TRƯỜNG ĐẠI HỌC GIAO THÔNG VẬN TẢI TP.

HỒ CHÍ MINH
KHOA KINH TẾ VẬN TẢI

ĐỀ BÀI:

Q1. What is legacy system approach and the problems of information silos?

Q2. What is enterprise system approach? How to improve business processes

through Enterprise Systems?

Q3. What is ERP?

Q4. What is CRM?

Q5. What is SCM?

Q6. What are the challenges when implementing new enterprise systems?

Môn học: Hệ thống thông tin Logistics.

Giáo viên: ThS. Nguyễn Phú Hoà
Mã lớp HP: 010401604211
Nhóm thực hiện: Nhóm 2

TP Hồ Chí Minh, tháng 11, năm 2024

 MỤC LỤC

Q1. What is legacy system approach and the problems of information silos? 3
Legacy System Approach 3
Problems of Information Silos 3
Solutions 4
Q2 What is enterprise system approach? How to improve business processes
through Enterprise Systems? 6
Enterprise System Approach 6
Improve business processes 6
Q3. What is ERP? 8
3.1:Definition of enterprise resource planning (ERP) 8
3.2 What is an ERP system? 9
Q4 What is CRM? 10
4.1. What is a CRM system? 10
4.2. Types of CRM 10
4.3. CRM: What is the goal? 10
4.4. CRM Features and Benefits 10
4.5. Benefits and Risks 11
4.6. Customer Life Cycle (Figure 7-8) 11
4.7. CRM Application Components (Figure 7-9) 12
4.8. CRM System Selection 13
Q5 What is SCM? 13
5.1 Phases of Supply Chain Management 14
5.2 Types of Supply Chain Models 15
Q6 What are the challenges when implementing new enterprise systems? 16
- Collaborative Management 16
- Requirements Gaps 17
- Transition Problems 18
- Employee Resistance 18
- New Technology 20

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Q1. What is legacy system approach and the problems of information silos?

Legacy System Approach

A legacy system is an outdated computing system or application that still

performs necessary functions but may lack compatibility with more modern
systems. Organizations often continue to use these systems because replacing or
upgrading them is expensive, risky, or disruptive to ongoing operations.
However, legacy systems are frequently isolated from other software and may
not support new technological features like real-time data sharing, cloud-based
access, or advanced security measures.

Example: Imagine a logistics company using a 1990s system to manage its

inventory. This legacy system was developed before the rise of the internet and
does not integrate with the company’s newer web-based order tracking system.
As a result, inventory data isn’t automatically updated when an order is placed
online, leading to potential issues such as over-promising on stock availability.

Problems of Information Silos

1. Data Duplication and Inconsistency

Information silos occur when different departments or teams store their data
separately, often in systems that don’t communicate. This duplication means that
data updates in one department may not reflect in another, causing discrepancies.
○ Example: In a retail business, both the Sales and Accounting
departments maintain customer databases. If Sales updates a
customer’s address, but Accounting doesn’t receive this update,
invoices may still be sent to the old address. This inconsistency can
lead to delayed payments, miscommunication, and customer
dissatisfaction. Over time, these errors accumulate, resulting in
"data integrity issues," where there is no single, reliable source of
truth for customer information.
2. Disjointed Processes
Disjointed processes arise when silos cause workflows that should be connected to
remain isolated, which impacts efficiency and accuracy.
○ Example: In manufacturing, the Sales team needs to check with
Inventory to confirm stock before fulfilling a large order. Without a
shared system, Sales has to manually request this information from
Inventory. This delay may result in the company missing out on
sales if the inventory is insufficient, or worse, accepting orders that
can’t be fulfilled on time, damaging customer trust.
3. Limited Integrated Information
Information silos restrict the availability of comprehensive, real-time data across the

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 organization, which can prevent leaders from making informed decisions based on
the organization as a whole.
○ Example: In a healthcare facility, patient information is stored
separately by the billing, scheduling, and medical departments.
This siloed data structure can make it difficult for doctors to get a
complete picture of a patient’s health and treatment history,
potentially leading to misdiagnoses or redundant tests. For hospital
administrators, making decisions on resource allocation and patient
care becomes challenging when data isn’t readily available across
departments.
4. Isolated Decisions Leading to Inefficiencies
When decisions are made within silos, they may be optimal for one department but
suboptimal—or even detrimental—for the organization as a whole.
○ Example: A Marketing department launches an aggressive
campaign to boost sales, unaware that the Production team is
facing delays due to a supply chain issue. Without integrated
information, Marketing may drive demand beyond what
Production can meet, leading to long delays in order fulfillment.
This not only frustrates customers but also strains Production with
unrealistic demands, resulting in inefficiencies and higher costs.
5. Increased Costs
The fragmented data and lack of integration across systems lead to higher costs from
redundant data entry, manual reconciliation, and troubleshooting. Additionally,
maintaining multiple systems requires more IT resources and staff training.
○ Example: A bank uses separate systems for loan applications,
account management, and customer service. Each system requires
its own support, updates, and sometimes even unique staff training,
adding significant costs. Furthermore, employees may need to
manually input the same data into multiple systems to serve a
single customer, increasing labor costs and error rates.

Solutions
1. Implement Enterprise Resource Planning (ERP) Systems
ERP systems integrate data from multiple departments into a single,
centralized database, enabling seamless data sharing and reducing
duplication. ERP systems help eliminate silos by consolidating processes
like accounting, human resources, inventory, and customer relationship
management (CRM) into one platform.
● Example: A manufacturing company implementing an ERP system can
ensure that the Sales, Inventory, and Accounting departments all use the
same data source, providing real-time updates on stock levels and
financials.

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 2. Use Enterprise Application Integration (EAI)
EAI involves using middleware to connect existing systems so they can
exchange data. This approach allows companies to maintain their legacy
systems while integrating them through a common interface, thus
reducing the need for data duplication.
● Example: In healthcare, EAI can link separate patient records in different
departments (e.g., labs, billing, and medical history) to provide a
comprehensive view without requiring a complete overhaul of individual
systems.
3. Adopt a Centralized Data Warehouse
A data warehouse gathers data from various departments and systems into
a central repository. While each department continues to operate its own
system, the data warehouse serves as a single source of truth, enabling
better data consistency and supporting analytics.
● Example: A retail chain might use a data warehouse to combine sales
data from different stores, making it easier for executives to analyze
trends and make data-driven decisions.
4. Standardize Data and Business Processes
Standardizing data entry protocols, formats, and business processes
across departments ensures consistency. This involves defining data
standards and implementing clear guidelines for how departments should
handle data, making integration and data sharing smoother.
● Example: In a financial institution, standardizing customer data formats
across departments (e.g., customer name, address, and account
information) can reduce inconsistencies and make it easier to share data
between departments like Customer Service and Compliance.
5. Leverage Cloud-Based Collaboration Tools
Cloud-based tools can centralize data storage and provide real-time
access for all departments, promoting collaboration and reducing isolated
data systems. Cloud platforms also allow data to be updated instantly
across departments, reducing data fragmentation.
● Example: A marketing agency might use cloud-based project
management and document-sharing tools, allowing teams across different
locations to access shared resources, track project progress, and update
information in real time.

Q2 What is enterprise system approach? How to improve business

processes through Enterprise Systems?

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 Enterprise System Approach
Enterprise System Approach is a strategic approach to implementing
enterprise systems (ES) to improve business processes and achieve
operational excellence. These systems integrate various functions of an
organization, such as finance, human resources, supply chain, and
customer relationship management, into a single, unified platform.

Improve business processes

To improve business processes through enterprise systems like CRM,

ERP, and EAI, companies can harness technology to streamline
operations, eliminate redundancies, and enhance collaboration across
departments. Here’s how each system contributes:

1. Customer Relationship Management (CRM): CRM systems focus on

managing customer interactions, which improves business processes by
centralizing customer data, enabling faster response times, and fostering
customer-centric practices. With CRM, businesses can automate lead
tracking, segment customers, and personalize marketing, which enhances
customer satisfaction and drives loyalty. For instance, sales teams gain
real-time access to customer histories, allowing them to provide better
service and close deals more effectively.

2. Enterprise Resource Planning (ERP): ERP integrates various functions

like finance, HR, and supply chain into a unified system, supporting
process improvements by ensuring all departments have access to the
same, real-time data. This minimizes delays and errors caused by manual
data entry and allows for better decision-making. For example, an ERP
system can update inventory levels across all locations instantly,
improving order fulfillment and reducing stock-outs or overstock
situations.

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 3. Enterprise Application Integration (EAI): EAI connects disparate
systems and ensures seamless communication between them, which is
essential for modern, flexible business processes. By linking CRM, ERP,
and other systems, EAI eliminates information silos, enabling smooth
data flow across the organization. This integration allows for more
accurate and efficient processes—for example, when an order is placed,
data flows from the CRM to ERP for inventory checks and shipping
without manual input.

Q3. What is ERP?

3.1:Definition of enterprise resource planning (ERP)

Enterprise resource planning (ERP) is a set of applications called modules,
databases, and a set of inherent processes that unify business operations into a
single computing platform. most, consistently. It is business management
software that allows you to manage all core business activities across finance,
sales, logistics, human resources, manufacturing and more.

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3.2 What is an ERP system?
How can these solutions manage organizations day-to-day business activities,
such as accounting, finance, procurement, project management, supply chain,
and manufacturing.

Enterprise resource planning systems are complete, integrated platforms, either

on-premises or in the cloud, managing all aspects of a production-based or
distribution business. Furthermore, ERP systems support all aspects of financial
management, human resources, supply chain management, and manufacturing
with your core accounting function.

ERP systems will also provide transparency into your complete business
process by tracking all aspects of production, logistics, and financials. These
integrated systems act as a business's central hub for end-to-end workflow and
data, allowing a variety of departments to access.

ERP Systems and software support multiple functions across the enterprise,
mid-sized, or small businesses, including customizations for your industry

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Q4 What is CRM?

4.1. What is a CRM system?

● A customer relationship management (CRM) system is a suite of
applications, a database, and a set of inherent processes for managing all
the interactions with the customer, from lead generation to customer
service. Every contact and transaction with the customer is recorded in
the CRM database
● Data Management: Every interaction and transaction with the customer
is documented in the CRM database, enabling a holistic, "customer-
centric" approach.
4.2. Types of CRM
● Collaborative CRM: Supports interactions across departments.
● Operational CRM: Optimizes sales and service processes.
● Analytical CRM: Analyzes data to inform strategic decisions.

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4.3. CRM: What is the goal?

● The goal of CRM is to improve customer acquisition and retention by

delivering superior experiences, fostering customer loyalty, and boosting
sales and revenue.

4.4. CRM Features and Benefits

● CRM enhances lead generation, sales productivity, and customer

satisfaction. However, common challenges such as cost and integration
issues can be avoided by focusing on a customer-first approach.

4.5. Benefits and Risks

● Benefits: CRM systems aim to centralize customer data, creating a

unified customer experience across departments.
● Potential Risks: Although CRM systems streamline processes, they may
introduce unexpected challenges or dependencies. (Refer to the guide on
pages 316–317 for more details.)

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4.6. Customer Life Cycle (Figure 7-8)

● Phases:
○ Marketing: Sends targeted messages to attract potential customers.
○ Customer Acquisition: Converts prospects into customers through
sales processes.
○ Relationship Management: Engages customers with additional
offerings, enhancing customer value.
○ Loss/Churn: Some customers leave over time; a win-back process
targets high-value customers to regain their loyalty.
● Process Integration: Each phase contributes to maximizing customer
lifetime value, supported by CRM applications.

4.7. CRM Application Components (Figure 7-9)

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 ● Core Components:
○ Sales Applications: Manage sales activities and interactions.
○ Customer Support Applications: Provide post-sale support to
enhance customer satisfaction.
○ Relationship Management Applications: Foster long-term
customer relationships.
○ Solicitation and Lead Management Applications: Support initial
customer outreach and lead nurturing.
● Centralized Database: A single CRM database prevents data duplication
and inconsistencies, ensuring all departments have up-to-date information
on each customer.
● Enhanced Customer Service: Allows businesses to tailor services based
on customer value, prioritizing high-value customers with exceptional
support.

4.8. CRM System Selection

● Customization: CRM systems vary in features and scope. Organizations

must carefully assess their specific requirements and select a CRM
package that aligns with their needs.

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Q5 What is SCM?

Supply chain management (SCM) is the monitoring and optimization of the

production and distribution of a company’s products and services. It seeks to
improve and make more efficient all processes involved in turning raw
materials and components into final products and getting them to the ultimate
customer. Effective SCM can help streamline a company's activities to
eliminate waste, maximize customer value, and gain a competitive advantage in
the marketplace.

5.1 Phases of Supply Chain Management

Planning: This is the first step aimed at predicting future demand and adjusting
supply to match production and customer needs. Companies must calculate raw
materials, equipment capacity, and workforce demand

Sourcing: SCM relies on a close relationship with suppliers. This stage involves
working with suppliers to ensure that the materials meet production standards,
are reasonably priced, and have flexible supply capabilities in case of
emergencies. It is important that the supplier has a record of timely deliveries
and good quality.

Manufacturing: This stage uses machinery and labor to transform raw

materials into the final product. The production process can be divided into

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assembly, inspection, and packaging. Companies must control waste and
deviations to ensure efficiency.

Delivery: When the product is completed, the company must transport it to the
customer safely and on time. Effective SCM includes contingency plans in case
the main transportation method is disrupted.

Returns: This is the final stage, including handling returns and providing
customer service. This process, called reverse logistics, helps the company
address complaints and learn from defective products to improve.

5.2 Types of Supply Chain Models

● Continuous Flow Model: Ideal for stable, high-demand

environments. Focuses on efficiency and uninterrupted production.
● Fast Chain Model: Suitable for industries with rapidly changing
trends, like fashion. Prioritizes speed and quick market response.
● Efficient Chain Model: Best for competitive markets needing cost
efficiency. Emphasizes minimizing waste and maximizing scale.
● Agile Model: Works well for unpredictable demand or custom
products. Offers flexibility to quickly adapt to customer needs.
● Custom Model: A hybrid approach for products requiring
customization. Balances efficiency with tailored production options
● Flexible Model: Designed for seasonal or fluctuating demand.
Allows for scalable production adjustments as needed.

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Q6 What are the challenges when implementing new enterprise systems?

Implementing new enterprise systems, whether CRM, ERP, or EAI, is

challenging, difficult, expen sive, and risky.

If you work in an organization that is already using enterprise systems, you may
find yourself engaged in a significant upgrade effort. Whether from a new
implementation or an upgrade, expense and risks arise from five primary
factors

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 Five primary factors

- Collaborative Management

Unlike departmental systems in which a single department manager is in

charge, enterprise systems have no clear boss. There is no manager of
discharge. The discharge process is a collaborative effort among many
departments (and customers).

Example Enterprise Process and Information System

With no single manager, who resolves the disputes that inevitably arise? All of
these depart ments ultimately report to the CEO,but employees can’t go to the
CEO with a problem about.The CEO would throw them out of his or her office.
Instead, the organization needs to develop some sort of collaborative
management for resolving process issues.

Usually this means that the enterprise develops committees and steering groups
for providing enterprise process management. Although this can be an effective

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solution, and in fact may be the only solution, the work of such groups is both
slow and expensive

- Requirements Gaps

Few organizations today create their own enterprise systems from scratch.
Instead, they license an enterprise product that provides specific functions and
features and that includes inherent procedures. But such licensed products are
never a perfect fit. Almost always there are gaps between the organization’s
requirements and the application’s capabilities.

The first challenge is identifying the gaps. To specify a gap, an organization

must know both what it needs and what the new product does. However, it can
be very difficult for an organiza tion to determine what it needs; that difficulty
is one reason organizations choose to license rather than to build. Further, the
features and functions of complex products like CRM or ERP are not easy to
identify. Thus, gap identification is a major task when implementing
enterprise systems.

The second challenge is deciding what to do with gaps. Either the

organization needs to change the way it does things to adapt to the new
application, or the application must be altered to match what the organization
does. Either choice is problematic.Here,organizations fill gaps by choosing their
lesser regret.

- Transition Problems

Transitioning to a new enterprise system is also difficult. The organization

must somehow change from using isolated departmental systems to using the
new enterprise system, while continuing to run the business.

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Such transitions require careful planning and substantial training. Inevitably,
problems will develop. Knowing this will occur, senior management needs to
communicate the need for the change to the employees and then stand behind
the new system as the kinks are worked out. It is an incredibly stressful time for
all involved.

- Employee Resistance

People resist change. Change requires effort and engenders fear. Considerable
research and litera ture exist about the reasons for change resistance and how
organizations can deal with it. Here we will summarize the major principles

First, senior-level management needs to communicate the need for the change
to the organization and reiterate this, as necessary, throughout the transition
process.

Second, employees fear change because it threatens self-efficacy, which is a

person’s belief that he or she can be successful at his or her job. To enhance

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confidence, employees need to be trained and coached on the successful use of
the new system. Word-of-mouth is a very powerful factor, and in some cases
key users are trained ahead of time to create positive buzz about the new
system.

Third, in many ways, the primary benefits of a new ERP system are felt by the
accounting and finance departments and the senior management. Many of the
employees who are asked to change their activities to implement ERP will
not receive any direct benefit from it. Therefore, employees may need to be
given extra inducement to change to the new system. As one experi enced
change consultant said, “Nothing succeeds like praise or cash, especially
cash.” Straight out pay for change is bribery, but contests with cash prizes
among employees or groups can be very effective at inducing change.

Implementing new enterprise systems can solve many problems and bring great
efficiency and cost savings to an organization, but it is not for the faint of
heart

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 - New Technology

Emerging, new technology affects all information systems, but it affects

enterprise systems par -ticularly because of their importance and their
value.

Consider, for example, the cloud. Because of the cost savings of cloud-
based computing, organizations would like to move their enterprise
systems to the cloud. But legal, risk, and business policy factors may
make such a move infeasible. The organization may be required to keep
physical control over its data. When moving it to the cloud, the cloud
vendor controls the physical location of the data, and that location might
not even be in the same country as the organization.

Similar comments pertain to mobile technology. Employees want to use

mobile devices to access and even modify enterprise system data. But
mobile devices are just that—mobile. The enterprise system may be
exposed to considerable risk while outside the control of the organization.
And ERP data is a juicy target for crime . These factors don’t mean
organizations cannot use new technology with enterprise systems, but
they do add challenges

BẢNG PHÂN CÔNG CÔNG VIỆC VÀ ĐÁNH GIÁ MỨC ĐỘ THAM

GIA

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STT HỌ VÀ TÊN NHIỆM VỤ ĐÁNH GIÁ

1 Lại Nguyễn Ngân What is legacy Tốt

Tuyền system approach
and the problems of
information silos?

2 Lê Nguyễn Anh Bảo What is enterprise Tốt

system approach?
How to improve
business processes
through Enterprise
Systems?

3 Lâm Hoài Phong What is ERP? Tốt

4 Phan Tiến Đạt What is CRM? Tốt

5 Trương Hoàng Kiều What are the Tốt

challenges when
implementing new
enterprise systems?

6 Đoàn Nguyên Thu What is ERP? Tốt

Hường What are the
challenges when
implementing new
enterprise systems?

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7 Đoàn Thái Đức What is SCM? Tốt
Thịnh

8 Lê Thị Ngọc Thương What is CRM? Tốt

9 Bùi Quang Khải What is enterprise Tốt

system approach?
How to improve
business processes
through Enterprise
Systems?

10 Dương Đức Thắng What is SCM? Tốt

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