ERP & Commerce by Ahlam

8/2/2019 ERP & Commerce by Ahlam

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ERP & E-Commerce

P

reparedb

y:

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ERP

(Enterprise Resource Planning)2

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Facilitates business,supplier, and customer

information flows

Supports basicinternal business

processes

An integratedsuite of software

modules

The backbone ofbusiness processes

A cross-functionalenterprise system

ERP


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ERP software is a family of software modules that supports the

business activities involved in vital back-office processes.

ERP gives a company an integrated real-time view of its core

business processes, such as production, order processing andinventory management.

ERP systems track business resources (such as cash, rawmaterials, and production capacity), and the status of

commitments made by the business (such as customer orders,purchase orders, and employee payroll), no matter whatdepartment has entered the data into the system.

Characteristics of ERP


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ERP software suites typically consist ofintegrated modules of:

Manufacturing

Distribution

Sales

Accounting

Human Resource applications

Characteristics of ERP (continued)


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ERP Application Components


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Benefits and Challenges of ERP

ERP Business Benefits

1. Quality & efficiency

2. Decreased costs

3. Decision support

4. Enterprise agility

ERP Challenges

1. High risk & cost

2. Hardware and softwareare a small part ofoverall project

3. Failure can cripple or killa business


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Costs of implementing a new ERP

system


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Causes of ERP Failures

Common Causes of ERP Failure

Over-reliance

on ERP vendoror consultants

Under-estimating the

complexity ofplanning,development,

training

Failure toinvolve affected

employees inplanning anddevelopment

Trying to do toomuch, too fast

Insufficienttraining

Insufficient dataconversion and

testing


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Electronic Commerce

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Is more than just

buying and selling

products online

Relies on theresources of the

Internet, intranets,

extranets, and other

technologies

Is the online process of

developing, marketing, selling,

delivering, servicing, and paying

for products & services transactedon internetworked, global

marketplaces of customers, with

the support of a worldwide

network of business partners.


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Electronic Commerce Fundamentals

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E-commerce

is changing

the shape of

competition

E-commerce is

changing the

speed of action

E-commerce is

changing streamlining

of interactions ,

products andpayments from

customers to

companies and from

companies to

suppliers


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The Scope of e-Commerce

There are a range of business processes involved in the

marketing, buying, selling, and servicing in e-commerce.

Companies involved in e-commerce as either buyers or

sellers rely on Internet-based technologies and e-

commerce applications and services to accomplish

marketing, discovery, transaction processing, and product

and customer service processes.

The Internet, Intranets, and extranets provide vital

electronic commerce links between the components of a

business and its customers, suppliers, and other businesspartners.

This allows companies to engage in three basic categories

of electronic commerce applications.13

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Categories of e-Commerce

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Business-to-

Consumer

(B2C)

Business-to-Business

(B2B)

Consumer-to-Consumer

(C2C)


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B2C e-Commerce

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e-commerce websites that providevirtual storefronts andmultimedia catalogues .

Online customer support Interactive order processing

Secure electronic payment systems


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B2B e-Commerce

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Secure Internet or extranet e-commerce websites

Electronic data interchange (EDI) via the Internet or

extranets for computer-to-computer exchange of e-

commerce documents


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C2C e-Commerce

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C2C is an important e-commerce alternative for B2C

or B2B e-commerce.

Personal advertising of products or services to buy or sell by

consumers at electronic newspaper sites, consumer e-

commerce portals, or personal websites is an important form ofC2C e-commerce.


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Bricks and Clicks in

E-Commerce


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It is a business model by which a company integrates both offline

(bricks) and online (clicks) presences.

A popular example of the bricks and clicks model is when a chain

of stores allows the customer to order products either online or

physically in one of their stores, also allowing them to either

pick-up their order directly at a local branch of the store or get itdelivered to their home. There are many alternative

combinations of this model.

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Bricks and Clicks


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Alternatives and benefits trade-offs for an

integrated or separate e-commerce business

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Spin-Off

Strategic

Partnership

Joint

Venture

In-

HouseDivision

Separation

Greater FocusMore Flexibility

Access to Venture Funding

Integration

Established BrandStored Information

Purchasing Leverage

Distribution Efficiencies


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A formal alliance between two commercial

enterprises, where each possesses one or morebusiness assets that will help the other.Eg. Rite Aid and DrugStore.com

Strategic Partnership

The creation of an independent companythrough the sale or distribution of new shares of

an existing business/division of aparent company.Eg. Barnesandnoble.com

Spin Off


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A joint venture is a business agreement in whichparties agree to develop, for a finite time, a new entity

and new assets by contributing equity.Eg. KB Toys BrainPlay.com

Conducting an activity or operation within acompany, instead of relying on outsourcing.A

firm uses its own employees and time to keep adivision or business activity, such as financingor brokering, in-house.Eg. OfficeDepot.com

In-House Division

Joint Venture


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Other Clicks and Bricks Strategies

Other clicks and bricks strategies range from:

Partial e-commerce integration using joint ventures and

strategic partnerships.

Complete separation via the spin-off of an independente-commerce company.

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Benefits and challenges of a completely separate

clicks and bricks strategy

Access to venture capital funding,

create an entrepreneurial culture,attract quality management,

maintain a high degree of business flexibility, and

accelerate decision-making.

Benefits of a partially integrated clicks and bricks

strategy

Sharing established brands

Sharing key business information

Joint buying power

Distribution efficiencies


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Questions???

to beDiscussed.

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1. Explain Enterprise Resource Planning

in detail.

2. What is E-commerce? Explain the

clicks and bricks strategy of E-

commerce.

3. What is e-commerce? Explain thethree basic categories of e-commerce

with examples.26

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[1] Management

Information Systems,

6th/Ed.

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References


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THANKYOU

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ERP & Commerce by Ahlam

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