Chapter Extension 10 Cross-Functional Systems: CRM, ERP, and EAI © 2006 Prentice Hall, Introduction...

Chapter Extension 10

Cross-Functional Systems: CRM, ERP, and EAI

© 2006 Prentice Hall, Introduction to MIS: A Modular Approach, David Kroenke


Study Questions

What is the importance of inherent processes? What are the characteristics of customer relationship

management (CRM) systems? What are the characteristics of enterprise resource

planning (ERP) systems? How is an ERP system implemented? What are the characteristics of enterprise application

integration (EAI) systems?


Business Process Design

Business process redesign– Organizations should not automate or improve

functional systems– Organizations should create new business

processes

Came from idea that information systems should support linkages across departments and activities


Challenges of Business Process Design

Projects expensive and difficult– Systems analysts interview personnel, document existing

systems– Managers review results, develop new process– New information systems developed– Takes time– Underlying systems constantly changing

Employees resist change Outcome uncertain


Benefits and Disadvantages of Inherent Processes

Business applications– Processes for using software are inherent

Integrate activities across departments

Benefits– Saves time– Saves money– Reduces design process problems

Disadvantages– Organizations must conform activities to processes

May have to change substantially


Organizational Change

Common problem has produced change management industry

– Blend of business, engineering, sociology, psychology– Strives to understand dynamics of change– Develop theories, methods, techniques

Employee resistance– Need to understand rationale for new system– Fear of unknown – Increase employees’ sense of self-efficacy– Bosses’ behavior and communication important


Customer Relationship Management Systems (CRM)

Support processes of attracting, selling, managing, delivering, and supporting customers

Addresses all activities that touch customers Single repository for customer data Customer life cycles

– Marketing sends messages to target market– Prospects order and need to be supported– Support and resale increases value to existing customers– Win-back processes categorize customers according to

value


Customer Life Cycle

Figure CE10-2


Components of CRM System

Solicitation– Supporting system is email and organization’s Web site

Lead-tracking– Presale applications turn prospects into customers

Relationship management– Maximize value of existing customers– Sales management applications help develop strategies for

regaining lost customers


CRM Components

Figure CE10-3


Enterprise Resource Planning Systems (ERP)

Support business processes, human resources, account support processes

Enterprise-wide Cross-departmental process systems Based on documented, tested business models Process blueprint

– Comprehensive set of inherent processes for all business activities

Formally designed– Organizations must adapt to blueprint


Benefits and Problems of ERP

Benefits– Processes effective and efficient– Organizations do not need to reinvent processes– Reduce lead time– No data inconsistency problem– Lower costs– Higher profitability

Problems– Costly– Change is challenging


Implementing ERP

Tasks in implementation– Model current business processes– Compare these to ERP blueprint processes– Eliminate differences– Implement new, revised system– Train users

Difficult, time-consuming


ERP Implementation

Figure CE10-9


Enterprise Application Integration (EAI) Systems

Solves problems of isolated systems Provides layers of software that connect applications

together Enables existing applications to communicate Provides integrated information Leverages existing systems Enables gradual move to ERP No centralized database

– Files of metadata describing where data kept


EAI Architecture

Figure CE10-8


Active Review

What is the importance of inherent processes? What are the characteristics of customer relationship

management (CRM) systems? What are the characteristics of enterprise resource

planning (ERP) systems? How is an ERP system implemented? What are the characteristics of enterprise application

integration (EAI) systems?

Chapter Extension 10 Cross-Functional Systems: CRM, ERP, and EAI © 2006 Prentice Hall, Introduction...

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