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Click Here To Order NowExplain the main benefits of integration that an Enterprise System aims to provide
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Explain the main benefits of integration that an Enterprise System aims to provide
The fundamental feature of systems integrations’ is to ensure that information’s sharing among partners is seamless and timely. In the process, the organizations aim to improve their service delivery processes and revenues, that would come about from an electronic based distribution systems and IT based data transfer capabilities With the integration of a system, it is possible for a company to have consistency in data management and information access. The consistency is realized from the resultant data integration. As such, the cost of accessing, sharing and analyzing data and information will be lower.
Through enterprise system, Enterprise System Integration (ESI) can be adopted to enhance performance and reduce costs related to business activities. Significantly, ESI is deemed as an evolving technology that is not based on homogenous or specific technology. As such, it is easier to integrate a system and modify it with new solutions without need for a complete overhaul.
The speed of information dissemination also emerges from the Enterprise System and related integrations. Once configured with the internet or an electronic data transfer interchange, it is possible to have real time data transfer and communication protocols. Systems automations thus leads to real time information sharing such that market changes like stock prices, costs of suppliers and orders , currency rates and customer trends can be understood. It is therefore possible for the management to make executive decisions as a reaction to the market changes within a very short time. Ability to anticipate the emerging market issues and respond effectively leads to competitive advantages based on the power of relevant information. Differently, companies that operate on legacy and rigid informational infrastructure may not be able to compete favorably. The competitive advantage of the systems integration comes about because of the web based applications that enhance speed and non rigid communication. The costs associated with paper work and physical movements are also reduced with systems integration. This enhaces the revenue saving which can be used to improve other operations.
What are the advantages and disadvantages of the ‘big bang’ and ‘phased’ approaches to the implementation of an Enterprise System
Big bang
Advantages
It is possible to add on more information relating to peripheral modules after the ERP implementation. As such, the big bang process is more flexible and easily adjustable.
The approach enables the implementing team to be more focused on the ERP stabilization as many operations are carried out simultaneously. Big bang also allows for ease in integration of the systems so that the different modules can be added at different stages. At the same time, the system requires shorter time to implement. This helps to eliminate fixed costs related to a project.
Disadvantages
Big bang has higher degree of risks that may result from the non systematic and phased approach to ERP implementation. It also requires highly skilled project team that can easily configure the different modules and achieve the stable ERP. The risks of the approach also relate to possibility of a company’s ERP System Company to a complete stoppage incase of the systems failure. This would cause much loss and possibility of lost customer trust and opportunities. At the same time, the approach is designed in a way that it would be very difficult to switch over to the previous ERP system in cases of system failures.
The phased approach
Advantages
The approach is favored because of the low risks associated with the failure of the ERP. This is because, in case of a complete system’s stoppage, it will be easier for an entity to revert to the previously used system. Since the process is done in stepwise manner, if one stage works well, the project team will be motivated to work harder and design the next phase. The time taken between the development of a module and its use is also shorter.
Disadvantages
The approach also requires reliance on previous modules in the process of implementing the ERP. As a result, incorrect information may be generated with regards to the periphery based modules such as HRM.
The process requires that the modules are added at different stages and not in one go. As such, there will be coexistence of life cycle of the module implementation stages. Thus may make the ERP implementation team to lose their focus on the overall goal of the process. As a result, inconsistencies may emerge. The project team and the organizational management may also have varied focus thus affecting the overall outcome of the ERP system.
The phased approach also leads to conflicting perspectives of implementation and stabilization stages on an ERP system, due to difficulty in modifications and customization.
Discuss the concept of Customer Relationship Management (CRM) and explain why it is needed
Customer Relationship Management relates to the application on information technology by an organization with a view to enhance the quality of customer service and nature of the association between the entity and its customers. The overall aim of such systems in to create an electronic data base that is also accessible to the customers and give detailed information on the sales processes, the nature of the products, customer loyalty benefits and service programs. Specifically, Customer Relationship Management covers a wide range of customer service areas. Through Customer Relationship Management, an organization would be able to get the latest information on the market relating to customer needs so that a quality sales team is assembled to meet the gaps. As such, the Customer Relationship Management is beneficial in relation to the information gathering process and development of a customer based marketing strategies. The Customer Relationship Management is also beneficial in terms of technology application to improve service delivery. It is possible for an organization to implement telesales processes so that customers can make online orders, inquiries and payments. It is therefore possible to reduce the costs of transaction and needs for physical movements. Through the electronic data interexchange, an organization is able to meet the customer’s informational needs and electronic data transfer, even through mobile appliances. This coupled with quality and technology based customer care programs, helps to streamline the service delivery processes and optimization information need.
The information gathered through the Customer Relationship Management, also offer a two way benefit to the company. First, the management and the employees will be able to understand the needs of the customers better and improve their service delivery in line with the outcomes of customer satisfaction surveys and evaluation processes. The employee will thus know that the product quality does not lead t o customer loyalty, but that repeat sales are a direct result of business-customer relationships. On the other hand, the customer benefits from the improvement in the services offered that are more customized and individualized to suit their specific needs. The net effect of Customer Relationship Management in this case will be improvement in the levels of customer satisfaction and the net revenues that accrue to an entity.
Explain how Enterprise Systems can improve inventory management across members of the supply chain
Optimal inventory management is very critical for the success of any business entity, so that the costs associated with the inventory are kept to the most minimum level. Through Enterprise Systems, it is possible to ensure that inventory management is not only efficient but also value based across the whole supply chain. One of the most notable improvements that the Enterprise system can offer to an entity and its partners is through systems integrations. This way, a single package of the systems software would be used by the organization and its employees to monitor stock levels and ensure that no wastes exist. As such, there would be greater coordination that would not be possible under multiple systems that are not integrated. Similarly, having enterprise system that is connected to the systems of partners improves e-commerce. The e-commerce benefits mainly result from the implementation of e-supply chain management (e-SCM). This is because it will be possible for the members of a business entity and its partners to carry out online based transactions. The benefits of Business to Business transactions will thus be recorded. Similarly, it is possible for an organization to communicate effectively with its clients and have the entity’s sales improved. The communication platform that comes with such systems such as ERP help in faster data transfer and ordering processes. Specifically, it would be possible for an organization to have electronic data transfer and payment systems that are reliable and acceptable to the clients. There will be benefits accruing to all the members of the supply chain such as reduced time for ordering and receiving inventories, reduction is possible long time stock outs and near nil stock out costs. The reduction in the inventory costs will thus result into a value based business model that is efficient and technology based. This is because of the collaborative technology application that enhances customer service and target data distribution. that is, reduction in possible systems conflicts across the supply chain that may result from variations in platforms and the format of electronic data to be exchanged.
Compare and contrast disintermediation and reintermediation in the supply chain
The two concepts can be looked at through varied forms. One of the major differences comes from their definitions. descriptively, disintermediation relates to the attempts by the business to remove certain members of the supply chain so that the channel is shortened. This is thus a major feature of e-business and commerce that mainly seeks to employ internet technology to enhance efficiency in the management of supply chains (Commbe 2006, 92).
Reintermediation on the other hand encompasses a process by which new features and elements of the supply process are added to the chain of distribution. The concept can be understood by looking at the origin of e-commerce that led to displacement of certain members of the supply chain. The concept of reintermediation arose from such challenges as the displaced members sought to remain relevant. As such, reintermediation relates to the actions taken by the traditional intermediaries to reinvent their operations ostensibly to avoid being obsolete in the market by improving their activities through such means as ‘offering specialist knowledge or services for the online market’ (Commbe 2006, 93).
A major difference between the two terms thus relate to their origin. While disintermediation relates to the early stages of the e-commence development that was based on the understand that reduction in the members of the supply chain would eliminate wastes and enhance efficiency, reintermediation came about as an aftermath of disintermediation that is aimed at ensuring that the members of the supply chain that were deemed obsolete became relevant again in the internet based economy. disintermediation thus seeks to ensure that the supply chain is made as short as possible, with customers communication directly with the suppliers while reintermediation reinforces the need and importance of intermediaries in the supply chain. Put differently, while “disintermediation” seeks to eliminate ‘the need for specific elements of a supply chain, “reintermediation” [on the other hand is based on the notion that addition of] new element(s) to the supply chain’ would enhance the distribution process (Sampson & Fawcett 2001, 7).
A contrast between the concepts is also evident in their basic assumptions and aim. While disintermediation sought to enhance cost savings through middlemen’s elimination that were deemed as exploitative and non necessary reintermediation process sought to emphasize that fact that it is the intermediaries that understand the market better and can offer the best information to both customers and other members of the chain, due to their specialization. As such, the players in the reintermediation may be referred to as ‘infomediaries’ (Commbe 2006, 94). Both disintermediation and reintermediation results into cost savings if well managed. For example, OneSwoop which operates on the reintermediation concept, connecting car buyers and sellers across Europe has applied the arbitrage funding process to reduce the costs incurred by other members of the supply chain (Commbe 2006, 94).
References
Commbe, C. 2006 Introduction to e-business: management and strategy, Butterworth-Heinemann.
Sampson, S. Fawcett, S. 2001.The Impact of Disintermediation in Retail Supply Chains. HYPERLINK “http://e-learning.dmst.aueb.gr/ec/Cases/WalMart/Case/Training_Files/Sampson1.pdf” http://e-learning.dmst.aueb.gr/ec/Cases/WalMart/Case/Training_Files/Sampson1.pdf [September 7, 2010]
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