Transcript What is an Enterprise Wide Application?

Enterprise Business
Processes and Applications
(IS 6006)
Masters in Business Information Systems
20th Jan 2009
Fergal Carton
Business Information Systems
Last week
• Openings for graduates in ERP projects
– Catch-22 of application experience
– Business analysis role
– Data analysis role
• Moving away from systems based decisions
– Integration increases reliance on data
– In reality data integrity difficult to ensure
• Single instance ERP systems
• Hardwiring processes
• Impact for subsidiaries
– Finance and IS benefit
– Operationally, ERP often seen as an imposition
• Data integrity issues
– GSK / EMC / UCC
This week
• Data integrity
– UCC revenue clarity
– EMC price updates
– GSK and uncertainty in demand and supply
• Scope definitions
• UCC Finance scope
• CRM
UCC revenue clarity
Apologies to those for whom this is of no concern
The items listed below have been lodged to UCC’s Direct Debit and Standing Order
Current Account (Account No 73026922) during August:
01/08/2008
HSE - S A/C
2,600.00
01/08/2008
HSE - S A/C
825.00
05/08/2008
ADM RINGASKIDDY
363.00
08/08/2008
503ISU0506U 503ISU
08/08/2008
HSE - S A/C
75,000.00
08/08/2008
HSE - S A/C
4,735.62
13/08/2008
FRANZISKA WUST
100.00
15/08/2008
HSE-MID WEST
300.00
15/08/2008
HSE - S A/C
30,484.23
20/08/2008
5.01022E+12
62,000.00
22/08/2008
FR LLINICAL IMMUNOL
22/08/2008
HSE - S A/C
25/08/2008
Dept of Defence
1,800.00
5,245.27
25,474.21
144.00
If there is a Department expecting any of the above amounts, can I please be advised of the
correct code that should be credited? In some cases, the references are quite vague, but they
may be instantly recognizable to some Department.
Your assistance is greatly appreciated.
Examples of gaps virtual vs. reality
accuracy of the inventory is a big deal
guys who build wash out old parts at higher price, up to end 2nd month
inventory revaluation 25% upwards, +$90m for scrap
manufacturing getting material off RMA (unofficially)
MRP tells you what you need, but assumes you can get it
Standard costs are incorrect
See handout
SIT Ltd gap example
•
•
•
•
•
Inventory accuracy
Supplier component price updates
What do you do with old parts
How do you know when / how new price applies?
…
• Other examples
– Think also about price updates for customers?
– Think also about forecasting based on average price?
• ERP systems handle the detail, but need the data to
be maintained, which requires organisation
GSK and supply chain flexibility
• Supply side uncertainty
–
–
–
–
Batch failure
Technical problem
Yield
…
• 27 production sites
• Demand side uncertainty
–
–
–
–
Hurricane
Competitor goes off market
Avian flu epidemic
…
• 37 countries
– 600 commercial
organisations
• 1200 products
– 36,000 SKU’s
“so that’s an issue that we haven’t got satisfactory resolution to in terms of a
data driven trigger for events as opposed to human intelligence just saying,
we’ve got a problem here”
GAP analysis = setting the scope
• Reconciling technological necessities of the
system with business needs
• ERP systems impose their own logic
• Balancing the way you want to work with the
way the system will let you work
• 2 stage model for scope decisions
– Choice of modules (Purchasing, AP, …)
– Configuring the system to your way of working
Davenport, 1998
Other scope definitions
•
•
•
•
•
Number of modules
Number of functional units affected
Number of sites
Extent of customisation
Number of interfaces with legacy
applications
Bingi, 1999
UCC Finance – Phase 1
Purchasing
Accounts
Payable
Fixed
Assets
Cash
Budgeting and Forecasting
Reporting
General Ledger
Accounts
Receivable
UCC Finance - modules
• General Ledger
• Accounts Payable/Creditors ledger including Tax Compliance
Reporting
• Accounts Receivable/Debtors ledger/Invoicing
• Procurement Management
• Purchase Order Processing
• Cash Book, Cash Receipts, Cash Forecasting
• Capital Project Accounting
• Fixed Asset Register and Management
• Research Accounting
• Budgeting and Forecasting
• Tax Compliance & Reporting
• Costing
• Report Writers
• System Manager
What is CRM?
• Any Ideas?
• Bad Customer Service Stories
• Good Customer Service Stories
Bad Customer
Service Stories
• What are the common themes?
• What are the common customer
experiences?
• Underlying process issues?
• Underlying systems issues?
Good Customer
Service Stories
• What are the common themes?
• What are the common customer
experiences?
• Underlying processes?
• Underlying systems?
RFID scanner ordered from Tyco
• Equipment delivered late, incomplete and
wrong
• Communication gave no details of reason
for delay, just postponement
• Impact to customer : delay, frustration,
cost
• Consequence : customer goes elsewhere
• How would good communication have
helped?
Can you differentiate between a
process and a system?
•
•
•
•
•
•
•
•
•
•
Customer places order
Receives commit date
Customer reports product late (x n)
Product ships (RFID scanner)
Customer reports product incomplete
Product ships (antenna)
Customer reports product incomplete
Product ships (cable)
Customer reports product incompatible
Customer pays?
Dell decentralisation of service
• Logic of strategy to provide service via
WalMart?
• Draw this process?
• What are key issues surrounding customer
service for computer / electronic
equipment?
• What are other service models?
Chorus Broadband
Customer service
•
•
•
•
•
•
Event: router not working
Report fault (call 1890 nnn)
Resolve issue on phone if possible
If not rep visits customer
Notes from call transmitted to field rep
Close ticket?
Process characteristics:
Cost, efficiency, accuracy of
information, repeatability,
scalability, …
A Customer Scenario
• You’re on holidays in Florida
• You go to the Avis desk to pick up your car
before travelling to your hotel in Ft
Lauderdale
• It’s your birthday
• What happens next?
– What processes are involved here?
– IS implications?
– People implications?
A Customer Scenario
• Some D4 langer breaks your wing mirror and
doesn’t stop to apologise
• You call the garage to get a quote
• You call Axa to check insurance
–
–
–
–
–
–
A customer care rep calls you back
Sends out someone to pick up your car
Loans you a replacement car
Repairs the damage
Delivers the car back to you, valeted
No impact on your no claims
What is CRM?
• The purpose of Customer Relationship
Management (CRM) is:
– To enable organizations to better serve its
customers
– Through the introduction of reliable processes
and procedures for interacting with those
customers.
• A successful CRM strategy is usually
implemented through a software package
designed to support these processes.
CRM Focus
• Service automated processes.
• Personal information gathering and
processing.
• Self-service.
• It attempts to integrate and automate the
various customer serving processes within
a company.
CRM Business Areas
• Customer Service.
• Marketing Information.
• Sales force management.
Customer Service
• Service automated processes.
• Personal information gathering and
processing.
• Self-service.
• It attempts to integrate and automate the
various customer serving processes within
a company.
Marketing Information
• Provides information about the business
environment:
– Competitors
– Industry trends
– Environmental variables.
Sales force Automation
• Automates some of the company's sales
and sales force management functions.
• It keeps track of customer preferences
• Buying habits
• Demographics
• Sales staff performance
CRM General
Principles
• Single point of contact for all customer
information within the organisation
– What does this mean?
• Covers the entire customer journey
– What does this mean?
CRM General
Principles
• Implications for IS?
– Single point of contact for all customer
information within the organisation
– Covers the entire customer journey
• What sort of data?
– When is it gathered?
– How is it stored and organised?
• What sort of applications?
– What processes must they support?
A CRM
Application
Customer
Service
Sales force
Automation
Customer
Data
Marketing
A CRM
Application
(Amdocs)
CRM and
Call Centres
• Many call centres use Customer Relationship
Management software to store all of their
customer's details.
• When a customer calls, the system can be used
to retrieve and store information relevant to the
customer.
• By serving the customer quickly and efficiently,
and also keeping all information on a customer
in one place, a company aims to make cost
savings, and also encourage new customers.
Self-service
CRM
• CRM solutions can also be used to allow
customers to perform their own service via
a variety of communication channels.
• For example, you might be able to check
your bank balance via your WAP phone
without ever having to talk to a person,
saving money for the company, and saving
you time.
Sales force Automation
• Sales force Automation
• Scenario: Imagine you’re a salesperson
selling servers for a living …
– You’ve just called to your biggest customer in
the hope of closing a large deal
– One of their servers has broken down
– What happens next?
Sales force Automation
• What happens next?
– No sales force automation
– With sales force automation
• What is sales force automation?
• What are the IS implications?
Customer Service
• Scenario: Imagine you’re a call centre
agent …
– A customer calls with a really tricky problem
with their laptop
– You tell them some things to try and ask them
to call back later if the problem persists
– What happens next?
Customer Service
• What happens next?
– With a customer service system
– Without a customer service system
• What is a customer service tracking?
• Implications for Information Systems?
Marketing
• Scenario: You’re a marketing executive
tasked with selling a new household
product in the Cork area. Your company
has sold products in the same are for
many years.
– Who do you target?
– What do you need to know about them?
– Implications for Information Systems?