Module 11: Enterprise Systems

Learning Objectives
After studying this module, you should be able to:
• Explain how supply chain management is used within an organization.
• Describe customer relationship management systems.
• Describe knowledge management systems.
• Describe enterprise resource planning systems.
• Explain advantages and disadvantages of cloud-based enterprise systems.

Section 11-1: Supply Chain Management (SCM)

Supply Chain:
An integrated network consisting of an organization, its suppliers, transportation companies, and
brokers used to deliver goods and services to customers.
Supply Chain Management (SCM):
The process of working with suppliers and other partners in the supply chain to improve procedures for
delivering products and services. An SCM system coordinates the following functions:
• Procuring materials (in service organizations, this can include resources and information)
• Transforming materials into intermediate and finished products or services
• Distributing finished products or services to customers
Key Decisions in SCM:
• Location: Where should manufacturing facilities be placed?
• Inventory: When should an order be placed? How much should be ordered?
• Production: What should be produced? How much should be produced?
• Transportation: Which transportation systems will reduce costs and expedite delivery?
SCM Technologies:
• Electronic Data Interchange (EDI): Enables business partners to send and receive information
about business transactions. It expedites the delivery of accurate information in processes like
transaction acknowledgments, financial reporting, order status, purchasing, invoice and payment
processing, shipping and receiving, inventory management, and sales forecasting.
• Internet-Enabled SCM: Improves information sharing throughout the supply chain, reducing
costs for information transmission and improving customer service.
• E-Marketplaces: Third-party exchanges that provide a platform for buyers and sellers to interact
more efficiently online.
• Online Auctions: Aids in determining the price of goods and services when there is no set price in
the marketplace.
• Collaborative Planning, Forecasting, and Replenishment (CPFR): Used to coordinate supply
chain members through point-of-sale (POS) data sharing and joint planning.
• 3D Printing: Reduces manufacturing lead times, meets customer demand more quickly, allows
manufacturers to print on demand, eliminates the need to carry inventory, and brings new
designs to market quicker.
• 4D Printing: Uses special materials and sophisticated designs that are “programmed” to prompt
3D printed objects to change their shape and structure by external factors.
• Drones: Useful for warehousing, last-mile delivery, farming and agriculture, construction, and
global infrastructure.
• Internet of Things (IoT): Assists SCM by reducing loss of inventory, reducing fuel costs, ensuring
temperature stability during transit, managing warehouse inventory, improving customer service,
and gathering business intelligence.
• Radio Frequency Identification (RFID): Small electronic devices that provide unique
identification for cards or objects carrying the tag. Helps in tracking inventory and generating
business intelligence.
Global Supply Chain Management: Incorporates management processes around the globe that
integrate the network of suppliers, manufacturers, warehouses, and retail outlets to source high-quality
raw materials, convert them efficiently to finished goods, and ship them in the right quantities to the right
locations in a timely manner with the highest possible quality.
Benefits of Global Supply Chain Management:
• Expands sourcing opportunities.
• Enhances access to new customers in new markets.
• Extends growth opportunities.
Drawbacks of Global Supply Chain Management:
• Creates large-scale and challenging management issues.
• Involves high risks such as natural disasters, port closures, and political uprisings.
• Faces challenges for information collection because key elements of the supply chain network
are scattered worldwide.
• Faces legal issues related to business practices, privacy, and transborder data flow.

Section 11-2: Customer Relationship Management (CRM)

Customer Relationship Management (CRM):
Consists of the processes a company uses to track and organize its contacts with customers. The main
goal of a CRM system is to improve services offered to customers and use customer contact information
for targeted marketing.
Marketing Strategies in CRM:
• Focus on long-term relationships with customers instead of transactions.
• Identify customer segments, improve products and services to meet customers' needs, improve
customer retention, and identify the most profitable customers.
CRM System Activities:
• Sales automation
• Order processing
• Marketing automation
• Customer support
• Knowledge management
• Personalization technology
Personalization Technology:
• Satisfying customers' needs, building customer relationships, and increasing profits by designing
goods and services that meet customers' preferences better.
• Customization allows customers to modify the standard offering of a product.
Advantages of Personalization:
• Increases customer satisfaction and loyalty.
• Provides better insights into customer behaviour and preferences.
Challenges of Personalization:
• Requires gathering a lot of information about customers' preferences and shopping patterns.
• May affect customers' sense of privacy.

Section 11-3: Knowledge Management (KM)

Knowledge Management (KM):
A technique used to improve CRM systems (and many other systems) by identifying, storing, and
disseminating "know-how"—facts about how to perform tasks. KM draws on concepts of organizational
learning, organizational culture, and best practices.
Types of Knowledge:
• Explicit Knowledge: Formal, written procedures.
• Tacit Knowledge: Personal or informal knowledge.
Benefits of Knowledge Management:
• Promotes innovation by encouraging the free exchange of ideas.
• Improves customer service by reducing response time.
 • Increases revenue by reducing the delivery time for products and services.
• Improves employee retention rates by rewarding employees for their knowledge.
Chief Knowledge Officer (CKO):
An executive position responsible for overseeing knowledge management within an organization.

Section 11-4: Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP):
An integrated system that collects and processes data and manages and coordinates resources,
information, and functions throughout an organization.
Components of ERP:
• Unified database
• Inventory management
• Manufacturing
• Human resources
• CRM
• Purchasing
• Accounting
• Vendor integration
• E-commerce
• Sales
Benefits of ERP:
• Increased availability and timeliness of integrated information.
• Increased data accuracy and improved response time.
• Improved customer satisfaction.
• Improved employee satisfaction.
• Reductions in inventory costs.
• Reductions in labour costs.
• Reductions in order-to-fulfilment time.
• Improved reliability of information.
• Improved supplier relationships.
Drawbacks of ERP:
• High costs.
• Difficulties in installation.
• Need for extensive training.
• Compatibility problems with legacy systems.

Section 11-5: Cloud-Based Enterprise Systems

Cloud-Based Enterprise Systems: Organizations can choose between on-premises and cloud versions
of enterprise systems like SCM, CRM, or ERP.
Advantages of Cloud-Based Enterprise Systems:
• Cost savings.
• Increased storage.
• High automation.
• Flexibility and scale.
• Increased mobility.
• Allows IT to shift focus.
• Improved security.
Disadvantages of Cloud-Based Enterprise Systems:
• Lack of customization.
• Possible downtime.
• Vendor lock-in.
Key Terms
• 3D printing
• 4D printing
• Collaborative filtering (CF)
• Collaborative planning, forecasting, and replenishment (CPFR)
• Enterprise system
• Global supply chain management
• Knowledge management (KM)
• Online auction
• Personalization
• Customer relationship management (CRM)
• QR (quick response) code
• Customization
• Electronic data interchange (EDI)
• E-marketplace
• Radio frequency identification (RFID)
• Reverse auctions
• Supply chain
• Enterprise resource planning (ERP)
• Supply chain management (SCM)

Reviews and Discussions

1. Define supply chain management.
2. What are four examples of SCM technologies?
3. What are two applications of 3D and 4D printing?
4. What are two applications of RFID?
5. What are three applications of CRM?
6. Define knowledge management and knowledge management systems.
7. What are three advantages of enterprise resource planning systems?
8. What are two advantages and two disadvantages of cloud-based enterprise systems?
Textual Representation of a Mind Map
Central Node: Enterprise Systems

Branch 1: Supply Chain Management (SCM)

• Sub-Branch 1.1: Definition
• Integrated network of suppliers, manufacturers, distributors, and customers.
• Focuses on delivering goods and services efficiently.
• Sub-Branch 1.2: Key Functions
• Procuring materials.
• Transforming materials into products or services.
• Distributing finished products to customers.
• Sub-Branch 1.3: Technologies Used in SCM
• Electronic Data Interchange (EDI): Enables business partners to exchange information.
• Internet-Enabled SCM: Improves communication and reduces costs.
• E-Marketplaces: Third-party platforms for efficient trading.
• Online Auctions: Facilitates price determination.
• Collaborative Planning, Forecasting, and Replenishment (CPFR): Coordinates supply
chain members.
• 3D/4D Printing: Enhances manufacturing efficiency and customization.
• Drones: Assist in inventory management and last-mile delivery.
• Internet of Things (IoT): Provides real-time data for better decision-making.
• Radio Frequency Identification (RFID): Tracks inventory and improves logistics.
• Sub-Branch 1.4: Global SCM
• Benefits: Expands sourcing opportunities, enhances access to new markets.
• Drawbacks: High risks (e.g., natural disasters, political instability), legal challenges.

Branch 2: Customer Relationship Management (CRM)

• Sub-Branch 2.1: Definition
• Processes to track and organize customer interactions.
• Aims to improve customer service and targeted marketing.
• Sub-Branch 2.2: Marketing Strategies
• Long-term relationships instead of transactions.
• Identifying customer segments, improving retention, targeting profitable customers.
• Sub-Branch 2.3: Activities in CRM
• Sales automation.
• Order processing.
• Marketing automation.
• Customer support.
• Knowledge management.
• Personalization technology.
• Sub-Branch 2.4: Personalization vs. Customization
• Personalization: Designing goods/services based on customer preferences.
• Customization: Allowing customers to modify standard offerings.
• Sub-Branch 2.5: Tools for CRM
• Salesforce automation.
• eCRM/Web-based CRM.
• Survey management.
• Automated customer service.

Branch 3: Knowledge Management (KM)

• Sub-Branch 3.1: Definition
• Identifying, storing, and disseminating "know-how" (explicit and tacit knowledge).
• Sub-Branch 3.2: Goals
 • Promote innovation.
• Improve customer and employee satisfaction.
• Increase revenue by reducing delivery times.
• Sub-Branch 3.3: Implementation
• Encouraging open communication via emails, wikis, video conferencing.
• Creating knowledge repositories for easy access.
• Sub-Branch 3.4: Challenges
• Employees may resist sharing knowledge due to perceived loss of value.
• Need for reward systems to motivate knowledge sharing.
• Sub-Branch 3.5: Role of Chief Knowledge Officer (CKO)
• Oversees KM within the organization.
• Ensures proper collection, storage, and dissemination of knowledge.

Branch 4: Enterprise Resource Planning (ERP)

• Sub-Branch 4.1: Definition
• Integrated system that collects, processes, and manages resources, information, and
functions across an organization.
• Sub-Branch 4.2: Components
• Unified database.
• Inventory management.
• Manufacturing.
• Human resources.
• CRM.
• Purchasing.
• Accounting.
• Vendor integration.
• E-commerce.
• Sales.
• Sub-Branch 4.3: Benefits
• Increased availability of integrated information.
• Improved data accuracy and response time.
• Enhanced customer and employee satisfaction.
• Reductions in inventory and labour costs.
• Sub-Branch 4.4: Drawbacks
• High costs.
• Difficult installation and training requirements.
• Compatibility issues with legacy systems.

Branch 5: Cloud-Based Enterprise Systems

• Sub-Branch 5.1: Advantages
• Cost savings.
• Increased storage capacity.
• High automation.
• Flexibility and scalability.
• Increased mobility.
• Sub-Branch 5.2: Disadvantages
• Lack of customization.
• Possible downtime.
• Vendor lock-in.
INF1505: Module 11

Back:
Front: SCM is the process of working with suppliers and
What is supply chain management (SCM)? other partners in the supply chain to improve
procedures for delivering products and services.

Back:
An SCM system coordinates the following
functions:
Front:
• Procuring materials
What are the key functions coordinated by an
• Transforming materials into intermediate
SCM system?
and finished products or services
• Distributing finished products or services
to customers
Back:
1. Electronic Data Interchange (EDI)
Front: 2. Internet-enabled SCM
Name four examples of SCM technologies. 3. E-marketplaces
4. Collaborative Planning, Forecasting, and
Replenishment (CPFR)
• Customization allows customers to
modify the standard offering of a product
Front:
(e.g., selecting a different homepage).
What is the difference between customization
• Personalization designs goods and
and personalization?
services to meet customers' preferences
better, often using data analytics.
• RFID (Radio Frequency Identification) is a
small electronic device that provides
Front: unique identification for objects.
What is RFID, and what are two applications of • Applications:
RFID? 1. Inventory tracking in warehouses
2. Generating business intelligence in
retail (e.g., Coca-Cola's dispensers)
• 3D Printing is a process for making
physical objects from digital models.
Front: • Benefits to SCM:
What is 3D printing, and how does it benefit SCM? • Reduces manufacturing lead times.
• Enables on-demand production,
eliminating inventory needs.
• 4D Printing uses special materials to
create objects that can change shape or
Front:
structure based on external factors like
What is 4D printing, and give one example of its
temperature or light.
application.
• Example: Self-deploying structures for
aerospace (e.g., air ventilation systems).
• Collaborative Filtering identifies groups
of people based on common interests and
Front:
recommends products/services based on
What is collaborative filtering (CF), and where is it
group behaviour.
commonly used?
• Commonly used on platforms like
Amazon, Netflix, and YouTube.
 Back:
Front: CRM consists of processes a company uses to
Define customer relationship management track and organize its contacts with customers.
(CRM). Its goal is to improve services and use customer
contact information for targeted marketing.

1. Sales automation
Front:
2. Order processing
List three activities included in a CRM system.
3. Marketing automation

Back:
KM is a technique used to identify, store, and
Front: disseminate "know-how" (facts about performing
What is knowledge management (KM)? tasks). It aims to convert tacit knowledge into
explicit knowledge and promote knowledge
sharing.

1. Explicit Knowledge: Formal, written

Front: procedures.
What are two types of knowledge in KM? 2. Tacit Knowledge: Personal or informal
knowledge gained through experience.

Back:
Front: The CKO oversees knowledge management within
What is the role of a Chief Knowledge Officer an organization, ensuring key knowledge
(CKO)? resources are collected, stored, and
disseminated among decision-makers.

Back:
ERP is an integrated system that collects and
Front:
processes data, managing and coordinating
Define enterprise resource planning (ERP).
resources, information, and functions throughout
an organization.

1. Increased availability and timeliness of

integrated information.
Front:
2. Improved data accuracy and response
List three advantages of ERP systems.
time.
3. Reductions in inventory and labour costs.

Front:
1. Lack of customization.
What are two disadvantages of cloud-based
2. Possible downtime due to service outages.
enterprise systems?

Back:
GSCM integrates the network of suppliers,
Front:
manufacturers, warehouses, and retail outlets
What is global supply chain management
globally to source high-quality raw materials,
(GSCM)?
convert them efficiently, and ship them to the
right locations.
 Front: 1. Expands sourcing opportunities.
What are two benefits of global supply chain 2. Enhances access to new customers in new
management? markets.

• IoT connects devices to communicate and

Front: share data.
What is the Internet of Things (IoT), and how does • In SCM, IoT assists by reducing inventory
it assist SCM? loss, ensuring temperature stability during
transit, and improving delivery efficiency.
Back:
QR codes store large amounts of data (e.g., URLs,
Front: geographic coordinates) and allow businesses to
What is the purpose of QR codes in marketing? provide customers with interactive experiences,
such as accessing promotions or nutritional facts
via smartphones.
Test: Enterprise Systems

Section 1: Multiple-Choice Questions (20 Questions)

1. What is the primary goal of supply chain management (SCM)?
a) To reduce employee turnover
b) To create the most efficient link between suppliers and consumers
c) To focus solely on manufacturing processes
d) To eliminate competition
2. Which technology enables business partners to send and receive information about
transactions?
a) RFID
b) EDI
c) QR codes
d) IoT
3. Which of the following is NOT a function coordinated by an SCM system?
a) Procuring materials
b) Transforming materials into products
c) Advertising finished products
d) Distributing finished products
4. What does CRM stand for?
a) Customer Relationship Management
b) Cloud Resource Management
c) Collaborative Retail Management
d) Corporate Risk Mitigation
5. Which of the following is NOT an activity included in a CRM system?
a) Sales automation
b) Production operations
c) Order processing
d) Marketing automation
6. What is the main difference between customization and personalization?
a) Customization allows customers to modify standard offerings, while personalization designs goods
based on preferences.
b) Customization focuses on cost reduction, while personalization focuses on quality improvement.
c) Customization uses AI, while personalization uses manual processes.
d) There is no difference; they are interchangeable terms.
7. What is 3D printing primarily used for in SCM?
a) Reducing manufacturing lead times
b) Increasing inventory costs
c) Decreasing customer satisfaction
d) Slowing down production
8. Which of the following is NOT a benefit of ERP systems?
a) Increased availability of integrated information
b) Reductions in inventory costs
c) Increased labour costs
d) Improved supplier relationships
9. What is collaborative filtering (CF) used for?
a) Identifying groups of people based on common interests
b) Managing financial accounts
c) Tracking inventory levels
d) Calculating payroll taxes
10. Which of the following is NOT an application of RFID?
a) Inventory tracking
b) Payment systems
c) Weather forecasting
d) Access control
11. What is the role of a Chief Knowledge Officer (CKO)?
a) Overseeing IT infrastructure
b) Managing financial audits
c) Overseeing knowledge management within an organization
d) Designing marketing campaigns
12. Which of the following is NOT a disadvantage of cloud-based enterprise systems?
a) Cost savings
b) Lack of customization
c) Possible downtime
d) Vendor lock-in
13. What is the primary goal of global supply chain management (GSCM)?
a) To focus on local markets only
b) To integrate global networks of suppliers, manufacturers, and retailers
c) To eliminate all international trade barriers
d) To ignore sustainability practices
14. Which of the following is NOT a component of an ERP system?
a) Unified database
b) Social media management
c) Inventory management
d) Accounting
15. What is 4D printing primarily used for?
a) Creating static objects
b) Producing objects that can change shape or structure
c) Printing traditional documents
d) Generating QR codes
16. Which of the following is NOT a benefit of IoT in SCM?
a) Reducing loss of inventory
b) Ensuring temperature stability during transit
c) Increasing manual data entry
d) Managing warehouse inventory
17. What is the purpose of reverse auctions in SCM?
a) To allow multiple buyers to bid on one product
b) To invite sellers to submit bids for products and services
c) To increase prices over time
d) To eliminate all suppliers
18. Which of the following is NOT a feature of Salesforce's CRM applications?
a) Sales analytics
b) Service and support
c) Manufacturing process optimization
d) Marketing automation
19. What is the main advantage of using drones in SCM?
a) To increase traffic congestion
b) To deliver products quickly and efficiently
c) To replace all human workers
d) To store large amounts of data
20. What is the main drawback of using collaborative filtering (CF)?
a) It requires large samples of users and content to work effectively.
b) It reduces customer satisfaction.
c) It increases inventory costs.
d) It eliminates all competition.

Section 2: True or False Questions (20 Questions)

1. Supply chain management (SCM) focuses only on manufacturing organizations.
2. Electronic Data Interchange (EDI) is used to transmit business transaction information electronically.
3. A CRM system includes activities such as sales automation and order processing.
4. Personalization involves modifying the standard offering of a product.
5. 3D printing reduces manufacturing lead times and improves efficiency.
6. ERP systems do not require extensive training for employees.
7. Knowledge management (KM) focuses solely on explicit knowledge.
8. RFID tags can be read from a distance without physical contact.
9. Cloud-based enterprise systems offer increased storage capacity compared to on-premises systems.
10. Global supply chain management (GSCM) expands sourcing opportunities but also increases risks.
11. Reverse auctions involve one buyer and many sellers competing for the lowest price.
12. IoT devices cannot communicate with each other in real-time.
13. Drones are commonly used for last-mile delivery in urban areas.
14. QR codes have a smaller storage capacity than traditional barcodes.
15. ERP systems use a unified database to store data for various functions.
16. Customization allows companies to design goods based on customer preferences.
17. Collaborative filtering (CF) identifies groups of people based on common interests.
18. Green SCM initiatives aim to reduce environmental impact and promote sustainability.
19. RFID tags are immune to technical problems and security issues.
20. Cloud-based systems eliminate all compatibility issues with legacy systems.

Section 3: Fill in the Missing Word Questions (20 Questions)

1. A supply chain is an integrated network consisting of an organization, its ____________, transportation
companies, and brokers.
2. Supply chain management (SCM) improves procedures for delivering ____________ and services.
3. ____________ is the process of working with suppliers and other partners in the supply chain.
4. An ERP system collects and processes data and manages resources, ____________, and functions
throughout an organization.
5. ____________ allows customers to modify the standard offering of a product.
6. 3D printing creates physical objects from ____________ digital models.
7. 4D printing uses special materials that can change shape based on external factors like ____________.
8. ____________ tags are small electronic devices that provide unique identification for objects.
9. IoT devices improve the ____________ of products in transit and in warehouses.
10. A ____________ auction invites sellers to submit bids for products and services.
11. Knowledge management (KM) converts ____________ knowledge into explicit knowledge.
12. CRM systems help businesses improve ____________ and use customer contact information for
targeted marketing.
13. ____________ is the process of satisfying customers' needs by designing goods and services that
meet their preferences better.
14. ERP systems often face challenges such as high costs and ____________ with legacy systems.
15. Cloud-based enterprise systems offer advantages such as ____________ storage and increased
mobility.
16. QR codes consist of black modules arranged in a ____________ pattern on a white background.
17. ____________ plays a major role in increasing the efficiency and effectiveness of supply chain
management.
18. A ____________ officer oversees knowledge management within an organization.
19. ____________ is a technique used to identify groups of people based on common interests.
20. ERP systems coordinate functions such as ____________, manufacturing, and accounting.
Answers
Multiple-Choice Answers
1. b
2. b
3. c
4. a
5. b
6. a
7. a
8. c
9. a
10. c
11. c
12. a
13. b
14. b
15. b
16. c
17. b
18. c
19. b
20. a
True or False Answers
1. False
2. True
3. True
4. False
5. True
6. False
7. False
8. True
9. True
10. True
11. True
12. False
13. True
14. False
15. True
16. False
17. True
18. True
19. False
20. False
Fill in the Missing Word Answers
1. suppliers
2. products
3. Supply chain management
4. information
5. Customization
6. three-dimensional
7. temperature
8. RFID
9. visibility
10. reverse
11. tacit
12. customer service
13. Personalization
14. compatibility problems
15. increased
16. square
17. RFID
18. Chief Knowledge
19. Collaborative filtering
20. inventory management