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Running Head: CORE EIMS SOFTWARE 1
Case Study 2: Core EIMS Software
BUS 4200 Enterprise Information Management Systems
Daria Dulan
Notre Dame de Namur University
Dr. Rodney Heisterberg
January 25, 2017
CORE EIMS SOFTWARE
Problem Statement
Information systems knowledge is essential for creating successful, competitive
firms, managing global corporations, adding business value and providing useful
products and service to customers (Filip, 2007, pp. 103). "In many industries survival
and even existence without the extensive use of IT is inconceivable" (pp. 103).
Challenges and Opportunities
An important development the authors, K.C. Laudon and Jane P. Laudon remark
(2007) is the emergence of the digital firm, "where nearly all core business processes
and relationship with customers, suppliers and employees are digitally enabled" (Filip,
2007, pp. 103). Management information systems (MIS) is defined as "the study of
[computer based] information systems in business and management" (pp. 103).
An enterprise application is the phrase used to describe applications (or
software) that a business uses to aid in solving organizational problems. “When the
word ‘enterprise’ is combined with ‘application,’ it usually refers to a software platform
that is too large and too complex for individual or small business use” (Beal, Enterprise
Application). These are the software and systems that the MIS manages. Enterprise
applications are designed to interface or integrate with other enterprise applications
used within the organization, “and to be deployed across a variety of networks
(Internet, Intranet and corporate networks)” while meeting strict requirements
for security and administration management (Beal, Enterprise Application). Some of the
more common types of enterprise applications include: customer relationship
management (CRM), enterprise resource planning (ERP), and supply chain
management (SCM).
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CRM
Today, companies have access to an abundance of customer-related information
in ways that were unimaginable a couple of decades ago. As a result, “companies are
becoming more dependent on software to convert information into actionable
intelligence, and to communicate that intelligence to customer touch-points in a timely
manner” (Ang & Buttle, 2006, pp. 4). Customer management software is an important
component of both analytical and operational customer relationship management
(CRM) implementations (pp. 4). CRM is a business practice that has been defined as
“the core business strategy that integrates internal process and functions, and external
networks, to create and deliver value to targeted customers, at a profit” (pp. 5). It is
grounded on high quality customer data and enabled by IT.
Operational CRM, like Salesforce Automation (SFA), campaign management,
event-based marketing, opportunity management and product configuration and contact
management solutions, relies on software to automate selling, marketing and service
processes. Analytical CRM is “enabled by engines such as Enterprise Miner from SAS
Institute and 7i Business Intelligence from MicroStrategy” (pp. 5). Analytical CRM
software explores customer-related data to answer questions such as ‘what should we
offer this customer next?’ , ‘what is this customer’s propensity to churn?’ or ‘how can our
customers be segmented for campaigning purposes?’ (pp. 5). In general, CRM software
applications help companies manage their customer relationships more efficiently and
effectively.
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Keeping track of customer and lead information is essential to growing a
business and maintaining a healthy client base (Top Ten Reviews). Customer relation
management solutions, or CRM, are powerful systems that allow access to contact
information from each department and multiple employees. “This means that when the
IT department interacts with a customer, it can see via a company's CRM who the sales
contact is, how customer support has already attempted to help them and any notes
about issues that IT can now help address” (Top Ten Reviews). This cuts down on the
time it would take to place the client on hold while support staff tracks down the right
individual to help them.
CRM is also excellent for following leads as initial contact is made and
relationships are nurtured. “As the lead turns into a potential investor or client, CRM
software allows the organization to follow the client down the sales pipeline, noting each
activity as it occurs” (Top Ten Reviews). These notes will be saved and follow the new
client during the rest of their interactions with the company in the future; this is
invaluable for future sale potentials. “For example, a real estate agent may refer back to
the client notes in the CRM when that client decides to sell their home and purchase
another. Rather than go through the entire get-to-know you process again, agents can
see via the CRM the preferences and tastes of this particular client from the get-go,
eliminating areas to search for and honing in on properties closely aligned with the
personal preferences. Additionally, these notes can be accessed and used by other
agents if the original representative is no longer with the company” (Top Ten Reviews).
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In addition to keeping contacts organized, the best CRM software provides tools
and resources to give attention to investors, pay vendors, track employee workflow and
much more (Top Ten Reviews).
Figure 1: Worldwide CRM Software Spending
(Retrieved from: http://www.forbes.com/sites/louiscolumbus/2013/04/26/2013-crm-market-share-update-40-of-crm-systems-sold-are-saas-based/#a8082c031f7d)
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ERP
Webopedia defines enterprise resource planning (ERP) as “business
process management software that allows an organization to use a system of integrated
applications to manage the business and automate many back office functions related
to technology, services and human resources” (Beal, ERP). ERP software integrates all
facets of an operation — including product planning, development, manufacturing, sales
and marketing — in a single database, application and user interface (Beal, ERP).
Price Waterhouse Coopers (1999) describes the main benefits derived from ERP
implementation as the following:
Bringing people and processes which traditionally were physically and/or logically
separated together in a collaborative environment
Replacing inventory with information by being able to produce more accurate
forecasts
Relieving users from routine tasks and freeing them up to focus on value adding
activities
Standardizing of business processes across the enterprise on a global basis
Centralized control of system configuration and master data ensuring data
integrity
Eliminating disintegrated legacy systems by replacing them with an integrated
ERP system
Introducing a common business language across the enterprise
Deriving strategic benefits – benefits that typically reflect underlying business
drivers from the improved quality, quantity, access and use of information;
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Reducing costs through greater financial management, both in the personnel and
technology area (tripod)
It is worth noting that the financial investment and savings of ERP (SaaS) are even
better than those benefits associated with investment of traditional ERP.
Figure 2: Expenses with SaaS ERP compared to Traditional ERP
(Retrieved from: http://cmuscm.blogspot.com/2014/02/business-justifications-for-migrating.html)
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SCM
Packowski and Francas (2013) propose that a recent survey of supply chain
managers impressively demonstrates the urgent need to adapt existing SCM concepts
to the new reality: “Three-quarters of top managers consider market volatility to be the
biggest challenge to their supply chains, followed by supply chain complexity” (pp. 131).
Supply chain software refers to the range of tools that are designed to control business
processes, execute value chain transactions and manage supplier relationships. Harris
(2017) explains that while functionality in these systems varies tremendously, common
features include: purchase order fulfillment, shipping, inventory management, supplier
sourcing, and execution-focused applications (e.g., warehouse and transportation
management). Many supply chain management systems include forecasting, “which
helps companies manage the fluctuations in supply and demand by using complex
algorithms and consumption analysis to evaluate buyer histories” (Harris, 2017). Supply
chain optimization software can be an invaluable tool in maximizing production
efficiency and planning for the future.
Business Solution
Heisterberg & Verma (2014), state two key adaptive strategic planning processes
for virtual enterprise integration in a business ecosystem: (1) building virtual enterprise
infrastructures using the Ecosystem Hub architecture; (2) making decisions to optimize
business performance of the virtual enterprise value chain. The Ecosystem hub
architecture, as described in Creating Business Agility: How Convergence of Cloud,
Social, Mobile, Video, and Big Data Enables competitive Advantage, is the force of
nature in the informatics technology (IT) climate – the “Force 5 Tornado”; cloud, social,
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mobile, video and big data; disrupting the business playing field – “bring your own
devices” (BYOD).
Businesses need to be prepared for the storm coming. Heisterberg & Verma
(2014) list actions for enterprises to hit the storm head on:
Produce early warnings to strengthen infrastructure via the cloud;
Collaborate for real-time problem solving in their communities via social
networks;
Communicate vital decision-making information to the right people, place, and
time via mobility solutions;
Provide interactive messages for alerts and instructional information via videos.
These will provide business agility if companies are able to embrace these forces
coming in at warp speed. The Ecosystem Hub architecture is described as an enterprise
information management system (EIMS) consisting of business, applications and
technology; standards-based, secure, shared data platform. It provides the environment
that facilitates digital web services for applications such as inventory visibility, business
process management, and performance metrics displayed in real-time dashboards
(Heisterberg & Verma, 2014).
Implementation of enterprise applications can be long, difficult, expensive
processes. That said, it is important to make a healthy selection about which enterprise
applications fit the organization the most (Alanbay, 2005, pp. 1). Below are criteria,
listed in order of priority, for selecting enterprise applications:
Customization: Since different organizations need different software, they need
to adapt the available software in the market for their own use. But,
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customizations shouldn’t cause difficulties in updating to future software
releases.
Implementability: Different enterprise applications have different requirements,
thus it is important to choose an implementable one. If the organization ventures
infrastructural change, the feasibility problem this change may cause shouldn’t
be disregarded.
Maintenance: The software should support multi-company, multi-division and
multi-currency environments. There shouldn’t be any restrictions to this type of
environment so that whenever an add-on procedure or a patch is available, it can
be updated immediately.
Real Time Changes: The modules should work in real time with online and batch-
processing capabilities, so that no errors would occur because of the system
being not up-to-date and information available to a department wouldn’t be
different than the other departments’.
Flexibility: Flexibility denotes the capability of the system to support the needs of
the business over its lifetime. As the business requirements of the organization
change, it should be able to add extra modules. The enterprise applications
should be flexible in order to suit the organizational culture and business
strategy.
User Friendliness: Most of the time, the end-users of an enterprise application
system are not computer experts, thus their opinions about the software are
highly valuable. The product shouldn’t be too complex or sophisticated for an
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average user since the efficiency of end users directly affects the efficiency or the
organization.
Cost: Cost is an important issue since the implementing organization may be a
small or medium sized enterprise (SME) that may not act as comfortable as a
large, multi-national organization. Enterprise applications can be complex
systems involving high cost, so the software should be among the edges of the
foreseen budget.
Systems Requirements: Technology determines the longevity of the product. It is
important to choose enterprise applications that are independent of hardware,
operating system and database systems. At least, the requirements of the
software should worth changing into. The enterprise application system designs
should also not conflict with the organization’s business strategy.
After Sales Support & Training: The vendor(s) should be providing the training as
well as the after sales support. Also it should be considered that every
department within the organization would have its own piece of software to use,
so a kind of specialized training will be needed for each department.
Back-up System: To obtain the security for highly complex systems with huge
databases, providing a very well-formed network is not enough; the back-up unit
of the system should be more than reliable. Users should be able to schedule
routine and partly back-ups. Besides, the back-up unit should also offer a
solution for restoring the system within the shortest time.
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Reporting & Analysis Features: Besides standard reports, management team
should be able to implement their own reporting and analysis tools and dump
them into the system for alter use.
Vendor Credentials: Vendor’s market share, reputation, number of consultants,
number of installations performed, support infrastructure and demonstration of
previous implementations are critical factors showing the commitment of the
vendor to the product.
Integration with Other Software/Applications: The modules should be integrated
and provide seamless data flow among the other modules, increasing operational
transparency.
Internet Integration: The software should support e-business, e-commerce and
EDI transactions. At least, even if it doesn’t have as built-in modules, Internet
adaptation should be available as add-on modules.
Financing Options: ‘Financing options’ may not be a technical criterion, but it is
very important for an organization how to pay for the investment and how long
pay for it.
Lessons Learned / Business Case
In order for organizations to embed the business strategy into daily operations
and move into digital business intelligence, organizations must integrate data points
from across the business ecosystem to leverage real-time business intelligence in order
to remain competitive and sustainable. This has the potential to be a major change of
processes or philosophy for many organizations. Small decisions made at the top often
have a huge impact at lower levels amongst the operations and these decisions can be
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more informed and fruitful with tools that collect and organize data across the enterprise
in real-time; with access form anywhere and anytime software will be pivotal in nurturing
educated business decisions.
CRM
For the most part, CRM solutions are generic, flexible, and are able to be used
by any company in any industry. However, some solutions are designed to be better for
certain projects or business types. “For example, Infusionsoft is an excellent solution for
retailers with an online store and other web-based customer interactions. It includes
tools for tracking online orders and inventory management once a product is purchased
and sent. Workbooks.com has powerful sales and lead generation tools plus a mobile
app that allows sales teams to enter contact information while in the field that will
instantly update in the office-based system” (Top Ten Reviews).
The top three ranked CRM solutions on Top Ten Reviews (Salesforce, NetSuite
and OnContact), are all part of an all-encompassing suite that includes integrations with
accounting and HR departments so that employees can be tracked and assessed base
on their interactions and follow through with your clients and potential leads. These
programs “are the most engaging, intuitive and easy to navigate through of the software
we reviewed. They also come with excellent customer service and can be access and
used from locations throughout the world” (Top Ten Reviews). This is especially
important for international companies or companies with clients located outside of the
U.S.
When comparing CRM software, it is important to pay close attention to how well
each program connects each aspect of the customer interaction experience, its ability to
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share files between multiple users and departments, the ease of installation and use,
and the overall quality of the customer service experience with support personnel (Top
Ten Reviews). It is also important to evaluate ease of entering contact information and
retrieving it later, after it is saved. Most products are very intuitive in this area, though a
couple applications require extra steps before this can be done. Top Ten Reviews also
encourages analyzing how the program integrates with various email programs. “Those
that made it on our top ten have an email feature within the program itself. After sending
out a message, the trail is saved in both the CRM and the email program integrated with
it. This means contacts and interaction information are instantly shared and saved
between the programs” (Top Ten Reviews).
A very important feature to look for is whether the system includes real-time
sharing or not. “The very nature of CRM software allows multiple users to access
contact information and client portals when needed. However, real-time sharing allows
multiple users to be in the same portal or account at the exact same time. Each can
contribute and have updated information instantly saved. The top ranking CRM
solutions on our review include live chat features in the program so you can
communicate at the same time that you are updating and sharing critical information”
(Top Ten Reviews).
CRM solutions are priced by the number of users that access the program and
through a monthly subscription. For example, Maximizer CRM charges $49 per month
for a single user and $195 per month for five. This amount will increase depending on
additional users that may need to be added (Top Ten Reviews). This price scale is used
primarily because each of these solutions is cloud based, meaning the solution is
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hosted on the developer's secured server and accessed online or through a mobile app.
There are even some free CRM applications, like Zoho, which is good for a single user,
but doesn't include as many additional support tools as most others.
Top Ten Review’s top-ranking CRM software each include the most and best
tools for tracking customer interactions in addition to providing tools for sales and
marketing strategies and following employee activities. “They are also the more intuitive
and easy-to-use applications” (Top Ten Reviews). Buying CRM software is an important
decision that will greatly affect the operations of a company.
ERP
With the help of SoftwareInsider, let’s compare ERP softwares SAP ERP and
Infor ERP. “With more than 40 years of experience and nearly 50,000 customers, SAP’s
market-leading enterprise resource planning (ERP) software is a proven, trusted
foundation – built to support the world’s largest organizations as well as small and
midsize companies in 25 different industries. Leverage role-based access to critical
data, applications, and analytical tools – and streamline your processes across
procurement, manufacturing, service, sales, finance, and HR” (SoftwareInsider).
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Figure 3: SAP ERP Trailer (video) Retrieved from https://youtu.be/JqCFms6LU4A
Infor ERP solutions deliver functionality and usability specifically for the
manufacturing and distribution industries. Refined and proven through decades of use
by more than 70,000 customers in 200+ countries and territories, Infor ERP minimizes
costly customizations and lets you work smarter and faster.
The average user rating for SAP ERP is 8.0, compared to Infor ERP which is 9.3.
Furthermore, the online reviews say that Infor ERP has a higher ease of use and ease
of doing business score (both 10) than SAP ERP (4 and 3 respectively).
There is an overlap of industries that both of these software support, but there
are a few unique industries supported by each, with SAP supporting more industries.
Below is the complete list for both SAP ERP and Infor ERP. So, depending on what
industry the software shopper is from, this information may determine which is best.
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Figure 4: Industries supported by SAP ERP and Infor ERP
(Retrieved from http://erp.softwareinsider.com/compare/131-218/Infor-ERP-vs-SAP-ERP)
The size of an organization, the commitment to fully integrate all the data, the
investment, corporate culture, maturity, support and leadership all factor into the ROI of
any new initiative.
While SAP ERP is only available in the United States, Infor ERP is available in
12 countries (including the United States. While on the topic of “availability,” it is worth
mentioning that SAP ERP has platforms on iOS, Andrioid, Blackberry and Windows
Phone, while Infor ERP has only Windows mobile platform functionality at the moment.
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Both softwares have some SCM features and Infor ERP aslo has some CRM
features. So, in the event that the software shopper is looking for a suite of enterprise
applications, Infor ERP may be a more efficient option.
SCM
While the supply chain management software market is relatively small
(compared to many other markets), the “vast disparity in functionality between different
SCM programs makes buying decisions much more complicated” (Harris 2017). Some
programs concentrate on business intelligence, others focus on inventory control or
transportation management and there are full-suite systems that do all of the above and
more (Harris 2017).
Fishbowl
With the help of Capterra, let’s compare SCM softwares Fishbowl and 3PL.
Fishbowl is a business automation and inventory management platform for small to
midsize companies (Capterra, Fishbowl). “Fishbowl offers inventory control, material
requirements planning (MRP) and job shop floor control/manufacturing execution, and
can be customized to users’ needs. It is an inventory-centric system, with features for
barcoding, asset management, raw materials management, cycle counting and
customized reporting. The system also automates the quoting, ordering and purchasing
processes” (Capterra, Fishbowl).
Fishbowl is used in just about every industry by companies earning up to $100
million in annual revenue (Capterra, Fishbowl). It offers training and support resources
through its training videos, online tutorials, in-house specialists and more. Fishbowl’s
integration with QuickBooks allows users to integrate manufacturing, sales and
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distribution processes with back office accounting. Fishbowl also integrates with
Amazon, UPS, SolidWorks, PayTrace, Xero and more.
Figure 5: Fishbowl Trailer (video) – Retrieved from https://youtu.be/n876BDJs4TE
This software features inventory management, eCommerce, purchasing and
supports multi-location. “For more than 10 years, Fishbowl has held Intuit’s Gold Partner
status, the highest level of service third-party developers can achieve” (Capterra,
Fishbowl). As far as customer ratings go, on the site, Fishbowl has 4/5 stars which rate
components like: ease of use, functionality, product quality, customer support, and
value for money. The starting price for Fishbowl is $4,395.00/one-time/user, but there is
a free trial available.
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Reviews tell us that customer support is outstanding, the system/software is very
easy to use, it is great for organizing and processing order. However, there could be
more customization available for reports and the price is a bit high (Capterra, Fishbowl).
3PL Warehouse Manager
“Created specifically to enable 3PL providers to manage the unique challenges
that face them every day, 3PL Warehouse Manager gives users the ability to manage
multiple customers, processes and billing schedules. The system enables access to
real-time information and provides turnkey integrations with warehouse management
technologies, including EDI, barcode scanning, e-commerce shopping carts and more”
(Capterra, 3PL).
Flexible and scalable, 3PL Warehouse Manager is designed “to help
3PLs automate processes and bill accurately” (Capterra, 3PL). Features include intuitive
design and 3PL-focused WMS features, and users can easily add and inactivate
customers and warehouses. Users pay for what they use and there are no multi-year
contracts.
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Figure 6: 3PL Trailer (video) – Retrieved from https://youtu.be/1KWDoOBZDC4
This software features inventory management, like Fishbowl, as well as order
management, receiving management, returns management, shipping management, and
barcoding. As far as customer ratings go, on the site, Fishbowl has 4/5 stars which rate
components like: ease of use, functionality, product quality, customer support, and
value for money. The starting price for Fishbowl is $500/month, and there is a 30-day
free trial available.
Reviews tell us that the software is easy to navigate, integration is quick and
easy, the customer service is generally good, there is 24/7 web visibility for customers,
it is simple to exchange data and it is inexpensive. However, upgrade turn-around time
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could be improved, there is no Quickbooks billing integration yet and the shipping
module needs improvement.
Why I Care
Meehan (2015), “Digital business connects not only people and businesses, but
also connects people and businesses with things to drive revenue and efficiency. Digital
business helps to eliminate barriers that now exist among industry segments while
creating new value chains and business opportunities that traditional businesses cannot
offer. It is creating new and disruptive competitive advantages by blurring the digital and
physical worlds. By 2020, more than 7 billion people and businesses, and close to 35
billion devices, will be connected to the Internet.” Electronic Arts has recently hired a
new Chief People Officer (CPO) who returns to our company after a few years away,
leading HR at a completely digital company. She’s taken a few months to learn about
where the HR function at EA sits compared to the rest of the business and one of her
conclusions is that while our business inevitably calls for digitalization, our HR function
has not made that transformation. We still have processes that include long email
threads with approvals, printing, hard signatures and so much more, Ultimately what is
being discussed now is that we, as an HR function, can not serve out “customer” (EA),
without transitioning our processes to digital completely. At this point, we can service
EA by encouraging the use of MIS to align with the business strategy.
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