Skip to content

Information Systems That Integrate Management Resources (CRM, SCM, ERP, Knowledge Management)

標準~36 min6 terms17 past questions

Goals of this unit

  • Explain what CRM and SCM each manage.
  • Explain that ERP is a system that brings a company's core business data together in one place.
  • Explain the thinking behind value chain management (バリューチェーンマネジメント), which looks for where added value is created, and knowledge management (ナレッジマネジメント), which puts knowledge to work across an organization.
Terms at a glance (6)
TermIn one lineWhat it handlesScope
CRMA management approach that keeps customer relationships going for the long term and turns them into revenueCustomer information and interaction historyCustomer-facing departments
SCMManagement that optimizes the whole supply flow from raw materials to the consumerGoods, inventory, and demand informationSeveral companies, business partners included
ERPA system that centralizes core business data so the whole company can make full use of its management resourcesInternal core business dataEvery department of the company
バリューチェーンマネジメントAn approach that sees business activities as a chain of value and manages where added value comes fromPrimary and support activitiesAll of the company's business activities
ナレッジマネジメントA management approach that shares individuals' knowledge and know-how across the organization and puts it to useEmployees' experience and know-howThe whole organization
SECIモデルA knowledge-creation model showing how knowledge arises as it cycles through four processesTacit and explicit knowledgeFrom individual to organization, and back again

Terms

CRM (customer relationship management) is a management approach that collects and analyzes information on each customer and raises satisfaction and revenue by keeping good relationships with them over the long term.

Customer-facing departments such as sales and support share each customer's attributes and purchase and inquiry history, then tailor proposals and responses to that person. The aim is not a one-off sale but being chosen by the same customer again and again. The total profit one customer is expected to bring a company over the whole time they keep buying is called customer lifetime value (顧客生涯価値), and growing it is one of CRM's goals.

AnalogyLike a neighborhood restaurant you visit often, where the staff remember your tastes and your last order and greet you every time you come in.

How to rememberR stands for Relationship. It manages the relationship with customers, hence CRM.

Exam points

  • ExamThe basic data CRM works with is each customer's attributes and purchase history.
  • ExamCRM rests on the idea that building and keeping good customer relationships is what produces profit, and it aims to maximize customer lifetime value (顧客生涯価値).
  • Mix-upCRM handles information from customer touchpoints, while SCM handles the flow of goods from raw materials to the consumer.

3 past questions on this term CRM

SCM (supply chain management) manages the flow from raw-material procurement through production and logistics to the consumer as one connected chain, business partners included, and optimizes it as a whole.

  1. Procurement
  2. Production
  3. Logistics
  4. Sales

Stores sell the products to consumers.

4 / 4

This chain of steps is called the supply chain (サプライチェーン), and it often spans several companies. When each company shares demand and inventory information, overproduction and stockouts fall and delivery times get shorter.

AnalogyLike farmers, wholesale markets, and supermarkets telling each other how much produce to expect, so vegetables reach the table with nothing left over and nothing running out.

How to rememberSupply Chain = a chain of supply. Every company from supplier to store is linked like the rings of one chain.

Exam points

  • ExamSCM does not stop at one company's walls: it shares information with business partners and optimizes the whole process from procurement to the consumer.
  • ExamSCM cuts excess inventory at each stage and shortens the time from order to delivery, so the right quantity can be supplied at the moment it is needed.

3 past questions on this term SCM

CRM vs. SCM

AspectCRMSCM
Key differenceWhat it managesRelationships with customersThe flow of goods from raw materials to consumers
Main information sharedCustomer attributes and purchase and inquiry historyDemand, inventory, and production plans
Intended outcomeCustomer satisfaction and long-term revenueLower inventory and shorter lead times

ERP (enterprise resource planning) is the concept and system for handling information from a company's core business operations (基幹業務) in one place, so that people, goods, money, and information are used optimally across the whole company.

  • ERP (shared database)
    • Production
    • Sales
    • Purchasing
    • Human resources
    • Accounting

Core business operations are the everyday work that underpins a company's activities. Data that each department used to keep in its own system is gathered into a shared database, so an entry made in one department shows up at once in the others' figures and the whole company reads the business from the same numbers. Ready-made integrated business software that does this is called an ERP package (ERPパッケージ).

AnalogyLike combining the household budget, the family calendar, and the fridge inventory list into one notebook, so everyone looks at the same page when deciding what to buy and how to spend.

How to rememberE stands for Enterprise. It deals with the resources of the whole company, not of one department.

Exam points

  • ExamERP integrates the whole enterprise rather than a few departments, and its aim is to use company-wide management resources without waste and run the business more efficiently.
  • ExamAn ERP package (ERPパッケージ) is ready-made software that handles several core business operations (基幹業務) together rather than just one.
  • Mix-upERP integrates a company's own core business operations (基幹業務), while SCM optimizes the supply flow across company boundaries.

3 past questions on this term ERP

SCM vs. ERP

AspectSCMERP
Key differenceScopeSeveral companies, business partners includedEvery department of the company
What it integratesInformation passed between companies along the supply flowInternal core business data such as accounting and HR
Intended outcomeOptimizing the supply flow as a wholeOptimal allocation of company-wide management resources

バリューチェーンマネジメントValue Chain Management

Open in glossary バリューチェーンマネジメント

Value chain management (バリューチェーンマネジメント) sees a company's activities as a chain in which value builds up step by step (the value chain, バリューチェーン), analyzes which activities create added value, and manages the whole on that basis.

  • Value chain
    • Primary activities
      • Inbound logistics
      • Operations
      • Outbound logistics
      • Marketing and sales
      • Service
    • Support activities (examples)
      • General management
      • Human resource management
      • Technology development

In this framework from Michael Porter, the activities that make a product or service, deliver it to customers, and support them afterward are primary activities (主活動), and the activities that back them up company-wide are support activities (支援活動). Comparing the value each activity creates with what it costs shows where to build on strengths and where to improve.

AnalogyLike a restaurant checking whether purchasing, prep, cooking, or table service does the most to please its guests, then putting more effort and money there.

How to rememberValue Chain = a chain of value. For each link, count how much value it adds.

Exam points

  • ExamThe value chain (バリューチェーン) is an analysis framework that first splits business activities into primary activities (主活動) and support activities (支援活動) and then pins down which of them add value.
  • ExamFunctions that support the primary activities (主活動) as a whole, such as hiring and developing staff, belong to support activities (支援活動), and the HR management information system (HRM) is used in this area.

2 past questions on this term バリューチェーンマネジメント

ナレッジマネジメントKnowledge Management

Open in glossary ナレッジマネジメント

Knowledge management (ナレッジマネジメント) is a management approach that shares and uses the knowledge and know-how individuals hold across the whole organization to make it stronger.

Know-how that lives only in someone's head leaves the organization when that person transfers or quits. So the knowledge is captured in records or databases where others in the organization can reuse it.

AnalogyLike turning a veteran craftsman's feel for the work into a manual and videos, so that even a newcomer can turn out work of the same quality.

How to rememberナレッジ is the Japanese loanword for knowledge. It is treated as an intangible management resource on a par with goods and money.

Exam points

  • ExamKnowledge management (ナレッジマネジメント) turns knowledge held by only certain people into an organizational asset that others can use too.

1 past questions on this term ナレッジマネジメント

SECIモデルSECI Model

Open in glossary SECIモデル

The SECI model (SECIモデル) is a knowledge-creation model that describes, in four stages, how new knowledge arises as tacit knowledge (暗黙知), which is hard to put into words, and explicit knowledge (形式知), which can be expressed in text or diagrams, turn into each other.

  1. Socialization (tacit → tacit)
  2. Externalization (tacit → explicit)
  3. Combination (explicit → explicit)
  4. Internalization (explicit → tacit)

Internalization: explicit knowledge is practiced until it becomes an individual's tacit knowledge again, which leads into the next round of socialization.

4 / 4

Proposed by Ikujiro Nonaka and colleagues, the model takes its name from the initials of its four stages: Socialization (共同化), Externalization (表出化), Combination (連結化), and Internalization (内面化). One full cycle spreads knowledge from individuals to the organization and back to individuals, where it deepens, and the cycle repeats as a rising spiral.

AnalogyLike watching a senior colleague's technique up close, writing it down, combining those notes with others' to build a manual, and then practicing until it becomes second nature.

How to rememberRead S→E→C→I in order and it sounds like "seki". The letters follow the order in which tacit and explicit knowledge trade places.

Exam points

  • Mix-upThe SECI model (SECIモデル) explains how knowledge arises through conversion between tacit knowledge (暗黙知) and explicit knowledge (形式知), whereas knowledge management (ナレッジマネジメント) is the management approach of sharing and using knowledge across an organization.

Key points

  • CRM keeps long-term relationships with each customer and aims to raise customer lifetime value.
  • SCM shares demand and inventory information with partners, curbing overproduction and stockouts to optimize the supply flow as a whole.
  • ERP gathers core business data into a shared database and optimizes how company-wide management resources are allocated.
  • Value chain management divides business activities into primary and support activities, then finds and manages the sources of added value.
  • The SECI model shows knowledge arising through the cycle of socialization → externalization → combination → internalization, and it gives knowledge management its theoretical footing.

Check questions

5 past questions from this unit

Start the check questions

All past questions in this topic