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Furthermore, since it becomes possible to carry out, flexibly and in real time, the filing and analysis of data from a variety of dimensions, one is able to give the decision-makers the information they want; thus enabling them to make better and informed decisions. Use of Latest Technology The fourth advantage is the utilization of the latest developments in Information Technology (IT). The ERP vendors were very quick to realize that in order to grow and to sustain that growth, they had to embrace the latest developments in the field of Information Technology. Therefore, they quickly adapted their systems to take advantage of the latest technologies like open systems, client/server technology, Internet/Intranet, CALS (Computer-Aided Acquisition and Logistics Support), electronic-commerce, etc. It is this quick adaptation to the latest changes in Information Technology that makes the flexible adaptation to changes in future business environments possible. It is this flexibility that makes the incorporation of the latest technology possible during system customization, maintenance and expansion phases. As has been stated above, ERP includes many of the functions that will be necessary for future systems. However, undertaking reforms to company structures and business processes, so as to enable the full use of these major features, is the greatest task for companies that will use them. It is necessary to take note that casually proceeding with the implementation of ERP, merely for reasons of system reconstruction or preparation for the year 2000, is likely to result in turning the above mentioned advantages into disadvantages. ERP packages, if chosen correctly, implemented judiciously and used efficiently, will raise the productivity and profits of companies dramatically. But many a company fails in this because of a wrong product, incompetent and haphazard implementation and inefficient or ineffective usage. To work successfully, the ERP solutions need a lot of factors to click. There should be good people who know the business. The vendor should be good and his package should be the one best suited for the. companys needs. The ERP consultants should be good. The implementation should be planned well and executed perfectly. The end-user training should be done so that the people understand the system, and the effect of their efforts on the overall success of the program. The introduction of the ERP system will dramatically change the job descriptions and functions of many employees. Employees who were earlier doing the work of recording information will, overnight, be transformed into decision-makers. For example, in the past an order entry clerk's job was to enter the orders that came to him. With the implementation of a good ERP system, the order entry clerk becomes an action initiator. As soon as he enters the order into the system, the information is passed on to the sales, distribution and finance modules. The distribution module checks whether the item is in stock and if available, the item is dispatched and the information is sent to the finance module. If the items are not in stock, then the manufacturing module is given the information, so that production can start.
The customer is informed about the status of his order. If the items are shipped, the finance module prepares the invoice and sends it to the customer. All these actions take place automatically as soon as the order entry clerk enters the information regarding the order into the system. Thus the order entry clerk is transformed from a data entry operator to a decision maker whose actions can trigger a chain of actions. Many employees find this transformation difficult to accept. If the employees are not given proper training, well in advance, then the systems will fail. Another factor is the fear of unemployment. When procedures become automated, the people who were doing those jobs become redundant. So it is quite natural to have resistance from the employees. But the same employees can be trained in the new system and can work in more challenging and stimulating environments. For this also, the employees have to be told, in advance, as to what will happen and should be given ample time and training to make the transformation. Without support from the employees, even the best system will fail. So it is very important that the management should take the necessary steps, well in advance, to alleviate the fears of, and provide necessary training to their employees.
Q2.
Briefly explain the functionalities of CRM sub modules. List out the benefits of CRM Systems.
(Equipment) Management, Service-Level Agreement Management, Resource Planning and Scheduling and Knowledge Management Sales Module The sales module of CRM focuses on managing and executing the presales process of the company by making it more organised. The sales teams in most companies are responsible for capturing opportunities and customer interaction. The CRM helps the sales team in processing this data and following-up it in the future. The CRM also helps in organising all relevant data received and captured for a deal, into one place. Some of the captured data can include expected budget, total spending, prospective customers, key players, products interested in, important dates andexpected closing dates of a deal. Each of these modules can be stand alone applications depending on organisational need. It is important that the right software is selected and implemented correctly. Then only any CRM can be effective. Benefits of CRM An excellent CRM is the heart of every business success. With CRM, you can easily understand customer requirements, meet those needs effectively, predict market trends and enhance your business bottom line. A properly implemented CRM system can bring significant benefits to your organisations. System means, the complete consortium of 3 P's, People (employees, culture), Procedures (way of doing business), and Programs (supporting applications and not just an application running on a computer). The advantages that a CRM can bring are: Shared or distributed data: Customer relationships are happening at many levels and not just through customer service or a web presence. They start to understand the need for sharing all available data throughout the organisation. A CRM system is an enabler for making decisions and follow-up at levels. Better customer service: All data concerning interactions with customers is centralised. The customer service department can greatly benefit from this because they have all the information they need. And through the use of push-technology, customer service representatives can lead the customer towards the information they need. The customer experience is greatly enhanced. Increased customer satisfaction: The customer feels that he is more "part of the team" instead of just a subject for sales and marketing. Customer service is better and the needs of the customer are anticipated and addressed. Many companies believe that more satisfied customers means a good predictor for repeat business. Better customer retention: If a CRM system can help to fascinate customers, it increases customer loyalty. Customers keep coming back to buy again and again. Hence, higher customer retention is assured
More business: If you are delivering the ultimate customer experience, this seeds the word-of-mouth buzz, which brings in more new business. More profit: More business at lower cost equals more profit. Customer relationship management tools have also been of great help to companies in attaining their business objectives. The CRM systems help in collecting data that help in enhanced customer satisfaction. The types of data CRM systems can collect are: Responses to campaigns Shipping and fulfilment dates Sales and purchase data Account information Web registration data Service and support records Demographic data Web sales data 1 Business Benefits of CRM Implementing a CRM solution might involve considerable time and expense. However, there are many potential benefits. A major benefit can be the development of better relations with your existing customers. This can result in: Increased sales through better timing by anticipating needs based on historic trends Identifying needs more effectively by understanding specific customer requirements Cross-selling of other products by highlighting and suggesting alternatives or enhancements Identifying profitable customer companies This in turn can lead to better marketing of your products or services by focusing on: Effective targeted marketing communications aimed specifically at customer needs A more personal approach and the development of new or improved products and services in order to win more business in the future Ultimately this could lead to: Enhanced customer satisfaction and retention, ensuring that your good reputation in the marketplace continues to grow Increased value from your existing customers and reduced costs associated with supporting and servicing them. This increases your overall efficiency and reduces total cost of sales Improved profitability by focusing on the most profitable customers and Dealing with the unprofitable in more cost effective ways Once your business starts to look after its existing customers effectively, efforts can be concentrated on finding new customers and expanding your market. The more you know about your customers, the easier it is to identify new prospects and expand your customer base. Customer needs change over time, and technology can make it easier to find out more about customers and ensure that everyone in an organization can exploit this information.
selection process.
ERP Selection Methods and Criteria ERP is a very expensive investment and has a long and complicated implementation process. Ass u c h , i t i s i m p o r t a n t t o m a k e a p r o p e r s e l e c t i o n o f t h e E R P . E R P s e l e c t i o n p r o c e s s i n v o l v e s identifying criteria and their relative weights, and evaluating the alternatives.An ERP system is the information backbone of an organisation and extends to all areas of theb u s i n e s s . T h u s , l o n g term business strategy of the organisation forms the basis of th e E R P selection criteria. As mentioned earlier, ERP systems are costly to implement. When choosing anERP system, it is important to take time to select the right ERP system or set of modules for yourbusiness. In order to do this in an efficient manner, it is important to have a plan of action. The selection of the appropriate solution is a problem because only a part of it can be handled bya definite or accepted procedure such as standard investment calculations. On the other hand, thedecision maker needs to judge and evaluate all relevant business impact aspects. There is noagreed-upon and formal procedure for this important task [1] . The modules that an ERP offers arethe most important selection reasons; and can vary according to the needs of the organisation.When you consider an ERP system, it is important to weigh all available options carefully. This isbecause of the time, money, and training that can be consumed in implementing such a system.There are three criteria that are generally used when evaluating an ERP solution: Financial Considerations : When an ERP solution is considered, it must make money to b e acceptable. As such, there are several measurements that the finance department may make inorder to determine whether or not an ERP solution is feasible.Net Present Value (NPV) is generally the most accepted method of valuing an ERP. It takes intoaccount the time value of money and cash flows generated. The cash flow and discount rateselection process is the most important part of an NPV calculation. Determining an average cost of capital for your firm and the predicted cash flows help you get an accurate result from the NPVcalculation.- Budgetary constraint is the most used method when considering IT projects. The Internal Rate of Return (IRR) and payback
period methods are also very popular for many firms dealing with ITimplementations. Management Considerations : On the management side, there are more variables to considerthan simply money. For example, managers may differentiate between implicit and explicitbusiness needs, competitive pressures, legal needs, and environmental concerns. This can makethe management side of valuation very difficult to quantify. Generally, companies take a fewfactors and try to create a scoring system that can be objectively applied across the options.S o m e t i m e s p r o b a b i l i t y o f a c h i e v i n g t h e i n t e n d e d b e n e f i t s i s i n c l u d e d i n t h i s p a r t o f t h e calculations else it is included in the financial part of the process. However, the probability of achieving the benefits instead of simply succeeding in implementation takes on a different look.This sort of probability may be more directly tied with a softer science such as management. Development Considerations: Development is usually the least important decision factor inthese processes. One of the most important factors is the probability that a project finishes ontime. This simply does not happen very often, so it is important to determine what sort of adverseeffects this could have on business operations. ERP Software Selection Criteria When reviewing potential software suppliers, you tend to focus only on the potential productsfunctionality and cost. Although these elements are important, this methodology neglects otherareas of importance. A suppliers ability to deliver product services goes well beyond price andfeature options. The key selection criteria include making few questions. Such questions help yousimplify making an ERP software purchase decision. Some of the questions include: For Product Functionality Does this package meet the overall requirements listing?
Are the help files easily assessable and easy for users to understand? Can you customise help to meet the needs of the organisation? Is the product too complex? Are there standard reports available, and are they useful? For Product Cost Are the license costs justified given the functionality offering? Is the required database affordable? Are annual maintenance charges reasonable and in line with the industry average? Are payments for annual maintenance charges in line with industry norms? What is the true implementation services-to-software ratio for i m p l e m e n t a t i o n s w i t h comparably-sized companies? How quickly can payback be received? For Corporate Vision What major organisational changes has the supplier made in recent years? What major product changes have occurred in recent years? What major product changes does the company foresee or have planned in the coming years? What level of involvement does the executive staff have in the companys daily operations? Isthe executive staff knowledgeable of industry trends and developing technology? For Service and Support Was the team comfortable with the sales process and representative? Were the teams questions answered in an open and honest forum?
Can the supplier provide a complete turn-key solution? What type of training is available? What is the average technical support persons experience level and tenure with the company? How quickly are the non-critical software bugs fixed?
Q.4. What is ATO and how is it different from ETO? List the advantages of CAD/CAM. Answer:Manufacturing Operations The manufacturing operations can be classified based on the amount of processing the productrequires, after the company receives an order from customer. They are broadly classified as: Make-to-Order (MTO) and Make-to-Stock (MTS) Assemble-to-Order (ATO) Engineer-toOrder (ETO) Configure-to-Order (CTO) Assemble-to-Order (ATO) Assemble-to-Order (ATO) company is another variation of the manufacturing operations. The ATOcompany manufactures standardized, option modules according to the forecasts it has made andthen assembles a specific combination, or package of modules, after receiving the customersorder. The classic example is the automobile manufacturer. After receiving orders from a host of dealers, the manufacturer specifies the exact production schedule for the automobiles.The schedule is based on the options order by the customers, like automatic transmission ormanual transmission, airconditioning, standard or digital control panel, leather, cloth or vinylseating, and so on. Many components for assembling the automobiles would have be ordered orstarted into production before receiving the customers order based upon demand forecasts. Thus,the major processing that remains when the orders come in is
assembly. This approach shortensthe time between placement of the order and delivery of the product cycle time. Engineer-to-Order (ETO) Yet another variant in the manufacturing operations is the Engineer-to-Order (ETO) company. TheETO Company is the ultimate in product variety, product customisation and flexibility. In thismode of operation, as per customer order the company manufactures any thing, but at a higherprice. The expensive clothing of the bold and beautiful is an example of this kind of production.Products are made for each customer and even the minute details, for example, the feel of thecloth and the texture, the colour of the threads, the size of the collar and so on will differ fromone customer to another, depending upon the customers preferences. So the manufacturercannot keep anything in inventory, he will have to order only once the customer has given his/herspecifications. Obviously, the cost of production will be highest in this mode of production. Computer Aid Design/Computer Aid Manufacturing The CAD/CAM systems assist engineers in designing, examining, and upgrading drawings requiredfor manufacturing. Being a part of Product Data Management it enables high degree of precision inboth during design phase and the actual manufacturing phase. It also enhances the capacity of thecompany by reducing the time consumed in converting the drawings into actual working models.Computer Aid Design/Computer Aid Manufacturing (CAD / CAM) are the other major focus area forthe manufacturing sector. Traditionally, the automotive and aerospace industries are the largestconsumers of CAD/CAM. With the automotive sector in the depression, vendors were not able to meet their expectationsfrom this industry. On the other hand, the farm auto sector did better in comparison.Mahindra & Mahindra (Tractor Division) has grown considerably in the last three years and theirmanufacturing capacity has doubled. This is accompanied with significant improvement in designcapacity. Increasing design capacity is also a competitive edge for a company. For example, TataJohnson Controls, which makes seating systems, started off by designing seats solely for Ford.With increased design capacity using advanced CAD/CAM, they went on to supply seating systemsto many other auto majors. The major focus area in CAD/CAM is on design analysis, development,and manufacturing. Styling and ergonomics are the refinement areas to achieve design excellence.There were
only marginal investments in modelling. There is also a trend developing for reverseengineering, especially in the engineering and appliances industry. Manufacturing, companies inthe BPL Group have taken up reverse engineering.Product data management (PDM) is another leading edge of the CAD/CAM philosophy. TELCO andMahindra Ford have integrated many of their suppliers. For the supplier, it means enhancedcompetence and improved competitiveness. Many of these suppliers, with their improved designcapacity and integration with OEMs, have also started exporting. Brakes India is supplying brakesto many of the European auto manufacturers.Another reason, which forces a company to make design an imperative, is the improved alignmentt h a t m a n y m a n u f a c t u r i n g o r g a n i s a t i o n s h a v e a c q u i r e d . T h i s i s b e c a u s e o f b u s i n e s s p r o c e s s reengineering. An important thing is the integration of tier 1 and tier 2 suppliers with OEMs, forstandard product information.Many companies in heavy engineering sector have signed up multi year contracts with globalmajors like SDRC and PTC. BHEL has a CAD/CAM contract across all units with SDRC for a term of five-year. Similarly Lakshmi Machine, L&T and Siemens works are investing in CAD/CAM to beef uptheir research capability
Q5.
Discuss briefly about JD Edwards and PeopleSofts applications and their various modules.
Ans: PeopleTools is an integrated set of client/server business application development and customisation
tools from PeopleSoft. These tools enable customers to implement, modify, and maintain PeopleSoft applications as well as to extract, analyse and manipulate data.
For the SAP consultant, IDocs are the barges. And Business Application Programming InterfacesBAPIsare the small, powerful ships that keep these barges of data moving.
First in a series This is the first installment in a series that examines the significance of Business Application Programming Interfaces, how to use them, and their role in designing applications. Building canals for the client An understanding of how SAP changes the structure of a business is the first conceptual step in becoming an effective SAP consultant. A solid knowledge of SAPs data-handling mechanisms, of which BAPI is the most central, is the first practical step. BAPI is the most powerful tool in the SAP consultants toolkit. Think of a BAPI as a business objectsay, a master record, such as a client profile, or a transactional record, such as an invoice. Its easy to confuse a BAPI with an IDoc (another central SAP data transport feature). The difference is that IDocs are about moving data between systems or modules; BAPIs are about calling data in and out of SAP in the first place. Their place in SAP and your toolbox SAP R/3 arrives with a bundle of BAPIs ready for your immediate use. There are several hundred of them, in categories such as accounting, human resources, and logistics. They perform a vast array of functions, from creating jobs in SAP to launching IDocs, from posting sales orders to changing passwords, from listing employee benefits to tracking a shipment. They can be used out of the box or modified to create new business objects specific to your clients needs. BAPI is one of a set of tools at your disposal for interfacing with an SAP R/3 system. Its important to understand its role among them, and to have an idea of what each does in relation to the other. SAP Assistant This stand-alone program is, in essence, the toolbox you carry with you as a hands-on SAP consultant. Its contents give you access to SAP R/3s objects. All the information you need for setting up remote function calls from outside SAP is found here. Most importantly, SAP Assistant holds your set of keys to SAPs business objects, allowing you access to whats there, and enabling you to create what you need (see Figure A).
Remote Function Calls BAPI is ultimately a mechanism for getting data out of SAP R/3. If a BAPI is a ship pushing a barge (data), the engine of that ship is a Remote Function Call (RFC). An RFC is a function module in a system that is called from some other system. This, of course, covers a great deal of ground. The two systems can both be SAP, or they can be different platforms, or an RFC may be used on the spot in real time by any party making an inquiry of an SAP system from the outside (including you, sitting at your laptop). How do RFCs relate to BAPIs? An RFC is the means by which the business object represented by a BAPI is implemented. A BAPI is a business object; an RFC is functional code. The Business Object Repository A great deal goes on in the Business Object Repository (BOR), and you must know it well. Its not overstating the case to say that the BOR is the core of
SAP. If an SAP R/3 system can be described as the animation of otherwise lifeless data, the BOR describes the living cells of this new body. Cells come in many different types, and thats what the BOR holds: all the different types of data comprising an SAP system of databases. The BORs contents essentially define the implementing companys business model. The information it holds includes the definitions of all business objects internal to the company, as well as the defining information of all interfaces to other companies. Another new language BAPI is, like many aspects of SAP R/3, another new lexicon of concepts, terms, and tools a consultant must absorb to be effective. However, it will rapidly be clear to even a less experienced consultant that these concepts are firmly rooted in the object-oriented methodology that is now every IT professionals stock-in-trade. It is critical that you, as an SAP consultant, understand the dynamic nature of data handling in an SAP environment, the manner in which this mutates business processes, and most importantly, the way in which BAPI and related tools interface with this new, living database. Once you understand these concepts, the hands-on skills to create applications become simple.