GHANA TECHNOLOGY UNIVERSITY COLLEGE

MSC. MANAGEMENT INFORMATION SYSTEMS

ENTERPRISE SYSTEMS GTUM06EKM

Group Assignment
Kwabena Twum-Barimah 05AG0915073
Seth Ampoma Brako 05AG0915166
David Abeku Fynn 05AG0915029

2nd October, 2015

PART ONE
Abstract
Customer Relationship Management (CRM) system (Injazz and Karan 2003), mentioned as a
technological system that uses the business processes in combination with the people and
technology to evaluate and understand the behavior of customers of a business. It is an
established fact that the difference in performance of businesses today is the best use of the
mix of technology and marketing strategies. The best marketing strategy requires knowledge
about customers and their behavior. Trends of customer behavior can be obtained with the
use of proper Customer Relationship Management (CRM) system.
The write up provided analysis on sources of CRM software through netsourcing and
categorize the software into three categories, namely high end, mid range, and inexpensive ranges. Secondly this work used relevant academic journal articles as point of
reference in evaluating the above mentioned categories of the CRM software using the
criterion such as System costs (hard-ware/software licenses), Business Intelligent
(Reporting), Contact & Account Management, Sales Management, Marketing
Management, Tele-marketing/Tele-sales (Internet), Customer Service, Data Integration,
Customizability, and Training & Support
Lastly, this work provided recommendations on systems requirements for a secured ERP
implementation. Here we looked at Server or Providers Side Security, Secured Connectivity, and
Secured Clients Systems.

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Table of Contents
PART ONE ...................................................................................................................................... 2
Abstract ......................................................................................................................................... 2
1.

Introduction ....................................................................................................................... 5

2.

Alternative Sources via Netsourcing ................................................................................... 6

2.1.

Market Shares .................................................................................................................... 7

2.2.

Customer Satisfaction ........................................................................................................ 7

3.

Evaluation of Alternate CRM Software ............................................................................... 8

3.1.

Evaluation Criteria .............................................................................................................. 8

3.2.

Analysis of Criteria for CRM Evaluation ............................................................................... 9

3.2.1. System Costs ...................................................................................................................... 9

3.2.2. Business Intelligent (BI)/Reporting ..................................................................................... 9
3.2.3. Contact & Account Management ....................................................................................... 9
3.2.4. Sales Management ........................................................................................................... 10
3.2.5. Marketing Management................................................................................................... 10
3.2.6. Tele-marketing/Tele-sales ................................................................................................ 10
3.2.7. Customer Service ............................................................................................................. 10
3.2.8. Data Integration ............................................................................................................... 11
3.2.9. Customizability................................................................................................................. 11
3.2.10. Training and Support ........................................................................................................ 11
4.

Recommendation on Systems Requirements.................................................................... 11

4.1.

Recommendation for Server or Providers Side Security .................................................... 12

4.2.

Recommendation for Secured Connectivity ...................................................................... 12

4.3.

Recommendation for Secured Clients Systems ................................................................. 12

5.

References ....................................................................................................................... 14

PART TWO ................................................................................................................................... 15

6.

Introduction ..................................................................................................................... 15

6.1.

Pros and Cons of Vanilla ERP Implementation .................................................................. 15

6.2.

Pros and Cons of Customized ERP Implementation ........................................................... 15

6.3.

Sales Order Process Module ............................................................................................. 15

6.4.

Pre Sales Activities ........................................................................................................... 16

6.5.

Sales Order Entry ............................................................................................................. 17

6.6.

Check Availability ............................................................................................................. 17

6.7.

Pick Materials................................................................................................................... 18

6.8.

Pack Materials.................................................................................................................. 18

6.9.

Post Goods issues ............................................................................................................. 18

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6.10. Invoice Customer ............................................................................................................. 18

6.11. Receipt of Customer Payment .......................................................................................... 19
7.

Sales Order Process Flow.................................................................................................. 20

8.

Conclusion ....................................................................................................................... 21

9.

References ....................................................................................................................... 21

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1. Introduction
Melcom Superstore is a chain of retail department stores which has over 10 branches in
Ghana, and is constantly on the lookout to expand to other countries in West Africa. To
improve on profitability, customer retention and loyalty in a challenging economy, Melcom
superstore is preparing to acquire Customer Relationship Management (CRM) software.

The acquisition of CRM software by Melcom is to make the superstore customer centric and
also improve CRM capabilities for their current and future businesses as it plans to expand to
other countries in the West African sub-region.

This study will first, analyze three alternative sources of CRM via netsourcing arrangements,
then it will evaluate these three providers of CRM using ten specific criteria to ascertain the
best option.

Lastly, we will recommend system requirements guidelines needed by Melcom to implement

a secured ERP solution for the best option after the evaluation of the providers.

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2. Alternative Sources via Netsourcing

The increase in number of service providers in the Internet Service Providers (ISP) spaces in
Ghana has improved the quality of service (QoS) and has also lowered the prices of Internet
services. Using the Internet, companies can have access to achieving IT infrastructures
which can support their ERP systems. (Shehab, Thomassin and Badawy, 2011, p1). The
lowering of prices and improvement of QoS has created opportunity for companies in Ghana
to source best in class software and systems to create world class companies via netsourcing.
Netsourcing is the practice of renting or paying as you use access to centrally managed
business applications, made available to multiple users from a shared facility over the Internet
or other networks via browser-enabled devices. (Kern, Lacity, &Willcock, 2002 p.1)
The netsourcing space provides business applications like CRM has a number of service
model options like software as a Service and Software onDemand
For the purposes of analyzing sources via netsourcing for Melcom Superstore to choose from,
this study will analyze three providers. The three vendors are Oracle providers of Oracle
CRM onDemand, Salesforces.com providers of Salesforce CRM, and SugarCRM suppliers of
SugarCRM. Oracle CRM onDemand, Salesforce.com and SugarCRM will be analyzed as
high-end, mid-range and inexpensive alternatives of CRM packages respectively.

Zoho.com in comparing the cost of the three CRM vendors for the same 20 users with its
CRM package indicates that Oracle CRM onDemand is the most expensive followed by
Salesforce.com, with SugarCRM being the least expensive.
Number of Users

20

Vendor

Annual Cost

Zoho CRM Professional Edition

$4,800

SugarCRM Professional Edition

$8,400

Salesforce Professional Edition

$15,600

Oracle CRM OnDemand

$16,800

Table 1. Cost of 20 user license for four CRM software compared

Source: www.zoho.com (September 2015)

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2.1. Market Shares

Oracle CRM onDemand is perceived to be relatively expensive compared to salesforce.com
and SurgarCRM, Gartner research shows that Oracle CRM market share is less than that of
salesforces. In addition the revenue growth of Oracle CRM onDemandis less than 5% from
2012 to 2013 as compared to that of Salesforce.com. Although SugarCRM is less expensive,
its market share and revenue growth is insignificant compared to the two vendors. Tables 2
below shows the CRM market share of Salesforce.com, Oracle and the others.

Company

2013 Revenue

2013
Share

Market 2012 Revenue

2012-2013
Growth (%)

Salesforce.com

3,290.3 16.1

2,525.6 30.3

SAP

2,621.5 12.8

2,327.1 12.7

Oracle

2,096.5 10.2

2,015.2 4.0

Microsoft

1,392.4 6.8

1,134.0 22.8

792.1 3.9

649.1 22.0

IBM
Others

10,283.5 50.2

9,351.2 9.9

20,476.3 100.0

18,002.2 13.7

Table 2 CRM Software spending by vendor, Total Software Revenue Worldwide, (Millions
of Dollars)
Source: Gartner (May 2014)

2.2. Customer Satisfaction

Customer Satisfaction measurement or assessment on a product or service on a market is
important as it provides a good sense of a fit to purpose and fit to use of the product or
service. Customer satisfaction for the three selected vendors was difficult to measure or
ascertain prior to this study. Mihelis and Grigoroudis (2001) argue that measuring customer
satisfaction offers an immediate, meaningful, and objective feedback about customer
preferences and expectations. We agree with this argument and prescribes that this exercise
be taken prior to making final decision on the selection of a software package.

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3. Evaluation of Alternate CRM Software

To realize a successful implementation of CRM software, business and IT executives should
implement CRM processes and technologies and also create employee behavior that supports
coordinated and more effective customer interactions throughout all customer channels. The
effectiveness of a CRM application can be measured as a satisfaction level achieved by CRM
activities (Kim et al. 2003).

3.1. Evaluation Criteria

There are several criteria one could choose to evaluate a CRM application. Friedrich,
Sprenger and Breitner (2010) argued that there are three major criteria for evaluating and
selecting CRM applications. The list below shows the major and the minor criteria:
A. Cost Criteria
1. System costs (hard-ware/software licenses)
2. Preparation and installation costs
3. Maintenance costs
4. Resources (consulting, internal)
5. Training and support
6. Upgrade costs
B. CRM Functionality Criteria
1. Business Intelligent (Reporting)
2. Contact & Account Management
3. Campaign Management
4. Call Center
5. Relationship Management
6. Field Service
7. Sales Management
8. Marketing Management
9. Lead/Opportunity Management
10. Customer Service
11. Tele-marketing/Tele-sales (Internet)

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C. Technical (Quality) Criteria:

1. Portability
2. Usability (user friendliness)
3. Data Integration
4. Customizability
5. Resources
6. Training & Support
7. Reliability & Robustness
8. Performance & Practicability
9. Security
10. Timeliness

The priority or weighting of the sub criteria will vary from organization to organization. In
the case of Melcom Superstore, the ten criteria selected below are used for the evaluation of
the CRM application for the purposes of this study.

3.2. Analysis of Criteria for CRM Evaluation

3.2.1. System Costs
Since the software will be rented (due to the nature of netsourcing) there will be no hardware
cost for the setting up of the software but Melcom will be paying license fees for each user
account. The license initial and renewal fees can be expensive and tricky from CRM vendors.

3.2.2. Business Intelligent (BI)/Reporting

The CRM application should be able to produce good report for management to plan and
make strategic decision. The business process should be well represented so that proper
analytics tools can be used. The BI functionality should be able to produce predefined & ad
hoc reporting. It must also list management, dashboard, alerts & alarms scheduling and realtime productivity monitoring.

3.2.3. Contact & Account Management

The application should be able to manage customer account and contact. Here we look at
contact profile, activity history, organization chart, business relationships, order entry, history
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& tracking, proposal & sales contract generation, internet account management, email
application integration, native calendar and multi-platform data synchronization.

3.2.4. Sales Management

Good CRM software should be able to deal with sales management activities without much
difficulty. Sales process capture and track progress whiles following up on leads and closing
sales. Sales pipeline management capabilities provide an aggregated view of all opportunities
by sales stage or potential close date.
Sales management comprises of many activities such as opportunity management,
forecasting, sales cycle analysis, sales metrics, activity reporting, mapping tools & territory
alignment and expense reporting.

3.2.5. Marketing Management

Marketing management represents the marketing strategy, process automation and
technologies required to integrate people, processes, campaigns, channels, resources and
technologies across the marketing ecosystem. The marketing ecosystem includes internal
marketing staff and external stakeholders to the company. The CRM application should
satisfy marketing needs such as campaign planning and budgeting, marketing event
management, marketing encyclopedia, literature fulfillment, database marketing and
customer retention.

3.2.6. Tele-marketing/Tele-sales
The CRM application should be able to do call planning, call list assembly, dynamic branch
scripting, call history & statistics, auto-dialing, productivity & performance analysis and
literature fulfillment. With this functionality, prospective sales deal can be reach without
customers physically moving to Melcom shops.

3.2.7. Customer Service

The whole objective of CRM is to manage customers. Customers can include not only those
who buy from Melcom, but also suppliers, partners, employees and investors of Melcom.
Now focusing on people who buy form Melcom, the CRM application should be able to do

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incident analysis, incident assignment & escalation, incident tracking, multiple issues per
incident and order tracking.

3.2.8. Data Integration

Data integration in CRM applications is not straight forward.

The challenge is that

companies implement multiple applications for a reason; each is designed to support the
needs of a particular user group to perform their specific tasks. Each of these systems has
different priorities, different data structures, different user interactions, and different levels of
importance to the business operations. The case of Melcom Superstore is no different from
these facts. There are already two application installed. The CRM application to be used
should make data replication, data synchronization and process integration levels easier. Each
of these levels has its characteristics, requirements, benefits, risks, and costs.

3.2.9. Customizability
One of the best criteria is the flexibility and customizability of a CRM application. Since the
Melcom Superstore has the capacity to grow and will have some dynamic operational needs,
it will be prudent to select the CRM with best methods for using Rapid Application
Development Toolkits, Multi-Platform SQL Database Support, Cross platform Data
Synchronization, Multi-level Security for Users and Data, Online Help System, Scalable,
Best Fit Database Platform For the Job and Real-time Integration with Other Applications.

3.2.10.

Training and Support

A good CRM vendor should have a strong team to training the users of Melcom Superstore
and provide support for the application. The training and support should include online
support team, online manuals and up to date online demo database for simulation.

4. Recommendation on Systems Requirements

Reasonable threat to implementing an alternative source of Enterprise Resource Planning
(ERP) via netsourcing is systems security. Hence it is important to have adequate security on
the provision of service via netsourcing.
The systems security to be considered by Melcom superstore should be holistic covering
server side, connectivity and client side in the provision and use of the ERP.
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4.1. Recommendation for Server or Providers Side Security

Since Melcom superstores database will be hosted by the CRM software provider, there is
the need to verify that the provider encrypts all sensitive data in the CRM database. The
encryption of the sensitive data like payment (credit/debit card) details, login credentials
(passwords), etc. will ensure unauthorized users do not have access to the sensitive data if
they should get direct access to the CRM database.
For reliability of systems at all times, Melcom must also ensures that the CRM provider has
adequate Disaster Recovery and Business Continuity Plans (BCP/DRP) that get tested
periodically. These plans should be reviewed and aligned to Melcoms BCP and DRP.
We also recommend that, Melcom ensures that the CRM package has an adequate audit trail
feature that will provide Melcom the ability to review any foiled or success security attacks
that may occur as they use the package.

4.2. Recommendation for Secured Connectivity

Since Melcom superstores will be using the Internet to access the CRM package in its offices,
it is important that the connectivity between the CRM package hosting provider and the staff
or client using the package is secured. A secured connection will prevent hackers to retrieve
clear data whiles data is in transit between the CRM provider and Melcom.
We recommend that Melcom uses a Virtual Private Network (VPN) connectivity between the
provider and Melcoms head office. The creation of a VPN, a secured tunnel over the
Internet, will ensure a secured data transmission from provider to Melcom superstore.
In addition Melcom should deploy Secure Socket Layer (SSL) for all users of the system who
utilizes the system via a web browser. The use of SSL will ensure that data being used by
staff or clients of Melcom is not compromised.

4.3. Recommendation for Secured Clients Systems

The advantage of an Enterprise Resource Planning like the CRM software is to have
customers and staff of the company to use the same software at the same time. To this extent
it is important that the CRM package has the feature of insolating the back office modules
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from the customer (front end) module. The front end module which is mostly rendered
through a browser should have SSL activated.
Cloud and mobile computing capabilities have extended accessing of software to smart
phones and tablets. The use of these devices to access corporate information has introduced a
number of risks including data loss. To prevent data loss and unauthorized access to backend
data of the CRM software on staff devices, we recommend that Melcom provides a secured
containerization for all devices that will be accessing the CRM package. This will ensure that
staff of Melcom uses complex passwords on devices (desktops, smartphones, tablets) and
also prevent data loss due to loss of devices, etc.

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5. References
Kern, T., Lacity, M. C., &Willcock L.P. (2002) Netsourcing: Renting Business
Applications and Servives over a Network. Upper Saddle River, NJ:Prentice Hall
Huyskens, C. &Loebbecke., LOEBBECKE, C., (2006) Determinants of Netsourcing: An
Empirical Evaluation. Journal of Information Technology Management. 17(3). p.1-7
Kern, T., Lacity, M., Willcock L. (2002) Application Service Provision: Risk Assessment
and Mitigation.MIS QuarterlyExecutive. 1(2). p.115 125.
Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y. &Malandrakis, Y.(2001)Customer
Satisfaction Measurement in the Private Bank Sector. European Journal of Operational
Research. 1. p.347-360
Kim, J., Suh, E. &Hwang, Y. (2003) A Model for Evaluating The Effectiveness of CRM
Using The Balanced Scorecard. Journal of Interactive Marketing. 17(2). p.6-14
Injazz, JC and Karen, P (2003) Understanding customer relationship management (CRM)
People, process and technology. Business Process Management Journal, Vol. 9 No. 5, pp
672-688
http://www.crmodyssey.com/Documentation/Documentation_PDF/Critical_Stepsto_Successful_CRM.pdf
Jonghyeok K et al. (2003) A model for evaluating the effectiveness of CRM using the
balanced scorecard. Journal Of Interactive Marketing Vol. 17 No. 2
Colombo, E., Francalanci, C., (2004) Selecting CRM packages based on architectural,
functional, and cost requirements: Empirical validation of a hierarchical ranking model.
Requirements Engineering. 9 (3). p.186 203
Friedrich, I., Sprenger, J., Breitnet, M.H. (2010) CRM Evaluation, an Approach for
Selecting Suitable Software Packages. MKWI 2010 Unternehmensberatungim ITUmfeld pp. p. 611 - 622
Farbey, B., Land, F., & Targett, D. (1999) Moving IS evaluation forward: learning
themes and research issues. In: Journal of Strategic Information Systems. 8(2). p.189-207

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PART TWO
6. Introduction
Project Managers are faced with the dilemma of balancing schedule and budget goals against
the benefits of customization in ERP software implementations. It has been found out (Jeffrey
W. Noyes, 2003) that, one of the most significant variables in determining project success is
the degree of customization done to the system.

The two implementation strategies; Vanilla (out-of-the box ) and Chocolate (customized)
ERP implementations all have some pros and cons for ERP implementation.
6.1. Pros and Cons of Vanilla ERP Implementation
Implementing a system without customization yields the most benefits and is the most cost
effective solution. The advantages of using a non customized implementation strategy include
lower costs, easier and less time consuming upgrades, and retaining full vendor support. The
disadvantage of this strategy is the company must make use of the default system processes
and functions and have little control over functionality.
6.2. Pros and Cons of Customized ERP Implementation
Customized ERP Implementation strategy gives users the chance not to depart so much from
their known process and procedures. The advantages of this strategy are that the software will
better meet the needs of the company and their unique processes and business processes.
Users will also not have major changes and therefore adjust to the new system more readily.
The advantages are that upgrading to a newer version of the software will be more time
consuming and expensive. Customizations may not readily be supported by the vendor and
customizing can cause delays in the project and possibly destabilize the software.
6.3. Sales Order Process Module
A sales function is responsible for negotiating sales conditions and distributing goods and
services to customers. The sales order process module has the following activities:
1. Pre Sales Activities
2. Sales Order Entry
3. Inventory
4. Pick Materials
5. Pack Materials
6. Post Goods issues
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7. Invoice Customer
8. Receipt of Customer Payment

The figure below shows the sales order process.

Figure 6.3 Sales order process (Source: The Rushmore Group, LLC, January 2007)
6.4. Pre Sales Activities
Sales Support is a component of sales and distribution that assists in the sales, distribution,
and marketing of a companys products and services to its customers. It contains the
following functionality:
Creating and tracking customer contacts and communications (sales activity)
o Phone call records
o On-site meeting
o Letters
o Campaign communication
Implementing and tracking direct mailing, internet, and trade fair campaigns based on
customer attributes

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Pre-sales documents need to be managed within the pre sales activities: Inquiries and
Quotations. These documents help identify possible sales related activity and determine sales
probability.
6.5. Sales Order Entry
Sales order processing can originate from a variety of documents and activities.
Customers contact the company for order through phone, internet, email etc.
Existing Contract.
Quotations.

The electronic document created contains the following basic information:

Customer Information
Material/service and quantity
Pricing (conditions)
Specific delivery dates and quantities
The sales order contains all of the information needed to process customers request, the
following information is determined for each sales order:
Delivering Schedule
Shipping point and route determination
Availability Check
Transfer of requirements to MRP
Pricing
Credit limit check
Shipping information
Billing Information
6.6. Check Availability
Availability check activity determines the material availability date and considers all inward
and outward inventory movements. It proposes three methods of delivery:
One-time delivery
Complete delivery
Delayed proposal

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6.7. Pick Materials

The picking process involves taking goods from a storage location and staging the right
quantity in a picking area where the goods will be prepared for shipping.

Depending on the picking procedure being used, you can either determine delivery-relevant
data before picking or wait until after picking is completed to record it. Delivery-relevant
data may be made up of the following:
Which batches a material is picked from
Which serial numbers are picked
Which valuation types the stock is taken from
6.8. Pack Materials
The Packing component and related packing information enables you to:
Update the stock situation of packing materials.
Monitor returnable packaging stocks at the customer's or forwarding agent's place of
business.
Find what was in a particular container (for example, if a customer maintains that they
have received an incomplete delivery)
Make sure that the weight and volume limits have been adhered to.
Ensure that products have been packed correctly.

6.9. Post Goods issues

Goods issues activity is the event that indicates the legal change in ownership of the products.
It reduces inventory and enters Cost of Goods Sold, automatically updates the General
Ledger (G/L) accounts, and ends the shipping process and updates the status of the shipping
documents. As soon as the goods leave the company, the shipping business activity is
finished.
6.10.

Invoice Customer

Invoicing represents the final processing stage for a business transaction in Sales and
Distribution. Information on billing is available at every stage of order processing and
delivery processing.
The invoicing activity includes the following functions:
Creation of:
Invoices based on deliveries or services
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 Issue credit and debit memos

Pro forma invoices
Cancel billing transactions
Comprehensive pricing functions
Issue rebates
Transfer billing data to Financial Accounting (FI)
6.11.

Receipt of Customer Payment

Payment is the final step in the sales order process. This step is managed by the Financial
Accounting department.
Final payment includes:
Posting payments against invoices.
Reconciling differences between payment and invoice.

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7. Sales Order Process Flow

Start

Pre Sales Activity

(Customer Enquiries)

Does Company deals

in the good/service?

Yes
Amend invoice

Sales Order Entry

(Generate Invoice)

No

Availability Check
(is product
available?)

Yes
Pick Materials

Pack Materials

No

Post goods issues

(are goods ok?)

Yes
Invoice Customer

Customer Payment

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End

No

8. Conclusion
To conclude we will state here that both vanilla and customized ERP implementations have
some pros and cons, therefore the management of the company will have to decide which of
the implementation strategy is best for them after the explanation given above.

9. References
Jeffrey W. Noyes (2003) The ERP Dilemma: Plain Vanilla verse Customer Satisfaction.

Motiwalla & Thompson (2012) Enterprise Systems for Management Instructors Manual.
Pearson Education, Inc. Publishing as Prentice Hall pp

Ashish K. D. and Om p (2011) A study of issues affecting ERP implementation in SMEs.

International Refereed Research Journal Vol. 2 , Issue 2, pp 77-85
,

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