IS (M9) Flashcards
Suite of Integrated software modules and a common central database
Collects data from many divisions of firms for use in nearly all of firm’s internal business activities
INformation entered in one process is immediately available for other processes
ENTERPRISE RESOURCE PLANNING (ERP)
________
-Built around thousands of predefined business processes that reflect best practices:
–Finance/accounting: General ledger, accounts payable, etc.
–Human resources: Personnel administration, payroll, etc.
–Manufacturing/production: Purchasing, shipping, etc.
–Sales/marketing: Order processing, billing, sales planning, etc.
Enterprise Software
-Increase operational efficiency
–Standardizes and coordinates business processes.
-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
Business value of enterprise systems (goal)
Network of organizations and processes for:
-Procuring raw materials
-Transforming them into products
-Distributing the products
Supply Chain
Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them
Upstream supply chain
Organizations and processes responsible for delivering products to customers
Downstream supply chain
-Inefficiencies cut into a company’s operating costs
-Can waste up to 25% of operating expenses
Information and supply chain management
-Components arrive as they are needed
-Finished goods shipped after leaving assembly line
Safety stock
Just-in-time strategy:
Buffer for lack of flexibility in supply chain
Safety stock
== mean warehousing cost
-Information about product demand gets distorted as it passes from one entity to next across supply chain
Bullwhip effect
-Model existing supply chain
-Demand planning (forecasting, aggregate sales planning)
-Optimize sourcing, manufacturing plans (MRP)
-Establish inventory levels (inventory control)
-Identifying transportation modes (capacity planning)
Supply chain planning systems
Manage flow of products through distribution centers and warehouses
Supply chain execution systems
https://paginas.fe.up.pt/~acbrito/laudon/ch11/chpt11-1fulltext.htm#:~:text=These%20systems%2C%20which%20are%20known,an%20organization’s%20internal%20business%20activities.
-Global supply chains typically span greater geographic distances and time differences
-More complex pricing issues (local taxes, transportation, etc.)
-Participants from different countries
–Different performance and quality standards
–Different legal requirements, tax codes, import/export
Global supply chain issues
What aspects of global supply chains does the internet help manage?
Warehouse management,
Transportation management,
logistics
Outsourcing
Schedules based on best guesses of demand
- Earlier SCM Systems
-Push-based model (build-to-stock):
Customer orders trigger events in supply chain
- WEb based
-Pull-based model (demand-driven):
Information and materials flow sequentially from company to company
-Sequential supply chains:
Information flows in many directions simultaneously among members of a supply chain network
-Concurrent supply chains
DIFFERENCE BETWEEN PUSH/PULL BASED MODELS
summarized by the
slogan, “Make what we sell, not sell what we make.”
Business value of SCM 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
–Total supply chain costs can be 75%+ of operating budget
-Increased sales
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
–Touch point (Contact Point): a method of interaction with the customer, such as telephone, email, customer service, etc.
-Provide single enterprise view of customers
Customer relationship management (CRM) systems
-CRM packages range from niche tools to large-scale enterprise applications
-Partner relationship management (PRM)
–Integrating lead generation, pricing, promotions, order configurations, and availability
–Tools to assess partners’ performances
-Employee relationship management (ERM)
–E.g. Setting objectives, employee performance management, performance-based compensation, employee training
CRM software
CRM packages typically include tools for:
-Sales force automation (SFA)
–E.g. sales prospect and contact information, and sales quote generation capabilities
-Customer service
–E.g. assigning and managing customer service requests; Web-based self-service capabilities
-Marketing
–E.g. capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail
Help manage and execute marketing campaigns
Cross Selling
Customer-facing applications
–E.g. sales force automation, call center and customer service support, and marketing automation
Operational CRM:
-Analyze customer data output from operational CRM applications
-Based on data warehouses populated by operational CRM systems and customer touch points
–Customer lifetime value (CLTV)
—-Based on the relationship between the revenue produced by specific customer, the expenses incurred in acquiring and servicing that customer and the expected relationship term.
Analytical CRM: (Business/Marketing Analytics)
Business value of CRM
-Increased customer satisfaction
-Reduced direct-marketing costs
-More effective marketing
-Lower costs for customer acquisition/retention
-Increased sales revenue
-Reduce 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: Challenges
-Highly expensive to purchase and implement
–Average cost of ERP systems is over $7 million
–Average completion time is over 17 months
—From analysis to full scale implementation
-Technological changes
-Business process changes
-Organizational learning and changes
-Switching costs, dependence on software vendors
-Data standardization, management, cleansing
Next-generation enterprise applications: Trends
-Enterprise suites
—–Move is to make applications more flexible, Web-enabled, integrated with other systems
- SOA Standards
- Open source
- on-demand solutions
–Software to enable CRM, SCM, and enterprise systems work together and with suppliers and client systems
–Utilize Web services, SOA
-Mobile compatible; Web 2.0 capabilities
-Complementary analytics products
-Incorporating social networking technologies
-Company social networks
-Customer interaction via Facebook/Twitter/etc
-E.g. Buzzient platform integrates social media with enterprise applications.
-Value more related to customers (intimacy)
Social CRM
-Inclusion of BI with enterprise applications
-Flexible reporting, ad hoc analysis, “what-if” scenario building, digital dashboards, data visualization
Business Intelligence
