Chapter 12 : Integrating The Organization From End To End (Enterprise Resource Planning)

Assalamualaikum,

Case : Shell Canada Fuels Productivity with ERP

Shell Canada

Shell Canada is one the nation's largest integrated petroleum companies and is a leading manufacturer, distributor and marketer of refined petroleum products.

1. How did ERP helps improve business operations at Shell?
    - ERP helps improve business operations at Shell by integating and managing its
      daily operations that span from wells and mines, to processing plants, to oil
      trucks, and gas pumps. For example, the ERP system has helped the company
      immensely in terms of reducing and streamlining the highly manual process of
      third-party contractors submitting repair information and invoices.

2. How could extended ERP components help improve 
    business operations at Shell?
    - ERP solution helps improve business operations at Shell by providing an
      integrated web-based service order, invoicing and payment submission system.
      Formerly, the information was not timely and it was often weeks or even months
      old by the time it made it into the payment processing system. Thus, Shell was
      not collecting sufficient information about what repairs being done, what caused
      the problem and how it had been resolved. However, with the ERP system, the
      contractors can also enter detailed about the work that was performed and
      sometimes even attaching photo and drawings to help describe the work that
      was done.

3. What advice would you give Shell if it decided to choose
    a different ERP software solution?
     - In my own opinion, if Shell decide to choose a different ERP software solution,
       they can be used to handle other operational task.
     - The system can help speed up maintenance and repair operations at the
       company's refineries.
     - They can use ERP system to access these things directly from a centralized
       database.
     - However it depends on the suppliers or contractors that want to search the
       Shell company's website.
     - If the system that they choose can satisfy the user or the contractors, the
       software can be used. Or else, Shell must use the ERP software that they
       already have.
     - In this era, people intend to do choose the easier task and if people already
       knows and familiar with the system before, they will make the task effectively
       and efficiencly. Changes can be made but not too complicated until until they
       find it difficult to perform the task.

4. How can integrating SCM , CRM and ERP helps in 
    improving the business operations at Shell?
    - Application such as supply chain management (SCM), customer relationship
      management (CRM), and enterprise resource planning system (ERP) are the
      backbone of e-business. It's the key to success for many companies. Thus, it
      can helps in improving the business operations at Shell in terms of :
      SCM - sales forecasts, sales strategies and marketing campaigns
      CRM - market demand, resource and capacity constraints and real-time
      scheduling
      ERP - forecasting, planning, purchasing, material management, warehousing,
      inventory and distribution

Shell does not only use the ERP system to helps their business operations but also using the SCM system to integrate sales for Shell company and CRM system to help cater the market demand. With these system, all of employees in the organization have gained fast and easier for them to access the tools and information that they need to carry out for their daily operations.

Chapter 11 : Building A Customer-Centric Organization (Customer Relationship Management)

Assalamualaikum,

1. Describe Customer Relationship Management (CRM) and its role
     in supporting business operations.

Customer Relationship Management (CRM) is a management philosophy according to which a company's goals can be best achieved through identification and satisfaction of the customers stated and unstated needs and wants. One example of a common CRM strategy is the rewards card program offered by many supermarkets. The store gives its customers a free card that gives them access to special deals and discounts when they swipe the card during checkout. But that card also tracks everything the customer buys and allows the store to create an extremely detailed customer profile based on his or her purchasing habits. Armed with that information, the store can then offer its customers targeted coupons and other programs that will motivate its customers to buy more products from that store. 

Its role in supporting business operations are :

1. Accumulating a lot of data about the customer
    - when all the data of customer are being captured, it is then used to facilitate
      customer service transaction by making the information needed to resolve the

      issue or concern readily available in order to deal with the customers.

2. Help for the top management
    - help for the top management in deciding the company's future course of action, 

      whether it involves phasing out one of the products on the shelves or making 

      adjustments to one of the products sold.

3. Invaluable to organization's advertising and marketing planners

    - they will be able to pinpoint which ideas and which don't. CRM system is the 

      main reason where you will be able to release advertisements or plan marketing 

      campaigns more in tune with your target market as well as the target audiences.  

2. Identify the benefits and challenges of CRM 

The benefits of CRM  :

1. Shared information

    - aggregate the data obtained and distributes it among the different department in
      your organizations. CRM systems collect and maintain detailed customer
      information such as purchase histories and customer preferences.

2. Improved customer service
    - improves the customer service experience. Many CRM systems have a detailed
      note-taking and contact system, which allows sales professionals and others to
      record when and why a customer was contacted. Having this information
      prevents you from making repeated telephone calls, sending out repeat
      notices and asking repeat questions, which may only annoy or frustrate
      customers. Improving the customer service experience may lead to repeat
      purchases and more loyal customers.

3. Better marketing

    - gives organization the chance to improve and simplify the marketing system.
      Data in the CRM system also can tell you which customers are profitable
      and which are not. A company uses this information when deploying
      marketing tactics by focusing on the profitable customers and less-so on
      other ones, thereby simplifying marketing strategies and bolstering sales.

Challenges of CRM :

1. Expensive costs that occur when implementing the system
    - it is a huge investment to maintain a customer database. The additional
      expense comes from the money needed for the computer hardware, 
      software, and personnel that is needed to maintain it. These excessive
      costs can lead to a negative vibe within the company and can result in a
      CRM collapse.  

2. An inadequate focus on objectives
    - occurs after the CRM system is implemented. When hard times hit, the
      organization may lose sight of its goals and eventually steer away from the
      clearly laid out objectives. Goals may get interchanged and ultimately lose
      their original importance. 

3. Insufficient resources
    - organizations start lessening their budgets from the current phase in order
       to handle the initial excessive costs. Organizations tend to fail at utilizing

       the necessary resources fro success and that can result in failure. 

4. Inappropriate metrics 

    - organizations constantly fail to use the right metrics. Failure to chose
      the right method of measurement is a main reason of why this system may 

      not work. Different metrics implement different goals. 

Chapter 10 : Extending The Organization (Supply Chain Management)

Assalamualaikum, 

a) List and describe the components of a typical supply chain. 

The five basic supply chain management activities 

First and foremost let me explain the meaning of Supply Chain. Supply Chain is all activities associated with the flow and transformation of goods and services from raw materials to the end user, the customer while Supply Chain Management is synchronization of activities required to achieve maximum competitive benefits. 

PLAN : Refer to the overall strategy of Supply Chain Management (SCM) including 

            the development of SCM metric to monitor. 

SOURCE : Refer to the supplier who will provide goods or services necessary to
                 run for business

MANUFACTURING : Execution of processes needed to produced, test and
                               package product or service

DELIVERY : Refer to the system for receiving orders from customer, developing a 

                   network when warehouses getting the product to the customer and 

                   receiving payment from them.

RETURN : System of processing customer return or supporting customer problem 

                with the product they received.

b) Describe the four changes resulting from advances in IT that are
     driving supply chain.

        1. Visibility

• ability to view all areas up and down the supply chain
• bull whip effect occurs when distorted product demand information passes from one entity to the next through the supply chain
• information technology allows additional visibility in the supply chain

         2. Consumer behavior

• demand planning software generates demand forecast using statistical tools and forecasting techniques
• once an organization understand customer demand its effect on the supply chain. It can begging to estimate the impact that its supply chain will have on its customer and ultimately the organizations performance 

         3. Competition 

• supply chain planning software, uses advanced mathematical algorithm to improve the flow and efficiency of the supply chain while reducing inventory

         4. Speed

• new form of serve, telecommunication enabling companies to perform activities that were once never thought possible
• ability to satisfy continually changing customer requirement efficiency, accurately and quickly

c) Summarize the best practice for implementing successful supply
    chain management system.

        1. Make the sale to supplier

• the hardest part of any SCM system is its complexity because a large part of the system extends beyond the company's wall

         

        2. Wean employees of traditional business practices

• operation people typically deal with phone calls, faxes and orders scrawled on paper and will most likely want to keep it that way. 

         

        3. Ensure the SCM system supports the organizational goals

• it is important to select SCM software that give organizations an advantage in the area most crucial to their business success

         

        4. Deploy in incremental phases and measure and communicate 
            success

• design the deployment of the SCM system in incremental phases

         

        5. Be future oriented

• the supply chain design must anticipate the future state of business

Chapter 9 : Enabling The Organization (Decision Making)

Assalamualaikum, 

Artificial Intelligence (AI) is an area of computer science that emphasizes the creation of intelligence machines  that work and react like humans. Some of the activities computers with artificial intelligence are designed for included speech recognition, learning, planning and problem solving.

There are four categories of Artificial Intelligence :

1. Expert System 

• Expert system is an artificial intelligence program that has expert-level knowledge about a particular domain and knows how to use it knowledge to response properly. Domain refers to the area within which the task is being performed.  For example : Vodafone, one of Europe's leading mobile operators, selected Expert System technology to develop an innovative customer integration management solution for its SMS 190 application.

Expert System 

2. Neural Networks

Neural Networks

• Neural networks is a artificial intelligence technique that mimics the operation of the human brain (nerves and neurons), and comprises of densely interconnected computer processor working simultaneously (in parallel). For example : Citibank uses neural networks to find opportunities in financial markets. By carefully examining historical stock market data with neural network software, Citibank financial managers learn of interesting coincidences or small anomalies.

3. Genetic Algorithms

• Genetic algorithm is a method for searching for the optimum solution to a complex problem, based on the principles of natural selection. It's basically an automated, intelligent approach to trial and error. Given specific formulas, rules or arrangements to be optimized, a genetic algorithm can find a solution. Genetic algorithm can be used in scientific design. For example : Brighterion is the leader in smart analytic offering products for device ID, click stream analysis, credit risk, homeland security intelligence and many others. Their products are used widely and trusted by the largest institutions and governments around the world.

Genetic Algorithm 

4. Intelligence Agents

Intelligent Agents

• Intelligence agent is an agent that acts intelligently, it makes rational decision, considering its circumstances. That is, an AI agent observes its environment and chooses its actions accordingly. Intelligent agents are already pervasive in our lives. They work under the hood to make our lives easier. For example : Firefly used intelligent agent software to take the raw data about likes and dislikes submitted by Firefly users to identify other products and services likely to be of interest to those users, based on the user profile developed from the personal information submitted by the user. 

Artificial Intelligent directed by Steven Spielberg is one of movie that highlighted this projects. I'm highly recommend you to watch this movie because it is beyond awesome. It brings you sadness, resentful, happiness altogether within yourself. 

p/s : Madam Intan, i'm sharing this entry with Nura Adila  , my partner as you've told to do so.