International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856

Application Based Integration of CRM and SCM under E-Business Environment for Construction Industry
Prof.Sameer Jain1, Vinay kumar2 , Vikrant Deshmukh3, Vini Rawat4
1

Assistant Professor, National Institute of Construction Management & Research, Pune, India 2,3,4 STUDENT National Institute of Construction Management & Research, Pune, India

Abstract: In this we studied the Integration of Customer

Relationship Management (CRM) and Enterprise Resource Planning (ERP) based on e-commerce model is embedded in performance of information system integration. Carrying out the enterprise of various function and bringing the system comprehensive benefit in the full play is the only way to realize information technology in construction for more modern enterprise and it is a recombination of process management and technology. This system supports various links of SCM such as telecommunication, web, internet, extranet, intranet, e-commerce and variation of dynamic model of work flow part and integration of information processing program commands.

Keywords: CRM, ERP, SCM, Integration

1. INTRODUCTION
Earlier the enterprise used to dominate the markets on the basis of innovation and technology. The creative ideas used to make enterprises grow, but as the time changed new innovation roped in leading to increase in competition for the customer base breaking the monopoly of large enterprise and slowly ends their rule, opening the customers bay to varied products and their customization according to their needs. The involvement of the consumer feedback and their needs increased innovation with in enterprises so that they reduce the costs and provide more innovative and efficient product. This led to the development of the enterprise creating various departments within the enterprise and also subsidiaries of the enterprise in varied geographical locations. Due to such need of the consumers and wide spread department there was a need to maintain a proper database for the information leading to the development of an Enterprise Resource Planning (ERP) system. It is a database which collects the information regarding Finance, Logistics, Sales, Production, and Project Management etc. and stores it in system at one place reducing the issues of access in information of other department, different database, and regular updates. Such system helps in creating a relation between enterprise, enterprise department, customer needs and their feedback. Thus the integration of enterprise to the consumer base and their need leads to Customer Relationship Management (CRM) and their integration with the ERP. Due to this integration, various information is collected from Volume 2, Issue 4 July August 2013

different location about the customer need and wants, the regular update in the system helps in carrying the information to different department of the enterprise. Such continuous communication leads development of enterprise with huge customer base to cater, which leads to increase in demand of the enterprise for efficient and cost effective supply of the raw materials leading to efficient supply chain i.e. real time exchange of information creating a need for integration of Supply Chain Management (SCM) to the enterprise through ERP. The information updates were made in the ERP through cyclic updating technique in which it was difficult to make real-time updates due to which there were problems and hindrance in carrying out difficult decisions. In the construction industry where the sites are far away from the client and suppliers it was difficult to carry out real-time decisions about various issues. So there is a need for a real time updating could be possible through application based integration of the CRM and SCM with the help of application systems

2. Traditional ERP systems:

ERP system is computer software which helps in the integration of various departments in the enterprise i.e. mapping all processes into a comprehensive integrated structure. ERP is defined as comprehensive, packed software solution that seeks to integrate the complete range of businesss processes and functions in order to present a holistic view of the business from a single information system (Klaus et al. 2000). In the construction (project) industry it was essential to join various departments with the head office so that there is smooth functioning of the project with every department understanding scheduling their work in conjunction with other department, thus reducing misunderstanding and delays in the project. The traditional ERP system is classified into on-premise and hosted ERP. On-premise ERP is the licensed model in which software is loaded on servers and in-house computers. The organization controls all the infrastructure and platforms, handles all maintenance and absorbs all costs of maintaining the servers, space required and disaster recovery systems. While in the hosted ERP systems in which the ERP servers are somewhere else and the services are provided to Page 284

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856
organization. In this these services are provided through a direct network connection. Thus there is a requirement of the systems to integrate with each other in-order to achieve business resource sharing and unified deployment of the various resources according to the customer demands. Customer Relationship Management (CRM) management system is aimed at improving the relationship between enterprise and customers. The CRM is working on the principles of the satisfying the customers of the enterprise through relationship development, proper timely maintenance of the product, satisfying timely needs and wants of customer and also timely completion of the project or product for the customers. Thus we could say that CRM is more concerned about markets (sales forecasts, sales strategies and marketing campaigns). Supply Chain Management (SCM) management system is the control of the supply chain as a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management does not involve only the movement of a physical product through the chain but also any data that goes along with the product (such as order status information, payment schedules, and ownership titles) and the actual entities that handle the product from stage to stage of the supply chain. There are essentially three goals of SCM: to reduce inventory, to increase the speed of transactions with real-time data exchange, and to increase revenue by satisfying customer demands more efficiently. 3.1 Limitations before integration: The customer relation management (CRM) focuses on the customer satisfaction. Before the integration of the ERP with that of CRM, the complete data analysis of the customer profile was not possible with the ease. The stored data which was outdated and stored in the database is only displayed. The correct information about the existing customers and also the information of the new customers was not possible as the stored data was need to be updated and the update was not done on frequent basis as the extra manpower was required for such types of job. Consider that there is a database of different vendors and after a period of times the details of these vendors may get changed. But since this is not updated in the database the correct information cant be tracked out and if there is huge number of database, it not possible to update these data a single stroke of sitting. Because of this the front end system without integrating ERP with that of the CRM was not possible. For this purpose the integration module i.e. integration of ERP and CRM, appears to resolve this issue. With development of various technologies, it becomes possible that make a list of satisfied customers. The companies are waking up to the fact they can create wealth by working with the business partners in distribution chain and with consumers to reduce the cost and cycle time of the product and to provide better order tracking information to the customers as the delight of the customers is the key to the success of a business. Page 285

Fig.1.a: Traditional Enterprise System.

Fig.1.b: Traditional ERP system In the above figure we can see the traditional systems of the organization where we can see that every aspect of the organization is segregated in form while ERP has combined every internal aspect of the organization with each other in order to increase the efficiency and interdependency all the departments within themselves.

3. Integration with ERP, SCM, CRM:

In the earlier days of the ERP systems there were standalone systems like Financial, Manufacturing, Human Resource, Material Management and Production Planning. Slowly then there were technologies like CRM, SCM etc. which began to integrate with the ERP interface/systems in order to improve efficiency and effectiveness of the systems. ERP, SCM and CRM are independent systems, fragmented nature of these information systems is not conducive to the coordination of the corporate resources and seriously affect the response rate due to which it is difficult to form long-term sustainable competitive business advantage.

Fig.2: Three Independent Systems Volume 2, Issue 4 July August 2013

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856
3.2 Benefits after Integration: The ERP system only with CRM and SCM together would form a closed loop system that would customize the system for the enterprise increasing the efficiency in terms of stock reduction, resource utilization etc. and effectiveness in terms of service level, timeliness etc. and would greatly increase the help in the decision making for the business process. Immediately after integration the system would become interactive /simulative and real time along with integrated control with bottoms-up approach for paradigm. Analytical tools are necessary to decide on tactical moves by modeling upstream activities. Real-time information would provide accurate appreciation of such activities, as well as downstream sensitivity to changes taking place upstream. In order to operate along a critical path, one must program the different phases of an integrated solution, aiming to reduce mismatch risk at early stages by identifying key items that must be targeted and by following their progress through the pipeline. Such targeting is necessary to guarantee timeliness, quality of product, and cost-effective implementation. Successful integration requires firm management of internal resources, hence ERP chores, and it must provide the assurance that numerous suppliers will adhere to schedule deadlines. 1) Adapting the business application program interface (BAPI) Under this user can apply the ERP system through browser, email exchange and user can take this software module to mix and match with the non ERP software for application as well. 2) User can renew any module according to his or her requirement but it unnecessary to upgrade the system in order to enhance a certain function. So user can apply the method of renewing the module one by one to enhance the function of the system with no necessity of renewing whole system.

5. Application Systems Model:

In todays competitive markets ERP plays an important role in the organizational competition, as it integrates dispersed organizational systems and enables flawless transactions and production. ERP vendors generally provides an single ERP system which is unable to satisfy various criticalities of enterprises, so there is a need of integration of various modules with an ERP system in order to help the enterprise to achieve higher level of integration and improve customer relationships and the supply chains overall efficiency and meet various B2B demands. This integration is an application based integration which constitutes the three tier architecture of the application system. In this system direct web services are used for the real time updating in context of the ERP integration system, that describes a set of modular applications that can be accessed within a network(e.g., the internet, an intranet, or extranet) through a standard interface, typically XML(Extensible Markup Language). Application systems are an attempt to connect disparate systems and resources together via universal language and framework.

4. Dynamic approach for Enterprise System

Dynamic model is modeling of processes over time. In this new attributes are computed as a function of attribute changes over time. It is a model which is used to represent the internal states and changes of software. Responsibilities of Presentation Layer Collection information from the user Sending user information to the business server Receiving the process result from business server Display the process result and sending it to the user business user service Receiving the entering from the operation The design business is interactively executed with the data. Responsibility of data server Layer Data Storage Data Acquisition Data Maintenance Data Completeness The intelligent inter workflow part plays important role in interactive corporation among the person who is involved in the project. Through re-building, the work flow part in service management, professionals involved in system, staff, supplier, partner who closely cooperate with each other to work together matching with flowchart design to perform service flow path reconstruction selfadaption to the enterprise. Under this the system, modeling consists of two featuresVolume 2, Issue 4 July August 2013

Fig.3: Three Tier Application Model

(Source: Web Application Design Handbook, Susan L.Fowler)

In this three tier architecture of the web application. In the presentation layer the user interaction takes place. The user enters the address in the web browser and in the browser the URL is decoded into protocol/host/file, i.e. host name converted to IP address. Then an issue request is sent to remote server using appropriate protocol (usually HTTP). Also a returned HTML from the logic tier might be accepted. In the presentation layer interaction with client side scripts (e.g. using DHTML) is supported and user inputs of variety controls on the form are accepted.

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International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856
In logic tier the applications functionality carries out detailed processing of data from presentation layer. Server such as Apache (or IIS) or Server Script (such as PHP) can be used to support this. With Server (Apache or IIS) the appropriate action to be taken is identified, such as fetching a file, or passing request to an interpreter. Also it sends an output back to caller in MIME (Multipurpose Internet Mail Extensions) package. As such support for thousands for concurrent users, multithreading (allow multiple processor to run concurrently) and caching (holding results in a temporary store to reduce recalculation) is achieved. With Server script (example in PHP) interacting with server such as accessing input or generating input is done. It interprets the requests according to business rules and past transactions from this client, and requests appropriate data from the persistence layer. It also computes the derived data and creates HTML (or GIF) for the page. In Data tier consists of database servers. The interaction with the database is done using standard languages such as SQL queries using database specific protocol over TCP/IP. The data structures (for example tables) are defined and modified themselves, that insertion, updating and deleting of data for example. Data maintenance should be maintained with backup and recovered. Access to compilation of queries should be optimized, with indexing or replication of tables. The application systems (universal XML) helping business to integrate heterogeneous information systems, faster, more cost-efficiently and more uniformly than ever before. Because Web services and the internet are platform-agnostic, common integration issues across platforms are easier to overcome. client, and then translates the clients request into simple mail transfer protocol (SMTP) packets which are then sent to the mail server. The below figure shows about the functioning of the three tier application system where there has been communication:

Fig.5: Web based Three Tier Communication Environment.

(Source: Internet)

Then when the mail server completes the request an email message is sent by the senders e-mail client as the SMTP packet to the local mail server. Then mail servers message transfer agent next reads the packets destination address and sends it over the Internet to the receivers mail server. Then the destination mail transfer agent then stores the message in the receivers mail box. When the receiver next accesses e-mail, his or her user agent contacts the local mail server which then downloads the message to the receivers client computer.

6. Integration Model of CRM & SCM with EBusiness:

In this model three tier application system is used in which the user is able to connect with the systems using the web browser. The browser would act as user interface for the connectivity with the B2B systems. The EBusiness is connected with SCM and CRM using these application systems through firewall which would help the organization to stop unwanted user to access the data of the enterprise. These firewall would only allow authenticate users and systems to enter into the enterprise system.

Fig.4: Technical Communication Environment

(Source: Baseware Solutions, White Paper)

Business can expose business functions, services, policy data as web services, and tools on any platform and can use them with minimal effort. These application systems can treat any web service as if it were traditional relational data, joining live transactions to data marts, then output the resulting answer set as another standard web service to any web service-enabled application. The clients web browser sends an HTTP requests to the Web server. This is part of communication belonging to the presentation layer of the three tier architecture. Then the Web server sends an HTTP response to the Web Volume 2, Issue 4 July August 2013

Fig.6: E-Business (B2B) Model of CRM, SCM in Construction Project Page 287

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856
SCM uses Information to integrate external supplier and customers to the enterprise system. The business data obtained from the extranet i.e. through the complete supply chain is then passed to the system in order to process and validate through CRM requirements. This integration helps in satisfying cost effectiveness in Sales and Operation planning, Transportation and distribution, Strategic sourcing and procurement, Product Life Cycle Management which helps in improvement around inventory management, logistics operations, material management and manufacturing costs, including raw material and component acquisition for the construction (Project) industry. The real-time regulation in the application based Integrated System and CRM helps proper functioning of enterprise ultimately providing customer satisfaction by fulfilling his entire requirement within timely manner and also helps the organization to have perfect sales forecasting, sales strategies and marketing strategies so that they can find the appropriate requirements according to the capability of the enterprise so that it can have consistent completion of the projects on time increasing their market status. Such integration systems which leads to real time basis upgrading and updating helps enterprise to deal with various issues in timely manner. Thus, these streamlining processes with better design, better collaboration across networks and new services will help enterprises stay competitive and strengthen relationships with your customers. From, these responses we were able to comprehend that every enterprise need a system which is able to give them real-time access to the data and reports of other integrated department. 60% of officials were able to adjust, understand, and successfully implement integrated systems as compared to that of 25% of official who still persisted with individual model integration due to their incompetence or reluctance to change. 76% of external consultants which are hired by the client are extremely satisfied with the integration systems under e-business of CRM and SCM. Due to this integration most of their difficulties are satisfied with complete supervision over the projects progress. It also provides complete transparency within department. 70% officials think that due to integration the communication between the departments (internal) would be easy and the interdependency would increase due to which there would be increase in efficiency and effectiveness in work in the industry. Compared to unintegrated systems according to officials there is almost double the effective communication within and outside the enterprise. The easy usage and understanding of the integrated application system by user, effective and efficient communication within and outside enterprise, excellent coordination of external consultants with every department on various aspects for the execution of project from time to time would automatically increase the overall growth, efficiency and effectiveness of the enterprise by more than twice i.e. 80% of the officials thinks that integrated systems would increase the business process efficiency and effectiveness compared to that of enterprise where integration does not take place. But, about 90% of the officials think that it would not be possible to easily operate the system by any less qualified person compared to 10% before integration systems. So in order to maintain and operate the integrated system a qualified and educated person is need on the system so that we could extract complete benefit from integrated system. From these responses we were able to find that application based integrated systems under e-business environment would increase the efficiency of the enterprise to maintain transparency and effective communication between department, to avoid the misunderstanding and reduce delays related due to several individual systems.

7. Research Findings:
The significant finding in research includes a survey among officials at higher executive designation of different departments in construction (Project) industry. In this research five different aspects were considered which consists of further subsets of questions which were floated among these people and their responses regarding the system before integration and system after integration were noted. The aspects are under the following headings: A. CRM,ERP,SCM User's response B. External Qualified Consultant reviews C. Effective communication within and outside enterprise. D. Business process efficiency and effectiveness. E. User training and education

100 80 60 40 20 0 A B C D E Before Integration(% ) After Integration(% )

8. Conclusion
This study provides a framework for developing and evaluating integration processes which could help to reduce the response time for the ERP system from cyclic updating to real time updating in the data system which would help the enterprise to carry out critical decision on the real time basis. This study demonstrates the linkages between ERP, CRM and SCM using application based system, which helps to collaborate technology for the Page 288

Fig: 7: Finding- Percentage Vs Parameters Volume 2, Issue 4 July August 2013

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856
CRM (Customer), response time for the ERP system from cyclic updating to real time updating in the data system which would help the enterprise to carry out critical decision on the real time basis. This study demonstrates the linkages between CRM, and SCM under e-business environment using application based system, which helps to collaborate various functional areas together to achieve a desired goal of timely and qualitative work completion for any enterprise in the construction industry. This system also helps in real-time up-gradation and monitoring on various aspects of supply chain which help in decision making during critical times of project and also in satisfying the changing needs of the client (customer). Earlier ERP systems were developed for managing various business resources across various functional areas with in enterprise and are now slowly enhanced towards increasing scope, which requires coordination of interrelated activities so that every component of the ERP system helps enterprise to provide value to the customer on the cost effective basis. [9] Introduction to supply chain management, Designing and managing the supply chain management. [10] Sarvnandan S. Soni, Critical success factors in supply chain management at high technology companies, University of southern Queensland. [11] Henk. A. Akkermans, Paul Bogerd, EnverYucesanInsead&Luk N. Van WassenInsead The impact of ERP on Supply Chain Management: Exploratory Findings from a European Delphi Study. [12] Enterprise Applications: A Conceptual look at ERP, CRM and SCM, Hill Associates, Inc, 6/7/2006. [13] Md. RajibHasan and Mohammad Abdul Alim, Factors Affecting Supply Chain Management Efficiency in Cross Border Outsourcing: A case study of H&M and its Outsourcing Operations in Bangladesh [14] TommiKahkonen and Kari smolander, ERP Integration A systematic mapping study. [15] Henry Quesada, RadoGazo and Scarlett Sanchez, Critical Factors Affecting Supply Chain Management: A Case Study in the US Pallet Industry. [16] Dr. Ronald L. Meier, Dr. Michael R. Williams, and Mr. Rodger B. Singley, Supply Chain Management: Strategic Factors From The Buyers Perspective, Journal Of Industrial Technology Vol. 20, No. 2-Feb 2004 to April 2004. [17] Dimitris N. Chorafas, Integrating ERP, CRM, Supply Chain Management, and Smart Materials, Library of Congress Cataloging-in-Publication Data. [18] Bernhard Wieder, Peter Booth, Zoltan P. Matolcsy and Maria-LuiseOssimitz, The impact of ERP systems on firm and business process performance, Journal of Enterprise Information Management Vol. 19 No. 1, 2006 pp. 13-29. [19] The Dynamic model, www.sparxsystems.com.au [20] A knowledge driven consulting white paper, 2009 Hitachi Consulting Corporation, Six Key Trends Changing Supply ChainManagement Today Choosing the optimal strategy for your business. [21] Clare kaufman, Five things to consider when choosing ERP system. [22] AI-Imtiaz, 2Muhammad GolamKibria, Modules to Optimize the Performance of an ERP based Integrated Information System, IEEE/OSA/IAPR International Conference on Infonnatics, Electronics & Vision. [23] Mohammad A. Rashid, LiaquatHossain, Jon David Patrick, The evolution of ERP Systems: A Historical Perspective [24] Eduard Edelhauser, Gheorghe Buse, Product life Cycle management, The fourth enterprise application class. [25] Klaus, H., Rosemann, M. and Gable, G. G. 2000. What is ERP? Information Systems FrontiersVol. 2 No.2, 141-162. [26] Baseware Solutions, White Paper. Page 289

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[1] Matthias Meyer & Lutz M.Kolbe, Integration of customer relationship management: status quo and implications forresearch and practice, Journal Of Strategic Marketing 13 175198 (September 2005) [2] M.Caridi&A.Sianesi, SCM-ERP Integration: Organizational, Managerial, and Technological issues, 1st International Conference on systems thinking in management, 2000. [3] J.Michael Tarn, David C. Yen &Marcus Beaumont, Exploring the rationales for ERP and SCM integration Industrial Management & Data systems 102/1[2002] 26-34 [4] Himanshu Sharma, Dolly Lavania, Nidhi Gupta, ERP + E-Business =An emerging relationship, International Journal of Managing value and Supply chains (IJMVSC) Vol. 2, No. 2, June 2001 [5] Byron Clemens, TeutaCata and Gary Hackbarth, Mobile Device Considerations for Supply Chain and ERP Related Systems, Communications of the IBIMA Vol. 2012(2012), Article ID 151480, 16 pages, DOI: 10.5171/2012.151480. [6] Mohammad.J. Adaileh and Khaled. M. Abualganam, The role of ERP in Supply chain management, IJCSNS International Journal of Computer Science and Network Security, VOL.10 No.5, May 2010 [7] Aqua management consulting group, Five essential elements of integrated supply chain management, Aqua MCG Whitepaper. [8] Sock H. Chug, Hung-Lian Tang and Imtiaz Ahmad, Modularity, Integration and IT Personnel Skills Factors in Linking ERP to SCM Systems, Journal of Technology Management & Innovation J. Technol. Manag. Innov. 2011, Volume 6, Issue 1 Volume 2, Issue 4 July August 2013

International Journal of Emerging Trends & Technology in Computer Science (IJETTCS)

Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 4, July August 2013 ISSN 2278-6856 AUTHORS
Prof. Sameer Jain received the B.E (I.T), M.Tech (Embedded System and Design)(Gold Medalist),PGDITM(IT Systems), PGDIPRM (Patents, Copyrights, Trade- Marks) from the reputed Institutions in India. He worked for Public as well as for Private Sector .He worked for reputed Educational Institute in India and Involved in Teaching and Research Activities. He now with National Institute of Construction Management and Research, Pune Campus, India.

Vinay Kumar received the Bachelor of Engineering in Mechanical Engineering from V.T.U Belgaum in 2008. He is currently pursuing Post Graduate Program in Project Engineering Management (2012-14) from National Institute of Construction Management & Research (NICMAR). During 2008-2012 he worked in CTR, Ludhiana and UTPL, Howrah understanding its procurement process & vendor development.

Vikrant Deshmukh received the Bachelor of Engineering in Electronics & Telecommunication from RTM Nagpur University in 2008. He is currently pursuing Post Graduate Program in Project Engineering Management (2012-14) from National Institute of Construction Management & Research (NICMAR). During 2008-2012 he worked in Oracle Financial Services Software Ltd. (IT) and Sigma Transformer (Manufacturing) industry understanding its supply chain and customer relations during the complete project life cycle.

Vini Rawat received the Bachelor of Engineering in Electrical Engineering from RGPV Bhopal in 2010. She is currently pursuing Post Graduate Program in Project Engineering Management (2012-14) from National Institute of Construction Management & Research (NICMAR). During 2011-2012 she was a lecturer of Control system & Power system in IGEC Sagar (MP).

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