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Chapter 8

Business Across the Enterprise

McGraw-Hill/Irwin

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
Identify and give examples to illustrate the following aspects of customer relationship management, enterprise resource management, and supply chain management systems:
Business processes supported Customer and business value provided Potential challenges and trends
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Learning Objectives
Understand the importance of managing at the enterprise level to achieve maximum efficiencies and benefits.

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Section 1 Customer Relationship Management: The Business Focus

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I. Introduction
Businesses today must be Customer-centric/Customerfocused Customer, Customer, Customer!

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II. What Is CRM?


Providing the organization with a single complete view of every customer, and providing the customer with a single complete view of the organization and its extended channels Contact and Account Management capture and track relevant data about past and planned contacts
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III. The Three Phases of CRM


Acquire CRM helps a new customer perceive value of a superior product/service Enhance CRM supports superior customer service, and cross-selling/up-selling Retain CRM helps proactively identify and reward the most loyal and profitable customers

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Section 2 Enterprise Resource Planning: The Business Backbone

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I. Introduction
ERP is a multifunctional enterprisewide backbone that integrates/automates business processes and information systems

II. What is ERP?

A cross- functional software suite supporting basic internal business processes of a firm
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III. Benefits and Challenges of ERP


Major Business Value from ERP
Quality and Efficiency significant improvements in quality and efficiency of customer service, production, and distribution Decreased Costs significant reductions in transaction costs, hardware and software, and IT support staff Decision Support provides crossfunctional information that enables better decision making across the enterprise Enterprise Agility breaks down departmental/functional walls and enables more flexible, adaptive organizational structures

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III. Benefits and Challenges of ERP


Costs of ERP if you do not do ERP properly you can kill the firm Causes of ERP Failures
#1 cause underestimating the complexity of planning, development, and training necessary for success Failure to involve affected employees Trying to do too much too fast Overreliance on claims of software

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Section 3 Supply Chain Management: The Business Network

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I. Introduction
Successful SCM is based on accurate order processing, JIT inventory management, and timely order fulfillment; this was theoretical 10 years ago, but is now a competitive weapon

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II. What is SCM?


A cross-functional interenterprise system using IT to support/manage links between key business processes and suppliers, customers, and business partners
Electronic Data Interchange (EDI) an early SCM methodology for exchanging information between partners using standard document message formats, still very popular but being replaced by .xml-based Web services

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III. The Role of SCM


To optimize the effective/efficient movement of materials between suppliers, customers, and other partners

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