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  • Subject Name : Business Management

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Table of Contents


1. What are CRM, ERP and EAI? Who are the major ERP vendors? Does your company use one of them?

2. What is an inter-enterprise IS? Does your company have one? Should it?


Reference List

Introduction to Businesses Management Processes

Businesses management processes have become easier, less time taking and sales effective with the use of different information systems and other technologies such as CRM, ERP, and EAI etc. The current study aims at discussing the impacts of these systems upon the process and customer management of Wal-Mart.

1. What are CRM, ERP and EAI? Who are the major ERP vendors? Does your company use one of them?

CRM can be referred to that technology that the businesses use in order to manage the relationships and interaction with the existing customers as well as with the potential customers (Broman & Lundin, 2017). It is purported to maintain all the business relationships. On the other hand, an ERP denotes Enterprise Resource Planning which is used by a company for managing the business processes (Krieger & Schorr, 2019). It is mainly software which is an integration of the applications helping in management of a business. It also automates different back office functions related technology, services and human resource. However, ERP functions in a different way than the CRM and ERP and it can be considered as a use of the services and technologies that are used across the organization that enables in integrating the hardware systems and software applications.

There are many ERP vendors that functions for the purpose of backing up the management functioning. The ERP vendors include Teradata SAP, Microsoft, Infor, IFS and others.

The chosen company Wal-Mart also includes ERP system in is management functioning in order to make the resource planning and other related functioning better. A highly flexible business function, proficiency in the processes, consistency in the information shared across the organization, and responses to the business issues is highly significant in the context of retail businesses. EAI is an architectural principles embedded computer system that integrates a set of computer applications (Chhabra & Suri, 2019). Therefore, Wal-Mart uses ERP system so that these functions can be achieved effectively. In this context, Wal-Mart’s biggest technology or ERP vendor is Teradata. Along with this, Wal-Mart also uses SAP system. The database in Teradata presents a set of systematic functions through which a range of management works can be accomplished. For instance, string handling, operations related to date and time, manipulation of byte and bit and others.

In simpler term, Wal-Mart follows a system called Retail Link data warehouse supported by Teradata which is its online warehouse. This platform is used by the organizational manager in order to share up to date information with the suppliers about the point of sale. Through the use of this retail link it can track more than 800 million transactions only in a day. Interestingly, it provides details about both on the stores and the items purchased. This Teradata product reduces the data center floor space by 50% and reduces energy consumption up to 40%. Different stats such as query performance, data scale and price per terabyte provides important information regarding the sales progress of the organization in each store which helps in modifying the management process in the organization and improves the sales.

2. What Is an Inter-Enterprise Is? Does Your Company Have One? Should It?

Inter-enterprise IS is a system through which an organization can solve issues among the workgroup information silos. It can be stated that the inter-enterprise IS is a system through which businesses interchange information and disclose operational progress with the other associates such as suppliers.

Wal-Mart does have an inter-enterprise IS namely EDI or Electronic data interchange. This system is mainly used in the context of procurement of the products (VitalSource Bookshelf Online, 2020). This system transfer data through internet and allows the suppliers of Wal-Mart to monitor the sales of the products. The organization should implement this system as this effectively regulates the goods procurement process so that the warehouse never runs out of stock. This is useful as it helps to support the customer demand with adequate supply of the required products. As influenced by Rantanen, Grant & Piotrowicz (2017), considering the effectiveness of this system it can be stated that the suppliers can fetch time to time information regarding each store. Therefore, it becomes clear for each of the vendors which product is needed to be sent in the distribution centers of Wal-Mart in which amount.

This system also helps Wal-Mart in creating a strategic and systematic framework that helps the suppliers to become aware about selling of goods and helps in preparing the product procurement. Especially, it can be stated that the EDI system helps to improve the connectivity and relationship with the vendors that enhances the efficiency of the supply chain. In spite of having the EDI system is difficult for Wal-Mart for managing and sharing information regarding all of its products as it offers more than 10 thousand products to the customers. As mentioned by Romero & Vernadat (2016), it is essential for the organizations to control the out of stock merchandises. In order to ensure efficiency in this area Wal-Mart has chosen a radio frequency identification system (RIFD). With the expansion of the business it is required to keep a track of the cargos that have been sent in various regions.

In addition, the maintenance of all the warehouses across the work is also a matter of concern for this current organization (Ortíz & Orengo, 2019). RIFD can deal with all the processes starting from production to sales with the use of a single chip. This chip can be tagged in all the items that allow the organization to apply the same in a wide manner. Application of this system has made it effective in managing the inventories and tracking them well. This system has been linked by the organization with POS and EDI systems. The interaction between these systems enhanced internal collaboration and supply chain has become more synergic.

The application of the new technology based RIFD system the organization has shared a long-term relationship with its suppliers and the vendors. However, it has been observed that most of the suppliers are not organization was not ready to adopt of the system of tagging the radio frequency to the products while shipping the products to the distribution house. Numerous meetings have been conducted by the Wal-Mart management with the suppliers; however, some of them were not supporting the idea. It is mainly because that they needed to incorporate new technology in the process and needed to arrange training program for their employees too (Krieger & Schorr, 2019). These are likely to increase the operational cost of the supplier organizations due to which the plan could not be applied to the whole system. However, the application of these inter-enterprise ISs having increased the company’s supply chain efficiency along with increasing its competitive advantages as well.

Conclusion on Businesses Management Processes

Therefore, it can be stated that the use of ERP systems such as SAP and Teradata has provided the organization Wal-Mart to develop effective relationships with the vendors and to track the purchase trends of the customer’s well which has improved the management of the process in terms of supply chain optimization and others. The inter-enterprise IS such as RIFD has improved the understanding of the suppliers of Wal-Mart about the product needs and optimized the shipping process of the products. This has also helped in maintaining long-term relationship with the suppliers that it essential for maintaining operational efficiency of the organization.

Reference List for Businesses Management Processes

Broman, J., & Lundin, P. (2017). CRM systems management and use: From retail stores perspective.

Chhabra, I., & Suri, G. (2019). Knowledge Discovery for Scalable Data Mining. EAI Endorsed Transactions on Scalable Information Systems, 6(21).

Krieger, R., & Schorr, C. (2019). A Reference Model for Product Data Profiling in Retail ERP Systems.

Ortíz Soto, M., & Orengo Serra, K. L. (2019). Factors Considered by Food Industry Retailers and Wholesalers in Purchase Intent for Foreign Products. Journal of Food Products Marketing, 25(5), 581-603.

Rantanen, J., Grant, D. B., & Piotrowicz, W. (2017). Investigating Supply Chain Cooperation in Finnish Grocery Retail. Research Journal of the University of Gdańsk: Transport Economics and Logistics.

Romero, D., & Vernadat, F. (2016). Enterprise information systems state of the art: Past, present and future trends. Computers in Industry, 79, 3-13.

Vargas, A., Cuenca, L., Boza, A., Sacala, I., & Moisescu, M. (2016). Towards the development of the framework for inter sensing enterprise architecture. Journal of Intelligent Manufacturing, 27(1), 55-72.

VitalSource Bookshelf Online, (2020). Using MIS 11th Edition Retrieved 14 June 2020, from https://bookshelf.vitalsource.com/#/books/9780135191941/cfi/6/258!/4/2/2/2/2@0:100

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