Deck 3.2

Enterprise Software: ERP, CRM, and SCM

ICT 110: IT for Business

Learning Objectives

By the end of this lecture, you will be able to:

✅ Define and differentiate between ERP, CRM, and SCM systems.
✅ Explain how these systems support core business functions beyond just marketing.
✅ Analyze the business value of integrating information across an enterprise.
✅ Identify real-world examples of enterprise software in the Nepalese context.

The Challenge: Business "Silos"

In a traditional business, departments often work in isolation.

The "Silo" Effect

📊 Finance has its own data.
⚙️ Operations has different data.
🤝 HR has separate records.
🎯 Marketing has its own customer list.

The Result?

❌ Inefficiency & Duplication
❌ Poor Decision-Making
❌ Lack of a single, unified view
❌ Wasted Resources

The Solution: Enterprise Software

Enterprise Software is a suite of integrated applications that an organization can use to collect, store, manage, and interpret data from many business activities.

Its goal is to break down silos and create a single source of truth for the entire organization.

Think of it as the central nervous system of a modern business.

1. ERP: Enterprise Resource Planning

ERP systems integrate all core business processes into a single system to manage and automate functions related to technology, services, and human resources.

Core ERP Modules

💰 Finance & Accounting: General ledger, accounts payable/receivable, budgeting.
💼 Human Resources: Payroll, employee records, benefits management.
⚙️ Manufacturing & Operations: Inventory management, production scheduling, quality control.
🔗 Supply Chain Management: Order processing, purchasing, supplier management.

ERP in Action: A Unified Business

How an ERP supports different departments with the same data:

Finance 💰

Real-time financial reporting
Automated invoicing from sales orders
Streamlined budget tracking

Human Resources 💼

Centralized employee database
Automated payroll based on time tracking
Recruitment and onboarding workflows

Operations ⚙️

Live inventory tracking
Automated purchase orders when stock is low
Efficient production planning

2. CRM: Customer Relationship Management

CRM systems are used to manage a company's interactions and relationships with current and potential customers. The goal is to improve business relationships to grow the business.

While ERP focuses on the internal processes (the "back office"), CRM focuses on the external, customer-facing processes (the "front office").

CRM in Action: A 360° Customer View

Sales & Marketing 🎯

Track leads and opportunities
Manage marketing campaigns
Analyze customer purchasing patterns
Personalize communication

Customer Service & Support 🤝

Manage support tickets
Access full customer history during calls
Track customer satisfaction
Build customer loyalty

3. SCM: Supply Chain Management

SCM systems manage the flow of goods, data, and finances related to a product or service, from the procurement of raw materials to the delivery of the final product.

Key SCM Processes

Plan: Demand forecasting and inventory planning.
Source: Identifying and managing suppliers.
Make: Manufacturing and production scheduling.
Deliver: Logistics, warehousing, and transportation.
Return: Managing product returns and reverse logistics.

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How the Systems Work Together

These systems are not mutually exclusive; they often integrate.

Example: A Customer Order

CRM: A salesperson records a new sales order from a customer.
ERP: The CRM sends the order to the ERP. The ERP checks inventory (Operations), updates financials (Finance), and schedules production if needed.
SCM: The SCM system uses the order data to manage warehousing, schedule the shipment, and track the delivery to the customer.

ERP vs. CRM vs. SCM: At a Glance

ERP

Focus: Internal Business Processes
Goal: Increase Efficiency
Users: Finance, HR, Operations

CRM

Focus: Customers & Sales
Goal: Increase Revenue & Loyalty
Users: Sales, Marketing, Service

SCM

Focus: Flow of Goods & Services
Goal: Reduce Costs & Delays
Users: Operations, Logistics, Procurement

Enterprise Software in Nepal 🇳🇵

Let's look at some local examples.

CG Foods (Wai Wai)

Uses ERP/SCM to manage a massive supply chain: from sourcing raw materials (flour, spices) to complex manufacturing schedules and distributing millions of noodle packets across the country and abroad.

Daraz Nepal

A great example of all three: SCM for logistics and warehouse management, CRM to manage millions of users and sellers, and ERP for financial consolidation and reporting.

Ncell / Nepal Telecom

Heavily relies on CRM to manage millions of subscriber accounts, billing information, customer support queries, and targeted marketing campaigns for different data packs.

Commercial Banks (e.g., Nabil Bank)

Utilize core banking systems (a type of ERP) for financial transactions, and CRM systems to manage client relationships, loan applications, and customer service.

Choosing the Right Software

There is no "one-size-fits-all" solution.

Key Considerations for a Business:

🔍 Business Needs: What specific problem are you trying to solve?
💰 Cost & ROI: Licensing, implementation, and training vs. potential gains.
📈 Scalability: Can the software grow with your business?
⚖️ Licensing: Proprietary (e.g., SAP, Oracle) vs. Open Source. Always ensure you are using legally licensed software to avoid legal and security risks.

Summary & Key Takeaways

⚡ Integration is Power: Enterprise systems break down departmental silos, creating a single, reliable source of data for better decision-making.
💼 Supports ALL Functions:
- ERP is the internal backbone (Finance, HR, Ops).
- CRM manages the customer relationship (Sales, Marketing).
- SCM optimizes the flow of goods (Operations, Logistics).
🎯 Business Value: The ultimate goal is not just to use software, but to improve efficiency, reduce costs, increase revenue, and gain a competitive advantage.

Thank You!

Any questions?

Next Topic: Web-Based Software and Mobile Applications

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