Enterprise Applications

What are Enterprise Systems?

-​ Also known as enterprise resource planning (ERP)
-​ Based on a suite of integrated software modules and a
common central database
-​ Collects data from many divisions of the firm for use of
nearly all of the 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
-​ Finance and accounting
-​ Human resources
-​ Manufacturing and production
-​ Sales and marketing
-​ To implement, firms
-​ Select functions of the system they wish to use
-​ Map business processes to software processes
-​ Use softwares configuration tables for customizing

Business Value of Enterprise Systems:

-​ Increase operational efficiency
-​ Provides firm-wide information to support decision making
-​ Enables rapid responses to customer requests
-​ Includes analytical tools to evaluate overall organizational performance
_____________________________________________________________________________________
QUESTION:
-​ Enterprise software is built around thousands of predefined business processes that reflect? Best
practices
_____________________________________________________________________________________

The Supply Chain

-​ Network of organizations and processes for
-​ Procuring materials
-​ Transforming materials into products
-​ Distributing the products
-​ Upstream supply chain
-​ Downstream supply chain
-​ Internal supply chain
_____________________________________________________________________________________
QUESTION:
-​ The ___ includes a company’s suppliers, the suppliers’ suppliers and the processes for managing
their relationships. Upstream portion of the supply chain
_____________________________________________________________________________________

Supply Chain Management

-​ Inefficiencies into a company’s operating costs
-​ Can waste up to 25 percent of
operating costs
-​ Just-in-time Strategy
-​ Components arrive as they’re needed
-​ Finished goods shipped after leaving
the assembly chain
-​ Safety stock: buffer for lack of flexibility in
the supply chain
-​ Bullwhip Effect
-​ Information about the product demand
gets distorted as it passes from one
entity to the next across the supply
chain

Supply Chain Management Software

-​ Supply chain planning systems
-​ Model existing supply chain
-​ Enable demand planning optimize sourcing, manufacturing plans
-​ Establish inventory levels
-​ Identify transportation models
-​ Supply chain execution systems
-​ Manage flows of products through distribution centers and warehouses

Global Supply Chains and the Internet

-​ Global supply chain issues
-​ Greater geographical distances, time differences
-​ Participants from different countries
-​ Different performance standards
-​ Different legal requirements
-​ Internet helps manage global companies
-​ Warehouse management
-​ Transportation management
-​ Logistics
-​ Outsourcing
Demand-Driven Supply Chains
-​ Push-based model (build-to-stock)
-​ Earlier SCMsystems
-​ Schedules based on best guesses of
demand
-​ Pull-based model (demand-driven)
-​ Web-based
-​ Customer order trigger events in
the supply chain
-​ Internet enables the move from sequential
supply chains to concurrent supply chains
-​ Complex networks of suppliers can
adjust immediately

← The Emerging Internet Driven Supply

Chain

_____________________________________________________________________________________
QUESTION:
-​ The difference between push and pull-based models is summarized by which of the following?
Make what we sell, not sell what we make,
_____________________________________________________________________________________

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
-​ Total supply chain costs can be 75% of the operating budget
-​ Increase sales

Customer Relationship Management

-​ Knowing the customer
-​ In large businesses, too many customers and too many ways customers interact with firm
 -​ 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

Customer Relationship Management Software

-​ Packages range from niche tools to large-scale enterprise
applications
-​ More comprehensive packages have modules for:
-​ Partner Relationship Management (PRM)
-​ Integrating lead generation, pricing, promotions, order configurations, and
availability
-​ Tools to assess partners’ performance
-​ Employee Relationship Management (ERM)
-​ Setting objectives, employee performance management, performance-based
compensation, employee training
-​ CRM packages typically includes tools for
-​ Sales force automation (SFA)
-​ Sales prospect and contact information
-​ Sales quote generation capabilities
-​ Customer service
-​ Assigning and managing customer service requests
-​ Web-based self-service capabilities
-​ Marketing
-​ Capturing prospect and customer data, scheduling and tracking direct-marketing mailings
or e-mail
-​ Cross-selling

← How CRM Systems Support

Marketing

CRM Software Capabilities →

 ← Customer Loyalty
Management Process
Map

Operational and Analytical CRM

-​ Operational
-​ Customer-facing applications
-​ Sales force automation call center and customer
service support
-​ Marketing automation
-​ Analytical
-​ Based on data warehouse populated by
operational CRM systems and customer
touchpoints
-​ Analyzes customer data (OLAP, data mining,
etc.)
-​ Customer lifetime value (CL/TV)

_____________________________________________________________________________________
QUESTION:
-​ CRM systems help businesses achieve which of the following business objectives? Enhanced
Customer Intimacy
_____________________________________________________________________________________

Business Value of CRM Systems

-​ Business Value of CRM Systems
-​ 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 Application Challenges
-​ Expensive to purchase and implement
-​ Many projects experience and implement
-​ Long development times
-​ Technology changes
-​ Business process changes
-​ Organizational learning changes
-​ Switching costs, dependence on software vendors
-​ Data standardization, management, cleansing

Next Generation Enterprise Applications

-​ Enterprise solutions/ suites
-​ Make applications more flexible, web-enables and integrated with other systems
-​ Cloud-based versions
-​ Functionally for mobile platform
-​ Versions are also available for small and medium-sized businesses
-​ Social CRM
-​ Incorporating social networking technologies
-​ Monitor social media activity; social media analytics
-​ Manage social and web-based campaigns
-​ Business Intelligence
-​ Inclusion of BI with enterprise applications
-​ Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data
visualization, AI machine learning