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Enterprise applications

Systems for Enterprise-Wide Process Integration


Enterprise applications: Designed to support organization-wide process coordination and integration Consist of : Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems

Enterprise Systems
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes.

Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.

Traditional View of Systems

Enterprise Application Architecture

Enterprise Systems

Benefits of Enterprise Systems


Help to unify the firms structure and organization: One organization Management: Firm wide knowledge-based management processes

Technology: Unified platform


Business: More efficient operations & customerdriven business processes

Challenges of Enterprise Systems


Difficult to build: Require fundamental changes in the way the business operates Technology: Require complex pieces of software and large investments of time, money, and expertise Centralized organizational coordination and decision making: Not the best way for the firms to operate

Supply Chain

Supply Chain Processes


Plan Source Make Deliver Return

Logistics

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Supply Chain Management (SCM)


Close linkage and coordination of activities involved in buying, making, and moving a product Integrates supplier, manufacturer, distributor, and customer logistics time

Reduces time, redundant effort, and inventory costs


Network of organizations and business processes
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Supply Chain Management (SCM)


Helps in procurement of materials, transformation of raw materials into intermediate and finished products Helps in distribution of the finished products to customers Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

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Information and Supply Chain Management


Inaccurate or untimely information causes inefficiencies in supply chain, such as shortages, excessive inventory Just-in-time strategy :

Scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line

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Supply Chain Management Applications


Supply chain management systems: Automate flow of information between company and supply chain partners Supply chain planning systems: Generate demand forecasts for a product (demand planning) and help develop sourcing and manufacturing plans for that product

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Supply Chain Management Applications

Supply chain execution systems: Manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner

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The Internet-Driven Supply Chain

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Information from Supply Chain Management Systems helps firms:


Decide when and what to produce, store, and move Rapidly communicate orders

Track the status of orders


Check inventory availability and monitor inventory levels

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Information from Supply Chain Management Systems helps firms:


Reduce inventory, transportation, and warehousing costs Track shipments

Plan production based on actual customer demand Rapidly communicate changes in product design

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CRM
Value ( $ )

Duration of Customer Relationship

Targeting

Acquisition

Retention

Expansion

Who Do we target What segments are most profitable What segments match our Value Proposition What is the best segmentation strategy for us / our industry

What is the best channel for each segment What is the acquisition cost for a channel / segment Do certain channels deliver certain types of customers Cost effective acquisition

How can we improve retention What is our average customer relationship length How can we hold customer for as long as possible What is the most cost effective method of retention

How many products does our average customer buy How can we induce our current base to buy more products Who are the prime targets for expansion What is the cost of expansion

Customer Relationship Management can be simply defined as everything involved with managing the customer relationship. 19

Customer Relationship Management (CRM)


Manages all ways used by firms to deal with existing and potential new customers Business and technology discipline Uses information system to coordinate entire business processes of a firm

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Customer Relationship Management (CRM)


Provides end- to- end customer care Provides a unified view of customer across the company

Consolidates customer data from multiple sources and provides analytical tools for answering questions

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Customer Relationship Management (CRM)

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Business Value of Customer Relationship Management Systems


Increased customer satisfaction More effective marketing and reduced direct marketing costs Lower costs for customer acquisition and retention

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Business Value of Customer Relationship Management Systems


Increased revenue from identifying most profitable customers and segments for marketing, crossselling, up-selling

Reduce churn rate:


Number of customers who stop using or purchasing products or services from a company

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Customer Relationship Management Applications


CRM systems: Capture and integrate customer data from all over the organization Consolidate and analyze the data Distribute results to various systems and customer touch points across the enterprise

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Knowledge Management Systems


Collects relevant knowledge and make it available wherever and whenever it is needed Support business processes and management decisions Also link the firm to external sources of knowledge Support processes for acquiring, storing, distributing, and applying knowledge

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The Knowledge Management Value Chain


Knowledge acquisition

Knowledge storage
Knowledge dissemination

Knowledge application
Building organizational and management capital: collaboration, communities of practice, and office environments
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The Knowledge Management Value Chain

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