Functional and Enterprise Systems Chapter 7 Functional and Enterprise Systems

Customer Relationship Management The philosophy that an organization should focus on the customer Chapter 7

Reasons Why Companies Implement a CRM Strategy Develop one view of the customer for more successful sales, marketing, and service Improve customer satisfaction Improve retention by rewarding loyalty Chapter 7

Reasons Why Companies Implement a CRM Strategy Increase up-selling and cross-selling of products and services Target markets more accurately Improve sales leads Increase sales closing rates Chapter 7

Reasons Why Companies Implement a CRM Strategy Increase margin on goods and services Increase revenue and profits Respond to competitor’s implementation of CRM Chapter 7

Customer Relationship Management Sales Force Automation Replaces manual systems of tracking leads, sales, service requests, and other sales-related information with computerized systems that use sophisticated database software and mobile computers Chapter 7

Customer Relationship Management Order Handling Point-of-Sale System (POS) Records the sale of a product or service and updates company records related to the sale Order Entry Systems Record and process the taking of an order Chapter 7

Customer Relationship Management Electronic Bill Presentment and Payment (EBPP) Satisfies customers by reducing paperwork and mailing costs Post-Sales Support CRM support for call centers provides management of contact with customer Chapter 7

Customer Relationship Management Managing Distributors Partner relationship management (PRM) A philosophy of coordinating with distributors and other channel partners in the sale and distribution of a product or service Chapter 7

Managing Design, Engineering, and Production Computer-Aided Design (CAD) Helps designers translate their mental images into physical drawings and specifications Rapid prototyping can convert a CAD model into a solid physical model. Chapter 7

Managing Design, Engineering, and Production Computer-Aided Manufacturing (CAM) The use of computers to control equipment in the manufacturing process Flexible manufacturing provides multiple uses for computer-controlled machinery Robots are computer-controlled machinery that exhibit human-like features Chapter 7

Managing Design, Engineering, and Production CAD/CAM Integrates CAD and CAM software so that engineering drawings are processed in such a way that their output can be downloaded directly to manufacturing equipment to produce a final product Automated Guided Vehicles (AGVs) Computer-controlled vehicles improve manufacturing flexibility Chapter 7

Managing Design, Engineering, and Production Computer Integrated Manufacturing The integration of product design, manufacturing planning, manufacturing execution, and shop floor control, as well as the integration of these production functions with the other functions of an organization Chapter 7

Managing Design, Engineering, and Production Figure 7-10 Chapter 7

Managing Design, Engineering, and Production Mass Customization The competitive advantage a company would have if it could produce the exact product that each customer wanted as cheaply and efficiently as if it were mass-produced Chapter 7

Managing Design, Engineering, and Production Figure 7-11 Chapter 7

Managing Supplier Relationships Electronic Procurement Automates processes relating to procurement Qualifying Bidding Ordering Receiving Paying Chapter 7

Managing Supplier Relationships Just-in-Time Inventory The practice of receiving supplies just as a company requires it, neither too early nor too late Chapter 7

Managing Supplier Relationships Vendor Managed Inventory (VMI) A process in which a supplier manages the inventory in its customer’s facilities Vendor improves knowledge of product demand and ability to time deliveries Company usually doesn’t pay for product until it is sold Chapter 7

Managing Warehousing and Transportation Warehouse Management Systems Support activities inside the warehouse and at its shipping and receiving docks Chapter 7

Managing Warehousing and Transportation Warehouse Management System Features Receiving Warehouse Management Systems help schedule pickup and deliveries to the warehouse Shipping Systems schedule outbound vehicles at docks Chapter 7

Managing Warehousing and Transportation Warehouse Management System Features Picking Systems support automated picking and conveyor systems Storage Systems help lay out the storage so that size and weight restrictions are observed and frequently used items are accessed most easily Chapter 7

Managing Warehousing and Transportation Warehouse Management System Features Reporting Warehouse management systems identify the number and value of items in stock Chapter 7

Managing Warehousing and Transportation Cross-docking systems Load goods received at a distribution point immediately onto outgoing trucks without entering them into inventory Auto-ID Systems Tags merchandise with radio-frequency tags that can be tracked at a distance Chapter 7

Support Systems Human Resource Management Systems Streamline the processes relating to employee recruitment, development, retention, assessment, and compensation Chapter 7

Support Systems Accounting Systems Accounts receivable Accounts payable General ledger Budgeting, cash management, fixed asset accounting, investment tracking, and other functions Chapter 7

Enterprise and Cross-Enterprise Systems Enterprise Resource Planning (ERP) Software Integrates all functional systems in a single package Can be purchased in modules that address only specific functional needs Chapter 7

Enterprise and Cross-Enterprise Systems Enterprise Application Integration (EAI) The process of integrating the functional systems of an organization One solution is pair-wise matching of inputs and outputs among applications Another solution is middleware, software that provides and manages inter-application interface Chapter 7

Enterprise and Cross-Enterprise Systems Figure 7-15 Chapter 7

Enterprise and Cross-Enterprise Systems Supply Chain Management The manner by which a company and its supply chain partners analyze, optimize, and control the acquisition and delivery of raw materials necessary for the creation of the goods and services that an organization produces Requires cross-enterprise integration Chapter 7

Functional and Enterprise Systems End of Chapter 7 Functional and Enterprise Systems