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W10C9: Achieving Operation Excellence and Customer Intimacy: Enterprise…
W10C9: Achieving Operation Excellence and Customer Intimacy: Enterprise Application.
Enterprise Systems
What Are Enterprise Systems?
Enterprise Resource Planning (ERP) systems
Suite of integrated software modules and 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
Enterprise Software
Built around thousands of predefined business processes that reflect best practices
Financial/accounting
Human resources
Manufacturing/production
Sales/marketing
To implement, firms need to Select functions of system they wish to use, Map business processes to software processes
(Use software’s configuration tables for customizing)
Business Value of Enterprise Systems
Increase operational efficiency
Provide firm wide information to support decision
making
Enable rapid responses to customer requests for
information or products
Include analytical tools to evaluate overall
organizational performance
Supply Chain Management Systems
The Supply Chain
Network of organizations and processes for
Procuring raw materials
Transforming them into products
Distributing the products
Upstream supply chain
Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them
Downstream supply chain
Organizations and processes responsible for delivering products to customers
Supply Chain Management Software
Supply chain planning systems
Model existing supply chain
Demand planning
Optimize sourcing, manufacturing plans
Establish inventory levels
Identify transportation modes
Supply chain execution systems
Manage flow of products through distribution centers and warehouses
Information Systems and Supply Chain Management
Inefficiencies cut into a company’s operating
Just-in-time strategy
Safety stock
Bullwhip effect
Global Supply Chains and the Internet
Intranets and Extranets
Intranets: to improve coordination among internal supply chain processes
Extranets: to coordinate supply chain processes shared with their business partners
Global supply chain issues
Global supply chains typically span greater geographic distances and time differences
More complex pricing issues (local taxes, transportation,etc.)
Foreign government regulations
Internet helps companies manage many aspects of
global supply chains
Sourcing, transportation, communications,
international finance
Supply chain management systems
Push-based model (build-to-stock)
Pull-based model (demand-driven)
Sequential supply chains
Concurrent supply chains
Business Value of Supply Chain Management
Systems
Match supply to demand
Reduce inventory levels
Improve delivery service
Speed product time to market
Use assets more effectively
Reduced supply chain costs lead to increased
profitability
Increase sales
Customer Relationship Management Systems
What Is Customer Relationship Management?
Customer relationship management (CRM)
systems
Capture and integrate customer data from all over the organization
Consolidate and analyze customer data
Distribute customer information to various systems and customer touch points across enterprise
Provide single enterprise view of customers
Knowing the customer
In large businesses, too many customers and too many ways customers interact with firm
Customer Relationship Management Software
CRM packages range from niche tools to largescale enterprise applications
More comprehensive have modules
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
CRM packages typically include tools for
Sales force automation (SFA)
Customer service
Marketing
Operational and Analytical CRM
Operational CRM
Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation
Analytical CRM
Analyzes customer data output from operational
CRM applications
Based on data warehouses populated by operational CRM systems and customer touch points
Customer lifetime value (CLTV)
Business Value of Customer Relationship
Management Systems
Business benefits
Increased customer satisfaction
Reduced direct-marketing costs
More effective marketing
Lower costs for customer acquisition/retention
Increased sales revenue
Churn rate
Number of customers who stop using or purchasing products or services from a company
Indicator of growth or decline of firm’s customer base
Enterprise Applications: New Opportunities and Challenges
Enterprise Application Challenges
Highly expensive to purchase and implement enterprise applications
total cost may be four to
five times the price of software
Technology changes
Business process changes
Organizational changes
Switching costs, dependence on software vendors
Data standardization, management, cleansing
Next-Generation Enterprise Applications
To bring greater value from enterprise applications
Enterprise solutions/suites
Make applications more flexible, Web-enabled, integrated with other systems
Service platform
Integrates multiple applications
to deliver a seamless experience for all parties
Order-to-cash process
Portal software
Benjamin