Bandon Group Inc
Bandon Group Inc. is a company that was founded in 1953. This company has four divisions in four different cities in the USA. This company has organized its performance through the different tasks, being handled by every division. The main aim of the company today is to analyze and implement Informational Technologies in order to operate more effectively and efficiently. The main obstacle that the company struggles with is connected with the fact that data is not being integrated among different divisions. This results in high expenses and decreased effectiveness and profits. Therefore, management of the company has decided to organize data migration and its merger, network and technical support within the parallel personnel training. Thus, the Bandon Group Inc. is willing to implement ERP and CRP solutions in order to make its performance better.
ERP system is implemented in order to integrate all business units and all the necessary functions in a single computer system that will serve the current needs of these units. Typically, each unit has its own computer system optimized to attain its objectives. ERP system is a single database for all departments and tasks, to allow the easier access to information, and most importantly, the units are able to exchange information (Jutras, 2003). ERP automates the tasks embedded in the execution of business processes. Thus, when the manager receives the order from the client, he/she can operate with all information about the relationship with the customer and his/her credit rating. When one department finishes work with the order, it is automatically transferred to the next unit. This excludes multiple data entry errors, loss of documents, and other incidents. In result, a possibility of errors in the orders is very low and the order realization is done quicker. Additional opportunities arise for many other services – personnel services, production department, marketing department, supply services. The single database allows considering the relationship of the individual processes, such as, loading orders for the current month and the vacation schedule staff.
In such a way, Bandon Group is aimed to reduce difficulties and optimize the internal and external operations among the departments. For these purposes to facilitate redundancy and provide more effective and efficient support to customers to have competitive advantage in the market, it is appropriate to set the ERP system for Bandon Group Inc. Therefore, with the implementation of ERP system, Bandon Group will be able to solve its IT problems with integration and synergy. Additionally, customers will have the possibility to receive information on their telephones or though the web really fast, which creates additional competitive advantages for the company (Sumner, 2005). The feasibility of ERP system will help Bandon Group to trump its goals and improve its performance and, in result, receive higher profits.
CRM system (customer relationship management) is business strategy aimed at exploring and understanding the needs of existing and potential customers. Thanks to the full consolidation of customer information and interaction history, a plan is formed to attract and retain company’s customers, with the result that guarantees an increase in profits. Essentially, CRM system treats customers as the main asset of the company (Swift, 2001). The main purpose of its introduction in Bandon Group Inc. is to increase customer satisfaction by analyzing existing information on client behavior, regulation of tariff policy, setting marketing tools. Through the use of a centralized automated data processing, it becomes possible to efficiently take into account the individual needs of customers, and due to the speed of processing – to carry out early detection of risks and opportunities. Thus, implementation of ERP system, and CRM as its integral part, will help the company not only to increase its effectiveness, but also to create additional possibilities for company’s growth.
The ERP system is aimed to integrate all databases among departments and through this integration create one effective and quick database that can be easily used to increase customer satisfaction. CRM solution is effective only on the basis of the integrated database that can give comprehensive information about customers. Therefore, in order to receive the highest results Bandon Group Inc. should firstly come through the implementation of ERP system and then, after its successful launch, set the CRM solution.
SAP is the system that is often used as an alternative to the traditional ERP system with the integrated CRM. The special attraction of SAP solutions is the ability to use both finished standard business processes offered by SAP and settings on their own company-specific business processes and business scenarios simultaneously. This fully preserved integrity of the information flow is linking the whole supply chain and all financial transactions (Missbach, 2004). However, the SAP is oriented to perform management of the system through the process approach, which would not make great impact on Bandon Group Inc. SAP is more effective for the companies that are working in production sphere and do not have such ramous information system with nonintegrated databases.
Bandon Group Inc. can also start implementing process management, but its progress along the way will be limited and its management will quickly find out that any business process operates the business supported databases and enterprise systems. For example, if it takes over the process “from going to order” without the CRM-system (providing a functional competence), then after a while it will find that within BPM a project company is developing its own CRM-system (Sharp, 2003). BPM is mainly for those with ERP and CRM already in place, but without any successful results. The company can also start implementing Lean system. In this case, it can gain success at the unit level, but when it tries to extend this methodology to the company as a whole it will have problems.
Therefore, ERP with the integrated CRM is the best solution for Bandon Group Inc. This will create complex integrated databases with the additional possibilities to obtain more opportunities and increase the whole company’s performance level. This is proper decision for the company, because the ERP system is able to facilitate effective database control that will make transfer process uniform and united among all the company’s divisions and departments with all their multi-task orientation. The main advantage of the implementation of ERP with the CRM solution is the ability to decrease expenses in every level and create additional opportunities for the company.