Enterprise Systems: ERP, CRM and SCM (Concepts, Modules and Benefits) Questions

Question 1

What is ERP?

Accepted Answer

**ERP (Enterprise Resource Planning)** is an integrated system that manages internal business processes (finance, HR, inventory, production, sales) using a common database.

Question 2

What is CRM?

Accepted Answer

**CRM (Customer Relationship Management)** is a system used to manage customer interactions in sales, marketing and service to improve satisfaction and retention.

Question 3

What is SCM?

Accepted Answer

**SCM (Supply Chain Management)** manages the flow of materials, information and goods from suppliers to customers to reduce cost and improve delivery.

Question 4

Write the full form of ERP.

Accepted Answer

**ERP** = **Enterprise Resource Planning**.

Question 5

Write any one benefit of CRM.

Accepted Answer

Benefit: CRM improves **customer satisfaction** by enabling faster and more consistent service.

Question 6

What is meant by a common database in enterprise systems?

Accepted Answer

A **common database** means all departments use a shared data source, so information is consistent and updated in real time (single source of truth).

Question 7

Explain objectives of ERP (any three).

Accepted Answer

Objectives of **ERP** (any three):
- integrate departmental processes (finance, HR, inventory, production) into one system
- provide **real-time** information for planning and decision making
- reduce **data redundancy** and improve consistency
- improve resource utilization and process efficiency
- generate standardized reports for management control

Thus, ERP supports integrated operations and better control.

Question 8

Explain common modules of ERP (any three) with brief points.

Accepted Answer

Common ERP modules (any three):
- **Finance & Accounting**: GL, budgeting, accounts payable/receivable
- **HR/Payroll**: recruitment, attendance, salary processing
- **Materials Management (MM)**: purchasing, vendor management, inventory
- **Production Planning (PP)**: scheduling, BOM, shop-floor control
- **Sales & Distribution (SD)**: orders, billing, delivery

ERP modules share data, so one activity updates related departments automatically.

Question 9

Explain benefits of enterprise systems/ERP (any three).

Accepted Answer

Benefits of enterprise systems/ERP (any three):
- improved **integration** and coordination across departments
- better **data accuracy** due to single database; less duplication
- faster reporting and better decision making (real-time dashboards)
- improved inventory control and process cycle time
- supports compliance and audit trail

Hence, enterprise systems improve efficiency and management control.

Question 10

Explain CRM and its components (any three modules).

Accepted Answer

**CRM** manages customer interactions to improve sales and service.

Components/modules (any three):
- **Sales force automation**: leads, opportunities, pipeline tracking
- **Marketing automation**: campaigns, segmentation, email/SMS
- **Customer service/support**: ticketing, complaints, call center history
- **Analytics**: customer profitability, churn, forecasts

Thus, CRM provides a 360° view of the customer and improves relationship management.

Question 11

Explain SCM and its key activities (any four).

Accepted Answer

**SCM** manages the end-to-end supply chain to reduce cost and improve delivery.

Key activities (any four):
- demand forecasting and planning
- procurement and supplier management
- inventory and warehouse management
- logistics/transportation and shipment tracking
- order fulfillment and delivery

Hence, SCM improves coordination from suppliers to customers.

Question 12

Explain any three success factors for enterprise system (ERP/CRM/SCM) implementation.

Accepted Answer

Success factors (any three):
- strong **top management support** and clear business objectives
- proper **change management** and continuous user training
- good **data quality** (data cleansing, master data governance)
- realistic project scope and phased implementation
- effective vendor/consultant support and proper testing

Thus, enterprise systems succeed when people, process and data are managed well—not only technology.

Question 13

Differentiate between ERP, CRM and SCM with a comparison table and examples.

Accepted Answer

### **ERP vs CRM vs SCM (Comparison)**

| System | Focus | Covers | Example |
|---|---|---|---|
| **ERP** | internal integration | finance, HR, inventory, production, sales | integrated accounting + inventory |
| **CRM** | customer relationship | leads, marketing, customer service | ticketing + sales pipeline |
| **SCM** | supply chain flow | suppliers, procurement, logistics, delivery | vendor + logistics tracking |

**Conclusion**: ERP connects internal departments, CRM manages customer lifecycle, and SCM optimizes supplier-to-customer flow.

Question 14

Explain benefits and challenges of ERP implementation with a table (exam-style).

Accepted Answer

### **ERP: Benefits and Challenges**

ERP improves integration, but successful implementation requires change management and disciplined data.

| **Benefits** | **Challenges/Limitations** |
|---|---|
| **integration** across departments | high cost (software + implementation + training) |
| real-time reporting and control | resistance to change by employees |
| reduced duplication; better data accuracy | complex customization and process standardization |
| better inventory/resource planning | poor master data can spoil reports |
| improved compliance and audit trail | project delays/scope creep |

**Conclusion**: With strong management support, training, and good data governance, ERP delivers long-term efficiency and control.

Question 15

Explain how ERP integrates business processes using a flowchart (order-to-cash example).

Accepted Answer

### **ERP Integration (Order-to-Cash Example)**

ERP integrates departments using a **common database**, so one transaction updates multiple functions automatically.

```text
Customer Order (Sales)
   ↓
Inventory Check (Stores)
   ↓
Production/Procurement if needed (Operations/Purchase)
   ↓
Delivery / Dispatch (Logistics)
   ↓
Invoice Generation (Finance)
   ↓
Payment Receipt (Accounts)
   ↓
Updated Reports (Management Dashboard)
```

**Exam points**:
- same data is shared across modules (no re-entry)
- improves speed, accuracy and coordination
- management gets real-time reports for control

Thus, ERP enables end-to-end process integration and faster decision making.

Enterprise Systems: ERP, CRM and SCM (Concepts, Modules and Benefits)

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