@ ก+**ก;-- ก+M+" ;(, ก+M4%-M4?4
Decision support systems (DSSs): M4%-M4?4ก+.%@M<4%2%5"<M'ก< %ก3 +/ก%-(%"*H( =@&+H#;--415%4,+* Executive information system (EIS) *S@&
Intelligent Systems >!2"%ก#+,ก*-@&*"6#+,ก*-"@4+H (knowledge component 3/4 Expert system '+`* Neural network
Roadmap: Overview of enterprise system
What is a supply chain ?
4<&./*S#415,3/&'4`5*'S@"/&!54
Supply chain '& !" ก+S'( (flow) *"%. ?@<- M+M4i "<4 ;(, ก+-+<ก+ ./"0ก>%AA(&**+6>!2"#]4eH#z*4%. ?@<- e/4=+""4 S# !"(%"M<4*"(Hก %5"415+ !";e4ก./"0 ;(,ก+,-4ก+12ก12&*"
Supply chain management (SCM) L$"ก63%4*" SCM `* ก+";e4 ก+%@*"6ก+ ;(, Optimize '4!2"'+`*ก/ก+@4<4ก<ก++*" supply chain
#z'&'(%ก(goal)*" Supply Chain Management (SCM) M%&'/ .*"ก+ (@ S/;4/4*4 (Uncertainty) ;(, M12&" (Risk) .(*@ Supply Chain (" 'ก 12M?@ 4%24'&/ ,.*"(@+,@%-*"M<4"(%" (inventory level), +*-(
The Flows in the Supply Chain
ก+S'(*" Supply Chain 1M;--(4?*"12./"ก%4) S@;ก/
1) ก+S'(*"%. ?@<- (Materials flows) '& !" e(<.K%fv6./"0 %. ?@<- ก+%@M/" ;(,*`240 12S'(S#.M&=>/ ;4<@*" materials flows 4%54,+%5" reverse flows-returned products, recycled products ;(, disposal of materials or products. 2) ก+S'(*"M+M4i (Information flows) '& !"*H(%5"'@12ก12&ก%-
.*"ก+ ก+%@M/" ก+M%2"*" ก+M/"`4 ;(, .+"( (schedule) #]4ก+S'(*" M+M4i%5"M<54 (-" model กb,.%@M/4415**กS#)
3) ก+S'("-%I31 (Financial flows) '& !" ก+=*4"<4 ก+/&"<4 M+M4i *"-%.++@<. ;(, ก+*4?%.< .+"ก+/&"<4 ก+/&"<4;--*<(+*4<M6 ;(, +@<.12M%A%4G6ก%-*H(
Supply Chain *"-"*"6ก+ ,1ก+S'(4*&;--ก/ 3/4 4*?.M'ก++ก+' -+<ก+ (Service industry) ,S/1ก+S'(*"%. ?@<-121=+"M+""ก&KA ;./ %ก,#]4ก+S'(*"*กM+./"0กก/ (hard and/or soft copies)
A!"M%"ก./ ก+'#]4@<<.*(*">*L.6;+6 A(" ;(, *`240 >!2"S/1ก+S'(" ก&KA4 Supply chain ;./%4,1ก+S'(*"M+M4iM*"34<@`* replaces materials flow (3/4 digitized software) ;(, supporting information (3/4 orders billing #]4.4)
The structure of a typical supply chain
IT .*"'ก+M4%-M4?4 SC '"4S@*&/" Hก.*".L$"ก63%4ก+@4<4"4 +`2*"12ก12&*"ก%-ก+@4<4ก+S@;ก/
ก+.%@M<4ก12&ก%-ก+%@>`5*;(,>%AA(&**+6 ก+.%@M<4ก12&ก%-ก+e(<. (Production)
ก+.%@M<4ก12&ก%-ก+ก+,&M<4 (Distribution)
ก+.%@M<4@4ก+'ก+M4%-M4?4M+M4i (Information support) ก+.%@M<4ก12&ก%-ก+S'(*"%. ?@<- (Material flow)
ก+.%@M<4ก12&ก%-ก+,;M"<4M@ (Cash flow)
SCM Software '& !">*L6;+612**ก;--'M4%-M4?4M/4./"012," *" Supply Chain 3/4 ก+e(<. ก+-?M<4"(%" ก+%@(;(,ก+ 4M/">*L.6 ;+6415,44S#12ก+#+%-#+?" decision making optimization ;(, analysis
E-supply chain `*Supply chain 12 Hก-+<'+%@ก+e/4"*<(+*4<M6=@&3 Web-based software -"1+1&ก#]4 Digital supply chain
The Structure and Components of Supply Chains
* Supply chain ก+H#12;M@" !"M/4./"0*"*"6ก+3`2*./*ก%4*&/"S+ Supply chain ก12&*"ก%-MM/4 (+H#'4 %@S#) `*:
.4" (Upstream) `2* sourcing '+`* procurement ก<@ก external suppliers K&4 (Internal) `2*ก<@ก+ packaging, assembly, '+`* manufacturing #(&" (Downstream) `2*ก<@ก+ distribution '+`* dispersal %กก<@ก
external distributors
Supply chain &%"+ !"ก+(`2*4S'*"e(<.K%fv6'4!2"0 '+`* ก+-+<ก+'4!2"0 ;(, ;e4ก./"0 ;(, M<2"./"012ก<@+/@& M<2"'(/415 `*#]4M/4'4!2"*"M&=>/ 3/4ก%4
.%*&/"*" SC
A<+f';&ก"/& 0 =@&ก/*4 =@&;&ก#]4 >%AA(&**+6eH& %. ?@<-'+ (Upstream)+#]4 eH;#++H#%. ?@<-4%54'#]4M<4 (Internal) ;(, eH12+%-M<4S#ก + (Downstream) '(%"ก4%54 !" 1&4e%"ก+S'( (Flow diagram) `2*@Hก+S'(;(#]4;--"/&0 S/1ก+3`2*=&"L$"ก63%4 %ก ,+1&ก;--415/ Linear Supply Chain10.2 Supply Chain Management and Its Business Value
Managing Collaboration#$I'12ก<@ก%- supply chain กM*";'(/": 1) S/;4/4*4./"0 (Uncertainties)
2) #]4.*"#+,M4"4ก%-ก+@4<4"4'(&0;-- %5"K&4@& ก%4*" (;e4ก) ;(, A%4G<.+G?+ก<%5"'(&
S/;4/4*4*" supply chain กb`* ก+A&ก+f6.*"ก+ (demand forecast) .*"ก++<"*#(12&4;#("**กS#ก12#+,fก+*S=@& e(*"ก+@4<4ก+./"0 3/4 MKAก+;/"%4 + MKAKH<*กi ก+ A%4"@4=4=(&1 3`2*%24 *"(Hก +,&,(4ก+%@M/" ;(, *`240
Trust and Collaboration
S" `*#]4+`2*"M%I4ก++/`*ก%4+,'/" supplier ;(, buyer 4 SC A+,.*"3M+M4i+/ก%4;(,ก+,-4ก+ก+4& (predict process) +/ก%443<"eH'4!2"'ก+A&ก+f6 (forecast)S#&%"*1กeH'4!2" ;4"%2 0 S#4ก+;ก#$I'*" SC =@&qA,*&/"&<2"ก+#+%-#+?"+`2*"
ก+A&ก+f6.*"ก+ (demand forecast) กb`*ก+3M+M4i+/ก%4 (sharing information) ก+3M+M4i+/ก%4415,'& !" collaborative supply chain
Collaborative Planning, CPFR and Collaborative Design
4@4 Collaborative Planning 4%54 A%4G<.+"G?+ก< *%4S@;ก/ eHe(<. >%A(& **+6 A%4G<<.+@43/*""ก+%@'4/& ;(,A%4G<.+@4*`24 0 S@3/&ก%4 +-+ก+M+"ก+A&ก+f6.*"ก+(&*@&)+<2.4 ก+#(12&4;#(" .#]4 ;(,;-/"#$4*H(>!2"ก%4;(,ก%4 3/4 &*@&12ก<@!54+<" ;(, ก+A&ก+f6*"Aก #]4.4 @%"4%54ก+"4*"?ก 0 &#]4S#A`2* ก/*'ก<@.+"(*%4@1&ก%412M*@+%-ก%-?*"+/ก%4 (common view) ;(, %5"'@.*"M+ !"*H(*%4ก/*'ก<@#+,M<G<KA"@4ก+M%2">`5*;(, ก+A&ก+f6e/4" electronic link
Collaborative planning, forecasting and replenishment (CPFR)
CPFR `* ;4"#<-%.<"G?+ก<>!2">%AA(&**+6;(,eH#(1ก (retailer)+/`*ก%44ก+";e4;(,A&ก+f6.*"ก+A`2*'%24S@/M3<ก *" SC %5"'@,1%. ?@<-;(,M<4M+b+H#4#+<f12 Hก.*"', `2* Aก.*"ก+3
#z'&*" CPFR กb`* ก+#+%-#+?"'1#+,M<G<KA (streamline) *" ก+ S'(*"M<4ก=+""4eHe(<.S#MH/-4*"(Hก
.%*&/"*" CPFR Model ,#]4@%"+H#4'4 %@S#
1) ก(&?G6;(,ก+";e4 (Strategy & Planning) A`2*ก++/`*ก%44+`2*"*" supply and inventory level >!2"4S#MH/
2) ก+%@ก+@4 demand & supply (Demand & Supply Management) #]4ก+ 3`2*ก+A&ก+f6.*"ก+;(,ก+%@ก+ก%- supply ;(, inventory
3) ก+#<-%.<ก+ (Execution) ;e4, Hก4@4<4ก+;(,e(12S@, ?ก4 <+,'6
4) ก+<+,'6 (Analysis) ก+#+%-ก(&?G6.#]4
Managing Information
4`2*"ก1ก+3M+M4i+/ก%4 '(& 0 -+<^%3 master data management (MDM) 3/& @%"+H#4'4 %@S# ' supplier M+ .<.bM<4"(%" *"eH>`5* (inventory replenishment)S@"/& '+`* ก(/S@/ supplier M+ -+<'+ M<4"(%"12eH>`5*S@@&.%*"=@&12eH>`5*S/.*"&?/"ก12& +1&ก/ Vendor-managed inventory (VMI)
MDM Framework
E-Business Systems and the Supply Chain
ก+A<2!54*" E-Commerce ก/*'ก<@=*กM'/ 0 4ก+#+%-#+?"#+,M<G<KA *" SC ก+4*<4.*+`4b.+/3"4ก/*'ก<@*S@#+1&-'(%ก 0 `* #+,M<G<KA@4.4?4@1!54 *%4#]4e(กกe(<.e(S@+%-ก+#+%-#+?";(, .4?4.2(" ก+'-+<ก+(Hก Hก#+%-#+?"'@1!54กก+#+%-#+?"?fKA*"ก+ '-+<ก+ M+ *"ก+,-4ก+ ?ก#+%-#+?"ก?fKA@4G?+ก< Online 1 M2M*@1!54 e(<.e(MH"!54;(,3`2* `*S@ก!54*%4#]4e(กก+-?ก+S'(*"
Cycle time M%54("*%44`2*"ก1(/34*&(";(,1+@+bA<2 ก!54 1(/*".%4+`2*"ก+"";e4;(,#+%-#(12&4;e4ก!54 SC M%54(" ก+,-4ก+e(<.#+%-+1&-S@@1!54 .%*&/"ก<ก++./" 0 *" e-business 12M+ #+%-#+?" SCM
Collaborative fulfillment networks (CFN) #]4ก++/`*ก%4+,'/"eHก12&*" ./" 0 4%54.*412;.ก./"ก%44 SC
Electronic marketplaces 43A`2*'*"6ก+-/"315 upstream supplier ก+G?+ก+++,'/"*"6ก+%ก3 Electronic Data Interchange (EDI) Expanded version of EDI Hก+1&ก/ Advanced Shipping Notice (ASN) '
vendor M/" shipping notice S#' purchaser S@=@&.+"
Electronic ordering and funds transfer (EOFT) `*#]4*"6#+,ก*-M%I4 E-business transaction
Managing Inventory
#$I'12ก<@!54'`*4 0 ก%4กb`*M<4"(%"12A<2ก!54 (building inventories) ;(,#$I''(%ก12.*".*- กb`* M<4"(%"+,*&H/12+,@%-@!", ',M
A+, +ก'4@+,@%-M<4"(%"*SMH"ก<4S# ,'.4?44ก+กb-MH". S#@& (4*กก4%54 1ก+ก'4@+,@%-M<4"(%"S'MH"4 '(&0M/4*" supply chain ,''ก<@ bullwhip effect .) 4" ก(%-ก%4 ก'4@S.2ก<4S# `2*.*"ก+3*"4%540MH"!54 กb,@*" 'M/"*"S/%4 MHIM1&+&S@;(,(Hก
Managing E-Procurement
`*ก+3=4=(&1*"*<4.*+64b.3/&4ก+%@>`5*'+`*%@'M<4;(, -+<ก+./" 0
Managing Other IT-Assisted Solution
ก(?/ SC: ก+#(12&4ก linear SC #]4 hub /4,.*"M+" SC Team !54 SC Team `* ก(?/12 tightly integrated businesses >!2""4+/ก%4A`2*'-+<ก+ ก%- (Hก "4;./(,"4,ก+,=@&M3<ก4ก(?/ =@&eH121M+ MH"M?@ "44%54 0
=+""4M`*4 (Virtual factory): =#+;ก+#+,&?ก.6123+/ก%4%5"*"6ก+ @%"4%54 IT.*"%@'+H#;--ก+3*A<.*+6'ก%-=+""4 A`2*3+/ก%4%5"*"6ก+
Mobility and Wireless Solution
*/4A<2.<4 IT at Work 10.2 gPeacocks retails uses wireless to smooth its supply chainh, page 378 ;(, The Leaning of Supply Chain
Business value of SCM */4.%*&/"4'4 377 - 378
Supply Chain and Information Integration
4i.++^12 20 =4=(&1*"*A<.*+6#]4;-- Functional oriented ('& !" L$"ก63%4;.ก./"ก%44;./(,;e4ก) A*MH/i.++^12 21 ก+-+<ก+ %@ก+e/4" =4=(&1@<S@S/1#+,M<G<KA A+,=4=(&1@<S/ M+ M`2*M+ก%4S@ M,@กA+,./"L$"ก63%4ก%4 M<2"12.*"ก+`*'%4M`2*M+ +/ก%4S@ ;(,*&H/-4 platform @1&ก%4 #]4+,--@1&ก%4 (M`*4ก%-/ + (integrate)L$"ก63%4./"0 (systems) S @&ก%4%5"'@ #]4+,--@1&ก%4) Sandoe ;(,f,(2001) S@;M@" !" major benefits *"ก+++,--./"0
@&ก%4 (systems integration):
e(#+,=&346;--+H#G++ (Tangible benefits) 3/4 ก+(@ inventory, ก+(@A4%ก"4 #+%-#+?" e(<.e( (
Internal versus external integration
ก+++,--M+ S@M*";-- `*ก) Internal integration '& !" ก++ก%4(;e4ก '+`* &)K&4-+<^%'4!2" +,'/"(/ก(")ก+#+,&?ก.63 ;(,/'+`* +,'/"ก+#+,&?ก.63ก%- 4*H( ./"0 3/4 +ก+-?M<4"(%"ก%-+,--ก+M%2">`5*'+`* CRM +ก%- 4*H(*"(Hก #]4.4
) External integration '& !" ก++ก%4*"ก+#+,&?ก.63./"0 ;(, 4*H( ./"0 /ก("A%4G<.+"G?+ก<%5"'(& 3/4 +;..,(b*ก./"0ก supplier '(&0+& ก%-+,-- buyers e-procurement
Ethical issues related to supply chain solutions
ก+ SCM Project *ก/*'ก<@ก+#(@4"4 ก+.*"*-+'/ '+`* ก+ &&A4%ก"4S#"4*`24 eH-+<'++;"A4%ก"4'+-(/"'4 ;(,A4%ก"4eHMH"*&?>!2"1"+%กK%ก@1ก%--+<^%44,*&/"S+ ก+;-/"#$4*H(M/4-?(4;"/*"ก+ก/*'ก<@ก+"4+/ก%4*ก<@ ;+"./*.4 A4%ก"4'(& 0 4*.*"3=#+;ก++/ก%4 ;./-"4* `*/=#+;ก+ 4%54#]4+%A&6M<4*".4 !"ก1@ก%4S/'eH*`243
10.3 Enterprise Resource Planning (ERP) Systems
ERP `* *,S+?*S@#+1&-*" enterprisewide client/server computing *&/"'4!2"กb`* ก+-? ก+,-4ก+'(%ก0%5"'@*"G?+ก<4(+<"@&>*L6;+6.%@1& >*L6;+6 .%415+H%กก%4%2S#/ ERP
Enterprise resource planning (EPR): >*L6;+612#]4ก++-+ ก+";e4 ก+-+<'+%@ก+;(,ก+3+%A&ก+%5"'@%2%5"*"6ก+*S@&ก%4 #z'&;(,*S@#+1&-*" ERP
#z'&'(%ก*" ERP กb`*+ก+S'(*"M+M4i3<"L$"ก63%4;(,;e4ก./" 0 %2%5"*"6ก+S4+,--*A<.*+6+,--@1&>!"M+ +*"+%-.*"ก+*"*"6ก+S@%5"'@ */4A<2.<4 IT at Work 10.3 '4 381
Capabilities of ERP
(Third-Generation ERP)
+ก+%@M/"S#+,'/"'4/&G?+ก<;(,M/412ก12&*"
+iH4&6ก+,&M<4 (distribution center) S# ;(,(@+`2*" truckloads (" Dynamically sourcing products ก'(& 0 ;'(/"
Shared services for manufacturing Global order management ก;e4ก@1& ?/"44("S#%@ก+4;./(,A`5412 %@>`5*/%@'+/ก%4
ERP Implementation
*/4A<2.<ก.%*&/"4'4 380 - 381
SAP R/3 #]4eH4"@4 EPR software (ก SAP AG Crop.): >!2"#]4 >*L6;+6 ;Abกก12+*กก/ 115 business activities modules S @&ก%4
Generations of ERP
ERP +?/4;+ก ?/"44S#12ก+@4<4"4./"0 K&4*"6ก+12#]4"4#+, ;(,1 ก+>50=@&G++3.<
ERP +?/412M*" #z'&*"+?/412M*"`* ก+ก+,&+,--M+M4i%5"'@121*&H/ A`2*A<2#+,M<G<KA4ก+@4<4"4 G?+ก++ ;(,#+%-#+?"@4ก+.%@M<4 ;(, #(12&4;#(";4"ก+G?+ก<4+H#;--G++@S##]4 e-business.
?@*/*4*" ERP +?/4;+ก `*'ก<@.*"ก++,--ก+";e4A`2*?/"S#MH/ ก+.%@M<4 ;(,412`*ก+#+ก=q*" SCM A`2*4S#3#+%-#+?"ก+.%@M<4 4M/4./"0*" SC
ERP Application modules
ก++ ERP ก%- SCM
ก+3 ERP ;(, SCM 4%54 S/+,#]4S#43<"ก+.%@M<4=@&3;--@;-- '4!2" ;./+,#]4;--+%5"M*"@&ก%4;(,3+/ก%4 .%*&/"3/4 "412 ก12&*"ก%-ก+M%2"M<4 (Order processing) *"4? ERP ,#]4S#43<" gHow can I best take or fulfill you order ?h (`* e+%-M%2">`5**"/4;( e, *&/"S+@1 A`2*M+ M/"*".12/4M%2">`5*S@@112M?@) ;./`2**"43<" SCM ;(,#]4 gShould I take your order ?h (e,+%-M%2">`5*ก/4@1'+`*S/ .*-*#]4 gS/h e.*"M1& "<4 (@?4) '+`* 'ก+e(<.*"e&?/"&ก) @%"4%54,'b4/ SCM ?/"44S#&%"ก+";e4 ก+ optimization ;(, ก+.%@M<4 4M/4./"0*" Supply chain M/4 ERP ,?/"44S#12 ก+";e4 ก+-+<'+ %@ก+ ;(,ก+3+%A&ก+%5"'@%2*"6ก+ (*"43<"ก+3+%A&ก+%5"'@
"(`*ก*`24 0 4ก++ ERP ก%- SCM
3>*L6;+6./"/&ก%4 3/4 3 SAP #]4 ERP ;(3 SCM ก*1ก-+<^%'4!2" ;./.*" +,%"+`2*"ก%4S@ (*.*"1 middleware vendor 3/&)
A<2M+ "@4 decision support ;(, analysis S#4 ERP >!2"#]4M/4 12 +H%กก%4=@&%2S#`* Business Intelligence (BI) '1M+ 43<"<+,'6 A<2!54 `* DSS, ESS, data mining ;(, Intelligent system (ก+A<2 business intelligence function S# กb,ก(&#]4 second generation ERP >!2"S/S@1qA, decision support /4%54 ;./&%"+ !" CRM, e-commerce ;(, data warehouse ก%- data mining -"1&%"+S# !" knowledge management @&)
10.4 Customer Relationship Management (CRM)
Customer relationship management (CRM): `*A&&*" enterprisewide A`2*'S@ ;(, +%ก^(Hก./"0 e/4"ก+M4%-M4?4*" IT
#+,K*" CRM ;(, ก+M4%-M4?4*" IT
Operational CRM: ก+@4<4ก+12#+,ก*-S#@& customer services, order management, invoice /billing ;(, sale/marketing automation ;(, management . Analytical CRM: ก+@4<4ก+12 capture, store, extract , process, interpret, ;(,
report customer data a corporate user.
Collaboration CRM: %@ก+ก%- all the necessary communication coordination ;(, collaboration +,'/" vendors ก%- customers.
Classification of CRM Application
1) Customer-facing applications 44S#12?ก0A`541212(Hก1#<M%A%4G6ก%--+<^% 2) Customer-touching applications 44S#12(Hก1#<M%A%4G6=@&.+"ก%-ก+#+,&?ก.6 3"4./"0 3/4 self-service, e-commerce application3) Customer-centric intelligence applications
?/"44S#12ก+<+,'6e((%AG6*" operational processing ;(,4e(12S@ก+ #+%-#+?" CRM Application
4) Online networking applications M+"M%A%4G6ก%-(Hก;-- online
E-CRM (Electronic CRM)
ก+3 web browsers, Internet ;(, electronic touch-points *`240 A`2*-+<'+%@ก+ M%A%4G6ก%-(Hก
*-.*" E-CRM
E-CRM 1M+,@%-@&ก%4S@;ก/
1) Foundational service (minimum necessary services) 2) Customer-centered services (focus on customer need) 3) Value-added services (extra service)
Royalty Programs `*=#+;ก+12@(Hก./" 0 123-+<ก+ ('+`*>`5*M<4) 12 -+<^%M4*'*&H/#]4#+,
Customer Service on the Web
"4'(%ก*" e-CRM `* '-+<ก+(Hกe/4 Web .%*&/"S@;ก/ 1) M+
2) '-+<ก+L+14+`2*"12ก12&ก%-M<4;(,-+<ก+
3) 'M+M4i3<"4<;(,*`24 0 +%5"-+<ก+./"0 @& 4) %@e(<.K%fv6;(,-+<ก+'',Mก%-.*"ก+*"(Hก 5) .<@.M 4ก+f6M%2"*" ก+%@M/" ก+3+,"<4 #]4.4
Other tools for customer service
.%*&/"S@;ก/1) Personalized Web pages 2) FAQs
3) E-mail and automated response 4) Chat rooms
5) Call center
Wireless (Mobile) CRM
CRM Successes and Failure
*/4.%*&/"M+bก IT at Work 10.5 '4 389 +`2*"'(%ก 0 12M%A%4G6ก%-('(*" CRM S@;ก/ 1) &ก12,ก+%@;(,ก'4@?f/4;"/*"e(#+,=&34612S/3/.%"<4 2) ('(4ก+-/"315;(,=Lก%MS#12#$I'"G?+ก<12qA,,">!2" CRM M+ ;กSS@ 3) @ก+'ก+M4%-M4?4*&/".bก(%"กeH-+<'++,@%-MH" 4) eH3"4&*+%-&ก 5) A&'#]4*%.=4%.<ก%-ก+,-4ก+"G?+ก<12ก'4@*SS/@1 (4ก+ 4 CRM 3"4)
Business Value of CRM
%ก,*&H/4 3 A`5412./*S#415 1) ก+.(@2) ก+& 3) ก+-+<ก+
Potential Pitfalls and Risks of e-CRM
Taking on more than can be delivered3"-#+,fก<4;(,ก<@(/3ก/'&ก'4@ก+ eH3#+%-.%S@3
/-+?"+%ก^;(,ก+M4%-M4?41+;A"
ก<@ก+;-/";&ก ( *H(*" CRM S/ Hก4S#3%2%5"*"6ก+) Garbage in garbage out
('(4ก+%@M+b
On-demand CRM
On-premise CRM eH3S#>`5*+,--;(.<@.%5"3"44-+<^%*".4 On-demand CRM +,--.<@.%5"*&H/12-+<^%12#]4 ASP (Application Service
Provider) '+`* Vendor #$I'*" On-demand CRM
1) ASP *,(<กG?+ก< ก<@ก+*@<5"(Hก
2) &ก ('+`* #]4S#S/S@) 12,ก+;กS hosted software 3) ก+ Upgrade ,ก(&#]4#$I'
#+,=&346*" On-demand CRM 1) #+,'&%@A+,S/.*">`5* 2) S/#]4.*"1eH34Iก+"@4>*L.6;+6 3) 3"/&S/.*"ก*-+ก4%ก 4) 13S@+b (Fast time-to-market) 5) 1eH34Iก+*".%;4>*L.6;+6'#+!ก^
10.5 Knowledge Management and IT
Concepts and Definitions:ก !"#$ก%&'(')*+, (Knowledge management (KM)) `*ก+,-4ก+ 123/&'*"6ก+-/"315 (`*ก e&;A+/ ;(, /&=*4M+M4i;(,#+,M-ก+f612 M%I*%4#]4M/4*"*"6ก+ (organizations memory)
*"6+H12 Hก%@*&/"#]4=+"M+" 3/&': ;ก#$I'S@*&/"1#+,M<G<KA;(,1#+,M<G<e( ก<@ก++1&4+H*&/"S/'&?@4<2" (dynamic learning) 3/&4ก+";e4@4ก(&?G6 (strategic planning) 3/&4ก+.%@M<4 (decision making)
Knowledge management 43/"+<2.4 ,?/"S#12
+,-? !"*"6+H12#]4;(,121 (identifying knowledge) ,;-/"#$44+H#;--12',M*&/"S+
A<2H(/'ก!54e/4"ก+43>5 (leveraging its value through reuse) Knowledge management M+
M/"M+<'*"6ก+ก<@ก++1&4+H (promote organizational learning) 3/&;ก#$I' (help solve problems)
Data, Information and Knowledge
Data `*ก++-+: #]4+<" (Facts) ก+%@ (Measurements) M <.< (Statistics) Information `* ก+%@ก(?/'+`*#+,(*H( >!2": 1ก+*-*"( (Timely) 1;/4& (Accurate)
Knowledge `*M+M4i >!2": 1*G<-&123%@4 (Contextual) 1M%A%4G6ก%-#$I' (Relevant) 4S#@4<4ก+S@ (Actionable)
ก+1*"6+H'& !"*"6+H4%54M+ 4S#;ก#$I'S@ ก+1M+M4iS/ #]4
*"6+H (Knowledge)`* ;.ก./"*"*H(;(,M+M4i*&/"3%@4;(, ''&4+,@%-MH"4@4*H(;(,M+M4i
M.<#$II12ก<@กก+ก+,`**"6+4ก+#]4*"6+H
Knowledge
Corporate Asset*"6+H1?fM-%.<@%"./*S#415 (>!2"';.ก./"ก+%A&6M<4*`24 0 *"*"6ก+) 1A<i^**กS#กG++@;(,'e(.*-;4A<2!54.(*@(*"6+H,
S/1e(.*-;412(@(" (&<2"3&<2"กS+) `2*43%4,S/'ก<@M<54#(`*" (3/@กb&%"'(`*/@<) M<54#(`*"12A<2S#4.%%4 (A<2*"6+H' ก!54) ,'ก<@?f/A<2!54M*
;-/"&/*&S@ +%2S'(S@ ;(, .*"ก+ก+ refresh `2**"6+H=.!54 %4;.ก**ก;(, ;&ก&/*&S@ *"6+H#]4 dynamic #]4M+M4i43<"@4<4ก+ @%"4%54*"6ก+ ,.*"ก+ refresh *"6+H*&/"./*4`2*" (4;"/*"%4M%&) A`2*+%ก^ ;'(/"*"S@#+1&-4ก+;/"%4
1H(/S/;4/4*4 #]4ก+&ก12,#+,fe(ก+,-4ก+("?4"@4*"6 +H %5"4154`2*"ก%41 intangible aspects ก&
H(/S/;4/4*44ก+;-/"#$4 (Uncertain value of sharing) 4*"@1&ก%4 #]4 ก+&ก12,#+,fH(/*"ก+;-/"#$4*"6+H '+`* +,-?/+S@ #+,=&346กก/ก%4
3`2*=&"ก%-( (Rooted in time) #+,=&346;(,ก+#]4'.?#]4e(*"*"6 +H,e%4;#+.(
Intellectual capital (intellectual assets)(+%A&6M<4"#$II): *123@;4 knowledge.
*/4A<2.<4 A Closer Look 10.1 '4 393
Knowledge
Explicit knowledge*"6+H123%@;" (Explicit knowledge) `**"6+H12M+ %@'#]4 *กM+4+H#12M+ /&;กS#&%"eH*`24'+`*#(12&4+H#S@.ก+,-4ก+'+`*ก( &?G6=@&S/.*"*i%&#<M%A%4G6+,'/"-?(
Explicit knowledge('+`* leaky knowledge) deals with objective, rational, and technical knowledge
-*H( (Data) -4=&-& (Policies) -+,-1&-#<-%.< (Procedures) ->*L6;+6 (Software) -*กM+ (Documents) -e(<.K%fv6 (Products) -ก(&?G6 (Strategies) -#z'& (Goals)
*"6+H;--;"+4 (Tacit knowledge) %ก*&H/4+H#;-- subjective, cognitive ;(, experiential learning %ก!54ก%--?(;(,&ก4ก+%@+H#;-- 4*กก4%54&%" '& !" embedded knowledge A+,/ %4%ก,กb-*&H/4M*"qA,4 '+`* #<M%A%4G64ก(?/K&4;e4ก'+`* business unit
Tacit knowledge `*ก+กb-M,M
-#+,M-ก+f64'4/&"4 -Mental maps -*&/"(!ก>!5" (Insights) -S'A+<- (Acumen)
-34I (Expertise) -Know-how
-(%-"ก+ (Trade secrets -ก(?/*"%ก^, (Skill sets) -ก++1&4+H*"*"6ก+ -%4G++*"*"6ก+
The need for Knowledge Management Systems
#z'&*" knowledge management `* A`2*'*"6ก++%-+H !" *"6+HqA, -?((A4%ก"44*"6ก+) ;(, *"6+H12กb-M,M*S4*"6ก+ `2*+H;( *"6ก+M+ 4*"6+H121*&H/ 3*&/"1#+,M<G<KA
*"6ก+A!".,'4%ก/ #]4#]44ก++%5" explicit ;(, tacit knowledge S#MH/+,--M+M4i121+H#;--123%@4 (formal information systems) >!2"+1&ก/
Knowledge Management System (KMS)
Knowledge Management System Cycle
L$"ก63%4'(%ก*" knowledge management system #]4S#. 6 %54.*412'?44S# .(*@( S@;ก/
1)M+"*"6+H (Create knowledge) 3/4 A4%ก"4'<G1"'/ 0 4ก+"4 '+`*A%4M<2"'/ 0 (know-how)!54 '+`* 4*"6+HกK&4*ก 2)%-*"6+H (Capture knowledge) *"6+H'/.*" Hก+,-?43<"1
?f/ (valuable) ;(, 4M4*!544;4"12',M
3)#+%-*"6+H'',M (Refine knowledge) *"6+H'/.*"%@'*&H/4 +H#124S#3"43<"#<-%.<S@ @%"4%54 *"6+H;-- tacit .*"#(12&4'*&H/4 +H#;-- explicit
4)%@กb-*"6+H (Store knowledge) %@กb-4+H#;--12',M12M+ access S@
Knowledge Management System Cycle
5)-+<'+%@ก+*"6+H (Manage knowledge) .*"%@กb-*"6+H12#]4 #$?-%4 .*"4-443<"12M*@(*"ก%-#$I';(, Hก.*" 6) ก+,&*"6+H (Disseminate knowledge) @4<4ก+'1ก+ก+,&*"6
Knowledge
Knowledge Management SystemsKnowledge Knowledge Management Cycle Management Cycle
Component of Knowledge Management Systems
ก+-+<'+%@ก+*"6+H4%54 #]4กก/ technology '+`* product A+,%4#]4 ก++<G1ก+123ก%- business practices *&/"S+กb. information technology 1M/4 M%I4ก+#+,M-e(M+b*"+,---+<'+%@ก+*"6+H (Knowledge Management Systems)
Knowledge Management Systems ,#+,ก*-@&MM/4`*
=4=(&14ก+M`2*M+ (Communication technologies) A`2*' users M+
access S#&%"*"6+H12.*"ก+S@ ;(,M`2*M+>!2"ก%4;(,ก%4S@
=4=(&112ก/*'ก<@ก++/`*ก%4 (Collaboration technologies) A`2*'"4
Knowledge Management System Implementation
Technology tools 12M4%-M4?4ก+-+<'+%@ก+*"6+H +1&ก/ knowware. Knowledge management software packages M/4ก,#+,ก*-@& tools ./*S#415
('4!2".%'+`*กก/):
Collaborative computing tools '+`* Groupware 3/& transfer tacit knowledge Knowledge servers 1 knowledge management software -++?*&H/ 3%@กb-*"6
+H
Enterprise knowledge portals (EKP) #+,ก*-@& Web browser ;(, database Electronic document management systems (EDM)
Electronic Document Management (+?/4'/+1&ก content management system (CMS))
Knowledge harvesting tools 3 capture knowledge
Search engines 34'L$"ก63%412M%A%4G6ก%-*"6+H12.*"ก+ Knowledge management suites.
Consulting Firms M+ '3/&'(`*ก12&ก%-: %@.%5"+,---+<'+%@ก+*"6+H
%@#+,M<G<e(
Application service providers (ASPs) .%'`*4 KMS outsourcing -4 Web =@& ' complete knowledge management solution + !" KM suite ;(,';4,4 43/" set up.
Finding Experts Electronically and Using Expert Location System */4A<2.<4 IT at Work 10.7 '4 397
Enterprise Knowledge Portal (EKP) */4A<2.<4'4 397 Using KM in Training and Learning */4A<2.<4'4 398
Expert Location System os AskMe Corp.
Knowledge Management
Integration
Knowledge management systems #]4 enterprise-wide ;(,e4ก+ก%-+,--M+M4i*`24 0 4*"6ก+ 3/4
Decision Support Systems (DSS) Artificial Intelligence
Customer Relationship Management Systems (CRM) Supply Chain Management Systems (SCM) Corporate Intranets
Extranets
Knowledge Management
IntegrationMANAGERIAL ISSUES
Ethical issues.ก+4 supply chain management project 3*M/"e('ก<@ก+ lay off, retrain, '+`* transfer employees eH-+<'++;"'A4%ก"4+-(/"'44+`2*"#]4S#S@ ".4 ;(,,*&/"S+ก%-A4%ก"4*?=M121#$I'ก%-ก+ retrain + !"ก+3 *H(+/ก%4
How much to integrate?
4f,@1&ก%4 -+<^%4A<+f !"ก++ project ./"0@&ก%4 +%5" ERP, SCM, ;(, e-commerce .*"+,(!กS/ ก++ long ;(, complex supply chain segments *4S#MH/('( -";'/"!"-1-ก+@4<4"4A`2*ก++43/" upstream, inside-company, ;(, downstream 4;./(,M/4 ;./(&ก+3`2*%5"M M/4@&ก%4
MANAGERIAL ISSUES
Role of IT.?ก 0 major SCM projects 3 IT %5"M<54 *&/"S+กb.A!"+,(!กS/ IT 1'412 '(%ก`*ก+'ก+M4%-M4?4*"6ก+;(,ก+-+<'+"4 ;(,4"ก(%-ก%4 S/ 1 IT ;( SCM %ก, ('(
Organizational adaptability.
A`2*#+%-#+?" ERP ก+,-4ก+*"*"6ก+-"+%5".*"#+%-' software S/3/ S#4(,<i(," `2* software #(12&4;#(" ก+,-4ก+*"*"6ก+.*" #(12&4.*&/"'(1ก(12&"S/S@
MANAGERIAL ISSUES
Going globalEC '=*กM4ก+&&=*กM"ก+.(@S#%2=(ก ;./f,@1&ก%4%4กbM+" long and complex supply chains @%"4%54#]4.*".+M*- logistics .(*@ supply chain M1&ก/*4 +%5"+`2*" regulations ;(, payment issues.
The Customer is king/queen.
4ก+4 IT application ./"03 eH-+<'+++,(!กS/ customer/end-user %5" K&4;(,K&4*ก 1M%I*&/"S+
Set CRM policies with care.
CRM 4"#<-%.<;( -+<^%%ก,'(@%-M%Iก%-(Hก121?f/MH" 3/4 >`5* -/*& 0 '+`* >`5*44ก 0 ก/*4M* ก+ก+,@%"415,4S#MH/ก+(`*ก#<-%.<
MANAGERIAL ISSUES
Organizational culture change.#$I'`*+,#(12&4%4G++*"*"6ก+S@*&/"S+ ,.*"1 strong executive leadership, clearly expressed goals, user involvement in the system, ;(, 1ก+A%4 +,--12"/&./*ก+3"4>!2"M+"H(/12;+<"'ก%-A4%ก"4
How to store tacit knowledge.
#]4+`2*"&?/"&ก12@1& KMS %5"'@ (*"-4A`54 4*" network storage model) %@กb- explicit knowledge M/4 tacit knowledge %กกb-=@&4 `2***กS#*"6 +H,S#ก%-@& @%"4%54 M%Iก12.*"'4121 tacit knowledge /&=*4*"6 +HS#'eH+%- eHM+"*"6+H.*"4!" !"<G1ก+12M/"e/4'ก%-eH+%-@&
MANAGERIAL ISSUES
The lasting importance of knowledge management.
Knowledge management 1M%Iก %4S/3/#]4+`2*"-+<'+12H--!54 ;("'&S# *&/" Hก.*"%4,M/"e(4"ก"4+`2*" know-how %2%5" *"6ก+ S/'+`*S/ Hก.*"-+<^%กbS/M+ ,ก<@ก+S@#+1&-4ก+ ;/"%4ก%--+<^%12 KM *&/" Hก.*"
Implementation in the face of quickly changing technology.
+`2*"415#]4+`2*"M%I12315 !"ก+A%4+,--./" 0 4 IT =4=(&1123+ .+M*-*&/"+,%@+,%" ;(,+ก+@(*"ก/*4 A`2*@H/ %4 makes sense '+`*S/
-'%*12 10