MIS (MODULE-2)

STRATEGIC AND OPERATIONAL SUPPORT SYSTEM:

what is strategic enterprise system
 A strategic enterprise system is a comprehensive suite of integrated
software applications that helps organizations manage their
operations and achieve strategic goals. It encompasses various
modules like planning, performance management, and business
intelligence, enabling organizations to monitor performance, plan for
the future, and improve their overall business operations.

Key Features and Benefits:

 Integration:
Strategic enterprise systems integrate various departments and processes
into a single system, facilitating data sharing and collaboration.
 Planning:
They provide tools for strategic planning, budgeting, and forecasting,
helping organizations align their plans with their overall objectives.
 Performance Management:
These systems allow for real-time monitoring of performance metrics,
identifying areas for improvement and enabling data-driven decision-
making.
 Business Intelligence:
They offer advanced analytics and reporting capabilities, providing
insights into business trends and patterns.
 Flexibility:
Strategic enterprise systems can be adapted to meet the specific needs of
different organizations and industries, offering a flexible and scalable
solution.

1.ERP(Enterprise Resource Planning) :

Introduction to ERP
  ERP stands for Enterprise Resource Planning. ERP systems
are the kind of software tools that are used to manage the data of
an enterprise. It helps different organizations deal with different
departments of an enterprise. Different departments like
receiving, inventory management, customer order management,
production planning, shipping, accounting, human resource
management, and other business functions
 What is ERP?
 Enterprise Resource Planning (ERP) is a software system that is
used by organizations to manage and integrate the important parts
of the businesses. It is the practice of consolidating an enterprise’s
planning, manufacturing, sales, and marketing efforts into one
management system.
 It can integrate all the processes that are needed to run a company.
 It helps to improve efficiency, better reporting, and enhanced data
security.
 These systems can be customized according to the specific needs
of the different industries.
 ERP systems are crucial for large organizations.

Before ERP
 Before an ERP system, there were different databases of different
departments which they managed on their own. The employees of
one department does not know anything about the other
department.

After ERP
 After the ERP system, databases of different departments are
managed by one system called the ERP system. It keeps track of all
the databases within the system. In this scenario, employees of one
department have information regarding the other departments.

Features of ERP
Below are the core features of ERP systems:
1. Financial Management: ERP systems are used to manage financial
transactions, produce financial statements such as balance sheets,
 manage companies’ tangible and intangible assets, and track money
owned by and to the organization.
2. Supply Chain Management: ERP systems help to monitor the stock
levels, track inventory movement, manage the movement of goods,
and automate the purchasing process.
3. Human Resources: In an organization, ERP systems help to manage
employee records, automate payroll processing, and manage
recruitment and on boarding.
4. Customer Relationship Management (CRM): ERP systems help in
sales automation, automate marketing campaigns, track customer
interactions, and improve customer satisfaction.
5. Project Management: ERP systems support project planning and
scheduling, and monitor project time and expenses for accurate cost
estimation.
6. Manufacturing: ERP systems help in production planning, list all the
raw materials required for product manufacture, and monitor the
production process

Why ERP is Important?

ERP systems are critical for modern businesses and organizations. Below
are some of the points highlighting why ERP systems are important:
1. Reduces Manual Work: ERP systems help to reduce manual work,
thus freeing up employees for more strategic activities.
2. Improved Efficiency: These systems help to improve efficiency by
integrating different business processes and ensuring smooth
operations.
3. Up-to-Date Information: ERP systems provide real-time data enabling
timely and improved decisions.
4. Fosters Collaborations: These systems ensure that all the teams
work on the same data thus reducing misunderstandings.
5. Reduces Operational Costs: They help in cost saving by streamlining
the processes and improving productivity.
6. Integrates CRM: ERP systems help to manage customer interactions
and improve satisfaction.
7. Tracks KPIs: ERP systems allow for better performance management
by tracking KPIs and other metrics.

How does ERP Work?

ERP systems typically work through a centralized database by integrating
various business processes and functions into a unified system.
1. Centralized Database
An ERP system stores all the data in a central database and ensures that
all the users have access to the most current data. This helping different
departments to access and share information seamlessly, thus helps them
to make informed decisions.
2. Modular Structure
ERP systems are composed of interconnected modules, focussing on
specific business functions allowing data to flow between them.
3. Business Process Integration
ERP systems automate workflows across various departments and
support end-to-end business processes, ensuring all the steps are
streamlined.
4. User Interface and Access
In ERP systems users have specific roles and permissions according to
which they are granted access to relevant modules. They are also
provided with dashboards and reporting tools to monitor KPIs.
5. Customization
ERP systems are customized according to the specific needs of the
organization. It also allows for adjustments when the business grows
ensuring ERP systems remain aligned with the business goals.
6. Data Collection and Analytics
ERP systems capture data from various sources and use built-in analytics
tools to process data and generate actionable insights helping businesses
to make strategic decisions.
7. Compliance and Security
ERP systems ensure that all business processes comply with relevant
regulations and standards and implement robust security measures to
protect sensitive data.
8. Implementation and Training
This involves planning, configuring, testing, and deploying the ERP
systems. It also involves conducting training programs to ensure all users
are proficient in using ERP systems.

Benefits of ERPs
Here are the key benefits of implementing the ERP systems:
1. Improved Efficiency: ERP systems reduce the manual effort and risk
of errors by automating repetitive processes.
2. Integrated Business Processes: ERP systems streamline operations
by integrating various business processes and enable seamless data
flow across the departments.
3. Reduced Redundancy: ERP systems eliminate duplicate data entries
and improve data integrity.
4. Timely Data Access: ERP systems provide real-time data access,
thus helping in making timely and informed decisions.
5. Reduced IT Costs: ERP systems consolidate IT systems, thus
lowering the infrastructure and maintenance costs.
6. Maintain Compliance: It help to maintain compliance with industry
standards.
7. Enhances Customer Service: ERP systems helps to improve service
delivery by providing quick access to customer information and data.

2. SCM(Supply Chain Management):

What Is Supply Chain Management (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.

KEY POINTS

 Supply chain management (SCM) is the centralized

management of the flow of goods and services to and from a
company and includes all of the processes involved in
transforming raw materials and components into final
products.
 With SCM, companies can cut excess costs and deliver
products to the consumer faster and more efficiently.
 Good SCM can help prevent expensive product recalls and
lawsuits as well as bad publicity.
 The five most critical phases of SCM are planning, sourcing,
production, distribution, and returns.
 A supply chain manager is tasked with controlling and
reducing costs and avoiding supply shortages.
 How Supply Chain Management (SCM)
Works

 SCM represents an ongoing effort by companies to make

their supply chains as efficient and economical as possible.
 Typically, SCM attempts to centrally control or link the production,
shipment, and distribution of a product . By managing the supply
chain, companies can cut excess costs and needless steps and
deliver products to the consumer faster. This is done by keeping
tighter control of internal inventories, internal production, distribution,
sales, and the inventories of company vendors.

5 Phases of Supply Chain Management

(SCM)
1. Planning

To get the best results from SCM, the process usually begins with planning
to match supply with customer and manufacturing demands. Companies
must try to predict what their future needs will be and act accordingly. That
means taking into account the raw materials or components needed during
each stage of manufacturing, equipment capacity and limitations, and
staffing needs.

2. Sourcing

Effective SCM processes rely very heavily on strong relationships with

suppliers. Sourcing entails working with vendors to supply the materials
needed throughout the manufacturing process. Different industries will
have different sourcing requirements. In general, SCM sourcing involves
ensuring that:

 The raw materials or components meet the manufacturing

specifications needed for the production of the goods.
 The prices paid to the vendor are in line with market expectations.
 The vendor has the flexibility to deliver emergency materials due to
unforeseen events.
 The vendor has a proven record of delivering goods on time and of
good quality.
 3. Manufacturing
 Using machinery and labor to transform the raw materials or
components the company has received from its suppliers into
 something new is the heart of the supply chain management
process. This final product is the ultimate goal of the manufacturing
process, though it is not the final stage of SCM.
 The manufacturing process may be further divided into sub-tasks
such as assembly, testing, inspection, and packaging. During the
manufacturing process, companies must be mindful of waste or
other factors that may cause deviations from their original plans. For
example, if a company is using more raw materials than planned and
sourced for due to inadequate employee training, it must rectify the
issue or revisit the earlier stages in SCM.
 4. Delivery
 Once products are made and sales are finalized, a company must
get those products into the hands of its customers. A company with
effective SCM will have robust logistic capabilities and delivery
channels to ensure timely, safe, and inexpensive delivery of its
products.
 5. Returns
 The SCM process concludes with support for the product and
customer returns.
Returns can also be a valuable form of feedback, helping the
company to identify defective or poorly designed products and to
make whatever changes are necessary. Without addressing the
underlying cause of a customer return, the SCM process will have
failed, and returns will likely persist into the future.

Why Is Supply Chain Management

Important?
Supply chain management is important because it can help achieve
several business objectives. For instance, controlling manufacturing
processes can improve product quality, reducing the risk of recalls and
lawsuits while helping to build a strong consumer brand. At the same time,
control over shipping procedures can improve customer service by
avoiding costly shortages or periods of inventory oversupply. Overall,
supply chain management provides multiple opportunities for companies to
improve their profit margins and is especially important for businesses with
large and international operations.

3. CRM (Customer Relationship Management)

What is Customer Relationship Management
(CRM)?
 Customer Relationship Management (CRM) is a strategic approach
that businesses use to manage interactions and relationships with
current and potential customers. It involves utilizing technology to
organize, automate, and synchronize sales, marketing, customer
service, and technical support. The primary focus of CRM is to
enhance customer satisfaction and loyalty by understanding their
needs and preferences better.

 Customer Relationship Management (CRM) is all about finding

the customers. Collecting their information along the way and
using that information to enhance their experience and foster
long term relationships. Basically, it is a process by which
relationship with customers are built and maintained.
 CRM involves E-Mail marketing and integration, documents, sales
call, relationship management etc

Functions of CRM
 Acquiring and storing information.
 Increase sales.
 Improve quality.
 Customer Management.
 Proper communication network.

Why is a CRM System Important for Your

Business?
A CRM system is crucial for businesses because it centralizes customer
information, streamlines processes, and enhances customer relationships.
The importance of a CRM system can be broken down into several key
benefits:
 Centralized Customer Data: A CRM system consolidates customer
information into a single database, making it easier to access and
manage contact details, purchase history, and interaction records. This
centralization ensures that everyone in the organization has up-to-date
information, reducing errors and improving communication.
 Improved Customer Relationships: By providing tools to track
customer interactions and preferences, CRM systems help businesses
build stronger relationships. Sales and support teams can offer
 personalized service, address customer needs more effectively, and
foster loyalty.
 Enhanced Sales Performance: CRM systems support sales teams by
managing leads, tracking sales pipelines, and automating routine
tasks. These features help teams focus on high-value activities, follow
up on leads more effectively, and close deals faster.
 Better Data Analysis: CRM systems offer analytical tools for tracking
performance metrics, customer trends, and campaign results.
Businesses can use these insights to make informed decisions,
optimize strategies, and identify growth opportunities.
 Increased Efficiency: Automating tasks such as data entry, follow-
ups, and reporting increases operational efficiency. CRM systems
streamline workflows, reduce manual work, and allow employees to
focus on more strategic activities.
 Scalability: As businesses grow, CRM systems can scale to meet
increasing demands. They support expanding teams, larger customer
bases, and more complex processes, ensuring that businesses can
manage growth effectively.
.
Role of CRM
 It sets bold aspirations i.e, a clear vision for the development of the
relationship.
 It sets and executes the client relationship strategy.
 It creates, manages and leads the team.

Advantages of CRM
 Customers are motivated to return again and again as they receive
good customer service and continue to do business.
 It enables an organization to create detailed profiles such as customer
likes/dislikes.
 It decreases the cost.
 It highlights the poor operational processes.
 It increased accessed to a source of market and competitor
information.

4. SRM(Supplier Relationship
Management)
What is SRM
 In a strategic enterprise system, SRM stands for Supplier
Relationship Management. It's a strategic framework that helps
 businesses manage and optimize their interactions with
suppliers to foster long-term partnerships and maximize value.
 Supplier relationship management (SRM) is a systematic
approach to evaluating and partnering with vendors that
supply goods, materials and services to an organization,
determining each supplier's contribution to success, and
developing strategies to improve their performance.

Key points

 Supplier relationship management (SRM) is an on going process

that’s valuable for some businesses and vital for others — especially
those trying to maintain a competitive edge.

 Good SRM requires analysis of thoughtfully collected quantitative data, as

well as more qualitative vendor relationship–building skills.
 SRM can help businesses get better prices, more reliable deliveries and
more useful and innovative products to suit their needs.
 While some SRM best practices take a lot of work, others are simple and
intuitive, such as being nice to your suppliers, communicating clearly,
understanding their needs and paying them on time.
 In other words, SRM involves thinking about what you prefer from your own
customers and delivering the same thing to your vendors.

The Supplier Relationship Management

Process
There are three steps to supplier relationship management. Let’s
break down that process.
1. Segment the Supply Base
The first step in the supplier relationship management
process is to take a look at your suppliers and determine
the appropriate categories to score them on based on your
goals. These can be unique to your business or industry,
but factors like quantity, quality, location, and price are
commonly used. Being able to score each supplier based
on the factors that affect your success gives you visibility
into the overall value of each supplier relationship. You
have to figure out which supplier relationships are most
important to business success.

2. Create and Maintain a Strategy

The person in charge of supplier relationship management
must determine a strategy for each supplier so that the
relationship remains efficient. Not every segment or every
supplier relation should be managed the same way. What
you invest in one may be different than what you invest in
another. Those in charge of supplier relationship
management must establish a strategy that generates a
beneficial relationship for both parties.

3. Run and Maintain the Strategy

Both the performance of the supplier relationship and the
strategy around maintaining that supplier relationship must
be continuously evaluated so any changes can be made in
real time. This requires establishing KPIs and specific
metrics of success to assess performance against.
The Benefits of Supplier Relationship
Management
There are many benefits to supplier relationship
management, all of which contribute to a healthier
business.

 Reduced costs: Creating and maintaining an

effective strategy for each supplier relationship that is
valuable for both parties inevitably leads to cost
savings, as well as a reduction in delays, quality
issues, availability challenges, etc.
 Less price volatility: When you have a good,
healthy relationship with a supplier, you can work
together to minimize commodity prices, exchanging
fixed prices for a longer contract term, for example.
Reducing price fluctuations establishes better trust
with consumers.
 Increased efficiency: As with any kind of
relationship, having a good relationship with suppliers
leads to better communication, understanding and
ability to work together to achieve the best outcome
for both.
 Outsourcing: When you trust a supplier, you can
transfer to them time-consuming activities like
managing inventory levels or certain aspects of
customer service.
 Supplier consolidation: When you and a supplier
work well together, you better understand what the
other needs to operate efficiently and can work to
accommodate. This streamlines supply chain
processes and can sometimes lead to reducing the
number of suppliers you need to work with – resulting
in increased buying power.
  Ongoing improvements: Teamwork between both
parties of a supplier relationship allows for feedback
to continuously optimize factors that make both of
you happier and more profitable.

Why SRM is important in Business

 Supplier Relationship Management (SRM) is important in
business because it helps companies build and maintain strong
relationships with their suppliers, leading to benefits like cost reduction,
improved quality, increased efficiency, and enhanced risk management .
 By fostering collaboration and open communication, SRM enables
businesses to leverage supplier expertise, innovate faster, and
ultimately achieve greater success.