Current Developments and Diffusions in ICT: ERP, SCM, CRM

Current Developments and Diffusions in ICT: ERP, SCM, CRM

S.C. Lenny Koh (University of Sheffield, UK) and Stuart Maguire (University of Sheffield, UK)
DOI: 10.4018/978-1-60566-424-8.ch013
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Abstract

Although Boeing and Rolls-Royce are operating in the same aerospace industry sector and use ERP, but the ways that they implemented their systems are completely different. Boeing uses big bang and treats ERP as a system implementation, whilst Rolls-Royce uses phased implementation and treats ERP as a philosophy. Both companies experience different outcome as a result of their approaches. (Koh, 2006) Dell has a “build-to-order” business model that clearly integrates both supply and demand chains. That model has worked astonishingly well for Dell, its customers and its key suppliers. In fact, Dell could not do what it does if it designed and managed its supply chains and Customer Relationship Management (CRM) as separate technical entities. The “build-to-order” business value proposition demands an architecture that inherently integrates customers and suppliers. Yes, Dell has a “supply chain,” but it coevolves in the context of explicit customer demand. (Gunasekaran and Ngai, 2005).
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Although Boeing and Rolls-Royce are operating in the same aerospace industry sector and use ERP, but the ways that they implemented their systems are completely different. Boeing uses big bang and treats ERP as a system implementation, whilst Rolls-Royce uses phased implementation and treats ERP as a philosophy. Both companies experience different outcome as a result of their approaches. (Koh, 2006)

Dell has a “build-to-order” business model that clearly integrates both supply and demand chains. That model has worked astonishingly well for Dell, its customers and its key suppliers. In fact, Dell could not do what it does if it designed and managed its supply chains and Customer Relationship Management (CRM) as separate technical entities. The “build-to-order” business value proposition demands an architecture that inherently integrates customers and suppliers. Yes, Dell has a “supply chain,” but it coevolves in the context of explicit customer demand. (Gunasekaran and Ngai, 2005)

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Ict Developments And Diffusions Defined

ICT development can be defined as using combination of hardware, software, and network, the Internet and new concepts, to develop an information and communication system for information storing, retrieval, processing and sharing.

ICT diffusions can be defined as the uptake and wide spread of using ICT in certain context, e.g. in businesses.

These include the adoption of Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and Customer Relationships Management (CRM) systems in businesses.

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Enterprise Resource Planning (Erp)

In the 90s, ERP emerged as the most implemented, and sold as an enterprise solution to many enterprises across industry sectors around the world. Table 1 shows the applications of ERP around the world, as compared to SCM and CRM.

Table 1.
ERP, SCM and CRM applications
The global distribution of enterprise applications
ERPSCMCRMTotal
Latin America5%2%1%4%
Asia/Pacific Rim10%8%6%10%
Europe31%16%17%30%
North America54%74%76%56%
Source: adapted from AMR research, 1999

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