MANAGEMENT

INFORMATION SYSTEM

Enterprise Applications

Dr. Khanh Ngo

khanh.ngo@isb.edu.vn

www.isb.edu.vn
www.isb.edu.vn
 What did you learn from previous session?

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Code:

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 Homework (Individual)

Homework (Individual)

Discover and login

https://trailhead.salesforce.com/

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The Three Primary Enterprise Applications

COMPLEX???

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 The New Customer Shopping Journey

Unfolds Everywhere, Anytime, On Any Device

Consideration

Retailer Retailer Retailer

Advertising Events Blogs Press Website In-Store Website In-Store Website In-Store CRM Activities Media

Word of Social Manufacturer

PR Media Social Mouth Reviews Network Pop-up Stores Mobile Website How-To Video Advertising PR

Search Manufacturer Manufacturer Loyalty

Friends Marketing Mobile Website Website Programs

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 The New Customer Shopping Journey
Customer
experience
4. Customer
Segment of
One
11. Store
2. Manufacturing 7. Customer
staff is prepared
company’s system pays and Supplier
and makes
predicts optimal schedules store
complementary collaboration
reorder point pickup
value-add offers

1. Sensor sends 5. Customer 9. Customer picks

end-of-life signal orders in Web up
shop order in store
3. System 8. Retailer 12. Store Workforce
determines sources any employee
required registers new
enablement
product
recommendations additional products to initiate
6. Customer parts tracking
10. Retailer
receives smart
fulfills order and
value-add
delivers for store
cross-sell Assets and
pickup
offers supply chain

Digital
core

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The Three Primary Enterprise Applications

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The Three Primary Enterprise Applications

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 Learning Objectives

• How do enterprise systems help businesses achieve operational

excellence?
• How do supply chain management systems coordinate planning,
production, and logistics with suppliers?
• How do customer relationship management systems help firms
achieve customer intimacy?
• What are the challenges posed by enterprise applications and how
are enterprise applications taking advantage of new technologies?

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 Learning Objectives

• How do enterprise systems (ERP) help businesses achieve operational

excellence?
• How do supply chain management systems coordinate planning,
production, and logistics with suppliers?
• How do customer relationship management systems help firms achieve
customer intimacy?
• What are the challenges posed by enterprise applications and how are
enterprise applications taking advantage of new technologies?

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 What is ERP software?

https://www.youtube.com/watch?v=6qys-562kp4

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 Enterprise systems (ERP)

Enterprise systems (ERP)

• Enterprise resource planning (ERP) systems
• Suite of integrated software modules and a
common central database Is Base or MISA
an ERP System?
• Collects data from many divisions of firm for use
in nearly all of firm’s internal business activities

• Information entered in one process is

immediately available for other processes

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 Enterprise systems (ERP)

Enterprise systems (ERP)

• Enterprise resource planning (ERP) systems
• Suite of integrated software modules and a
common central database
• Collects data from many divisions of firm
for use in nearly all of firm’s internal
business activities

• Information entered in one process is

immediately available for other processes

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 Enterprise systems (ERP)

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 Enterprise systems (ERP)

• Enterprise systems (ERP)

• Enterprise resource planning (ERP)
systems
• Suite of integrated software modules and
a common central database
• Collects data from many divisions of firm
for use in nearly all of firm’s internal
business activities
• Information entered in one process is
immediately available for other processes

10/24/2022 Dr. Khanh Ngo www.isb.edu.vn

 The Organization before ERP

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 The Organization before ERP

Linear Supply Chain (Snake)

Source: Inomata, 2019

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 The Organization after ERP

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 The Organization after ERP

Figure 4. Omni-directional Supply Chain (Spider)

Source: Inomata, 2019

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 Enterprise systems (ERP)

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 The Evolution of ERP

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 Enterprise systems (ERP)

• Built around thousands of predefined business processes that

reflect best practices:
• Finance and accounting
• Human resources
• Manufacturing and production
• Sales and marketing
• To implement, firms:
• Select functions of system they wish to use.
• Map business processes to software processes.
• Use software’s configuration tables for customizing

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 Enterprise systems (ERP)

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 Enterprise systems (ERP)

• Business value of enterprise systems

• Increase operational efficiency
• Provide firm-wide information to
support decision making
• Enable rapid responses to customer
requests for information or products
• Include analytical tools to evaluate
overall organizational performance

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 Activity 1:
Soma Bay Prospers with ERP in the Cloud

1. Identify and describe the problem discussed in this case. What

management, organization, and technology factors contributed to the
problem?
2. Why was an ERP system required for a solution? How did having a cloud-
based ERP system contribute to the solution?
3. What were the business benefits of Soma Bay’s new enterprise system?
How did it change decision making and the way the company operated?

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 What is SAP SCM?

https://www.youtube.com/watch?v=XSqIRH2WjuI&t=140s

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 Supply Chain Management Systems

• Network of organizations and processes for:

• Procuring materials, transforming them into
products, and distributing the products
• Upstream supply chain:
• Firm’s suppliers, suppliers’ suppliers, processes
for managing relationships with them
• Downstream supply chain:
• Organizations and processes responsible for
delivering products to customers
• Internal supply chain

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 Supply Chain Management Systems

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 Supply Chain Management Systems

• Information System and Supply chain management help:

• Inefficiencies cut into a company’s operating costs
• Can waste up to 25 percent of operating expenses
• Just-in-time strategy:
• Components arrive as they are needed
• Finished goods shipped after leaving assembly line
• Safety stock: Buffer for lack of flexibility in supply chain
• Bullwhip effect
• Information about product demand gets distorted as it passes from one entity to
next across supply chain

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 The Bullwhip Effect

• Inaccurate information can

cause minor fluctuations in
demand for a product to
be amplified as one moves
further back in the supply
chain.
• Minor fluctuations in retail
sales for a product can
create excess inventory for
distributors,
manufacturers, and
suppliers

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 Supply Chain Management Software

• Supply chain planning systems

• Model existing supply chain
• Enable demand planning
• Optimize sourcing, manufacturing plans
• Establish inventory levels
• Identify transportation modes
• Supply chain execution systems
• Manage flow of products through
distribution centers and warehouses

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 Push- Versus Pull-Based Supply Chain Models

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 The Emerging Internet-Driven Supply Chain

• The emerging Internet-

driven supply chain
operates like a digital
logistics nervous system.
• It provides multidirectional
communication among
firms, networks of firms,
and e-marketplaces so that
entire networks of supply
chain partners can
immediately adjust
inventories, orders, and
capacities.

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 Supply Chain Management Systems

• Business value of SCM systems

• Match supply to demand; reduce inventory levels
• Improve delivery service
• Speed product time to market
• Use assets more effectively
• Reduced supply chain costs lead to increased profitability
• Total supply chain costs can be 75 percent of operating budget
• Increase sales

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 Introduction Case: Salesforce - You Need a Great
Sales force to Sell Salesforce

https://www.youtube.com/watch?v=SlhESAKF1Tk

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 What is CRM Salesforce?

https://www.youtube.com/watch?v=di6iwHhrH6s

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 Customer Relationship Management Systems

• Customer relationship management (CRM)

• Knowing the customer
• In large businesses, too many customers and too many ways customers
interact with firm
• CRM systems:
• Capture and integrate customer data from all over the organization
• Consolidate and analyze customer data
• Distribute customer information to various systems and customer touch
points across enterprise
• Provide single enterprise view of customers
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• CRM systems examine customers from
a multifaceted perspective.
• These systems use a set of integrated
applications to address all aspects of
the customer relationship, including
customer service, sales, and marketing

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 CRM Software

• Packages range from niche tools to

large-scale enterprise applications.
• More comprehensive have modules
for:
• Partner relationship management (PRM)
• Integrating lead generation, pricing,
promotions, order configurations,…
• Tools to assess partners’ performances
• Employee relationship management
(ERM)
• Setting objectives, employee performance
management, performance-based
compensation, employee training
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 CRM Software Capabilities

• The major CRM software products

support business processes in sales,
service, and marketing, integrating
customer information from many
sources.
• Included is support for both the
operational and analytical aspects of
CRM

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 CRM Software Capabilities

• Operational CRM:
• Customer-facing applications
such as sales force
automation, call center and
customer service support,
and marketing automation
• Analytical CRM:
• Based on data warehouses
populated by operational
CRM systems and customer
touch points
• Analyzes customer data
(OLAP, data mining, etc.)

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 Customer Relationship Management Systems

• Business value of CRM systems

• Increased customer satisfaction
• Reduced direct-marketing costs
• More effective marketing
• Lower costs for customer
acquisition/retention
• Increased sales revenue
• Churn rate:
• Indicator of growth or decline of firm’s
customer base

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 Activity 2: Kenya Airways Flies High with Customer
Relationship Management

1. What was the problem at Kenya Airways described in this case? What
management, organization, and technology factors contributed to this
problem?
2. What was the relationship of customer relationship management to Kenya
Airways’ business performance and business strategy
3. Describe Kenya Airway’s solution to its problem. What management,
organization, and technology issues had to be addressed by the solution?
4. How effective was this solution? How did it affect the way Kenya Airways
ran its business and its business performance?
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 Enterprise Applications: Challenges and
Opportunities

• Enterprise application challenges

• Highly expensive to purchase and implement enterprise applications
• Average cost of ERP project in 2014—$2.8 million
• Technology changes
• Business process changes
• Organizational learning, changes
• Switching costs, dependence on software vendors
• Integrating cloud applications
• Data standardization, management, cleansing

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 Enterprise Applications: Challenges and
Opportunities

• Next-generation enterprise applications

• Enterprise solutions/suites or E-business suites:
• Make CRM, SCM, and ERP systems work closely with each other and link to systems of
customers and supplier
• Cloud-based solution and mobile platforms
• Large enterprise: SAP S/4 HANA Cloud, Microsoft Dynamics 365…
• Small and medium enterprise: SAP Business One, SAP Business By Design, Dynamics
365, Oracle Netsuite…

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 Enterprise Applications: Challenges and
Opportunities

• Next-generation enterprise applications

• Social CRM
• Incorporating social networking technologies
• Company social networks
• Monitor social media activity; social media analytics
• Manage social and Web-based campaigns
• Business intelligence
• Inclusion of BI with enterprise applications
• Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data visualization
• Machine learning to analyze very large bodies of data, make connections, make predictions,
and provide recommendations for operations optimization

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 Homework (Individual)

Choose one system and prepare 5 minutes slide to present

about it. Submit on MS Team

1/ Odoo

2/ Microsoft Dynamic 365

3/ Oracle Netsuite

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 Q&As

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