Chapter 9: Enterprise Applications Flashcards
enterprise/ supply chain management/ CRM systems; challenges & opportunities
1
Q
What are enterprise systems?
A
- systems based on numerous integrated software modules & a common central DB
- spanning across functional areas & links the enterprise, incl. all management levels
- DB collect data from & feeds data into applications that support business activities
- supporting org. centralization by enforcing uniform data standards & BPs through a single unified platform
2
Q
What are the four major applications of enterprise systems?
A
- enterprise systems/ enterprise resource planning systems (ERP)
- supply chain management systems (SCM)
- customer relationship management systems (CRM)
- knowledge management systems
3
Q
Main purposes of SCM system
A
- coordination of planning, production & logistics with suppliers
- automation of information flow within supply chain
- leaner supply chain
4
Q
Types of SCM
A
- push-based model (build-to-stock): schedules based on best guesses of demand
- pull-based model (demand-driven): web-based, customer orders trigger events in supply chain –> contemporary
- development from sequential to concurrent supply chain through Internet (combining short-term execution plans with long-term business plans)
5
Q
Supply chain components
A
- upstream: managing relationship with firm’s suppliers & supplier’s suppliers
- downstream: managing relationship with organizations responsible for delivering products to customers
- internal
6
Q
What has to be kept in mind regarding SCM systems?
A
- more accurate info = less uncertainty & bullwhip effect (Effects of fluctuations in demand along a multi-level supply chain, often caused by lack of information exchange)
- Internet facilitates connectivity in global supply chains
- improved communication = more profitable demand-driven model
- keep some safety stocks to prevent out-of-stock situations
7
Q
What is the business value of SCM systems?
A
- match supply to demand
- reduce inventory levels
- improve delivery service
- speed product time to market
- use assets more effectively
- reduced supply chain costs (higher profitability) –> SCM costs can be up to 75%
- increase sales
8
Q
Main purposes of CRM system
A
- integrate & automate customer-facing processes in sales, marketing & customer service
providing enterprise-wide view of customers (which are (un)profitable) - provide better services & sell new products due to better customer knowledge
- reduce churn rate (Kudenabwanderungsrate)
9
Q
Functional areas of CRM
A
- operational CRM: customer-facing applications (sales force/ marketing automation, call center & service support)
- analytical CRM: analysis of customer data
- partner relationship management
- employee relationship management
10
Q
What is the business value of CRM systems?
A
- increased customer satisfaction
- reduced direct marketing costs
- more effective marketing
- lower customer acquisition/ retention costs
- increased sales revenue
- lower churn rate
11
Q
What are the challenges of implementing enterprise systems?
A
- difficult to implement
- extensive org. change & resources
- staff training
- large investments
- careful assessment
- cannot be built atop flawed processes
- a lot attention to data management
12
Q
What are the biggest positives of implementing enterprise systems?
A
- flexible, web-enabled & capable of integration with other systems (also cloud & mobile)
- social networking capabilities through CRM to enhance internal collaboration external communication
- analyzing large amounts of data intelligently
13
Q
Next-generation enterprise applications
A
- flexible enterprise solutions/ suites
- cloud-based versions
- functionality for mobile platform
- scalable versions for different corporate sizes
- social CRM (linking social networking info from customers to CRM processes)
- business intelligence (helping user make better business decisions)
