- ERP and PLM systems
- CRM and SRM systems
Planning (ERP) and Product Lifecycle Management (PLM) are two critically important systems that enterprises use to manage their operations and product development processes.
Many have heard of Enterprise Resource Planning (ERP) systems, but Product Lifecycle Management (PLM) systems, which allow managing the product lifecycle, are not as widely known. It should be noted right away that product lifecycle management systems and project management systems are completely different. Projects always have a beginning and an end, whereas ERP and PLM systems are created as tools to help manage the operational activities of enterprises, which are always cyclical. Here we will try to briefly describe the essence of these systems.
Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) are two critically important systems that enterprises use to manage their operations and product development processes. Although they serve different purposes, integrating these systems can provide significant benefits, including increased efficiency, cost reduction, and expanded decision-making capabilities.
ERP Systems
ERP systems are comprehensive software solutions designed to integrate various core business processes into a single centralized system. They provide organizations with a unified view of their activities by including modules such as human resources, supply chain management, inventory management, customer relationship management, and more. ERP systems act as a centralized repository for all business data, facilitating seamless data exchange, data conflict resolution, and increased efficiency of business processes. Generally, ERP systems include systems such as Customer Relationship Management (CRM) and Supplier Relationship Management (SRM), as well as a human resources management system. Since they are often considered separate systems, we will talk about them separately. If a company is engaged in manufacturing, there will also be a production management module; if the company has its own transport logistics or is a transport company, there will be a transport logistics module. They are indispensable tools for managing everyday business activities such as accounting, procurement, project management, supply chain, and production.
PLM Systems
PLM systems are created to manage the entire journey of a product or service as efficiently as possible, starting from the concept, through mass production and operation, to decommissioning. These systems process all information and processes at each stage of the product or service lifecycle in global supply chains. They provide tools for managing data and processes related to development, production, support, and disposal of products. PLM systems optimize product development processes by integrating design, engineering, manufacturing, and service information into a single information environment.
Integration of ERP and PLM
Very often, a business that is in the stage of development and whose processes are not yet established and formalized, asks which information system needs to be implemented to make the business efficient, profitable, etc. At BIS TECH SOLUTIONS, we have good established practice in dealing with such requests. It is important to note the following aspects: the information system should be subordinate to the business and describe it, formalize it, not the other way around; every business is individual in its lower-level processes, and these processes require an individual information system. In most cases, the best result can be achieved by organic integration of different systems or their elements, which will create a unified information system that will be unique to the business. BIS TECH SOLUTIONS offers options for such solutions that significantly reduce the number of routine tasks, freeing employees from repetitive data entry tasks and allowing them to focus on more important business tasks that require skills. Despite the fact that ERP and PLM systems serve different purposes, their integration can bring significant benefits to enterprises. ERP systems manage day-to-day business operations, while PLM systems manage the entire lifecycle of a product or service. By integrating these systems, enterprises can increase efficiency, reduce costs, and expand decision-making capabilities, leading to increased productivity and profitability.
There are two widely known systems that are often considered to exist independently: Customer Relationship Management (CRM) and Supplier Relationship Management (SRM) systems. However, strictly speaking, these are subsystems of the ERP system.
There are two widely known systems that are often considered to exist independently: Customer Relationship Management (CRM) and Supplier Relationship Management (SRM) systems. However, strictly speaking, these are subsystems of the ERP system, since interaction with customers or suppliers exists within the enterprise and always interacts with all structural divisions of the enterprise itself. But since these systems manage two key business processes of almost any company, it would be fair to consider them separately.
CRM Systems
CRM systems are designed to manage a company’s interactions with current and potential customers. They help companies maintain not only the relevance of customer contact data but also track every interaction with them and manage customer accounts. This is vital for improving customer relationships and increasing Customer Lifetime Value (CLV). CRM systems are equipped with features such as contact and lead management, sales forecasting, and analytics based on information dashboards. These systems are flexible and scalable, allowing enterprises to better manage their key relationships, plan follow-up actions, and organize the next steps to be taken. This ensures that opportunities for closing deals or expanding customer accounts are not missed. Technically, CRM systems are a database of customers and events of the company’s interaction with customers, as well as an integrated regulation of the company’s business processes, which allows timely and operational management decisions based on key indicators of sales management business processes. Like any other enterprise information system, it allows increasing the productivity of processes through the automation of routine tasks.
SRM Systems
Managing interaction with suppliers is no less important than managing interaction with a customer. For example, losing a supplier can be a critical event for an enterprise, due to the uniqueness of the supplier’s product range or unique conditions of cooperation with this supplier. The Procurement business process at any enterprise is also key and requires special attention, as the cost of errors in this process can be very high. Like any other process at an enterprise, the Procurement process contains a large amount of data that must be systematized, and subprocesses must be manageable. SRM systems are designed to optimize the procurement process by applying modern tools at various stages of the procurement management process. These systems allow enterprises to classify suppliers depending on their importance and manage relationships accordingly. SRM systems aim to minimize risks and the cost of goods and services produced by the enterprise.
