Chapter 8 Flashcards
What is an enterprise system?
Provide enterprise wide support and data access for a firm’s operations and business processes.
What is integration?
Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems.
What is Middleware?
Several different types of software that sit between and provide connectivity for two or more software applications.
What is enterprise application integration middleware?
Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors.
What are the three primary enterprise systems?
- Supply Chain Management
- Customer Relationship Management
- Enterprise Resource Planning
What are the five basic supply chain activities?
- Plan: Prepare to manage all resources required to meet demand.
- Source: Build relationships with suppliers to procure raw materials
- Make: Manufacture products and create production schedules
- Deliver: Plan for transportation of goods to customers
- Return: Support customers and product returns
What is Supply Chain Management (SCM)?
The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability.
What is the Demand planning system?
Generates demand forecasts using statistical tools and forecasting techniques, so companies can respond faster and more effectively to consumer demands through supply chain enhancements.
What are common supply chain metrics used in SCM?
- Back order: An unfilled customer order for a product that is out of stock
- Inventory cycle time: The time it takes to manufacture a product and deliver it to the retailer
- Customer order cycle time: The agreed upon time between the purchase of the product and delivery of the product
- Inventory turnover: The frequency of inventory replacement
What is the supply chain execution system?
Automates the different activities of the supply chain.
What is supply chain visibility?
The ability to view all areas up and down the supply chain in real time.
What is the supply chain planning system?
Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory.
What is the bullwhip effect?
Occurs when distorted product demand information ripples from one partner to the next throughout the supply chain.
What is customer relationship management (CRM)?
Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. (i.e. Charles Schwab & Kaiser Permanente)
What are the benefits of CRM?
Organizations can find their most valuable customers through “RFM”:
- Recency: How recently a customer purchased items
- Frequency: How frequently a customer purchased items
- Monetary: The monetary value of each customer purchase
What are the three phases in the evolution of CRM?
- Reporting: Customer Identification - Asking What Happened
- Analyzing: Customer Segmentation - Asking Why It Happened
- Predicting: Customer Prediction - Asking What Will Happen
What is Enterprise resource planning (ERP)?
Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations.
Why are ERP systems powerful tools?
- ERP is a logical solution to incompatible applications
- ERP addresses global information sharing and reporting
- ERP avoids the pain and expense of fixing legacy systems
What are the benefits of ERP?
- Core ERP component: Traditional components included in most ERP systems and they primarily focus on internal operations.
- Extended ERP component: Extra components that meet the organizational needs not covered by the core components and primarily focus on external operations.
What are the Extended ERP components?
- Business Intelligence
- Customer Relationship Management
- Supply Chain Management
- E-Business (E-Logistics and E-Procurement)
What are the three most common core ERP components?
- Accounting and finance
- Production and materials management
- Human resources
What is forward integration?
takes information entered into a given system and sends it automatically to all downstream systems and processes.
What is backward integration?
takes information entered into a given system and sends it automatically to all upstream systems and processes.
