The Role of CRM‐SRM Bolt‐ons in Enterprise Resource Planning System: Toward a Customer‐Oriented Supply Chain

Abstract

Servitization has become a widely pursued fi eld of research due to services ' creation of mutual value through a shift from selling products to selling product-service systems ( Baines et al ., 2007 ;Parry et al ., 2012 ). One of its main characteristics is the increased level of customer orientation ( Bastl et al ., 2012 ). Customer orientation is determined by inter-fi rm cooperation ( Rindfl eisch and Moorman, 2003 ), which generates long-term relationships between business partners, particularly cooperative supplier-customer relationships that allow more frequent communication and more open sharing of business-relevant information ( Eggert and Helm, 2003 ). Th is supplier-customer relationship enables easier deployment of services through relational exchange ( Zajac and Olsen, 1993 ).During the switch, companies face several challenges, including: strategy, organization and enterprise management, marketing, production, delivery, servitization design, communication, and managing supplier-customer relationships during the product-service shift ( Barnett et al ., 2013 ). An effi cient information technology (IT) structure is essential, supported by an enterprise resource planning (ERP) system to integrate processes and functions within the supply chain (SC). Moreover, companies can link their integrated solutions to respond more efficiently to customers ( Cohen et al ., 2006 ). 1 JEL classifi cation codes: L23, M15, O14.B olt-on extensions enhance the road toward a customer-oriented supply chain.At this point, customization of the ERP system is necessary. By adding bolt-on extensions, companies can integrate supplier-customer information in supply chain management (SCM), obtaining a holistic view of the business from a single IT architecture ( Rosemann et al ., 1999 ).Consequently, by implementing customer relationship management (CRM) and supplier relationship management (SRM) bolt-ons in an ERP system, companies are able to integrate important partner information in SCM. Th ey thus have the ability to respond faster to market demands, developing working patterns for product and service designs jointly so that this cooperative relationship between customer and suppliers can generate a source of competitive advantage ( Cannon and Homburg, 2001 ). Unfortunately, few studies have attempted to explore the capacity of bolt-on extensions in fi rms and their potential for customizing business functions.Th e purpose of this paper is to review the route toward a customer-oriented supply chain emphasizing the use of bolt-on extensions in servitization, particularly the use of CRM and SRM bolt-ons as enhancers for a customeroriented supply chain. Th e paper is organized as follows.In the next section, we present literature related to servitization, followed by literature on CRM, SRM, and demand chain management (DCM). Th en, the ERP system customization process is presented, followed by literature on bolt-on extensions. Next, the CRM-SRM conceptual model is described. Th e third section introduces the research methodolo...

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