Chapter 7 Functional and Enterprise Systems

Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that an organization should focus on the customer

Chapter 7Slide 3 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 7Slide 4 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 7Slide 5 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 7Slide 6 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 7Slide 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 7Slide 8 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 7Slide 9 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 7Slide 10 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 7Slide 11 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 7Slide 12 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 7Slide 13 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 7Slide 14 Managing Design, Engineering, and Production Figure 7-10

Chapter 7Slide 15 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 7Slide 16 Managing Design, Engineering, and Production Figure 7-11

Chapter 7Slide 17 Managing Supplier Relationships  Electronic Procurement Automates processes relating to procurement  Qualifying  Bidding  Ordering  Receiving  Paying

Chapter 7Slide 18 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 7Slide 19 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 7Slide 20 Managing Warehousing and Transportation  Warehouse Management Systems Support activities inside the warehouse and at its shipping and receiving docks

Chapter 7Slide 21 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 7Slide 22 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 7Slide 23 Managing Warehousing and Transportation  Warehouse Management System Features Reporting  Warehouse management systems identify the number and value of items in stock

Chapter 7Slide 24 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 7Slide 25 Support Systems  Human Resource Management Systems Streamline the processes relating to employee recruitment, development, retention, assessment, and compensation

Chapter 7Slide 26 Support Systems  Accounting Systems Accounts receivable Accounts payable General ledger Budgeting, cash management, fixed asset accounting, investment tracking, and other functions

Chapter 7Slide 27 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 7Slide 28 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 7Slide 29 Enterprise and Cross-Enterprise Systems Figure 7-15

Chapter 7Slide 30 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

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