Unit 2 ERP and related Technology · (Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)...

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Business Intelligence (BI)Business Intelligence (BI)Business Intelligence (BI)Business Intelligence (BI)

•• IntroductionIntroduction–– Business Intelligence is the intelligence of Business Intelligence is the intelligence of

businessbusiness

–– It is a new field of investigation of the application It is a new field of investigation of the application

of human cognitive faculties (human like of human cognitive faculties (human like

thinking) and artificial intelligence technologies thinking) and artificial intelligence technologies thinking) and artificial intelligence technologies thinking) and artificial intelligence technologies

to the management and decision support in to the management and decision support in

different business problems.different business problems.

–– Benefit of business intelligence is that person has Benefit of business intelligence is that person has

to pay very less attention to gathering internal to pay very less attention to gathering internal

information.information.

by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot) 3

••Reasons Reasons for Business for Business

IntelligenceIntelligence–– Business intelligence enables organization to Business intelligence enables organization to

make wellmake well--informed business decisions and thus informed business decisions and thus

it can be the source of competitive advantages.it can be the source of competitive advantages.

–– Once business intelligence is gathered effectively Once business intelligence is gathered effectively

and used proactively (positively) then one can and used proactively (positively) then one can

make decisions that benefit to organization make decisions that benefit to organization

before the competition does.before the competition does.

by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot) 4

–– Business Intelligence reveals (disclose) that : Business Intelligence reveals (disclose) that :

• The position of firm in comparison to its competitors

•Changes in customer behavior and spending patterns

• The capabilities of firm

•Market conditions, future trends, •Market conditions, future trends, demographic and economic information

• The social, regulatory and political environment

•What the other firms in the market are doing

5by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

••Benefits of BIBenefits of BI–– Eliminate a lot of the guessEliminate a lot of the guess--work work

–– Enhance communication among departmentsEnhance communication among departments

–– Coordination activitiesCoordination activities

–– To respond quickly to changes in financial To respond quickly to changes in financial conditionsconditionsconditionsconditions

–– Customer preferences and supply chainCustomer preferences and supply chain

–– Timely and accurate informationTimely and accurate information

–– Improve performanceImprove performance

–– Expedites (quick) decisionExpedites (quick) decision--making making

–– Improve customer experienceImprove customer experience


••Factors Factors Influencing Business Influencing Business IntelligenceIntelligence–– The main factors that influence business intelligence The main factors that influence business intelligence

areare

••CustomersCustomers

CompetitorsCompetitors••CompetitorsCompetitors

••Business partnersBusiness partners

••Business environmentBusiness environment

••Internal operationsInternal operations7by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

••CustomersCustomers–– Customers are the most critical aspect to a Customers are the most critical aspect to a

company’s success.company’s success.

––Without them a company cannot exist.Without them a company cannot exist.

–– So it is very important that organization have So it is very important that organization have information on their preferences.information on their preferences.

–– Business must quickly adapt to customers’ Business must quickly adapt to customers’ changing demands.changing demands.

–– Business intelligence enables to gather Business intelligence enables to gather information on the trends in the marketplace and information on the trends in the marketplace and come up with innovative products or services in come up with innovative products or services in expectation (expectation) of customer’s changing expectation (expectation) of customer’s changing demands. demands.

8by:-Assist. Prof. Vijay Vora (ERP:2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

••CompetitorsCompetitors–– Competitors can present a huge hurdle on the Competitors can present a huge hurdle on the

way of success.way of success.

–– Their objectives are the same as one’s own Their objectives are the same as one’s own

organization and that is why to maximize profits organization and that is why to maximize profits

and customer satisfaction.and customer satisfaction.and customer satisfaction.and customer satisfaction.

––Business intelligence tells what actions Business intelligence tells what actions

competitors are taking, so organization can competitors are taking, so organization can

make bettermake better--informed decisions.informed decisions.


••Business partnersBusiness partners––Business partners must possess the same Business partners must possess the same

strategic information which is organization strategic information which is organization

have, so that there is no miscommunication have, so that there is no miscommunication

that can lead to inefficiencies.that can lead to inefficiencies.


••Business environmentBusiness environment––Business environment such as the state of Business environment such as the state of

the economy and other key economic the economy and other key economic

indicators are important consideration indicators are important consideration

when making business decisions.when making business decisions.

––BI gives information on the state of the BI gives information on the state of the

economy so that organization can make economy so that organization can make

prudent (careful) decisions.prudent (careful) decisions.


••Internal operationsInternal operations–– Internal operations are the dayInternal operations are the day--toto--day day

activities that go on in business.activities that go on in business.

––Organization needs inOrganization needs in--depth knowledge depth knowledge about the internal working of business from about the internal working of business from top to bottom.top to bottom.top to bottom.top to bottom.

–– If decision made arbitrary without knowing If decision made arbitrary without knowing how entire organization work, it could have how entire organization work, it could have negative affects on business.negative affects on business.

––BI gives information on hoe entire BI gives information on hoe entire organization works.organization works.


•• Techniques Techniques for Integrating Business for Integrating Business Intelligence into Business ProcessesIntelligence into Business Processes–– Following tips/guidelines of IB to helps to achieve strategic Following tips/guidelines of IB to helps to achieve strategic

objectivesobjectives

•• Establish consistency across all BI toolsEstablish consistency across all BI tools

•• Integrated tools from a single vendorIntegrated tools from a single vendor

•• Integrate BI before integrating BIIntegrate BI before integrating BI

•• Specific prioritized business objectiveSpecific prioritized business objective

•• Establish a methodology to identify where, who and Establish a methodology to identify where, who and •• Establish a methodology to identify where, who and Establish a methodology to identify where, who and when BI is neededwhen BI is needed

•• Use different closedUse different closed--loop strategy to integrate BIloop strategy to integrate BI

•• Implement BI web servicesImplement BI web services

•• Integrate BI into enterprise portal Integrate BI into enterprise portal

•• Leverage (control) BI in the database Leverage (control) BI in the database

•• RealReal--time processing and business activity monitoringtime processing and business activity monitoring


•• Business Business Intelligence and ERPIntelligence and ERP–– ERP systems offer powerful tools to better ERP systems offer powerful tools to better

measure and control organizational operations.measure and control organizational operations.

––Many organizations have foundation that the Many organizations have foundation that the

power of ERP can be enhanced to provide even power of ERP can be enhanced to provide even

greater value through the addition of powerful greater value through the addition of powerful

business intelligence systems.business intelligence systems.business intelligence systems.business intelligence systems.

–– BI systems store data usually in a data warehouse BI systems store data usually in a data warehouse

and then analyze this data usually using data and then analyze this data usually using data

mining.mining.


Data WarehousingData WarehousingData WarehousingData Warehousing

•• IntroductionIntroduction–– Data warehouse is a collection of data designed Data warehouse is a collection of data designed

to support management decisionto support management decision--making.making.

–– Data Warehousing refers to a collection of data Data Warehousing refers to a collection of data

gathered and organized so that it can quickly and gathered and organized so that it can quickly and

easily be extracted, analyzed and otherwise be easily be extracted, analyzed and otherwise be easily be extracted, analyzed and otherwise be easily be extracted, analyzed and otherwise be

used for the purpose of further understanding used for the purpose of further understanding

the data.the data.

–– Data Warehouses contain a wide verity of data Data Warehouses contain a wide verity of data

that present picture of business conditions at a that present picture of business conditions at a

particular time.particular time.


–– The primary goals of a data warehouse are …The primary goals of a data warehouse are …

•• Provides access to the data of an organizationProvides access to the data of an organization

•• Data consistencyData consistency

•• Capacity to separate and combine dataCapacity to separate and combine data

•• Inclusion of tools setup to query, analyze and Inclusion of tools setup to query, analyze and

present the informationpresent the information

•• Publish used dataPublish used data

•• Drive business reengineeringDrive business reengineering


••Data Data in Data Warehousein Data Warehouse–– The collection of data used by warehouse may be The collection of data used by warehouse may be

characterized as…characterized as…

••SubjectSubject--orientedoriented

•• IntegratedIntegrated•• IntegratedIntegrated

••NonNon--volatilevolatile

••Time variantTime variant


••SubjectSubject--orientedoriented–– Data warehouses are designed to help analyze Data warehouses are designed to help analyze

data. data.

–– For example, to learn more about company's For example, to learn more about company's

sales data, one can build a warehouse that sales data, one can build a warehouse that

concentrates on sales. Using this warehouse, one concentrates on sales. Using this warehouse, one concentrates on sales. Using this warehouse, one concentrates on sales. Using this warehouse, one

can answer questions like "Who was the best can answer questions like "Who was the best

customer for the item last year?" customer for the item last year?"

–– This ability to define a data warehouse by subject This ability to define a data warehouse by subject

matter, sales in this case makes the data matter, sales in this case makes the data

warehouse subject oriented.warehouse subject oriented.


•• IntegratedIntegrated–– The data warehouse potentially can receive data The data warehouse potentially can receive data

from a number of sources.from a number of sources.

–– Each of these sources had an application Each of these sources had an application

designer, each freely encoding, naming designer, each freely encoding, naming

conventions, physical attribute and measurement conventions, physical attribute and measurement conventions, physical attribute and measurement conventions, physical attribute and measurement

of attributes.of attributes.

–– The filtering and translation necessary to The filtering and translation necessary to

transform the many sources into one consistent transform the many sources into one consistent

database is known as integration.database is known as integration.


••NonNon--volatilevolatile–– Nonvolatile means that, once entered into the Nonvolatile means that, once entered into the

warehouse, data should not change. warehouse, data should not change.

–– That’s why, data is loaded and accessed, but not That’s why, data is loaded and accessed, but not changed.changed.

••Time variantTime variant–– In order to discover trends in business, analysts need In order to discover trends in business, analysts need –– In order to discover trends in business, analysts need In order to discover trends in business, analysts need

large amounts of data. large amounts of data.

–– This is very much in contrast to online transaction This is very much in contrast to online transaction processing (OLTP) systems, where performance processing (OLTP) systems, where performance requirements demand that historical data be moved requirements demand that historical data be moved to an archive. to an archive.

–– A data warehouse's focus on change over time is A data warehouse's focus on change over time is what is meant by the term time variant.what is meant by the term time variant.


••Data Data Warehouse ArchitectureWarehouse Architecture–– Data Warehouse Architecture contain its major Data Warehouse Architecture contain its major

components components

•• Summarized dataSummarized data

••Operational system of recordOperational system of record

•• Integration/ transformation programsIntegration/ transformation programs•• Integration/ transformation programsIntegration/ transformation programs

••Current detailCurrent detail

••Data warehouse architecture or Data warehouse architecture or

metadatametadata

••ArchivesArchives22by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

••Summarized dataSummarized data–– Summarized data is classified into twoSummarized data is classified into two--

•• Lightly summarized Lightly summarized

–Lightly summarized data are the hallmark (characteristic) of a data warehouse.

••Highly summarize.Highly summarize.••Highly summarize.Highly summarize.

–Highly summarized data are primarily for enterprise executives.

–Data volume at this level is much less than at other levels and represents an eclectic (mixed) collection supporting a wide variety of needs and interests.


••Current detailCurrent detail––The heart of a data warehouse is its current The heart of a data warehouse is its current

detail, where the bulk of data resides.detail, where the bulk of data resides.

––Current detail comes directly from Current detail comes directly from

operational (legacy) systems and may be operational (legacy) systems and may be

stored as raw data or as aggregations stored as raw data or as aggregations stored as raw data or as aggregations stored as raw data or as aggregations

(collection) of raw data.(collection) of raw data.

––Current detail, organized by subject area, Current detail, organized by subject area,

represents the entire enterprise, rather represents the entire enterprise, rather

than a given application. than a given application.


••System of recordSystem of record––A system record is the source of the data A system record is the source of the data

that feed the data warehouse.that feed the data warehouse.

––Data in a data warehouse differ from Data in a data warehouse differ from

operational systems data in that they can operational systems data in that they can

only be read, not modified.only be read, not modified.only be read, not modified.only be read, not modified.

––a system of record may be one containing a system of record may be one containing

already summarized dataalready summarized data


•• Integration/ transformation Integration/ transformation programsprograms–– The highest quality operational data cannot The highest quality operational data cannot

usually be copied, as it is, into a data usually be copied, as it is, into a data warehouse.warehouse.

––Operational data rarely conform to the logical, Operational data rarely conform to the logical, subjectsubject--oriented structure of a data warehouse.oriented structure of a data warehouse.subjectsubject--oriented structure of a data warehouse.oriented structure of a data warehouse.

–– As operational data items pass from their As operational data items pass from their system of record to data warehouse, integration system of record to data warehouse, integration and transformation programs convert them and transformation programs convert them from application specific data into enterprise from application specific data into enterprise data.data.


––These integration and transformation These integration and transformation

programs perform function such as:programs perform function such as:

•• ReRe--formatting, reformatting, re--calculation, or modifying key calculation, or modifying key

structuresstructures

•• Adding time elementsAdding time elements

•• Identifying default valuesIdentifying default values

•• Supplying logic to choose between multiple Supplying logic to choose between multiple

data sourcesdata sources

•• Summarizing, tallying and Summarizing, tallying and margingmarging data from data from

multiple sourcesmultiple sources


••ArchivesArchives––Data warehouse archives contain old data of Data warehouse archives contain old data of

significant, continuing interest and value to significant, continuing interest and value to

the enterprise.the enterprise.

––There is usually a massive amount of data There is usually a massive amount of data

stored in the data warehouse archives, with stored in the data warehouse archives, with stored in the data warehouse archives, with stored in the data warehouse archives, with

a low incidence of access.a low incidence of access.

––Archive data are most often used for Archive data are most often used for

forecasting and trend analysis.forecasting and trend analysis.


•• Metadata Metadata –– Metadata means data about data.Metadata means data about data.

–– Metadata is one of the most important parts of a Metadata is one of the most important parts of a data warehouse.data warehouse.

–– The physical implementation of a data warehouse is The physical implementation of a data warehouse is defined using a naming convention and syntax rules, defined using a naming convention and syntax rules, while it may be convenient to IT staff, but it can be while it may be convenient to IT staff, but it can be difficult to understand and offdifficult to understand and off--putting to business putting to business user.user.user.user.

–– Therefore, there is a requirement that a separate Therefore, there is a requirement that a separate data definition language is implemented, which data definition language is implemented, which provides a meaningful description of the information provides a meaningful description of the information contents.contents.

–– This is usually known as metadata.This is usually known as metadata.

–– Metadata is used by data warehouse developers, to Metadata is used by data warehouse developers, to manage and control data warehousemanage and control data warehouse


••Data Data Warehousing SystemWarehousing System–– The primary concept of data warehousing is that the The primary concept of data warehousing is that the

data stored for business analysis can most effectively data stored for business analysis can most effectively be accessed, by separating operational data from be accessed, by separating operational data from analysis data in the operational systems.analysis data in the operational systems.

•• Use of Data Warehousing systemUse of Data Warehousing system• Easily perform complex and sophisticated

business analysisbusiness analysis

• Produce standard reports

• System support very sophisticated on-line analysis

•Multi-dimensional analysis.

• Easily recognize the information that user want to access


•• Data in the Data Warehousing systemData in the Data Warehousing system

[Refer slide no. : 18]

•• Reason to developing Data Warehousing Reason to developing Data Warehousing

SystemSystem

•Main reason for developing a data

warehouse is to integrate operational warehouse is to integrate operational

data from various sources into a single

and consistent architecture that supports

analysis and decision-making within the

enterprise.


•• Part, components and products in warehousing Part, components and products in warehousing systemsystem

• Operational (legacy) systems create, update and delete production data that “feed” the data warehouse.

• A data warehouse is similar (analogous) to a physical warehouse.

• Operational systems create data “parts” that are loaded into the warehouse.loaded into the warehouse.

• Some of these are summarized into information “components” and stored in warehouse.

• Data warehouse users make requests and are delivered information “products” that are created form the components and parts stored in data warehouse.


•• Advantages of a Data WarehouseAdvantages of a Data Warehouse

••More costMore cost--effective decisioneffective decision––

makingmaking

••Better enterprise intelligenceBetter enterprise intelligence

•• Enhanced customer serviceEnhanced customer service•• Enhanced customer serviceEnhanced customer service

••Business reengineeringBusiness reengineering

•• Information system reengineeringInformation system reengineering


•• Structure of Data WarehouseStructure of Data Warehouse–– The primary concept of data warehousing is that The primary concept of data warehousing is that

the data stored for business analysis can most the data stored for business analysis can most

effectively be accessed, by separating operational effectively be accessed, by separating operational

data from analysis data in the operational data from analysis data in the operational

systems.systems.

–– Basically structure of Data Warehouse has Basically structure of Data Warehouse has –– Basically structure of Data Warehouse has Basically structure of Data Warehouse has

essential three elementsessential three elements

•• Physical data warehousePhysical data warehouse

•• Logical data warehouseLogical data warehouse

••Data martData mart34by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Physical data warehousePhysical data warehouse–– Physical database contain actual data.Physical database contain actual data.

–– Physical database in which all the data for the Physical database in which all the data for the

data warehouse are stored, along with metadata data warehouse are stored, along with metadata

and processing logic for scrubbing (polishing), and processing logic for scrubbing (polishing),

organizing, packaging and processing the detail organizing, packaging and processing the detail

data.data.data.data.


•• Logical data warehouseLogical data warehouse–– Logical data warehouse also contains metadata, Logical data warehouse also contains metadata,

including enterprise rules and processing logic for including enterprise rules and processing logic for

scrubbing, organizing, packaging and processing scrubbing, organizing, packaging and processing

the data, but does not contain actual data.the data, but does not contain actual data.

–– Instead of, it contains the information necessary Instead of, it contains the information necessary

to access the data wherever they are known to to access the data wherever they are known to to access the data wherever they are known to to access the data wherever they are known to

be accurate and timely.be accurate and timely.

••Data martData mart–– Data mart is a subData mart is a sub--set of an enterpriseset of an enterprise--wide data wide data

warehouse, which typically supports an enterprise warehouse, which typically supports an enterprise

element such as department, region, function, etc.element such as department, region, function, etc.36by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Obstacles to Successful Data Warehouse Obstacles to Successful Data Warehouse ProjectsProjects

––Rushing to data warehouse development, Rushing to data warehouse development, information systems personnel often information systems personnel often discover obstacles “on the fly”.discover obstacles “on the fly”.

•• Complex Extract, Transformation and Complex Extract, Transformation and Load CharacteristicsLoad Characteristics

•• Immense Volumes of Daily DataImmense Volumes of Daily Data•• Immense Volumes of Daily DataImmense Volumes of Daily Data

•• Load Methodology (Load Control and Load Methodology (Load Control and Auditing)Auditing)

•• Data Warehouse Recovery (Load Data Warehouse Recovery (Load Recovery)Recovery)

•• Data Warehouse ValidationData Warehouse Validation37by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Complex Extract, Transformation and Complex Extract, Transformation and Load CharacteristicsLoad Characteristics

•Source vs. Target

–The schema differences cause various challenges.

–For example, loading one data warehouse dimension table may warehouse dimension table may require data extraction from a large number of source tables.

–In this case, the most obvious design issues are source table joins and the propagation (circulation) of updates.


•Data transformations–Many business rules embedded in corporate

reports demand which has complex manipulation of source data.

–This adds complex criteria into data warehouse management and increases processor overhead during the number critical stage of the data load.

•Transaction-based loading•Transaction-based loading–Extracted data from the source database must be

loaded into the data warehouse on a source semi-independent transactional basis.

–In many instances, a transaction applied at the source database will not map directly to the target data warehouse.


•• Immense (massive) Volumes Immense (massive) Volumes of Daily Dataof Daily Data

––Almost every data warehouse Almost every data warehouse implementation requires a massive amount implementation requires a massive amount of data movement.of data movement.

––Thus, a method for efficiently cleaning, Thus, a method for efficiently cleaning, absorbing and aggregating the data into the absorbing and aggregating the data into the data warehouse is essential.data warehouse is essential.

•• Load Methodology (Load Control and Load Methodology (Load Control and •• Load Methodology (Load Control and Load Methodology (Load Control and Auditing)Auditing)

––One of most overlooked enhancements to a One of most overlooked enhancements to a functioning data warehouse is a method of functioning data warehouse is a method of controlling and auditing the data warehouse controlling and auditing the data warehouse load.load.


••Data Warehouse Recovery (Load Data Warehouse Recovery (Load Recovery)Recovery)

––Conventional media backup is Conventional media backup is excellent for preserving data excellent for preserving data warehouse availability after a system warehouse availability after a system failure.failure.

••Data Warehouse ValidationData Warehouse Validation••Data Warehouse ValidationData Warehouse Validation

––As data warehouse development As data warehouse development progresses closer to completion, data progresses closer to completion, data validation must be revisited to ensure validation must be revisited to ensure integrity.integrity.


•• Uses of a Data WarehouseUses of a Data Warehouse

––Many types of activity are supported Many types of activity are supported by a data warehouseby a data warehouse

––Data warehouse is use for performing Data warehouse is use for performing following things/tasks.following things/tasks.

•• Standard Reports and QueryStandard Reports and Query•• Standard Reports and QueryStandard Reports and Query

••Queries against Summarized DataQueries against Summarized Data

••Data MiningData Mining

•• Interface with other Data Interface with other Data WarehousesWarehouses


Data Mining Data Mining Data Mining Data Mining

•• IntroductionIntroduction–– Data mining is technology that extracts the Data mining is technology that extracts the

hidden predictive information from large hidden predictive information from large

database.database.

–– Data mining consists of finding interesting trends Data mining consists of finding interesting trends

or patterns in large datasets, in order to guide or patterns in large datasets, in order to guide or patterns in large datasets, in order to guide or patterns in large datasets, in order to guide

decisions about future activities.decisions about future activities.


••Evolution of Data MiningEvolution of Data Mining–– Data mining techniques are the result of a long Data mining techniques are the result of a long

process of research and product development.process of research and product development.

–– There are mainly four steps or stages of evolution There are mainly four steps or stages of evolution

of data mining.of data mining.

•• Data collection(1960s)Data collection(1960s)•• Data collection(1960s)Data collection(1960s)

•• Data access(1980s)Data access(1980s)

•• Data warehousing & decision support(1990s) Data warehousing & decision support(1990s)

•• Data miningData mining


•• Data Data collection(1960scollection(1960s))–– In 1960s, data collection system answered In 1960s, data collection system answered

questions like, “What was total revenue in the questions like, “What was total revenue in the

last five years?” last five years?”

•• Data access(1980s)Data access(1980s)–– After the data collection system, in 1980s it would After the data collection system, in 1980s it would –– After the data collection system, in 1980s it would After the data collection system, in 1980s it would

be extended to data access system and it answered be extended to data access system and it answered

business questions such as, “what were unit sales business questions such as, “what were unit sales

in the State last March?”in the State last March?”

–– Relational Databases (RDBMDS), Structured Query Relational Databases (RDBMDS), Structured Query

Language (SQL), etc were used for querying and Language (SQL), etc were used for querying and

reportingreporting46by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Data warehousing & decision Data warehousing & decision

support(1990s) support(1990s) –– These technologies were capable of answering These technologies were capable of answering

business questions like, “What were unit sales in business questions like, “What were unit sales in

the State last March? Drillthe State last March? Drill--down to particular down to particular

city”city”city”city”

•• Data miningData mining–– Capable of answering question like “what is likely Capable of answering question like “what is likely

to happen to southern region sales next month? to happen to southern region sales next month?

Why?”Why?”


••Data Mining ProcessData Mining Process–– Data mining uses a different model for the Data mining uses a different model for the

creation of information about data.creation of information about data.

–– It is calling Discovery ModelIt is calling Discovery Model

–– Data mining is an iterative process that typically Data mining is an iterative process that typically

involves the following phases:involves the following phases:involves the following phases:involves the following phases:

• Search for Pattern

•Review Results

•Revise & Refine Query

•Report Result


••Technologies Used In Data Technologies Used In Data MiningMining–– The most commonly used techniques in data mining The most commonly used techniques in data mining

are as under.are as under.

••Neural networksNeural networks

•• Rule inductionRule induction•• Rule inductionRule induction

•• Evolutionary programmingEvolutionary programming

•• CaseCase--based reasoning (CBR)based reasoning (CBR)

•• Decision treesDecision trees

•• Genetic algorithmsGenetic algorithms

••NonNon--linear regression methodslinear regression methods


OnOn--Line Analytical Line Analytical

ProcessingProcessingProcessingProcessing

(OLAP)(OLAP)

•• IntroductionIntroduction–– OOnnlline ine AAnalytical nalytical PProcessing,rocessing, a category of a category of

software tools that provides analysis of data software tools that provides analysis of data stored in a databasestored in a database

–– OLAP is a method of analyzing data in a multiOLAP is a method of analyzing data in a multi--dimensional format, often across multiple time dimensional format, often across multiple time periods, with the aim of uncovering the business periods, with the aim of uncovering the business periods, with the aim of uncovering the business periods, with the aim of uncovering the business information hidden within the data.information hidden within the data.

–– OLAP tools enable users to analyze different OLAP tools enable users to analyze different dimensions of multidimensional data. dimensions of multidimensional data.

–– For example, it provides time series and trend For example, it provides time series and trend analysis views. analysis views.

–– OLAP often is used in OLAP often is used in data miningdata mining..51by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• OLAP and Data WarehousingOLAP and Data Warehousing–– OLAP provides a multidimensional presentation OLAP provides a multidimensional presentation

of data warehouse data by creating cubes that of data warehouse data by creating cubes that

organize and summarize data for efficient organize and summarize data for efficient

analytical querying. analytical querying.

–– The design of the data warehouse structure can The design of the data warehouse structure can

affect how easily these cubes can be designed affect how easily these cubes can be designed affect how easily these cubes can be designed affect how easily these cubes can be designed

and constructed.and constructed.

–– A data warehouse is a database containing data A data warehouse is a database containing data

that usually represents the business history of an that usually represents the business history of an

organization.organization.


–– Data in a data warehouse is organized to support Data in a data warehouse is organized to support

analysis rather than to process realanalysis rather than to process real--time time

transactions as in online transaction processing transactions as in online transaction processing

systems (OLTP).systems (OLTP).

–– OLAP technology enables data warehouses to be OLAP technology enables data warehouses to be

used effectively for online analysis, providing used effectively for online analysis, providing

rapid responses to iterative complex analytical rapid responses to iterative complex analytical rapid responses to iterative complex analytical rapid responses to iterative complex analytical

queries.queries.


•• Use Of OLAPUse Of OLAP–– OLAP applications span a variety of organizational OLAP applications span a variety of organizational

functions.functions.

–– It is use in…It is use in…

• Finance departments

• Sales analysis and forecasting

•Marketing departments for marketing researchresearch

• Sales forecasting

• Promotion analysis

• Customer analysis

• Production planning

• Defect analysis


•• Key Features of OLAPKey Features of OLAP–– OLAP applications span a variety of organizational OLAP applications span a variety of organizational

functions, they all require the following key functions, they all require the following key

features:features:

•Multi-dimensional view of data

•Calculation-intensive capabilities•Calculation-intensive capabilities

• Time intelligence


•• Different Styles/Types Of OLAPDifferent Styles/Types Of OLAP

••MultiMulti--dimensional OLAPdimensional OLAP

••Hybrid OLAPHybrid OLAP

••Desktop OLAPDesktop OLAP

••Relational OLAPRelational OLAP


••MultiMulti--dimensional OLAPdimensional OLAP––MultiMulti--dimensional OLAP is based on a multidimensional OLAP is based on a multi--

dimensional data base architecture.dimensional data base architecture.

––Multidimensional architects provides Multidimensional architects provides

performance benefits where the data retrieval performance benefits where the data retrieval

paths follow the prepaths follow the pre--defined structure of the data defined structure of the data paths follow the prepaths follow the pre--defined structure of the data defined structure of the data

cubes.cubes.

–– In MultiIn Multi--dimensional OLAP data are predimensional OLAP data are pre--

summarized and are stored in an optimized summarized and are stored in an optimized

format in a multidimensional cubeformat in a multidimensional cube


•• Relational OLAPRelational OLAP–– RLOAP is Considered as the fastest growing OLAP RLOAP is Considered as the fastest growing OLAP

technology style.technology style.

–– ROLAPROLAP works directly with relational databases. works directly with relational databases.

–– ROLAP systems work primarily from the data that ROLAP systems work primarily from the data that

resides in a relational database, where the base resides in a relational database, where the base resides in a relational database, where the base resides in a relational database, where the base

data and dimension tables are stored as data and dimension tables are stored as

relational tables.relational tables.

–– The base data and the dimension tables are The base data and the dimension tables are

stored as relational tables and new tables are stored as relational tables and new tables are

created to hold the aggregated information.created to hold the aggregated information.


••Hybrid OLAPHybrid OLAP–– HOLAP technologies attempt to combine the HOLAP technologies attempt to combine the

advantages of MOLAP and ROLAP.advantages of MOLAP and ROLAP.

–– This tool tried to bridge the technology gap of This tool tried to bridge the technology gap of

both products by enabling access or use to both both products by enabling access or use to both

multidimensional database and Relational multidimensional database and Relational multidimensional database and Relational multidimensional database and Relational

Database Management System.Database Management System.

–– HOLAP systems stores larger quantities of HOLAP systems stores larger quantities of

detailed data in the relational tables while the detailed data in the relational tables while the

aggregations are stored in the preaggregations are stored in the pre--calculated calculated

cubes.cubes.


••Desktop OLAPDesktop OLAP–– “DOLAP” is based on the idea that a user can “DOLAP” is based on the idea that a user can

download a section of the data from the download a section of the data from the

database or source, and work with that dataset database or source, and work with that dataset

locally, or on their desktop. locally, or on their desktop.

–– DOLAP allows users to perform limited analysis, DOLAP allows users to perform limited analysis, –– DOLAP allows users to perform limited analysis, DOLAP allows users to perform limited analysis,

directly against data held within a relational directly against data held within a relational

databasedatabase

–– DOLAP is easier to deploy and has a cheaper cost DOLAP is easier to deploy and has a cheaper cost

but comes with a very limited functionality in but comes with a very limited functionality in

comparison with other OLAP applications.comparison with other OLAP applications.


•• Benefits of OLAPBenefits of OLAP–– Perform multidimensional data analysis,Perform multidimensional data analysis,

–– Increase the productivity of business managers, Increase the productivity of business managers, developers and whole organizationdevelopers and whole organization

–– Inherent flexibilityInherent flexibility

–– TimelinessTimeliness--Timely access strategic information.Timely access strategic information.

–– Effective decision makingEffective decision making–– Effective decision makingEffective decision making

–– ZeroZero--footprint access to OLAP analysis footprint access to OLAP analysis

• With Web-based access, IT personnel can set up connection to OLAP cubes in minutes. When users access the OLAP reporting interface, no client software has to be installed. They easily perform on-demand analysis in the Web-browser


Supply Chain Supply Chain

ManagementManagementManagementManagement

(SCM)(SCM)

•• IntroductioinIntroductioin–– SCM is proven technology applicable to just SCM is proven technology applicable to just

about every company regardless of industrial about every company regardless of industrial

sector. sector.

–– It is a series of complex calculations that optimize It is a series of complex calculations that optimize

enterprise plans within a given set of constraints , enterprise plans within a given set of constraints ,

backed by fully integrated suite of financial, backed by fully integrated suite of financial, backed by fully integrated suite of financial, backed by fully integrated suite of financial,

distribution and HRM . distribution and HRM .

–– The SCM encompasses all activities relating to The SCM encompasses all activities relating to

the supply chain. the supply chain.

–– This includes vendor selection, negotiation, This includes vendor selection, negotiation,

relations and performance.relations and performance.63by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Evolution Of SCMEvolution Of SCM–– In the initial stage MRP grew out of the need to In the initial stage MRP grew out of the need to

know what to buy and when to delivered.know what to buy and when to delivered.

–– But what to buy and when to deliver, is depends But what to buy and when to deliver, is depends upon the customer.upon the customer.

–– So, the MRP provided only limited solutions.So, the MRP provided only limited solutions.

–– Sales and operations planning provided a highSales and operations planning provided a high--level level overview of the match between supply and demand.overview of the match between supply and demand.overview of the match between supply and demand.overview of the match between supply and demand.

–– JustJust--InIn--Time (JIT) deliveries were based on a card Time (JIT) deliveries were based on a card system.system.

–– This indicated which items were required and This indicated which items were required and triggered the “calltriggered the “call--off” of these items from the off” of these items from the supplier.supplier.

––11The fundamental task of dealing with the The fundamental task of dealing with the complexity of planning created an opportunity for complexity of planning created an opportunity for vendors to develop specialized planning products.vendors to develop specialized planning products.


–– These powerful modeling tools are presented under These powerful modeling tools are presented under the banners of supply chain planning (SCP) and the banners of supply chain planning (SCP) and advanced planning systems (APS).advanced planning systems (APS).

–– even though all these sophistication, these planning even though all these sophistication, these planning tools are exposed to weaknesses in forecasts.tools are exposed to weaknesses in forecasts.

–– Due to these weaknesses other functional Due to these weaknesses other functional developments have emerged.developments have emerged.

–– Maintenance, Repair and Overhaul (MRO) can deal Maintenance, Repair and Overhaul (MRO) can deal –– Maintenance, Repair and Overhaul (MRO) can deal Maintenance, Repair and Overhaul (MRO) can deal with the large number of part numbers, small with the large number of part numbers, small quantities of each part and many of suppliers quantities of each part and many of suppliers associated with equipment maintenance.associated with equipment maintenance.

–– Collectively, these suite of functionality on offer Collectively, these suite of functionality on offer provides fairly comprehensive supply chain and provides fairly comprehensive supply chain and support to the practices associated with the concept support to the practices associated with the concept of supply chain management (SCM)of supply chain management (SCM)


•• Sharing Data and Gut instincts Sharing Data and Gut instincts ElectronicallyElectronically–– An electronics manufacturer may put a premium on An electronics manufacturer may put a premium on

minimizing fastminimizing fast-- obsolescing parts inventory, while a obsolescing parts inventory, while a pizza franchiser cares more about fast delivery of pizza franchiser cares more about fast delivery of foodstuffs to its store.foodstuffs to its store.

–– Advance Planning System (APS) tools monitor and Advance Planning System (APS) tools monitor and optimize the supply chain from endoptimize the supply chain from end--toto--end end –– as a as a combined whole of plants, warehouses and retail combined whole of plants, warehouses and retail optimize the supply chain from endoptimize the supply chain from end--toto--end end –– as a as a combined whole of plants, warehouses and retail combined whole of plants, warehouses and retail sites sites –– instead of separate pieces.instead of separate pieces.

–– With help of Internet and Electronic Data With help of Internet and Electronic Data Interchange (EDI) networks producer can share Interchange (EDI) networks producer can share operational data and even gut instincts operational data and even gut instincts systematically and instantly with wholesalers and systematically and instantly with wholesalers and retailers.retailers.


––With better synchronization across the entire With better synchronization across the entire supply chain, each member achieves major supply chain, each member achieves major benefits:benefits:

• Lower inventories and therefore, lower financing costs

• Shorter receivables cycles

•Optimal use of production resources, •Optimal use of production resources, costly work forces and transportation fleets.

• Faster response to market changes

•Greater satisfaction and faithfulness among customers


•• Battlefield to BusinessBattlefield to Business–– The military was on of the first organizations to The military was on of the first organizations to

recognize supply chain and how to manage themrecognize supply chain and how to manage them--

during World War II.during World War II.

–– Strategists realized that delivering the right Strategists realized that delivering the right

manpower and material on schedule to just the manpower and material on schedule to just the

right spot was the key to battlefield.right spot was the key to battlefield.right spot was the key to battlefield.right spot was the key to battlefield.

–– The digital computer brought new methods for The digital computer brought new methods for

scheduling the loading and movement of ships, scheduling the loading and movement of ships,

planes and railcars.planes and railcars.

–– Thus, it was born modern supply chain Thus, it was born modern supply chain

management and globally used by all business.management and globally used by all business.68by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

•• Improvements in the Supply Chain Improvements in the Supply Chain ManagementManagement–– The supply chain discipline has taken a huge leap The supply chain discipline has taken a huge leap

forward with Advance Planning System’s ability to forward with Advance Planning System’s ability to simultaneously consider multiple constraints that simultaneously consider multiple constraints that affect production and delivery of goods.affect production and delivery of goods.

–– Making of this improvement is possible due to the Making of this improvement is possible due to the great increase in computer memory capacity with great increase in computer memory capacity with reasonable cost of network computers.reasonable cost of network computers.great increase in computer memory capacity with great increase in computer memory capacity with reasonable cost of network computers.reasonable cost of network computers.

–– it starts with constructing a detailed model of given it starts with constructing a detailed model of given supply chains' elements supply chains' elements -- an enterprise’s network of an enterprise’s network of suppliers, distribution center and factories.suppliers, distribution center and factories.

–– By taking advantage of this kind of improvement, all By taking advantage of this kind of improvement, all businesses that involve complex flows of material businesses that involve complex flows of material can get advantage.can get advantage.


•• Supply Chain Management and Supply Chain Management and RetailersRetailers–– The retail industry is another prime candidate for The retail industry is another prime candidate for

advancements in supply chain management.advancements in supply chain management.

–– The The main criteria of SCM main criteria of SCM is the ability to identify and is the ability to identify and then act upon fashion and other consumer trend.then act upon fashion and other consumer trend.

–– But whether for a single shop or a national chain, it is But whether for a single shop or a national chain, it is –– But whether for a single shop or a national chain, it is But whether for a single shop or a national chain, it is a critical challenge, because sometimes thousands of a critical challenge, because sometimes thousands of stocking units are delivered to multiple warehouses stocking units are delivered to multiple warehouses from hundreds of manufactures.from hundreds of manufactures.

–– (what/how goods to order and re(what/how goods to order and re--order )Tie all into order )Tie all into the retailer’s financial accounting and human the retailer’s financial accounting and human resources systems, and organization have a model resources systems, and organization have a model framework for optimum efficiencyframework for optimum efficiency


•• Advantages of Supply Chain Advantages of Supply Chain

ManagementManagement

[Self Study][Self Study]


•• Advantages of Supply Chain Advantages of Supply Chain


••Supply chain planning and Supply chain planning and

collaborationcollaboration

••Supply chain execution Supply chain execution ••Supply chain execution Supply chain execution

••Supply chain visibility design and Supply chain visibility design and

analyticsanalytics

••Business benefitsBusiness benefits


•• Supply chain planning and collaboration Supply chain planning and collaboration (cooperation)(cooperation)–– With SCM, organization can model their existing supply With SCM, organization can model their existing supply

chain; set goals; and forecast, optimize, and schedule chain; set goals; and forecast, optimize, and schedule time, material and other resources.time, material and other resources.

–– Supply chain planning functionality enables organization Supply chain planning functionality enables organization to maximize return on assets and ensure a profitable to maximize return on assets and ensure a profitable match of supply and demand.match of supply and demand.

•• Supply chain execution Supply chain execution •• Supply chain execution Supply chain execution –– SCM enables organization to carry out supply chain SCM enables organization to carry out supply chain

planning and generate high efficiency at the lowest planning and generate high efficiency at the lowest possible cost.possible cost.

–– Organization can sense and respond to demand through Organization can sense and respond to demand through an adaptive (an adaptive (SuitedSuited) supply chain network in which ) supply chain network in which distribution, transportation and logistics are integrated distribution, transportation and logistics are integrated into realinto real--time planning processed.time planning processed.


•• Supply chain visibility design and analyticsSupply chain visibility design and analytics–– SCM gives networkSCM gives network--wide visibility across extended wide visibility across extended

supply chain to perform strategic as well a daysupply chain to perform strategic as well a day--toto--day day planning.planning.

–– The application also enables collaboration and analytics, The application also enables collaboration and analytics, so one can monitoring an analyze the performance of so one can monitoring an analyze the performance of extended supply chain using preextended supply chain using pre--defined key defined key performance indicators performance indicators

•• Business benefitsBusiness benefits–– Faster response to changes in supply and demandFaster response to changes in supply and demand–– Faster response to changes in supply and demandFaster response to changes in supply and demand–– Increased customer satisfactionIncreased customer satisfaction–– Compliance (fulfillment) with regulatory (rigid) Compliance (fulfillment) with regulatory (rigid)

requirementsrequirements–– Improved cash flowImproved cash flow–– Higher marginsHigher margins–– Greater synchronization (management) with business Greater synchronization (management) with business

priorities priorities


Customer Customer Relationship Relationship

ManagementManagementManagementManagement

(CRM)(CRM)

•• IntroductioinIntroductioin–– Customer relationship management (CRM) refers to the type of Customer relationship management (CRM) refers to the type of

enterprise software that is designed to improve a company's enterprise software that is designed to improve a company's interaction with its customers and thereby increase revenue interaction with its customers and thereby increase revenue from sales.from sales.

–– In addition to offering the potential to increase revenue, CRM In addition to offering the potential to increase revenue, CRM can also reduce the cost of supporting customers.can also reduce the cost of supporting customers.

–– CRM has the ability to move any transaction to the lowest cost CRM has the ability to move any transaction to the lowest cost channel possible and still satisfy customer needs.channel possible and still satisfy customer needs.

–– CRM CRM systems give companies the ability to track customer systems give companies the ability to track customer –– CRM CRM systems give companies the ability to track customer systems give companies the ability to track customer interaction across a range of channels, from einteraction across a range of channels, from e--mail to call mail to call centers. centers.

–– CRM helps companies learn as much as they can about their CRM helps companies learn as much as they can about their customers. customers.

–– Armed with this knowledge, companies can anticipate their Armed with this knowledge, companies can anticipate their customers' needs and keep them satisfied, resulting in higher customers' needs and keep them satisfied, resulting in higher revenues and lower costs. revenues and lower costs.


•• FFunction of CRMunction of CRM–– Customer relationship management is a corporate level strategy Customer relationship management is a corporate level strategy

focusing on creating and maintaining relationship with customers.focusing on creating and maintaining relationship with customers.

–– CRM systems are integrated endCRM systems are integrated end--toto--end across marketing sales and end across marketing sales and customer service.customer service.

–– Functions of CRM system.Functions of CRM system.

• Identify factors important to clients

• Promote a customer-oriented philosophy (attitude)

• Adopt customer based measures• Adopt customer based measures

• Develop end-to-end processes to serve customers

• Provide successful customer support

• Handle customer complains

• Track all aspects (parts) of sales

• Create a holistic view of customers’ sales and services information


••Component Component of CRMof CRM––There are three fundamental components in There are three fundamental components in

CRMCRM

••OperationalOperational

••AnalyticalAnalytical••AnalyticalAnalytical

••CollaborativeCollaborative


••OperationalOperational–– Operational CRM provides automated support to Operational CRM provides automated support to

“front office” business processes.“front office” business processes.

–– “front office” business processes includes sales, “front office” business processes includes sales, marketing and servicemarketing and service

–– Operational CRM typically involves three general Operational CRM typically involves three general areas.areas.

••Sales force automation (SFA)Sales force automation (SFA)••Sales force automation (SFA)Sales force automation (SFA)

••Customer service and support (CSS)Customer service and support (CSS)

••Enterprise marketing automation Enterprise marketing automation (EMA)(EMA)

•


•• Sales force automation (SFA)Sales force automation (SFA)––Sales force automation Sales force automation automates business tasks automates business tasks

such as inventory control, sales processing, and such as inventory control, sales processing, and tracking of customer interactions, as well as tracking of customer interactions, as well as analyzing sales forecasts and performance.analyzing sales forecasts and performance.

••Customer service and support (CSS)Customer service and support (CSS)––CSS automates certain service requests, CSS automates certain service requests,

complaints, product returns and enquiries.complaints, product returns and enquiries.

•• Enterprise marketing automation (EMA)Enterprise marketing automation (EMA)––EMA provides information about the EMA provides information about the

business environment, including business environment, including information on competitors and industry information on competitors and industry trends.trends.

––EMA applications are used to improve EMA applications are used to improve marketing efficiency.marketing efficiency.


•• AnalyticalAnalytical––Analytical CRM analyses data to identify Analytical CRM analyses data to identify

means to enhance a company’s relationship means to enhance a company’s relationship with its clients.with its clients.

––The results of an analysis can be used to The results of an analysis can be used to design targeted marketing movement, for design targeted marketing movement, for exampleexampleexampleexample

•Acquisition – Cross-selling, up-selling

•Retention – holding existing customers

• Information – providing timely and regular information to customers


••CollaborativeCollaborative––Collaborative CRM focuses on the Collaborative CRM focuses on the

interaction with customers.interaction with customers.

––Collaborative CRM includesCollaborative CRM includes

•Providing efficient communication with customers across a variety of customers across a variety of communications channels

•Providing on-line services to reduce customer service costs

•Providing access to customer information while interacting with customers


••Use Use of CRMof CRM––Customer relationship management covers Customer relationship management covers

all interaction and business with customers.all interaction and business with customers.

––A good CRM program allows a business to A good CRM program allows a business to

acquire customers, provide customer acquire customers, provide customer acquire customers, provide customer acquire customers, provide customer

services and retain valued customer.services and retain valued customer.


–– There are a wide variety of reasons why companies There are a wide variety of reasons why companies use CRM.use CRM.

• Providing on-line access to product information and technical assistance around the clock

• Identifying what customers value and devising appropriate service strategies for each customer. Providing mechanisms for managing and scheduling follow-up sales callsscheduling follow-up sales calls

• Tracking all contacts with a customer

• Identifying potential problems before they occur.

• Providing a user-friendly mechanism for registering customer complains

• Providing a mechanism for handling problems and complaints


•• Features and Functions of a Features and Functions of a CRM systemCRM system•• Technology Technology –– Enabled sellingEnabled selling

•• Marketing resource ManagementMarketing resource Management

•• Segment and List managementSegment and List management

•• Call Center ManagementCall Center Management

•• Campaign ManagementCampaign Management•• Campaign ManagementCampaign Management

•• Internet Protocol TelephonyInternet Protocol Telephony

•• Field service ManagementField service Management

•• Trade Promotion ManagementTrade Promotion Management

•• Lead ManagementLead Management

•• Marketing AnalyticsMarketing Analytics


••Technology Technology –– Enabled sellingEnabled selling––TES goes beyond the blind application of row TES goes beyond the blind application of row

technology and deals with understanding bottomtechnology and deals with understanding bottom--line line benefits.benefits.

––TES has three sets of component building blocks.TES has three sets of component building blocks.

–– Foundation of customer informationFoundation of customer information

–– Foundation of customer information located in Foundation of customer information located in company database and manipulated either by legacy company database and manipulated either by legacy or ERP system.or ERP system.or ERP system.or ERP system.

–– Infrastructure of systemInfrastructure of system

–– That allow the company to communicate and That allow the company to communicate and manage business with customers; these utilize manage business with customers; these utilize telephones, faxes, personal computers and other telephones, faxes, personal computers and other devices.devices.

–– Advance applicationsAdvance applications

–– A set of Advance applications that are often A set of Advance applications that are often specific to industries or sectors.specific to industries or sectors.


••Marketing resource Marketing resource


––Analyze, plan, develop, implement and Analyze, plan, develop, implement and

measure all marketing activities to measure all marketing activities to

maximize the efficiencies of available maximize the efficiencies of available

resources and gain visibility and control resources and gain visibility and control resources and gain visibility and control resources and gain visibility and control

into marketing processes.into marketing processes.

––CRM helps control and manage budget CRM helps control and manage budget

and marketing spend.and marketing spend.


••Segment and List managementSegment and List management

––Manage enterprise customer and Manage enterprise customer and

prospect (view) data without the need for prospect (view) data without the need for

IT support.IT support.

––With CRM one can create and capture With CRM one can create and capture

customer profile data to better target and customer profile data to better target and customer profile data to better target and customer profile data to better target and

personalize marketing messages and one personalize marketing messages and one

can view all relevant enterprise customer can view all relevant enterprise customer

information from a central point.information from a central point.


•• Call Center ManagementCall Center Management––Call centers are the main point of contact for Call centers are the main point of contact for

customers.customers.

––Call centers perform the following five Call centers perform the following five functions:functions:

1.1. Resolve issues Resolve issues

2.2. Provider more information about products Provider more information about products and servicesand servicesand servicesand services

3.3. Make recommendation to customers about Make recommendation to customers about the product or service that best suits the the product or service that best suits the customer’s needs.customer’s needs.

4.4. Take calls and monitor progress on customer Take calls and monitor progress on customer requests and problemsrequests and problems

5.5. Generate reports for Generate reports for rootroot--cause analysiscause analysis


••Campaign ManagementCampaign Management––Analyze, plan, execute and Analyze, plan, execute and measure marketing activities measure marketing activities through all inbound and outbound through all inbound and outbound interaction channels to build longinteraction channels to build long--term profitable relationships.term profitable relationships.

––term profitable relationships.term profitable relationships.

––With CRM one can make the most With CRM one can make the most of dialog marketing by of dialog marketing by implementing inbound and implementing inbound and outbound campaigns (operation) outbound campaigns (operation) that are both multithat are both multi--channel and channel and multimulti--wave.wave.


•• Internet Protocol TelephonyInternet Protocol Telephony

––Frequently integrated into a preFrequently integrated into a pre--existing call center, Internet existing call center, Internet Protocol (IP) telephony in Internet Protocol (IP) telephony in Internet call centers allows customers to call centers allows customers to speak directly with call center speak directly with call center agents while using the browser to agents while using the browser to agents while using the browser to agents while using the browser to access the company’s web site.access the company’s web site.

––IP topology can be used in call IP topology can be used in call centers when a user is on a centers when a user is on a corporate web site and requests corporate web site and requests technical support.technical support.


••Field service ManagementField service Management––EE--business customer service also business customer service also

enhances field service, which is the part enhances field service, which is the part

of customer service in which qualified of customer service in which qualified

representatives of a company are sent to representatives of a company are sent to

the customer’s site to resolve problems.the customer’s site to resolve problems.the customer’s site to resolve problems.the customer’s site to resolve problems.


••Trade Promotion Trade Promotion ManagementManagement––Effectively manage trade Effectively manage trade promotions that increase brand promotions that increase brand equity and achieve sales equity and achieve sales objectives.objectives.objectives.objectives.

––With the CRM tools one can gain With the CRM tools one can gain complete visibility into trade complete visibility into trade programs at each stage of their life programs at each stage of their life cycles to reduce error, improve cycles to reduce error, improve efficiency and control trade spend.efficiency and control trade spend.


••Lead ManagementLead Management––Generate highly qualified, prioritized Generate highly qualified, prioritized and automate personnel to lead and automate personnel to lead distribution process to handle leads distribution process to handle leads faster.faster.

––CRM enables to increase conversion CRM enables to increase conversion rates with partner organizations .rates with partner organizations .rates with partner organizations .rates with partner organizations .

––The application provides full visibility The application provides full visibility into the lead management process into the lead management process enabling to optimize all activities.enabling to optimize all activities.


••Marketing AnalyticsMarketing Analytics––control a wide range of analytics such control a wide range of analytics such as customer values; and also analyze as customer values; and also analyze satisfaction score to make profitable satisfaction score to make profitable decisions.decisions.

––Insights gained from CRM help to Insights gained from CRM help to understand why marketing activities understand why marketing activities understand why marketing activities understand why marketing activities did or did not work.did or did not work.

––The application also helps to identify The application also helps to identify business challenges and business challenges and opportunities.opportunities.


••Benefits of CRMBenefits of CRM

[self study][self study]


ERP Security ERP Security ERP Security ERP Security

•• ERP SecurityERP Security–– Security is one of most important issues for an Security is one of most important issues for an

organization.organization.

–– Knowledge of enemy plans has been critical in Knowledge of enemy plans has been critical in influencing the course of human history.influencing the course of human history.

–– In classical business operations there have security In classical business operations there have security issues concerned with physical protection.issues concerned with physical protection.

–– The physical protection could be of human access to The physical protection could be of human access to buildings and information stored in critical rooms.buildings and information stored in critical rooms.buildings and information stored in critical rooms.buildings and information stored in critical rooms.

–– With the advent of computer systems this security With the advent of computer systems this security expanded to data.expanded to data.

–– Security also concern about the security of individuals.Security also concern about the security of individuals.

–– in the case of military, patrols (guards) are sent out to in the case of military, patrols (guards) are sent out to capture enemy personnel with critical information.capture enemy personnel with critical information.

–– In other case business firms have been known to hire In other case business firms have been known to hire away from competitors individuals with key information.away from competitors individuals with key information.


–– But now a days computer systems provide many But now a days computer systems provide many opportunities to obtain key competitive opportunities to obtain key competitive information.information.

–– Data stored on computers and with advent of Data stored on computers and with advent of networks, and network is in most cases accessible networks, and network is in most cases accessible by networks.by networks.

–– There are many threats to the security of There are many threats to the security of information found on ERP systems.information found on ERP systems.

–– Forms of threats includes theft, damage, copying, Forms of threats includes theft, damage, copying, –– Forms of threats includes theft, damage, copying, Forms of threats includes theft, damage, copying, unauthorized access to information, natural unauthorized access to information, natural disasters of accidents, etc.disasters of accidents, etc.

–– The most common forms of security threats to ERP The most common forms of security threats to ERP are those made possible because of computer are those made possible because of computer technology, including attack of electronic entry technology, including attack of electronic entry through some form of tapping or hacking.through some form of tapping or hacking.


––There are two aspect of security are critical There are two aspect of security are critical

to ERP.to ERP.

––One aspect concerns the quality of data One aspect concerns the quality of data

generated and housed on the ERP.generated and housed on the ERP.

––Data warehouses provide tools to ensure Data warehouses provide tools to ensure

data quality.data quality.data quality.data quality.

––The other aspect is control over who can The other aspect is control over who can

access data.access data.

––The ability to maintain ERP security in a web The ability to maintain ERP security in a web

environment is mandatoryenvironment is mandatory


Business Process Business Process

Reengineering Reengineering “Business process reengineering is the

fundamental rethinking and re-design of fundamental rethinking and re-design of

business processes to achieve dramatic

improvements in critical, modern measures of

performance such as cost, quality service and

speed “

�Dr. Michael Hammer

•• IntroductionIntroduction––BPR means not just change BPR means not just change -- but dramatic but dramatic

change and dramatic improvements.change and dramatic improvements.

––This is achieved by the overhaul (repair) of This is achieved by the overhaul (repair) of

organizational structures, management organizational structures, management

systems, job descriptions, performance systems, job descriptions, performance systems, job descriptions, performance systems, job descriptions, performance

measurements, skill development, training measurements, skill development, training

and most importantly, the use of and most importantly, the use of

information technology. information technology.


••Different Phases of BPRDifferent Phases of BPR1.1. Begin organizational changeBegin organizational change

2.2. Building the reengineering organizationBuilding the reengineering organization

3.3. Identifying BPR opportunitiesIdentifying BPR opportunities

4.4. Understanding the existing processUnderstanding the existing process4.4. Understanding the existing processUnderstanding the existing process

5.5. Reengineering the processReengineering the process

6.6. Blueprint the new business systemBlueprint the new business system

7.7. Perform the transformationPerform the transformation


1. Begin organizational change1. Begin organizational change–– The main activities in this step are:The main activities in this step are:

• Evaluate the current state of the organization

• Explain the need for change

• Illustrate the desired state

• Create a communications campaign for change

–– The first step is to take a long, hard look at how the The first step is to take a long, hard look at how the organization operates.organization operates.organization operates.organization operates.

–– The focus of this analysis is on the operation The focus of this analysis is on the operation procedures and the bottomprocedures and the bottom--line results that are line results that are generated by them.generated by them.

–– The purpose of performing the analysis to determine The purpose of performing the analysis to determine whether dramatic changes are possible by doing the whether dramatic changes are possible by doing the BPR.BPR.


–– There are different aspect that evaluated in first There are different aspect that evaluated in first

phase:phase:

• How things are currently done?

•What changes may be occurring?

•What new circumstances exist in the business

environment ?


2. Building the reengineering organization2. Building the reengineering organization

–– The major activities of the second phase are…The major activities of the second phase are…

• Establish a BPR organizational structure

• Establish the roles for performing BPR

• Choose the personnel who will re-engineer

–– In this phase, established an infrastructure that In this phase, established an infrastructure that –– In this phase, established an infrastructure that In this phase, established an infrastructure that

must be support reengineering efforts.must be support reengineering efforts.

–– Although this phase consists of only a few tasks, Although this phase consists of only a few tasks,

it has a great impact on the success of a BPR.it has a great impact on the success of a BPR.


–– There are some question that must be answered..There are some question that must be answered..

•Who are the people that will be enlisted to re-

engineer the business?

•What will their responsibilities be?

•Who will they report to?

•What will happen to the normal business

functions when the BPR is going on?functions when the BPR is going on?


–– In the reengineering effort the most important In the reengineering effort the most important members members

• Executive leader : they has the necessary authority to make people listen and the motivational power to make them follow.

• Process owner : responsible for specific process. Process owner allocating the responsibility of a process to a specific person.

• Reengineering team : reengineer the process of • Reengineering team : reengineer the process of process owner

• Steering committee : in larger or multiple reengineering projects, a steering committee can control the disorder by developing an overall reengineering strategy and monitoring its progress.

• Reengineering specialist (consultant) : they can be an helpful addition to the overall effort.


3. Identifying BPR opportunities3. Identifying BPR opportunities–– This phase consists of the following activities:This phase consists of the following activities:

• Identify the core/high-level processes

• Recognize potential change enablers

• Gather performance metrics within industry

• Gather performance metrics outside industry

• Select processed that should be re-engineered

• Prioritize selected processes• Prioritize selected processes

• Evaluate pre-existing business strategies

• Consult with customers for their desires

• Determine customer’s actual needs

• Formulate key process characteristics

• Establish key process characteristics

• Identify potential barriers to implementation 109by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

–– In this phase, organizer begin to break away from In this phase, organizer begin to break away from normal patterns of identifying business normal patterns of identifying business opportunities.opportunities.

–– Person start by dividing the entire organization Person start by dividing the entire organization into highinto high--level processes.level processes.

–– These processes are the major or core processed These processes are the major or core processed of the organization.of the organization.

–– There are different three categories, which is as There are different three categories, which is as –– There are different three categories, which is as There are different three categories, which is as under, that may lead dramatic changes in under, that may lead dramatic changes in organization’s processes.organization’s processes.

•Use of information

•Use of information technology

•Human factors110by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

4. Understanding the existing process4. Understanding the existing process–– The main activities of the fourth phases are:The main activities of the fourth phases are:

• Understand why the current steps are performed

•Model the current process

• Understand how technology is currently used

• Understand how information is currently used• Understand how information is currently used

• Understand the current organizational structure

• Compare current process with the new objectives

–– Basically in this phase, person has to know that Basically in this phase, person has to know that which process to rewhich process to re--engineerengineer


5. Reengineering the process5. Reengineering the process–– The major activities of this phase are:..The major activities of this phase are:..

• Ensure the diversity (range) of the reengineering team

•Question current operating assumptions

•Brainstorm (think) using change levers •Brainstorm (think) using change levers

•Brainstorm using BPR principles

• Evaluate the impact of new technologies

•Consider the viewpoint of stakeholders

•Use customer value as the central point

–– The actual “reengineering” begins in this phase.The actual “reengineering” begins in this phase.112by:-Assist. Prof. Vijay Vora (ERP : 2: ERP and related Technology) MCA-I(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)

6. Blueprint the new business system6. Blueprint the new business system–– The essential activities of this phase are as follow.The essential activities of this phase are as follow.

• Define the new flow of work

• Model the new process steps

• Model the new information requirements

• Document the new organizational structure

• Describe the new technology specifications

• Record the new personnel management systems• Record the new personnel management systems

• Describe the new values and culture required

–– Blueprints are detailed plans required to build Blueprints are detailed plans required to build something in accordance with the designer’s something in accordance with the designer’s intentions.intentions.

–– In BPR, blueprints must be created to identify all the In BPR, blueprints must be created to identify all the necessary details of the newly reengineered business necessary details of the newly reengineered business system and ensure it will be built as intended.system and ensure it will be built as intended.


7. Perform the transformation7. Perform the transformation–– The activities of the last phase are..The activities of the last phase are..

• Develop a migration strategy

• Create a migration action plan

• Develop metrics for measuring performance during implementation

• Involve the impacted staff• Involve the impacted staff

• Establish the new organizational structures

• Evaluate current skills and capabilities of workforce

•Map new tasks and skill requirements to staff

• Re-allocate workforce


–– Now all are ready to transform the organization.Now all are ready to transform the organization.

–– Organizers have communicated, developed Organizers have communicated, developed

strategies, analyzed, restrategies, analyzed, re--engineered, and engineered, and

blueprinted their idea for the new process.blueprinted their idea for the new process.

–– This is where all of the previous efforts are This is where all of the previous efforts are

combined into an actual business system thus combined into an actual business system thus

enabling the business to meet the market enabling the business to meet the market enabling the business to meet the market enabling the business to meet the market

demands today and tomorrow.demands today and tomorrow.


(By:(By:--Assist. Prof. Vijay L. Vora ) (SOOADM MCAAssist. Prof. Vijay L. Vora ) (SOOADM MCA--III) 2011III) 2011(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)(Murlidhar Group of Institutions, Bhavnagar Road , Rajkot) 116

Material available on web atMaterial available on web atMaterial available on web atMaterial available on web athttp://mcastudent.wordpress.com/material/erp/http://mcastudent.wordpress.com/material/erp/

Unit 2 ERP and related Technology · (Murlidhar Group of Institutions, Bhavnagar Road , Rajkot)...

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