REVIEWER PRE 8 2.

Increase Efficiencies – ERP software virtually

does away with repetitive processes. It also
ENTERPRISE RESOURCE PLANNING AND
streamlines business processes, and facilitates
MANAGEMENT
the collection of data, making work for
What is ERP? employees both more efficient and easier.

- ERP is an application that is responsible for 3. Cost Savings – ERP solutions provide a central
automating business processes, as well as source of accurate information, thus decreasing
providing insights and internal controls, drawing both the operations and administrative costs of
on a central database that collects inputs from a company.
departments which includes accounting,
4. Streamlined Processes – ERP automates
manufacturing, supply chain, sales, marketing,
operations across all departments, generating
and human resources (HR).
correct information in real time to everyone
- type of software that organizations use to accessing such information. ERP solutions are
manage day-to-day business activities such as aid to navigating complex processes, stopping
accounting, procurement, project management, any data re-entry that is occurring, and
risk management and compliance, and supply benefiting productions departments, delivery
chain operations departments, and facilitating order completion.

- Gartner (1990) coined the moniker ERP. He ERP Implementation Risks

defined it as the ability to deliver an integrated
1. Failure to Redesign Business Processes to Fit
suite of business applications.
the Software.
Importance of ERP
2. Lack of Senior Management Support
- Companies want to become more efficient and
3. Insufficient Training and Reskilling of End-
effective, thus increasing productivity and
Users
profits. A best-fit ERP system contributes to
greater productivity in many ways: ERP 4. Lack of Ability to Recruit and Retain Qualified
software can streamline business processes, Systems, Developers
automate manual tasks, and reveal
5. Inability to Obtain Full-time Commitment of
improvements by analyzing company data
Employee to Project Management and Project
across all departments.
Activities
- ERP systems help the company’s leaders
6. Lack of Integration
reallocate human and financial capital or build
more efficient processes that save money 7. Lack of Change Management
without sacrificing on quality or performance.
8. Poor Technology Planning
Benefits of ERP
9. Less than Awesome Project Management
1. Improved Productivity - Using ERP software
can cut down on the time it takes to do tasks ERP Modules
and finish projects, which results in the 1. Human Resource Module – helps the HR
improvement of productivity in a company. team for efficient management of human
resources
2. Inventory Module – used to track stock of ERP Related Technologies
items
ERP related technologies help overcome the
3. Sales Module – sales process includes limitations of the ERP system. When used in
processes like Sales queries and inquiry analysis conjunction with the ERP system, these related
and handling, quotation drafting, accepting technologies help the company and its
sales orders, drafting sales invoices with proper managers in making better decisions by
taxation, etc. enabling the company to do business at
internet speed. Some of these technologies are
4. Purchase Module – takes care of all the
as follows:
processes that are part of the procurement of
items or raw materials Business Process Re-engineering

5. Finance & Accounting Module – whole inflow 1. Dr. Michael Hammer: “The fundamental
and outflow of money or capital rethinking and radical redesign of business
processes to achieve dramatic improvements in
6. Customer Relationship Management Module
critical, contemporary measures of
– all the stored details of the customer can be
performance such as cost, quality, service and
found in the CRM module
speed.”
7. Engineering/ Production Module – great help
2. Invented by Dr. Michael Hammer and
in the manufacturing industry, and consists of
Thomas Davenport
functionalities like production planning,
machine scheduling, raw material usage, etc. 3. set of activities that transform a set of inputs
into a set of outputs (goods or services) for
another person or process using people and
ERP AND RELATED TECHNOLOGIES tools

The ERP system is not a perfect system thus it 4. Business management strategy for
comes with risks and limitations. The ERP redesigning the business process with the goal
system has three significant limitations, namely: of analyzing the work flows of the business.

• Managers cannot generate custom reports or Advantages of the BPR

queries without the help from a programmer
5. It helps in integrating the various business
and this inhibits them from obtaining
processes of the organization.
information quickly, which is essential for
making a competitive advantage. 6. With good ERP package, the organization will
be able to achieve dramatic improvements in
• ERP systems provide current status only, such
areas such as cost, quality, speed, etc. Hence,
as open orders. Managers often need to look
many BPR initiatives are used in ERP
past status to find trends and patterns that aid
implementation
better decision-making.
Phases of Business Process Re-engineering
• The data in the ERP application is not
integrated with other enterprise or division 1. Project Kick-off
systems and does not include external
o establishing common goals and purpose of
intelligence.
the project
2. Process Identification and Data Gathering Objectives of Business Process Re-engineering

o Data regarding the current processes are - BPR enables the entity to increase
gathered and assembled on this phase. effectiveness and thereby deliver higher quality
products to the customer.
3. Process Consulting
- BPR enables the company to improve
o BPR consultants define objectives, finalize
efficiency in the production processes involved.
scope, select procedures, process champion,
- Cost saving can be achieved in the long run
kick-off meeting.
with the help of BPR.
4. Process Re-engineering
- BPR provides more meaningful work to
o Beginning of the actual re-engineering, employees.
wherein a number of brainstorming sessions are
- BPR enables a company to be more adaptable
held with the project team and other
and flexible towards changes in the future.
stakeholders.
- BPR enables new business growth and
5. Blueprint of New System
expansion.
o involves modelling workflow and information
Seven Principles of BPR
requirement of new business processes
- Organize around outcomes, not tasks
o new system and processes are outlined using
various modelling tools - Have those who use the outcomes of the
process perform the process
6. Change Management
- Integrate information-processing work into
o preparing the organization for change
the real work that produces the information
7. Transformation
- Treat geographically dispersed resources as
o In this phase, the actual migration of the though they were centralized.
company from the current system to the new
- Link parallel activities instead of integrating
system happens. This migration strategy is done
their results.
either as a pilot, in phases, or through big bang
implementation. - Put the decision points where the work is
performed, and build controls into the process.
8. Project Management
- Capture information once, at the source.
o BPR consultants plan awareness campaign,
top management workshop, and
communication workshop.
Data Warehouse and Data Mining
o BPR consultants change characteristics,
Data Warehouse
change readiness assessment, change
management plan, and implement change - William H. Inmon: “father of data warehouse”,
management plan. a data warehouse is “a collection of integrated,
subject-oriented databases where each unit of
data is specific to some period of time. Data
Warehouses can contain detailed data, lightly 3. Online Analytical Processing
summarized data and highly summarized data,
- characterized by relatively low volume of
all formatted for analysis and decision support”
transactions, queries are often very complex
- a database designed to support decision and involve aggregations
making in an organization
- For OLAP systems, response time is an
- a data warehouse is a collection of databases effectiveness measure
that work together and contains a wide variety
- OLAP databases store aggregated, historical
of data that present a coherent picture of
data in multi-dimensional schemas (usually star
business conditions at a single point in time
schemas)
- a location where information can be
proactively reported and queried against - OLAP systems typically have data latency of a
few hours, as opposed to data marts, where
- goal of data warehousing: creation of single
latency is expected to be closer to one day.
logical view of data that may reside in many
different physical database Importance of OLAP
Types of Data Warehouse - OLAP technology is being used in an
increasingly wide range of applications. The
1. Data Mart
most common are sales and marketing analysis,
- Simple form of data warehouse that is focused financial reporting and consolidation and
on the functional are such as sales, finance, or budgeting and planning.
marketing
- OLAP is being used for applications such as
- Often built and controlled by a single product profitability and pricing analysis,
department within an organization activity- based costing, manpower planning,
and quality analysis or for that matter any
- Given their single-subject focus, data marts
management system that requires a flexible,
often draw data from a few sources
top-down view of an organization.
- These sources could be internal operation
Data Mining
systems, a central data warehouse, or external
data - the process of identifying valid, novel,
potentially useful and ultimately comprehensive
2. Online Transaction Processing (OTPL)
knowledge from database that is use to make
- characterized by a large number of short, crucial business decisions
online transactions
- DM is sorting through data to identify patterns
- OTPL systems emphasize very fast query and establish relationships. Data mining is a
processing and maintaining data integrity in class of database applications that look for
multi- access environments hidden patterns in a group of data that can be
used to predict future behavior.
- effectiveness is measured by the number of
transactions per second - extraction of hidden predictive information
from a large database
- OTPL databases contain detailed and current
data
- Its goal is to extract information from a data 5. Present the data in a useful format, such as a
set and transform it into an understandable graph or table.
structure for further use
Advantages of Data Mining
Parameters of Data Mining
- A human expert is always a hostage of the
• Association – looking for patterns where one previous experience of the investigating other
event is connected to another event system. Sometimes this helps, sometimes this
hurts but it is almost impossible to get rid of
• Sequence or Path Analysis – looking for
this fact. While data mining does not eliminate
patterns where one event leads to another later
human participation in solving the task
event
completely, it significantly simplifies the job and
• Classification – looking for new patterns (may allows an analyst, who is not a professional in
result in in the change of how data is organized) statistics and programming to manage the
process of extracting knowledge from data.
• Clustering – finding visually documenting
groups of facts not previously known Data Warehousing VS Data Mining

• Forecasting – discovering patterns in data that Product Life Cycle Management (PLM)
can lead to reasonable predictions about the
- Product lifecycle management (PLM) refers to
future (also known as predictive analysis)
the management of data and processes used in
Data Mining Techniques the design, engineering, manufacturing, sales,
and service of a product across its entire
- It extracts interesting patterns such as groups lifecycle and across the supply chain.
of data record (cluster analysis), and unusual
records (anomaly detection). These patterns - Product lifecycle management has a long
can be seen as a kind of summary of the input history in the manufacturing space, but as it
data, and may be used in further analysis (ex: stands today, the term generally refers to a
machine learning and predictive analytics) software solution and a broader use case
beyond just themanufacturing process.
- Example: the data mining step might identify
multiple groups in the data, which can be then - Product Lifecycle Management (PLM) is
used to obtain more accurate prediction results involved more during the ideation, innovation,
by a decision support system. and design processes of a product. ERP helps
manage the quality, efficiency, and cost-control
Five Major Elements of Data Mining aspects of a product in its manufacturing and
1. Extract, transform, and load transaction data supply stages.
onto the data warehouse system. Brief History of PLM
2. Store and manage the data in a Product life cycle management began in the
multidimensional database system. 1980s as an attempt by the American Motors
3. Provide data access to business analysts and Corporation (AMC) to compete against its
information technology professionals. beefier rivals Ford and General Motors, who
had larger revenues and bigger budgets.
4. Analyze the data by application software.
The smart folks at the AMC took the following
approach:
1. Focused their R&D efforts on enhancing the • Get more insight on how customers are using
lives of their existing best-selling products that your product. This may also mean spending
were in the maturity phase of the life cycle funds on market research and trials during
product development.
2. Used computer-aided design (CAD) to speed
up product design and development efforts 2. Growth Phase

3. Stored all product data and designs centrally - Once a product has been successfully
(in a PLM software system), allowing for quicker introduced into the market and has survived, it
communication, version management, and reaches the growth phase. The focus in the
conflict resolution growth phase is on rapidly gaining new
customers and increasing market share as
The result of all this effort was great for AMC.
quickly as possible.
They launched new variants of Jeep, created a
new market segment for vehicles called sports - As product managers, you should:
utility vehicles (SUVs), and finally got bought
• Grab market share as quickly as possible by
out by Chrysler who used these new techniques
pulling out all the stops: new feature,
to reduce their development cost structure to
advertising, marketing, and distribution.
50% of that of the competition. 50% reduction
is insane by any standards. Toyota came along • Ensure that demand does not outstrip supply
later, and today Elon Musk’s Tesla seems to be by a large margin.
on the top of the game, with a larger market
cap than that of the 6 largest car companies • Keep an eye on competing products and
combined! optimizing price to ensure your product remains
competitive while protecting your margins.
Importance of PLM in Companies
3. Maturity Phase
Companies that manufacture goods experience
a range of issues outside of the scope of design - The beginning of the maturity phase of the
and manufacturing. Product lifecycle product life cycle is marked by a reduction in
management (PLM) mitigates those issues and the rate of growth. In the maturity phase, the
helps align and integrate key resources, quickly product marketing strategy is focused on
making product information accessible to teams differentiation from competing products.
across the organization. - As production managers, you should:
Traditional Product Life Cycle • Maximize profits by reducing costs. This will
1. Introduction Phase involve increasing the efficiency of your
production, supply chain, and distribution
- The introduction phase of the traditional operations.
product life cycle begins with the actual launch
of a product. • Maximize the length of the maturity phase by
differentiating the product, adding new
- As a product manager, during the introduction features, managing pricing, and keeping
phase, you should: competitors at bay.
• Create awareness in the market and clarify
features and benefits to the sales team.
4. Decline Phase • Upsell existing customers to newer
products/variants
- All products inevitably reach the decline phase
of the product life cycle. A market-leading Benefits of Product Life cycle Management

product may last longer than others, but it too 1. Improvements to development, engineering
will reach decline. Reasons for this decline are efficiency, and effectiveness
as follows:
2. Elimination of errors during the engineering
• Changes in technology release process

• Product innovation coming in from around the 3. Reduced time to market

world
4. Improved project delivery
• Changing habits and attitudes of newer
5. Higher quality designs
generations of consumers
Supply Chain Management (SCM)
• Planned obsolescence to ensure that
customers buy newer models as replacements. - Supply chain management is the handling of
There is a lot of debate around whether this the entire production flow of a good or service
approach is ethical, and the impact it has on our — starting from the raw components all the
planet. way to delivering the final product to the
consumer.
- The start of the decline phase is marked by a
reduction in sales figures. - Supply chain management (SCM) is the
optimization of a product's creation and flow
- Ways on how to address the decline:
from raw material sourcing to production,
• Address a different market segment or market logistics and delivery to the final customer.
altogether (international markets are a great
- The term supply chain management (SCM)
way to do this)
covers all the activities associated with
• Add new features to make it a new-ish managing an organization's procurement with
product the goal of:

• Reduce prices, clear out the existing • Reducing costs

inventory, then put the product in end-of-life
• Improving efficiency
and discontinue it
• Satisfying demand
- As a product manager, you should:
Components of a Traditional Supply Chain
• Figure out ways in which you can pivot the
Management
product to a new market segment or even a
new market altogether - Planning: Plan and manage all resources
required to meet customer demand for a
• Manage the end-of-life stage of the product
company’s
and ensure that you meet all legal
commitments while keeping costs to a product or service.
minimum
- Sourcing: Choose suppliers to provide the 4. Cognitively enabled
goods and services needed to create the
5. Comprehensive
product. Then, establish processes to monitor
and manage supplier relationships. Customer Relationship Management
- Manufacturing: Organize the activities - CRM is defined as customer relationship
required to accept raw materials, manufacture management and is a software system that
the product, test for quality, package for helps business owners nurture their
shipping and schedule for delivery. relationships with their clientele. A CRM also
assists with organization, efficiency, time
- Delivery and Logistics: Coordinate customer
management, and impressing clients every step
orders, schedule deliveries, dispatch loads,
of the way.
invoice customers and receive payments.
- A CRM gathers customer interactions across
- Returning: Create a network or process to take
all channels in one place. Managing centralized
back defective, excess or unwanted products.
data helps businesses improve customer
Importance of Supply Chain Management experience, satisfaction, retention and service.

- Effective supply chain management systems Importance of CRM

minimize cost, waste and time in the production
- CRM software is a special system with one
cycle. The industry standard has become a just-
primary purpose – improving relationships with
in-time supply chain wherein retail sales
clients by providing businesses with smart tools
automatically signal replenishment orders to
to effectively develop a successful strategy. In
manufacturers. Retail shelves can then be
other words, CRM software can accelerate
restocked almost as quickly as product is sold.
crucial business operations, such as marketing,
One way to further improve on this process is to
service and sales activities, to boost customer
analyze the data from supply chain partners to
experience and loyalty from initial contact to
see where further improvements can be made.
repeat purchases.
- three scenarios where effective supply chain
Benefits of CRM
management increases value to the supply
chain cycle: - Improves customer service
• Identifying potential problems - Increase in sales
• Optimizing price dynamically - Retain more customers
• Improving the allocation of “available to - Better Analytics
promise” inventory
- Higher Efficiency
Key Effective Features of SCM
- Better knowledge sharing
- five “Cs” of the effective supply chain
management of the future: - More transparency

1. Connected

2. Collaborative

3. Cyber-aware
Brief History of CRM Operational CRM

The ‘Uberization’ trend has hit the CRM market - An operational CRM gives you a complete view
like a tidal wave. Developers have come into of each customer’s interactions with your
the user, offering software with friendly user company. These sales CRMs use sales and
interfaces and appealing niche design language. marketing automation to save you time — and
Simplicity and low friction usage now come make sure no contacts or tasks fall through the
standard. That wasn’t always the case. cracks.

The history of the CRM reaches back to the - Features and Benefits:
dot.com bubble era. The first version of legacy
• Contact management
software SAP CRM, for example, was released
way back in millennial year zero, aka 2000. • Lead Scoring
Back then, all CRMs had a big learning curve • Sales Team Automation
and required a complete retooling of the
workflow. First, you needed to train up. Then • Marketing Automation
you’d have to import all your contacts onto a - Who should use an operational CRM?
proprietary cloud and plug away doing data
entry. Things look a lot different today. A small • You should choose an operational CRM if...
business can now implement CRM processes
➢ You spend too much time trying to keep
with minimal hassle, without hiring developers.
contact information organized
Cloud-based CRMs have become standard.
➢ You need a clear view of each customer’s
Cloud storage, automated data entry, and
activity and profile
web/mobile cross-platform functionality have
improved user experience (not to mention ➢ You want to use lead scoring and win
customer experience) dramatically. Prices have probability, but don’t know where to start
dropped too, with free, open source, and
affordable professional and enterprise plans ➢ You manually assign each task and lead to
available across the market. your sales team

Legacy providers like Oracle, Microsoft ➢ You want to scale your email marketing
Dynamics, and Salesforce have kept pace with efforts and grow your database
trends, and continue to command serious
• If you want to save time on sales and
market shares. But an increasingly diverse cast
marketing and keep everything in one place,
of new wave platforms have emerged to
challenge them, too. consider an operational CRM.
Types of CRM Analytical CRM
- Operational CRM - An analytical CRM gathers, organizes, and
analyzes your customer data and sales data to
- Analytical CRM
helpyou make better business decisions.
- Collaborative CRM
- This data can include the average deal cycle,
customer retention rates, monthly recurring
revenue, and any other information you collect. • Relationship management

- Features and Benefits: • Document management

• Data Mining - Who should use collaborative CRM?

• Cross-sell and upsell opportunities • You should consider a collaborative CRM if...

• Buyer persona building ➢ You need to improve communication

between departments
• Sales forecasting

• Attribution ➢ You want to focus on customer retention

and loyalty
- Who should use an analytical CRM?
➢ Your customers often have specific
• You should consider an analytical CRM if... preferences and needs
➢ You want to better understand why ➢ You need to share customer information
customers are (or aren’t) buying your products with vendors
➢ You want to gather more data about your ➢ You want to organize and align customer-
target customer focused efforts across your business
➢ You want to build customer personas based
on data

➢ You want to figure out which touchpoints

drive the most revenue

➢ You spend too much time poring over

spreadsheets — and not enough time selling

➢ You want to track your sales KPIs

➢ You want to improve your sales process or

strategy based on business intelligence data

Collaborative CRM

- Collaborative CRMs (also called “strategic

CRMs”) share customer information across
teams.

This includes internal and external stakeholders,

such as other departments, suppliers, vendors,

and distributors.

- Features and Benefits:

• Interaction management