Company E-Business Comparison - Research Paper Example

 Company E-Business Comparison Introduction Enterprise resource planning refers to the manner in which data is interlinked within various departments e.g. account management, client management, production and sales to ensure success in the company (Schatz, Egri & Sauer, 2011). Computer applications enable the automaticity of this complex process and hence ease the process of information transmission through integrating hardware systems and pre-existing database systems. This leads to effective ways in which timely information is delivered to people within the company and also other beneficiaries outside the company. Key components of enterprise resource planning include customer relation management, selling chain management and e- procurement (Schatz, Egri & Sauer, 2011). Various organisations apply these concepts differently thus leading to differences observed between their ERP. Customer Relation Management Customer relation management refers to mainly focuses on how a company relates to its clients. It entails the infrastructure within a company that are geared towards the promotion of sales and improvement of client satisfaction derived from utilisation of their services or goods. The principle is to increase the client base by employing ways that attract more clients while still retaining the loyalty from those that were already present. Moreover, the company employs means to cut down of the promotion and production costs (Chorafas, 2001). Customer relation management has numerous advantages, which would be experienced by company B, which integrates it into their system. To begin with, when this process is efficiently implemented it leads to the growth of the customer base which subsequently leads to an increase in sales thereby the profit margins of company B will be greater than for company A. Moreover, it creates a direct link with the customer thus establishing a lasting rapport that is essential for business. In addition, the company B will be equipped with better information about the clients than company A and, this will affect the process of production and marketing. Consequently, the products and services offered by company B will be of higher value than those produced by company A since their production will be aimed at customer satisfaction. In overall, implementation of this process will make company B more competitive as it gives it a cutting edge above company A as it attracts a bigger share of the market (Chorafas, 2001). Though the implementation of this process is of benefit, there are a variety of challenges that it possesses. To begin with, this process requires the input of professionals so as to execute efficiently. Moreover, the development of complex networks may impair the proper functioning of the system since some may be neglected and render the whole system ineffective. Therefore, the functioning of an effective customer relation management system is advantageous. However, it should be operated by skilled personnel for effectiveness (Chorafas, 2001). Sell Chain Management Sell chain management refers to the processes involved in ensuring secure and timely delivery of products to the client. It promotes flexibility in the production process and leads to outsourcing of products and services. This means that there is delegation of managerial responsibilities during service delivery and, hence multiple companies are involved in the process of product delivery to the customer (Zigiaris, 2000). The implementation of effective sell chain management systems within a company is crucial so as to compete effectively with the concept of a diverse market following globalisation. Company B, which employs the sell chain management process will benefit by reaching a larger and diverse market while sharing managerial responsibilities with the other players within the network. This will foster efficiency within each player and hence the overall output from Company B will be better than company A due to the effect of specialisation employed (Zigiaris, 2000). However, there are some challenges that Company B will face as a following the implementation of this process. Firstly, it may not be easy to find companies to outsource from which are strategically located so as to ensure effective product or service delivery (Zigiaris, 2000). Moreover, the dynamic nature of the information tariffs globally may globally change the landscape of these business associations. E-Procurement E-procurement refers to the business activities that employ the internet. This process requires the utilisation of electronic applications. Effective e-procurement systems link companies with their business partners. The most significant link is to suppliers and hence fosters possible negotiations on costs and takes care of any issues arising from transactions. An effective e-procurement system should be able to evaluate prices and result in optimum output from the supplier (Chorafas, 2001). Company B will benefit from the application of this procurement process as it ensures organisation of data for the company thus data required can be easily retrieved. This simplifies the process of coming up with decisions for the company. In addition, these processes occur as prepared copies that are filled in a similar way hence ensuring uniformity of data collection within the company. In addition, the uniformity plays a crucial role in monitoring and keeping track of business transactions. Effective application of this model will also help to avoid the cost of inventory for company B (Chorafas, 2001). On the contrary, there are various challenges that Company B will experience. It requires the input of time, manpower and money to implement effectively and hence a deficiency of either of these parameters will lead to a collapse of Company B. Moreover, the results may manifest after a long time and hence patient should be observed by company B so as to realise the input of the resources utilised and this can be frustrating (Chorafas, 2001). Reference List Chorafas, D. N. (2001). Integrating ERP, CRM, Supply Chain Management and Mmart Materials. Auerbach: CRC Press. Schats, A., Egri, P., & Sauer, M. (2011). Open source ERP. Stuttgat: Fraunhoffer. Zigiaris, S. (2000). Supply chain management. NY: McGraw Hill. Read More