1. Composed by DUONG TO DUNG, FEB 2019
MIS COURSE: CHAPTER 9 ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPLICATIONS
Composed by DUONG TO DUNG,
FEB 2019

2. CONTENT
How do enterprise systems help businesses achieve operational excellence?
How do SCM systems coordinate planning, production, and logistics with suppliers?
How do CRM systems help firms achieve customer intimacy?
What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies?

3. How do enterprise systems help businesses achieve operational excellence?
What are Enterprise Systems? ERP Systems: a suite of integrated software modules and a common central database.

4. How do enterprise systems help businesses achieve operational excellence?
ENTERPRISE SOFTWARE Is built around thousands of predefined business processes that reflect best practices. Companies implementing this sw would have to select the functions of the system they wish to use and then map their business processes to the predefined biz processes in the sw.
Company’s existing biz. processes
Predefined biz. Processes (from best practices)

5. How do enterprise systems help businesses achieve operational excellence?
BUSINESS VALUE OF ENTERPRISE SOFTWARE
Done correctly, enterprise systems can offer big rewards. Conversely, done incorrectly can cause a firm huge headaches, loss of business, employee turmoil, and wasted dollars.
The changes in the enterprise will be tremendous:
Management: Improved management decision making, with a comprehensive view of performance across all functional areas.
More efficient operations and customer-driven business processes: All functional areas can focus more on the customer and respond to product demand more efficiently.
A more uniform organization: A more disciplined approach to business throughout the entire firm, regardless of physical location and/or organizational structure.

6. How do enterprise systems help businesses achieve operational excellence?
BUSINESS VALUE OF ENTERPRISE SOFTWARE Enterprise systems force a company to fully integrate all business processes. These systems usually require massive changes in the structure and organization of a business and are difficult to implement. However, the changes can make a tremendous improvement in a firm by using the best practices of the industry and requiring all functional areas to focus more on the customer. Values: increasing operational efficiency & enhancing decision making.

7. How do SCM systems coordinate planning, production, and logistics with suppliers?
+ Supply Chain: a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. It links suppliers, manufacturing plants, distribution centers, retail outlets, and customers to supply G/S from source through consumption. Materials, info., and payments flow through the supply chain in both directions. * Upstream: suppliers, suppliers of suppliers * Downstream: distribution to customers

8. How do SCM systems coordinate planning, production, and logistics with suppliers?
ISs & SCM + Just-in-time Strategy In a perfect world, just-in-time strategies for ordering and delivering supplies would be an ordinary process. Unfortunately, we don’t live in a perfect world. Natural disasters, dock worker strikes, and terrorist activities … can disrupt even the most carefully planned supply chains in an instant. Businesses have to plan as best they can around these kinds of events but they can’t foresee every problem. + Bullwhip Effect

9. How do SCM systems coordinate planning, production, and logistics with suppliers?
ISs & SCM
+ Bullwhip Effect

10. How do SCM systems coordinate planning, production, and logistics with suppliers?
SCM SOFTWARE Classified as either sw to help businesses plan their supply chains or sw to help them executive the supply chain steps. + Supply Chain Planning Systems: enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans. One of the most important, and complex, supply chain planning functions is demand planning. + 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.

11. How do SCM systems coordinate planning, production, and logistics with suppliers?
GLOBAL SUPPLY CHAIN AND THE INTERNET
+ Global Supply Chain Issues:
Greater geographic distances and time differences
Additional costs for transportation, inventory, and local taxes and fees
Varying performance standards
Foreign government regulations
Cultural differences
Although the Internet helps suppliers, manufacturers, and partners communicate easier through , faxes, or phone calls, those communication methods open the door to errors or mistakes. Using Web-based supply chain management systems gives all the players a way to make data and information more easily available through browsers and portals.

12. How do SCM systems coordinate planning, production, and logistics with suppliers?
DEMAND-DRIVEN SUPPLY CHAINS: from PUSH to PULL Manufacturing and Efficient Customer Response Traditionally, customers purchase whatever products are available. Although colors, sizes, and prices may vary somewhat, generally a manufacturer decides what to produce by forecasting what the potential demand might be through a push-based model. That is quickly changing to a pull-based model in which the customer tells the manufacturer ahead of time what he/she wants to buy. One of the best examples of this new pull-based model is Dell Computer’s build-to-order business model.

13. How do SCM systems coordinate planning, production, and logistics with suppliers?

14. How do SCM systems coordinate planning, production, and logistics with suppliers?
BUSINESS VALUE OF SCM SYSTEMS The benefits of implementing an integrated, networked supply chain management system include: Match supply to demand; Reduce inventory levels; Improve delivery service; Speed product time to market; Use assets more effectively. In turn a company can: Improve customer service and responsiveness; Reduce costs; Increase sales; Utilize cash better. By making the supply chain more efficient a company can save millions of dollars, improve its relationships with its customers, and sell more products.

15. How do CRM systems help firms achieve customer intimacy?
WHAT IS CRM? In the past, CRM served a simple purpose inside your enterprise: It kept track of your customers, their addresses and their orders. Now, though, there’s far more that comes under the CRM umbrella, from connecting with your customers through social media to being able to instantly transmit customer data to a call center agent when customers call in for help. Need to regularly take a close look at your CRM infrastructure: With all the new functionality available in CRM tools today, you need to determine if your existing system is still meeting the needs of your business and customers.

16. How do CRM systems help firms achieve customer intimacy?

17. How do CRM systems help firms achieve customer intimacy?
WHAT IS CRM?
The goals of customer relationship management systems are to optimize customer satisfaction and customer retention which in turn will maximize revenue and profitability.
Many companies are overloaded with data about customers. Unfortunately, too many companies don’t have any useful info. that can help them increase customer satisfaction and retention, thereby increasing revenues and profitability. The ability to turn raw data into useful info. is where CRM systems shine. CRM systems gather customer info. from all corners of a business, consolidate the info. and then provide it to all of the organization’s customer touch points. By offering a consolidated viewpoint of the customer to these touch points, a company can cater to the customer that offers the most profitability.

18. How do CRM systems help firms achieve customer intimacy?
CRM SOFTWARE CRM application software ranges in size and complexity making it possible for an org. to select the type of sw it needs the most. Modules focusing on partner relationship management or employee relationship management can be integrated into the CRM sw at a later date.

19. How do CRM systems help firms achieve customer intimacy?
CRM SOFTWARE
Partner relationship management systems are a reflection of internal CRM systems but extend past the immediate borders of a firm to its selling partners.
For instance, Levi’s jeans doesn’t sell directly to its customers but rather through other retail outlets. How Levi’s partners cater to the customer directly affects its profitability. Therefore, Levi’s is very interested in sharing info. about its customers with its partners to increase sales of its products. Using PRM systems not only helps Levi’s but also its retailers.

20. How do CRM systems help firms achieve customer intimacy?
CRM SOFTWARE
Employee relationship management modules associated with CRM focus more on how employees perform and interact with customers.
These modules help a company manage:
Employee objectives
Employee performance
Performance-based compensation
Employee training

21. How do CRM systems help firms achieve customer intimacy?
CRM SOFTWARE CAPABILITIES
Sales-Force Automation (SFA): Allows the sales force to focus on the most profitable customer. It also reduces the cost per sale for acquiring new customers and retaining old ones. Improves sales forecasting, territory management, and team selling.
Customer service: Gathers information from a variety of sources and makes it available across organizational functions so that data is input only once. Includes Web-based self-service capabilities.
Marketing: Allows companies to engage in cross-selling, up-selling, and bundling through better analysis of customer data.

22. How do CRM systems help firms achieve customer intimacy?
CRM sw provides a single point for users to manage and evaluate marketing campaigns across multiple channels, including , direct mail, telephone, the Web, and wireless messages.

23. How do CRM systems help firms achieve customer intimacy?
The major CRM software products support business processes in sales, service, and marketing, integrating customer information from many different sources. Included are support for both the operational and analytical aspects of CRM.

24. How do CRM systems help firms achieve customer intimacy?
OPERATIONAL AND ANALYTICAL CRM Operational CRM includes everything a company should provide those employees who interface directly or indirectly with the customer: the sales force, call centers, and support activities. Managers and decision makers use the analytical CRM to help them improve business performance. The analytical CRM uses data from the operational CRM and provides managers with the opportunity to target smaller, specific customer groups or market segmentation. Rather than trying to blanket a huge group of potential customers, many of whom are not interested, managers use the analytical CRM to focus their efforts on those customers who can offer the most profit at the least cost.

25. How do CRM systems help firms achieve customer intimacy?
BUSINESS VALUE OF CRM SYSTEMS As the old saying goes, “We’re wasting half of our advertising budget; we just don’t know which half.” CRM software will help managers better understand their customers thereby helping them make better decisions about product lines and marketing campaigns. CRM systems can also help reduce the customer churn rate and identify which customers are most profitable. Hopefully, CRM will help them discover which half of the ad budget is wasted. * Churn rate: measures the number of customers who stop using or purchasing P/S from a company.

26. How do CRM systems help firms achieve customer intimacy?
BUSINESS VALUE OF CRM SYSTEMS
Increased customer satisfaction
Reduced marketing costs
More effective marketing
Lower costs for customer acquisition and retention
Increased sales revenue
Better response to customer needs
CRM systems allow a firm to focus all of its energy and attention to developing profitable customers and foregoing unprofitable ones. Useful info. produced by CRM systems allow firms to improve business performance while reducing costs associated with gaining and retaining customers. Info. can be shared internally and externally.

27. What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies?
Before implementing enterprise application systems, organizations need a very clear picture of where they are now and where they want to go. Organizations must decide which processes provide the most value and which processes need the most improvement. And, the firm must allocate the organization resources where they are most needed. CHALLENGES ARE: + Daunting Implementation: Technological and fundamental changes will pervade every corner of the org.. The organizational structure and culture will change. The most daunting task will be retraining thousands of workers and convincing them the change is good. It will be easier to fail than to succeed.

28. What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies?
CHALLENGES ARE:
High Up-Front Costs and Future Benefits: On average, it takes 3-5 yrs to fully implement an enterprise system. And, the software is very expensive. Keeping the firm on track and focused on the end result is more difficult than most firms anticipate. Also switching cost.
Data Management: It’s more important than ever before. Now that one database serves the entire organization, if data are mismanaged, it will affect every business function and process.
Inflexibility: Making changes in one area of the business is much more difficult after implementing an enterprise system. The software is just too complex to easily change.

29. What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies?
NEXT-GENERATION ENTERPRISE APPLICATIONS
The uses of SOA, Web 2.0, Open Source, Cloud…
Social CRM: enable businesses to connect customer conversations and relationships from social networking sites to CRM processes. The leading CRM vendors now offer such tools to link data from social networks into their CRM software. (SAP, Oracle CRM, Salesforce.com)
Business Intelligence in Enterprise Application: vendors have added BI features to help managers obtain more meaningful info. from the massive amounts of data generated by these systems.

30. REVIEW SUMMARY
How do enterprise systems help businesses achieve operational excellence?
How do SCM systems coordinate planning, production, and logistics with suppliers?
How do CRM systems help firms achieve customer intimacy?
What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies?

31. LET’S GO THROUGH THEM TOGETHER! UNIT VI ASSIGNMENT END!
REVIEW QUESTIONS
LET’S GO THROUGH THEM TOGETHER! UNIT VI ASSIGNMENT END!