➢Explain Enterprise resource planning (ERP), how data is

managed, and how various information systems interact with

ERP
➢Learn about Data Lifecycle in ERP systems &Data Lifecycle in
CRM.
➢Understand Customer relationship management (CRM).
Definition:
Enterprise Resource Planning (ERP) is an integrated software system used by
organizations to manage core business processes such as finance, HR, procurement,
inventory, supply chain, and customer relations in a unified system.
Evolution:
•1970s: MRP (Material Requirements Planning) for manufacturing scheduling.
•1980s: MRP II included production and capacity planning.
•1990s: ERP systems emerged integrating finance, HR, and operations.
•2000s to Present: ERP systems expanded to cloud, mobile, and AI-driven platforms for
real-time decision-making.
•Example:
SAP and Oracle transitioned from on-premise solutions to cloud-based ERPs offering
global connectivity and advanced analytics.
➢ERP provide a solid, integrated back-end that
supports the company’s core functional
requirements. Modules typically include
financials and asset management, human
resources management, and, if applicable,
manufacturing. Increasingly, ERPs add CRM,
SCM, and many other applications to create a
“suite of suites.” For example, SAP’s Business
Suite offers adding artificial intelligence,
electronic document management, RFID and
barcode tracking, event management, product
design, and more.
➢ Streamlined Operations and Workflows: ERP automates and connects business processes across departments—
like finance, procurement, HR, and logistics—removing manual tasks and delays. Example: A purchase order
initiated in procurement automatically flows to accounting for payment and to inventory for stock updates—
saving time and reducing errors.
➢ Improved Data Accuracy and Consistency: ERP uses a centralized database, ensuring all departments work with
the same, up-to-date information—minimizing duplication and conflicting data. Example: If a customer updates
their address, it changes everywhere—in billing, shipping, and CRM—preventing shipment errors or invoice
mismatches.
➢ Real-Time Reporting and Analytics: ERP provides dashboards and tools for real-time monitoring of KPIs,
budgets, and performance, enabling fast and informed decision-making. Example: A CFO can instantly view
company-wide expenses by department, helping to make quicker budget adjustments.
➢ Better Compliance and Risk Management: ERP systems help organizations follow regulatory requirements
through audit trails, approval workflows, and access controls. Example: For VAT compliance in Kuwait, ERP logs
all transactions, making it easier to generate tax reports and reduce penalties during audits.
➢ Enhanced Customer Service through Integrated CRM: CRM modules within ERP store customer histories,
preferences, and support tickets—enabling personalized service and faster issue resolution. Example: When a
customer calls with a complaint, the service agent can see their full purchase and support history and respond
efficiently.
Aspect Traditional IS ERP System
Siloed applications by Centralized, integrated
Integration
department across departments
High (data repeated in Low (single source of
Data Redundancy
different systems) truth)
Limited, often batch Real-time data
Real-Time Access
updates availability
Custom apps per Customizable but within
Customization
department integrated framework
Often rigid and hard to Designed for scalability
Scalability
scale (especially cloud ERP)
Data Lifecycle Management (DLM) in ERP refers to the structured approach of managing data
throughout its entire lifecycle—from creation and usage to storage, archiving, and deletion—
within an Enterprise Resource Planning (ERP) system. In an ERP context, DLM ensures that
business-critical data is accurate, secure, and compliant across all functional areas like finance,
HR, supply chain, and customer management.
Phase Description ERP Example
Initial input or capture of data into Creating a new sales order or
Data Creation
the ERP system. employee record.

Securely storing transactional and Storing customer data in SAP HANA

Data Storage
master data. database.

Accessing and processing data for

Using real-time inventory data to
Data Usage operational or decision-making
trigger replenishment.
purposes.

Distributing data across modules or Finance, procurement, and logistics

Data Sharing
with other systems. sharing vendor info.

Moving inactive or historical data Archiving payroll data older than 5

Data Archiving
to long-term storage. years.

Secure disposal of obsolete or non- Deleting customer data per GDPR

Data Deletion
compliant data. after retention period.
1. Centralized Data Repository: ERP systems consolidate data from various departments (HR,
Finance, Supply Chain, etc.) into a single, unified database, eliminating data silos. Example: Sales and
inventory data are synced in real-time so that stock levels are automatically updated when an order
is placed.
2. Real-Time Data Processing: ERP systems allow for real-time data capture and updates, ensuring all
stakeholders access the most current information. Example: A warehouse manager sees updated
stock levels immediately after goods are received or shipped.
3. Data Standardization Data across departments is standardized to maintain consistency in naming,
formatting, and classification. Example: Customer IDs, product codes, or supplier information follow
a unified structure across the organization.
4. Access Control and Security: ERP systems incorporate role-based access controls to ensure that
only authorized users can view or modify specific data. Example: An HR staff member can access
employee records, but not financial reports unless permitted.
5. Data Validation and Accuracy Built-in checks help prevent data entry errors through validation
rules and dropdown lists. Example: A user cannot enter an incorrect product code or invalid date
format in the system.
6. Integration with External Systems ERP systems often integrate with CRM, e-commerce
platforms, or supplier systems to exchange data seamlessly. Example: An ERP connected with an
online store automatically updates product availability and order status.
7. Historical Data and Auditing: ERP systems store historical data and maintain logs of changes,
ensuring traceability for audits and performance reviews. Example: A finance audit trail tracks all
invoice modifications made and by whom.
8. Data Analytics and Reporting: ERP systems offer reporting dashboards and business
intelligence tools to analyze operational data for strategic decisions. Example: A CFO uses ERP
reports to forecast budget needs and monitor financial KPIs.

➢ These features ensure data within ERP systems is accurate, secure, and actionable—enabling
smarter, faster decision-making across the organization.
➢Operational efficiency refers to how well an organization uses its resources (time, money, people,
materials) to produce goods or deliver services. A company is considered operationally efficient when
it can maximize output while minimizing waste—including time delays, excess costs, or unused
resources.
• Increasing operational efficiency and business value is important to the overall success of an
organization. In order to increase efficiency and value, many organizations have turned to enterprise
resource planning (ERP) software to provide guidance on the processes and procedures that contribute
to success.
ERP systems help organizations improve operational efficiency in the following ways:
➢ Centralized database – Organizations create and consume many different types of data that
are generated from the internal and external operating environment
➢ Access to data – Most ERP systems are designed to be user-friendly and provide members of
the organization from upper-management to lower-level employees the ability to access and
interpret data
➢ Customizable – Many ERP systems allow for customization based on the structure and
objectives of the organization. ERP systems can be tailored to fit the unique needs and goals of
each organization. Why it helps: This flexibility ensures the system supports specific business
processes instead of forcing a one-size-fits-all approach.
 ➢ Shein’s ERP system is a key driver behind its fast, data-driven business model. It helps
streamline everything—from design and production to logistics and customer service—
making Shein one of the most efficient fast-fashion companies in the world. How ERP
systems help improve operational efficiency, using Shein—the fast-fashion e-commerce
giant as follows:
1. Improved Communication Across Departments: Shein uses ERP to connect its global design,
production, inventory, and logistics teams. When designers upload a new style, ERP instantly
updates purchasing and manufacturing departments, triggering fabric orders and production
schedules without delay. Result: Faster coordination from design to production reduces time-to-
market.
2. Real-Time Inventory Management: Shein's ERP tracks inventory in real time across global
warehouses. If a product is selling fast in the U.S. but slowing in Europe, the system can
automatically shift stock between warehouses or adjust production. Result: Lower storage costs,
fewer stockouts, and better demand matching.
3. Fast, Data-Driven Decision-Making: Using ERP dashboards, Shein’s managers monitor live
sales, customer behavior, and supply chain metrics. If a product isn’t performing, they can
quickly halt its restocking or launch promotions. Result: Agile responses to trends and more
accurate planning.
4. Automated and Efficient Order Processing: ERP automates Shein’s order-to-delivery
pipeline. Once a customer places an order, the system automatically selects the closest
warehouse, schedules packing, and triggers shipment through integrated logistics
partners. Result: Faster shipping and fewer manual errors in order fulfillment.
5. Optimized Production Schedule: Shein relies on ERP to coordinate small-batch
production. It continuously gathers customer data and feeds it into the ERP, which helps
schedule just enough production to test demand before scaling up. Result: Reduced
waste, lower overstock risk, and more accurate demand forecasting.
[Link] Savings – Streamlining Operations: Shein uses a unified ERP system to manage its
global operations—design, production, inventory, and customer service—all in one place.
Instead of using separate tools for each department, their ERP integrates everything into
a central platform. Result: They save on software licensing, reduce IT maintenance costs,
and eliminate manual processes like re-entering order or inventory data—leading to
lower operational costs and faster workflows.
Strategies for integrating ERP modules.
 Challenges with ERP Implementations

Challenge Description Real-World Impact

Expensive setup and
High Costs Budget strain
licensing
Complexity Long, multi-phase rollout Delays
Resistance to Change Staff reluctance or fear Slow adoption
Data Migration Errors moving old data Inaccurate info
Customization Limits Hard to upgrade later Extra costs
Tough to sync with other
Integration Difficulties Data inconsistency
tools
Training Gaps Staff lacks skills Operational errors
Poor Planning No clear roadmap Project failure
Challenges with ERP Implementations
Challenges with ERP Implementations
[Link] Marketing: Shein collects data on what users browse or add to their carts. Then, it sends personalized
emails with: Product recommendations Abandoned cart reminders Flash sale alerts. Result: Increases
conversion rates and keeps customers engaged.

2. Sales Force Automation: Although Shein is not a traditional B2B seller, it automates customer engagement:
AI-driven chatbots help with product inquiries Automated workflows track customer interactions and order
updates. Result: Customers get instant support and consistent messaging, even without human agents.

3. Customer Service and Support: Shein's CRM tracks: Order issues, Returns, Refund requests Through a
centralized system, service agents can view the entire history of a customer's orders and interactions. Result:
Faster resolutions, fewer complaints, and better customer retention.

4. Mobile CRM: Shein’s mobile app integrates CRM features like: Personalized product feeds Push notifications,
Order tracking. Result: Customers get real-time, mobile-first experiences tailored to their shopping behavior.
• Email marketing
• Sales force automation
• Customer service and support
• Mobile CRM
Stage Purpose Example
User sign-up on an e-commerce
1. Data Collection Capturing customer information
website

Salesforce storing customer

2. Data Storage Organizing and securing data
purchase history

Cleaning and structuring Removing duplicate records in

3. Data Processing
information banking CRM

4. Data Analysis Gaining business insights Netflix analyzing user preferences

Amazon sending personalized

5. Data Utilization Engaging customers
discounts

6. Data Retention Compliance & historical tracking Banks storing financial transactions

7. Data Deletion Secure disposal & compliance Google allowing users to delete data
The Customer Relationship Management (CRM) data lifecycle outlines how customer data is collected, stored, processed,
used, and eliminated within an organization. Managing this lifecycle effectively helps businesses enhance customer
engagement and optimize decision-making.
Stage Talabat Example
Collection User signs up and orders food
Storage Stores past orders and addresses
Processing Fixes duplicates and formats data
Analysis Identifies favorite foods, peak hours

Utilization Sends personalized discounts and alerts

Retention Keeps records for customer support and legal use

Deletion Allows users to erase their data upon request

➢ CRM systems provides service to many members of an
organization including sales, recruiting, marketing, and
business development.
➢ it offers the interface and methodology needed to
manage interactions with customers, create and maintain
relationships, and collect information about customers
➢ CRM software stores information about prospective,
current, and past customers including contact
information, purchase history, and even brand
preferences.
➢ this allows members of an organization to better
identify sales targets, document any product or service
issues, and create and manage marketing campaigns
Each time an interaction occurs, whether it is communication or a purchase, CRM
software records this information. Common types of customer data collected in a
CRM system includes:

➢ Identity data - this is also known as demographic data and includes the customer's
name, address, gender, date of birth, phone number, and email address
➢ Quantitative data - this refers to how the customer interacts with the business and
includes transaction history, online activity, customer service history, and inbound or
outbound communications
➢ Qualitative data - this refers to a customer's feelings and reasoning about a product
or service. It includes attitudes (ratings and perceived value), opinions, and
motivation (reasons for a purchase)
➢ Descriptive data - this is additional demographic data about a customer and includes
family status, lifestyle, education, and the customer's career
➢

➢
•

•
➢CRM relies heavily on data that is collected
from a variety of sources including point of sale,
e-commerce, social media, and email marketing.
➢The quality of this data impacts the overall
effectiveness of a CRM system. The analytics
that are provided by a CRM system are used to
help improve business processes and efficiency.
Analytics can also be used to help improve data
collection and processing
➢

➢
System Primary Focus
Manages customer
CRM interactions, sales, and
service
Manages internal
operations like finance,
ERP
inventory, HR, and supply
chain
 CRM Function How ERP Supports It
ERP processes the order, manages
Sales team closes a deal
inventory, and triggers invoicing

Customer service logs a product ERP updates inventory, processes the

return refund, and adjusts financial records

ERP provides product availability and

CRM captures a new lead
pricing for a quote

Example: Talabat- CRM handles customer orders, preferences, and support tickets. ERP handles
restaurant billing, delivery logistics, and financial accounting. Integration result: When a customer
places an order, CRM logs it, and ERP ensures the kitchen, rider, and payment systems are aligned.