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Achieving Operational Excellence and Customer Intimacy: Enterprise …
Achieving Operational
Excellence and Customer
Intimacy: Enterprise
Applications
Enterprise Resource Planning (ERP) Systems
Benefits
Integrates different software modules into a common central database
Collects data from many divisions of firm for use in nearly all of firm’s internal business activities
Information entered in one process is immediately available for other processes
Real time operational information is available to Management at any moment
Enterprise Software
Implementation
Map business processes to software processes
Organizations select functions of system they wish to use
Work processes and methods have to be adapted to the business process defined in the software
Based on best predefined business processes that reflect best practices
Finance and accounting
Human resources
Manufacturing and production
Sales and marketing
Business Value
Include analytical tools to evaluate overall organizational performance
Enable rapid responses to customer requests for information or products
Provide firm-wide information to support decision making
Increase operational efficiency
Enforce standard practices and protocols, normalizing operations
Supply Chain Management (SCM)
Supply Chain
Network of organizations and processes for:
Transforming them into products
Distributing the products
Procuring materials
Types
Downstream SC
Organizations and processes responsible for delivering products to customers
Upstream SC
Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them
Internal SC
Management
Just-in-time strategy
Safety stock
Inefficiencies cut into a company’s operating costs
Bullwhip effect
Models
Push-based model (build-to-stock)
Schedules based on best guesses of demand
Earlier SCM systems
Pull-based model (demand-driven)
Web-based
Customer orders trigger events in supply chain
Internet enables move from sequential supply chains to concurrent supply chains
SCM Systems
Supply Chain Management Software
Supply chain planning systems
Model existing supply chain
Enable demand planning
Establish inventory levels
Identify transportation modes
Supply chain execution systems
Manage flow of products through distribution centers and warehouses
Business Value
Speed product time to market
Use assets more effectively
Improve delivery service
Reduced supply chain costs lead to increased profitability
Match supply to demand; reduce inventory levels
Increase sales
Global Vs Local Supply Chain
Greater time differences
Different performance standards
Greater geographical distances
Different legal requirements
Internet helps manage global complexities
Customer Relationship Management (CRM)
CRM Systems
Benefits
Consolidate and analyze customer data
Distribute customer information to various systems and customer touch points across enterprise
Capture and integrate customer data from all over the organization
Provide single enterprise view of customers
CRM Software
Packages range from niche tools to large-scale enterprise applications
Main Modules/ Applications
Partner relationship management (PRM)
Integrating lead generation, pricing, promotions, order configurations, and availability
Tools to assess partners’ performances
Employee relationship management (ERM)
Setting objectives, employee performance management, performance-based compensation, employee training
Sales force automation (SFA)
Sales prospect and contact information, sales quote generation capabilities
Customer service
Assigning and managing customer service requests, Web-based self-service capabilities
Marketing
Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail, cross-selling
Types
Operational CRM
Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation
Analytical CRM
Based on data warehouses populated by operational CRM systems and customer touch points
Analyzes customer data (CLTV, OLAP, data mining, etc.)
Business Value
Increased customer satisfaction
Reduced direct-marketing costs
More effective marketing
Lower costs for customer acquisition/retention
Increased sales revenue
Objectives
In large businesses, manage all different ways customers interact with firm
Knowing the customer
Manage firm's most valuable asset, customer relationship
Challenges
Highly expensive to purchase and implement enterprise applications
Technology changes
Business process changes
Organizational learning, changes
Switching costs, dependence on software vendors
Data standardization, management, cleansing
Next-generation EA
Open-source applications
SOA standards
Make applications more flexible, Web-enabled, integrated with other systems
On-demand solutions
Cloud-based versions
Functionality for mobile platform
Social CRM
Business intelligence Inclusion