ENTERPRISE APPLICATIONS

ENTERPRISE RESOURCE PLANNING
ERP is the collection of data and making them available to all business key processes of the organization.
This is made possible through a centralized database that is updated by changes along the way. This is so beneficial to a firm for it makes updates of another business process that is seen and observed by the other.

For example, in the SALES and MARKETING division, the increase in number of customer demand and requests is stored in the centralized database making it available for the FINANCE and ACCOUNTING to record and credit Sales and easily prepare financial statements less the hassle of data gathering. Moreover, this may trigger for an increase in production, so the PRODUCTION and MANUFACTURING division will adjust output level. Likely, more output would update the HUMAN RESOURCE to hire more workers. So, a single plug-in of data from the SALES prompted all other business processes.

It makes the firm efficient and enhances good and rational decisions.
However, the disadvantage of this is that it is costly and expensive. :/

SUPPLY CHAIN MANAGEMENT
SCM is the network of organizations and business processes

Procure Raw Materials --> Transformation of inputs to outputs --> delivery to customers

Problems: During the process, inefficiencies (defective plant, excessive inventory, shortages) and uncertainties (delayed delivery of materials, bad forecasts of customer demand) occur.
So the firm adjusts and make corresponding solutions. The Bullwhip effect is a problem faced by the firm wherein, the information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain.

Solutions: Build more inventory on product that manufacturer thinks customers need and Safety stock

Supply Chain Software

Supply Chain Planning (demand forecast) -----> Supply Chain Execution (goods delivery)

Likewise, this is valuable for a firm during production for it forecasts more accurate information bout demand and matches it to supply, reduces inventory levels, improves delivery service, and reduces cost.

CUSTOMER RELATIONSHIP MANAGEMENT
CRM emphasizes the realm of business strategy of locking in customers that will bring increases in revenues.

Customer Relationship Management Software
Operational CRM
CRM that is the directly oriented to customers. This would be: Sales force automation, Call center, Customer service support, and Marketing automation.

Analytical CRM
CRM that is in the viewpoint of the firm. This would be the analysis of the data that is plugged in to the data warehouse of the Operational CRM. This helps the firm observe buying patterns and pinpoint profitable customers from those who are not, and may grant them better treatment and service.

Also, this realm is highly valuable for the firm if employed because it increases customer satisfaction, reduces direct marketing costs, makes marketing more effective, lowers cost for customer acquisition and retention, and increases sale revenue.

(source: Teacher Jan's Lecture in class and Handouts) ^__^



"The mind of sinful man is death, but the mind controlled by the Spirit is life and peace; the sinful mind is hostile to God. It does not submit to God's law, nor can it do so." Romans 8: 6-7