“Assignment-1”

Transforming Business through

Information Technology
 Q1. What do you mean by term “Enterprise Resource planning”? What are
the different ERP modules? Mention the benefits and limitations of ERP
system. How do cross-functional business operations benefit from ERP
systems?

Ans: Enterprise resource planning (ERP) is a platform used by businesses to

coordinate and manage the key elements of their operations. Numerous ERP
software programmes are essential to businesses because they enable resource
planning by integrating all the operations required to manage their operations into
a single system.

ERP Modules
1. Finance: The most crucial ERP module is the finance and accounting one
since it gives organisations the ability to comprehend their present financial
situation and prospects for the future. This module's main features include
maintaining the general ledger and keeping track of accounts payable (AP)
and accounts receivable (AR). Additionally, it produces and preserves
important financial records like tax returns, payment receipts, and balance
sheets.
2. Procurement: The procurement module, commonly referred to as the
purchasing module, aids a company in obtaining the supplies or items it
needs to produce or sell things. In this module, businesses can maintain a
list of authorised vendors and link those suppliers to specific products,
 assisting with supplier relationship management. The module may
automate quotations requests, then monitor and evaluate the received bids.
3. Manufacturing: Nowadays, manufacturing execution systems(MES) or
production management systems are commonly found in ERP systems.
The manufacturing module helps manufacturers in scheduling production
and ensuring they have the capacity and raw materials required for
scheduled production runs.
4. Inventory management: An inventory management tool helps compare
sales patterns with product availability to help businesses make informed
decisions that maximise profitability and accelerate inventory turnover (a
measure of how often inventory is sold over a certain period). Stockouts
and delays can be avoided, which improves customer service.
5. Order management: A module that handles orders keeps track of them from
receipt until delivery. To keep customers satisfied and reduce unnecessary
costs for expedited shipment, the order management module enhances on-
time delivery rates while preventing goods from going missing.
6. Warehouse management: For companies that run their own warehouses, a
warehouse management module can provide a quick return on investment.
Depending on which picking strategy is most effective for a particular firm,
the warehouse management module can support several picking techniques
like batch picking, wave picking, and zone picking. Some modules can
even show staff the most effective pick path.
7. Supply Chain Management: A supply chain management module keeps
track of all the steps involved in moving materials and goods from sub-
suppliers via suppliers, manufacturers, distributors, retailers, and
consumers. Additionally, it can handle any supplies or goods that are
returned for a refund or a replacement.
8. Customer Relationship Management (CRM): All client and prospect data
is kept in the customer relationship management (CRM) module. It can
keep track of interactions with prospects and provide recommendations
about which consumers to target for particular promotions or cross-selling
opportunities. Because staff members can quickly access all the data they
want while dealing with a customer, a CRM enhances customer service.
9. Professional Services Automation (Service Resource Management) : An
organisation can plan and manage projects with the use of a professional
services automation (PSA) module, also known as a service resource
management module. Services-based companies frequently employ this
module. It allows managers to approve expenses and timesheets and tracks
the progress of projects while managing people and capital resources.
10.Workforce Management: A workforce management module is similar to a
human resource management module. They are meant for organisations
with a higher percentage of hourly workers than paid workers. It can keep
track of employees' hours and attendance as well as gauge absenteeism and
productivity.
11.Human Resources Management: A human resource management (HRM)
or human capital management (HCM) module often includes all the
components of a workforce management programme as well as a number
of extra features. HRM could be thought of as CRM for workers. The HRM
module eliminates a lot of duplicate or incorrect data that many firms save
in separate spreadsheets since it stores a wealth of information on every
employee across the organisation.
12.Ecommerce: For companies that want to sell products online, several ERP
systems provide an ecommerce module. Businesses can easily establish a
business-to-business (B2B) or business-to-consumer (B2C) ecommerce
website.
13.Marketing Automation: Marketing automation software, whether it's a
component of the ERP system or a stand-alone solution, may offer
thorough reports on the effectiveness of campaigns to help inform future
marketing plans and expenditures. These programmes boost leads, client
retention, and eventually sales.
ERP Examples

• Oracle ERP Cloud: Founded in 2012, Oracle ERP Cloud is a modern,

dynamic software that’s used by a wide range of customers. The suite of
cloud applications leverages artificial intelligence (AI) and machine
learning to automate everyday tasks.
• Acumatica: Acumatica is designed for small and medium-sized businesses.
Acumatica specializes in several industries, including distribution,
manufacturing, service industries, retail and e-commerce, construction,
agriculture, chemicals, FMCG and transportation. Supported deployment
methods include SaaS (cloud-based) or on-premise.
• BizAutomation: It is a comprehensive cloud software that prides itself on
addressing all business processes within one system, eliminating the need
for related applications. BizAutomation caters to small to medium-sized
 businesses in the wholesale, retail, e-commerce, services, distribution and
manufacturing industries.

Benefits of Enterprise Resource Planning

Businesses employ enterprise resource planning (ERP) for various reasons, such
as expanding, reducing costs, and improving operations. The benefits sought and
realized between companies may differ; however, some are worth noting.

• Improves Accuracy and Productivity: Integrating and automating business

processes eliminates redundancies and improves accuracy and
productivity. In addition, departments with interconnected processes can
synchronize work to achieve faster and better outcomes.
• Improves Reporting: Some businesses benefit from enhanced real-time
data reporting from a single source system. Accurate and complete
reporting help companies adequately plan, budget, forecast, and
communicate the state of operations to the organization and interested
parties, such as shareholders.
• Increases Efficiency: ERPs allow businesses to quickly access needed
information for clients, vendors, and business partners. This contributes to
improved customer and employee satisfaction, quicker response rates, and
increased accuracy rates. In addition, associated costs often decrease as
the company operates more efficiently.

ERP Limitations

• Customization can be problematic. Compared to the best-of-breed

approach, ERP can be seen as meeting an organization's lowest
common denominator needs, forcing the organization to find
workarounds to meet unique demands.
• Re-engineering business processes to fit the ERP system may damage
competitiveness or divert focus from other critical activities.
• ERP can cost more than less integrated or less comprehensive solutions.
• High ERP switching costs can increase the ERP vendor's negotiating
power, which can increase support, maintenance, and upgrade
expenses.
• Overcoming resistance to sharing sensitive information between
departments can divert management attention.
• Integration of truly independent businesses can create unnecessary
dependencies.
• Extensive training requirements take resources from daily operations.
Cross-functional business process means when different departments within the
same company work hand in hand to achieve a common goal.
• For example, the sales department may work with the shipping department.

• The marketing department may work with the sales department.

• The billing department may work with the credit department.

• When these different departments work together to achieve a common
goal, that is a cross-functional business process.

ERP systems centralize business data, which:

• Eliminates the need to synchronize changes between multiple

systems—consolidation of finance, marketing, sales, human resource,
and manufacturing applications[citation needed]
• Brings legitimacy and transparency to each bit of statistical data
• Facilitates standard product naming/coding

Q2. Discuss the evolution of Modern Information Technology Infrastructure

(MITI). As a component of MITI, what are different types of clouds?
Mention their services, vendors, benefits, and risk associated.

Ans: The term "modern IT infrastructure" refers to the collection of hardware,

operating systems, network resources, and other services necessary to create,
maintain, and administer an enterprise IT environment. It is typically internal to
a company and installed within owned buildings, allowing it to provide IT
solutions and services to its partners, customers, and workers.
DEVELOPMENT OF MITI
Today's IT infrastructure in businesses is the result of more than 50 years of
advancements in computer platforms. There have been five stages in this history,
each corresponding to a particular arrangement of infrastructure and
computational resources.
General-purpose mainframe and minicomputer computing, personal computers,
client/server networks, enterprise computing, cloud computing, and mobile
computing make up the five eras.
Technologies that define one era may also be employed for other purposes in a
different era. For instance, several businesses continue to employ mainframe
computers as powerful servers for corporate enterprise applications and legacy
mainframe systems.
The four primary forms of cloud deployment are as follows:

1. Open Cloud
Public cloud deployments offer infrastructure and services that are available to a
ll users.
The delivery of these services is pay-as-you-go.
The creation and maintenance of the instances are the responsibility of the cloud
provider.
Small to midsize organisations that need to conserve resources while still collab
orating on projects should choose this form of deployment.

2. Personal Cloud
A single company uses a private cloud deployment, which may be externally ho
sted or, in some situations, situated on-site.
There is a firewall protecting the deployment, and no other organisations can ac
cess the infrastructure.
Private clouds are ideal for businesses in sectors with stringent regulations.

3. Cloud hybrid
Private and public cloud services are combined in hybrid cloud installations.
Data and applications are sent back and forth between the private cloud platfor
m and public cloud services in a hybrid cloud architecture.
4. Neighborhood Cloud
Community cloud instances, the least popular type of deployment, are shared by
a number of individuals or groups who have access to the same applications.
These are employed in a variety of professional fields, including open source, fi
nance, healthcare, and government.

Advantages of Using Cloud Infrastructure

• Cost
• Agility and flexibility
• Security

Disadvantages of Using Cloud Infrastructure

Not all cloud infrastructures are perfect. And while there are far more advantages,
there are still some drawbacks.

• Vendor overturn
• Connection reliance
• Control
Q3. (Ref Ch11, PP- 351-352) Amazon’s Global Supply Chain Case
a) Define SWOT analysis in Amazon’s entry into global logistics business?
b) As a competitor, what strategies would you like to adopt to compete with
Amazon?
c) Discuss push and pull model of SCM.
d) How Customer Relationship management is different from Supply chain
management?

Ans: a)
Products & Services by Amazon Logistics
Amazon Logistics has been in the oil & gas logistics industry for many years and
offers:
• Supply chain management services
• Storage and distribution
• Port operations

Competitors of Amazon Logistics

The top 3 competitors of Amazon Logistics are
• Alibaba
• FedEx
• UPS

Strengths of Amazon Logistics

Your organisation’s strength is something that makes it stand out from the rest. It
can be a competitive advantage that sets it apart from its competitors. Some of
the strengths of Amazon Logistics are as follows –
• Strong Free Cash Flow
• Good ROI
• Outstanding Performance in New Markets
• Highly Skilled Labour
• Mergers and Acquisitions
• Divers customer portfolios
• Expertise in emerging economies
• End to end logistics services
• Series of acquisitions
 • Wide network

Weaknesses of Amazon Logistics

Strategy is all about choices and weaknesses are areas where companies can
improve through SWOT analysis and leverage their competitive advantage and
strategic positioning.
• More Investment is Needed in New Technologies
• Financial Planning is Not Being Performed Properly and Efficiently
• High Labour Outflow
• Not Very Successful in Integrating Companies with Different Work
Cultures: As mentioned earlier, Amazon Logistics is successful at
integrating small companies. It has its share of failures to merge firms that
have different work cultures.
• High Competition
• Over-dependence on people
• Poor customer contact
• Poor presence in developed economies

Opportunities for Amazon Logistics

Opportunities are potential areas for companies to focus on to improve results,

increase sales, and ultimately profit.
• New Environmental Policy: New opportunities will create a level playing
field for everyone in the industry. This is a great opportunity for Amazon
Logistics, Inc. to realise the benefits of new technologies and gain market
share in new product categories.
• New Taxation Policy: New tax policies can have a significant impact on
the way Amazon Logistics does business and open up new opportunities
for them to increase its profitability.
• Open New Markets Through Government Agreements
• New Customers Through Online Channels
• Economic Recovery: Economic recovery and rising consumer spending
after years of recession and slow industrial growth are opportunities for
Amazon Logistics to attract new customers and increase market share.
Threats to Amazon Logistics
Threats are environmental factors that can harm a company’s development. Here
are some of Amazon Logistics’ threats:
• Legal Actions: The company may face legal action in other markets given
the continuing fluctuations in different laws and product standards in those
markets.
• Liability Laws: Vary from country-to-country Amazon Logistics may face
a variety of liability claims as a result of these market policy changes.
• Quantitative Increases in Commodities: This could jeopardise Amazon
Logistics’ profitability. A shortage of skilled labour in certain global
markets threatens Amazon Logistics’ continued earnings growth in the
market.
• Operates Globally: Because the company operates in many countries, it is
exposed to currency fluctuations, especially given the unstable political
environment in many markets around the world. This may face some
challenges in the market and may result in some losses as well.
• Customer satisfaction: Satisfying the customer will become a huge threat
for logistics companies since customers today have very specific needs.
This may call for a need for technologies like robotics to improve last mile
delivery and to also increased customisation of logistics services.

This ends our elaborative SWOT analysis of Amazon Logistics. Let us conclude
our learning below.

b) These are a few factors that help a company stand out logistics companies and
beat the competition.
• Planning Ahead: Planning in time minimizes the scope of any last-minute
problems, and also helps provide enough time to plan each and every detail,
leaving nothing to chance.
• Technology Support: Warehousing, Freight Forwarding, Customs
Clearance, Tracking and Visibility, Information Reporting, Customer
Support, in all these segments Logistics Software applications have an
essential role to play. An end- to-end freight and logistics software helps
in the Integration of all logistics functions.
 • Interpersonal Relations in the Supply Chain: An effective supply chain is
the backbone of an efficient logistics solution, as the entire logistics
operation relies on a good supply chain. This is especially true during
difficult times like the impending recession.
• An effective supply chain is the backbone of an efficient logistics solution,
as the entire logistics operation relies on a good supply chain. This is
especially true during difficult times like the impending recession.
• Competitive Customer Service: Most of the time of the customer service
teams of LSPs, goes in providing customers with status updates about
their shipments. This process primarily involves human interaction, hence
it is time consuming and expensive. Visibility solutions can be used by
freight forwarders and logistics companies to automate and standardize
the cargo tracking, to send the auto-alerts and updates directly to the
customers
• Market Research to Identify Partners
• Maintaining quality and keeping the high standard of the services enables
the company to maintain the client base. This again gives the company a
winning edge in the industry, over other competitors.

c) PUSH AND PULL MODEL OF SUPPLY CHAIN MANAGEMENT

In a situation where the predicted demand determines the process inputs, the push
strategy in the supply chain works well. In general, it makes sense to think of
push supply chain strategy as a method based on projections. Forecasts are used
by businesses adopting the push strategy to decide how much stock to order.
Examples of the push and pull strategies related to the former most frequently
mention the production of seasonal goods.
The huge volume of SKUs is another indication of the push approach's advantage
in the push vs. pull supply chain strategy debate. The push strategy takes into
account each product, regardless of the various needs connected to it.
Additionally, aggregate projections like weekly forecasts from distribution
centres to retail locations are a part of the push strategy in the supply chain. The
manufacturer can then deliver goods to various stores based on forecasts as
opposed to individual stores' wants.
Here is an outline of the notable traits of push strategy that make it unique in the
comparison of push and pull strategy in supply chain.
1. Companies that have more predictable supply chains are more likely to opt for
the push method.
2. The main advantage of the push supply chain method is that demand may be
predictably.
3. Companies choosing a push supply chain strategy are likely to find it easier to
plan output to meet anticipated demand.
4. A substantial, easily available inventory or reserved storage space is a necessity
for the push supply chain approach.
5. Retailers can have enough time to ensure that the facilities are ready for
keeping incoming merchandise.
6. With the push supply chain model, businesses lack the needed adaptability to
constantly varying demand.

Pull Strategy in supply chain management relies on actual customer demand by

utilizing real-time data to ensure better accuracy of inventory orders. The process
of manufacturing and supply of goods is based on actual customer demand
derived from consumption on granular levels.
Basically, the pull supply chain strategy focuses on acquiring inventory only
when it is needed. The pull model in supply chain strategy primarily focuses on
inventory management with reduction of stock on hand. At the same time, it also
implies the need for comparatively faster responses to fluctuations in product
demands.
The examples of pull strategy from push and pull strategy examples could
showcase how it presents a better advantage in situations driven by consumer
demand.
For example, Amazon carefully considers where to locate its warehouses while
making sure they are close to major cities and metropolitan areas. Therefore, by
basing the location of warehouses on predictions of downstream demand,
Amazon blatantly exemplifies a push tactic. Additionally, to lower the risk of
unsold inventory, Amazon uses a pull method when selling goods from third-
party vendors.

Combining both Pull and Push tactics while keeping economies of scale within
your current operations will allow you to adapt to changing consumer demands
in an efficient manner.
d) CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CRM software is designed to move the sales process along and to keep customers
happy. All departments can use the same database to record their interactions with
customers, eliminating duplicate efforts. It can also record interactions by email,
telephone and even social media. Advanced CRM software can also predict what
clients are likely to buy based on past behaviour.
The marketing department can use CRM to track marketing campaigns and to
measure the return on investment by seeing how many people become customers
from each campaign. Sales departments can use CRM to track their interactions
with customers and prospects by seeing when they were contacted, what they
have purchased or what they are inclined to purchase in the future. Customer
service departments can use CRM to record their interactions with clients, such
as problems they have had with products or services.

SUPPLY CHAIN MANAGEMENT (SCM)

SCM software tracks and executes company processes, including design,
procurement, manufacturing, production, distribution, sales and order fulfilment.
The result is that it can reduce company costs and risks in things like having too
much or too little inventory. Advanced SCM software can also predict problems
within the supply chain before they happen.
SCM software can be used across most departments, from accounting and
customer service to manufacturing and shipping. Suppose, for example, sales tend
to ramp up near the end of the year. SCM software can prompt you to order new
inventory, so it arrives before you run low on stock or even order it for you
automatically. It will then tell you where the orders are in shipment, when they
arrive in the warehouse, where they are in production, when they are shipped and
when they are expected to arrive at the customer's location.
Differences between CRM and SRM

While both SRM and CRM systems bring individual benefits to an organization,
there are various aspects that need to be considered when choosing one of the
systems or both for their business. The right integration of these systems can be
a game-changer for a business and help it grow immensely.