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BDIS5e_CH02_Student_PPT2.pptxCHAPTER EIGHT
ENTERPRISE APPLICATIONS
Business Communications
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CHAPTER OVERVIEW
SECTION 8.1 – Enterprise Systems and Supply Chain Management
Building a Connected Corporation Through Integrations
Supply Chain Management
Technologies Reinventing the Supply Chain
SECTION 8.2 – Customer Relationship Management and Enterprise Resource Planning
Customer Relationship Management
The Benefits of CRM
Enterprise Resource Planning
Organizational Integration with ERP
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SECTION 8.1
Supply Chain Management
©The McGraw-Hill Companies, All Rights Reserved
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LEARNING OUTCOMES
Explain integrations and the role they play in connecting a corporation
Describe supply chain management along with its impact on business
Identify the three technologies that are reinventing the supply chain
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BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
Integration – Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems
Application integration
Data integration
Forward integration
Backward integration
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BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
Integration Example
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BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
A Central Information Repository Example
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Integration Tools
Enterprise system – Provide enterprisewide support and data access for a firm’s operations and business processes
Enterprise application integration (EAI) – Connects the plans, methods, and tools aimed at integrating separate enterprise systems
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Integration Tools
Middleware – Several different types of software that sit between and provide connectivity for two or more software applications
Enterprise application integration middleware – Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors
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Integration Tools
Three Primary Enterprise Systems
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SUPPLY CHAIN MANAGEMENT
Five basic supply chain activities
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SUPPLY CHAIN MANAGEMENT
Supply Chain Management (SCM) – The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability
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SUPPLY CHAIN MANAGEMENT
The supply chain has three main links
Materials flow from suppliers and their “upstream” suppliers at all levels
Transformation of materials into semifinished and finished products through the organization’s own production process
Distribution of products to customers and their “downstream” customers at all levels
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SUPPLY CHAIN MANAGEMENT
Supply Chain Example
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SUPPLY CHAIN MANAGEMENT
Walmart and Procter & Gamble SCM Example
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SUPPLY CHAIN MANAGEMENT
Effective and efficient SCM systems can enable an organization to
Decrease the power of its buyers
Increase its own supplier power
Increase switching costs to reduce the threat of substitute products or services
Create entry barriers thereby reducing the threat of new entrants
Increase efficiencies while seeking a competitive advantage through cost leadership
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SUPPLY CHAIN MANAGEMENT
Effective and Efficient SCM Systems Effect on Porter’s Five Forces
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Visibility into the Supply Chain
Supply chain visibility – The ability to view all areas up and down the supply chain in real time
Supply chain planning system
Supply chain execution system
Bullwhip effect
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Visibility into the Supply Chain
Supply Chain Planning and Execution
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TECHNOLOGIES REINVENTING THE SUPPLY CHAIN
The three components of supply chain management
Procurement
Logistics
Materials management
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TECHNOLOGIES REINVENTING THE SUPPLY CHAIN
Supply chain management disruptive technologies
3D printing (supports procurement)
Maker movement
Makerspace
Radio frequency identification (supports logistics)
Drones (supports logistics)
Robotics (supports materials management)
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The Extended Supply Chain
The fastest growing extensions for supply chain management include:
Supply chain event management (SCEM)
Selling chain management
Collaborative engineering
Collaborative demand planning
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SECTION 8.2
Customer Relationship Management and Enterprise Resource Planning
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LEARNING OUTCOMES
Explain operational and analytical customer relationship management
Identify the core and extended areas of enterprise resource management
Discuss the current technologies organizations are integrating in enterprise resource planning systems
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CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) – Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability
Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems
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THE BENEFITS OF CRM
Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
How recently a customer purchased items
How frequently a customer purchased items
The monetary value of each customer purchase
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The Power of The Customer
The customer is always right and now has more power than ever thanks to the Internet
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Measuring CRM Success
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CRM Communication Channels
Text message
Instant message
Voice mail
Voice call
Email letter
Web order
Phone order
Meeting
Customer service call
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Evolution of CRM
CRM reporting technology – Help organizations identify their customers across other applications
CRM analysis technologies – Help organization segment their customers into categories such as best and worst customers
CRM predicting technologies – Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving
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Evolution of CRM
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Operational and Analytical CRM
Operational CRM – Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical CRM – Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
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Operational and Analytical CRM
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Operational and Analytical CRM
Marketing and operational CRM technology
List generator, campaign management, cross-selling and up-selling
Sales and operational CRM technology
Sales management, contact management, opportunity management
Customer service and operational CRM technology
Contact center, Web-based self-service, call scripting
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Marketing and Operational CRM
Three marketing operational CRM technologies
List generator
Campaign management system
Cross-selling and up-selling
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Sales and Operational CRM
The sales department was the first to begin developing CRM systems with sales force automation a system that automatically tracks all of the steps in the sales process
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Sales and Operational CRM
Sales and operational CRM technologies
Sales management CRM system
Contact management CRM system
Opportunity management CRM system
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Customer Service and Operational CRM
Three customer service operational CRM technologies
Contact center (call center)
Web-based self-service system
Call scripting system
Common features included in contact centers
Automatic call distribution
Interactive voice response
Predictive dialing
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Analytical CRM
Website personalization – Occurs when a website has stored enough data about a person’s likes and dislikes to fashion offers more likely to appeal to that person
Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior
These systems quickly aggregate, analyze, and disseminate customer information throughout an organization
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Extending CRM
Current trends include
Supplier relationship management (SRM)
Partner relationship management (PRM)
Employee relationship management (ERM)
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ENTERPRISE RESOURCE PLANNING
Enterprise resource planning – Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations
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ENTERPRISE RESOURCE PLANNING
Reasons ERP systems are powerful tools
ERP is a logical solution to incompatible applications
ERP addresses global information sharing and reporting
ERP avoids the pain and expense of fixing legacy systems
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ENTERPRISE RESOURCE PLANNING
ERP systems collect data from across an organization and correlates the data generating an enterprisewide view
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ENTERPRISE RESOURCE PLANNING
ERP Systems Automate Business Processes
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ENTERPRISE RESOURCE PLANNING
The Organization Before ERP
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ENTERPRISE RESOURCE PLANNING
ERP Bringing The Organization Together
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THE BENEFITS OF ERP
Core ERP component – Traditional components included in most ERP systems and they primarily focus on internal operations
Extended ERP component – Extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
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THE BENEFITS OF ERP
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THE BENEFITS OF ERP
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Core ERP Components
Three most common core ERP components
Accounting and finance
Production and materials management
Human resource
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Accounting and Finance ERP Components
Accounting and finance ERP component – Manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
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Production and Materials Management ERP Components
Production and materials management ERP component – Handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
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Human Resource ERP Component
Human resource ERP component – Tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
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Extended ERP Components
Extended ERP components include:
Business intelligence
Customer relationship management
Supply chain management
Ebusiness components include
Elogistics
Eprocurement
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Measuring ERP Success
Balanced scorecard – Enables organizations to clarify their vision and strategy and translate them into action
Balanced scorecard views the organization from four perspectives
Learning and growth
Internal business process
Customer
Financial
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Measuring ERP Success
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Measuring ERP Success
ERP systems contain multiple complex components that are not only expensive to purchase, but also expensive to implement
Costs include
Software
Consulting fees
Process rework
Customization
Integration
Testing/Training
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ORGANIZATIONAL INTEGRATION WITH ERP
SCM, CRM, and ERP are the backbone of ebusiness
Integration of these applications is the key to success for many companies
Integration allows the unlocking of information to make it available to any user, anywhere, anytime
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ORGANIZATIONAL INTEGRATION WITH ERP
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LEARNING OUTCOME REVIEW
Now that you have finished the chapter please review the learning outcomes in your text
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