Chapter 9: Achieving Operational Excellence and customer intimacy Enterprise Applications

Question 1

What is the business value of Enterprise systems?

Answer 1

1. Increase operational efficiency
2. Improve support in decisions

Question 2

What is a supply chain?

Answer 2

This is a network or organizations and business processes for producing raw materials and transforming these into intermediate or finished products

Question 3

What is a bullwhip effect?

Answer 3

Information about demand gets distrorted as information goes from one entity to the next in a supply chain. This creates increasing differences between actual and built demand.

Can be avoided by sharing more and timely information with suppliers

Question 4

What are supply chain planning systems?

Answer 4

these systems enable the firm to model its supply chain and develop optimal sourcing and manufacturing plans

Question 5

What are supply chain execution systems?

Answer 5

these systems manage the flow of products to ensure timely and efficient delivery. Tracks physical status of goods.

Question 6

What is demand planning?

Answer 6

Determining how much of a product is needed. Its crucial for supply chain planning systems

Question 7

what is a push-based model?

Answer 7

In this model, supply, production etc are driven by demand forecasts. The products are pushed to customers

Question 8

What is a pull-based model?

Answer 8

In this system, customer orders trigger events in a supply chain. This gives a more accurate view of what to produce when.

Question 9

What is a concurrent supply chain?

Answer 9

Information flows to many parties simultaneously

Question 9

What is a touch point?

Answer 9

This is an interaction method with customers.

Question 10

What does a customer relationship model consist of?

Answer 10

1. Sales force automation
2. Customer service modules
3. Marketing automation and tools

Question 11

What is Sales force automation?

Answer 11

This helps sales staff to focus efforts on the most profitable customers. Also provides sales prospects.

Question 12

What are customer service modules in a CRM?

Answer 12

These modules increase help and support efficiency.

Question 13

What marketing tools are in a CRM?

Answer 13

These tools help attract customers more cost-efficiently and identifying and analyzing customers

Question 13

What is cross-selling?

Answer 13

This is the marketing of complementary products

Question 15

What are partner relationship management systems?

Answer 15

These are systems to enhance collaboration with selling partners, if products are not sold to customers directly.

Question 16

What is employee relationship management?

Answer 16

These systems deal with employee issues related to CRM

Question 17

What is the difference between operational and analytical CRM?

Answer 17

Operational CRM focuses on tools for sales force automation, call center support and marketing automation

Analytical CRM focuses on analyzing customer data generated by the operational CRM to improve business performance.

Question 18

What is customer lifetime value?

Answer 18

This represents the relationship between revenue produced by a customer and the expenses incurred in service and acquiring, and the expected life of the relationship with this customer

Question 19

What is the churn rate?

Answer 19

This number represents the number of customers who stop using/ purchasing products. This causes changes in customer base

Question 20

What are the challenges of enterprise systems?

Answer 20

1. Hard and expensive to implement. Delays and cost overruns are likely
2. High switching costs
3. SCM systems require information sharing of multiple firms and buseinss processes probably have to change

Question 21

What is Social CRM?

Answer 21

This takes advantage of social network technologies and links social network data to own CRM.