Sunday, December 6, 2009

'Collaborative Commerce': ERP, CRM, e-Procurement, and SCM Unite! A Series Study

In the early 90's, ERP came of age. Everyone had to have the functionality ERP packages promised. Since then, as Web and Internet technologies have matured, CRM on the front end, and e-Procurement and Supply Chain Management on the back end, have come into their own.

Now in 2001, the catchphrase is "Collaborative Commerce," where we unite all of the above elements into one coherent system within and between organizations. This is the Big Kahuna, the zero latency, fully transparent, 360 degree exposure that is the stuff systems integrators dream of. Is it here? Are the technologies mature enough? Simple enough?

This, the first of a series of articles on Collaborative Commerce (C-Commerce), examines what it is and can be. Additional articles in the series will look at the initial efforts of the leaders in this game; namely, the big ERP vendors, including SAP, J.D. Edwards, Baan, IFS, Oracle, and PeopleSoft.


Let's review the very high level attributes of both ERP and CRM systems, in order to set us up for evaluating the state of various vendor C-Commerce solutions.

ERP

Enterprise Resource Planning, which came into its own in the early 90's, is typically comprised of the following key high-level components:

* Manufacturing and Logistics

* Finances and Accounting

* Human Resources and Payroll

For a complete definition of the scope of ERP, please refer to the article: Essential ERP: It's Functional Scope.

ERP has extended backward, outside the organization through e-Procurement (electronic Purchasing) and Supply Chain Management (Distribution and Inventory Management).

CRM

Customer Relationship Management, which has followed on the heels of ERP and is just now coming into its own, can be thought of to comprise the following key high-level components:

* Sales Force Management (SFA)

* Enterprise Marketing Automation (EMA)

* Customer Interaction Center (CIC) - formerly called Customer Service; now with a broadened scope.

* e-CRM

* Field Force Automation (FFA)

* Professional Services Automation (PSA)

* Partner Relationship Management (PRM)

* Analytics


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