Post on 14-Mar-2020
Electronic Business Systems
Cross-functional Enterprise SystemsFunctional Business Systems
Chapter7
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives1. Identify the following cross-functional enterprise
systems, and give examples of how they can provide significant business value to a company:
a. Enterprise resource planning (ERP)b. Customer relationship management (CRM)c. Supply chain management (SCM)d. Enterprise application integration (EAI)e. Transaction processing systems (TPS)f. Enterprise collaboration systems (ECS)
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Learning Objectives2. Give examples of how Internet and other
information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.
3. Understand the need for enterprise application integration to improve support of business interactions across multiple e-business applications.
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Cross-functional SystemslCross the boundaries of traditional business
functionsl In order to reengineer and improve vital business
processes all across the enterprise. l Integration is the key for success.l Is the key for unlocking the information and make it
available to any user, anywhere, any time.
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Enterprise Application Architecture
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Customer Relationship Management (CRM)
lCRM uses technology tol Create a Cross-Functional e-Business systeml That integrates and automates many of the processes in
sales, marketing and customer service that interact with customers
l Create a framework of web-enabled software and databases that integrate these processes with the rest of the company’s processes
“The customer is always right”
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CRM Applications Clusters
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CRM applicationsl Contract and Account Managementl Helps sales, marketing and service professionalsl Capture and track data about past and planned contacts with
customers and prospectsl Salesl Provides sales reps with software tools and data they need to
support and manage sales activitiesl Cross-selling is trying to sell a customer of one product with
a related productl Up-selling is trying to sell customer a better product than
they are currently seeking l i.e. Bank Sales Rep
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CRM applications
lMarketing and FulfillmentlHelp marketing professionals accomplish direct
marketing campaigns by tasks such as lQualifying leads for targeted marketing and scheduling
and tracking direct marketing mailings
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CRM applicationslCustomer Service and Supportl Provides sales reps with software tools and database
access to customer database shared by sales and marketing professions
lHelps Customer Services Managers to create, assign and manage requests for service
l Call center software routes calls to customer support agents based upon their skills and type of call
lHelp desk software provides relevant service data and suggestions for resolving problems for customer service reps helping customers with problems
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CRM applicationslRetention and Loyalty Programsl Try to help a company identify, reward, and market to
their most loyal and profitable customerslData mining tools and analytical softwarel Customer data warehouse
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CRM Integrated Solutions
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Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm’s sources.
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CRM supports customer life cycle
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CRM benefitsl Identify and target best customerslReal-time customization and personalization of
products and serviceslTrack when a customer contacts a companylProvide consistent customer experience and superior
service and supportlSAP, Oracle, Salesforce.com,
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Reasons for CRM failures
lLack of understanding and preparationlRely on application to solve a problem without first
changing the business processeslBusiness stakeholders not participating and not
prepared
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Supply Chain Management (SCM)lA cross-functional enterprise systemlTo help support and manage the links between a
company’s key business processeslAnd those of its suppliers, customers and business
partnerslExample: www.pgsupplier.com/
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Nike’s SCM(only for Sneakers)
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This figure illustrates the major entities in Nike’s supply chain and the flow of information upstream and downstream to coordinate the activities involved in buying, making, and moving a product. Shown here is a simplified supply chain, with
the upstream portion focusing only on the suppliers for sneakers and sneaker soles.
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SCM goallFast, efficient, low-cost network of business
relationships or supply chain to get a company’s products from concept to market
lA supply chain:l Interrelationships with suppliers, customers,
distributors, and other businesses that are needed to design, build and sell a product
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SCM
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Goals and Objectives of SCM
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Causes of problems in SCMlLack of proper demand-planning knowledge, tools
and guidelinesl Inaccurate or overoptimistic demand forecastsl Inaccurate production, inventory, and other datalLack of adequate collaboration within the company
and between partnerslSCM software considered immature, incomplete and
hard to implement
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Enterprise Application Integration (EAI)lEAI connects cross-functional systemslServes as middleware to
l Provide data conversionl Communication between systemsl Access to system interfaces
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Real World Group Activity2. One of the challenges associated with application
integration on an enterprise level is determining which applications to integrate and which to leave as is. In small groups,l Discuss how an organization should approach an
integration project.l What criteria should be used in determining a
candidate application for enterprise integration?
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Functional Business Systems
lA variety of information systems (transaction processing, management information systems, decision support, etc.)lThat support the business functions of lAccounting, finance, marketing, operations
management and human resource management
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Examples of functional information systems
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Marketing Information Systems
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Interactive marketingl Interactive marketing:lA customer-focused marketing processlUsing the Internet, intranets, and extranetsl To establish two - way transactions between a business
and its customers or potential customerslGoal: l to profitably attract and keep customerslwho will become partners with the business l in creating, purchasing and improving products and
services
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Targeted MarketinglAn advertising and promotion management concept
that includes five targeting components
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Targeted Marketing ComponentslCommunity – customize advertising to appeal to
people of specific virtual communities, Arts, Sports
lContent – advertising placed on a variety of selected websites aimed at a specific audience, e-billboards, banners
lContext – advertising placed on web pages that are relevant to the content of a product or service, vocational travel, car rental service
lDemographic/Psychographic – web marketing efforts aimed at specific types or classes or people, middle income, unmarried, college graduatelOnline Behavior – promotion efforts tailored to each
visit to a site by an individual, e.g., using cookies files
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Sales Force AutomationlOutfit sales force with notebook computers, web
browsers and sales contract management softwarelConnect them to marketing websites and company
intranetlGoal:l Increase personal productivity l Speeds up capture and analysis of sales data from the
field to marketing managerslGain strategic advantage
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Manufacturing Information Systems
lSupport the production/operations function l Includes all activities concerned with planning and
control of producing goods or services
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Computer-Integrated Manufacturing
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CIM Objectives
lSimplify production processes, product designs, and factory organization as a vital foundation to automation and integrationlAutomate production processes and the business
functions that support them with computers, machines, and robotsl Integrate all production and support processes using
computer networks, cross-functional business software, and other information technologies
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CIM SystemslComputer-aided manufacturing (CAM)
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CIM SystemslComputer-aided manufacturing (CAM) - automate
the production processlManufacturing execution systems (MES) –
performance monitoring information systems for factory floor operations, controls five essential components in production process( material, equipment, personal, instruction and specifications)
lProcess Control – control ongoing physical processes, petroleum refines, cement plants, steel mils, thermostat, valves, switches.
lMachine Control – controls the actions of machines, weaving machine, other industrial machines
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Human Resource Management (HRM)
l Information systems designed to supportl Planning to meet the personnel needs of the businesslDevelopment of employees to their full potentiall Control of all personnel policies and programs
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HRM and the InternetlRecruiting employees using the corporate website
and commercial recruiting serviceslPosting messages in selected Internet newsgroupslCommunicating with job applicants via e-mail
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HRM and Corporate IntranetslProcess common HRM applicationslAllow HRM department to provide around-the-clock
serviceslDisseminate valuable information faster than
through previous company channelslCollect information from employees onlinelAllow managers and other employees to perform
HRM tasks with little intervention by the HRM departmentlTraining tool
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Employee Self-Service (ESS)l Intranet applications that allow employees tol View benefitsl Enter travel and expense reportsl Verify employment and salary informationlUpdate their personal informationl Enter data that has a time constraint to it
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Accounting Information SystemslRecord and report the flow of funds through an
organizationlProduce financial statementslForecasts of future conditions
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Accounting Information Systems
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Six essential Accounting Information Systems
lOrder Processing – Captures and processes customer orders and produces data for inventory control and accounts receivablel Inventory Control – Processes data reflecting changes
in inventory and provides shipping and reorder informationlAccounts Receivable – Records amounts owed by
customers and produces customer invoices, monthly customer statements, and credit management reports
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Six essential Accounting Information Systems
lAccounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reportslPayroll – Records employee work and compensation
data and produces paychecks and other payroll documents and reportslGeneral Ledger – Consolidates data from other
accounting systems and produces the periodic financial statements and reports of the business
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Financial Management SystemslSupport business managers and professionals in
decisions concerningl The financing of a businessl The allocation and control of financial resources within
a business
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Financial Management System Examples
l Analyzing Enterprise Application Vendors
l With a group of three students, use the Web to research and evaluate the products of two vendors of enterprise applications software. You could compare, for example, the SAP and Oracle enterprise systems, the supply chain management systems from i2 and SAP, or the customer relationship management systems of Oracle’s and Salesforce.com. Use what you have learned from these companies’ Web sites to compare the software packages you have selected in terms of business functions supported, technology platforms, cost, and ease of use. Which vendor would you select? Why? Would you select the same vendor for a small business as well as a large one
l Conduct your search on the Internet for the Web sites listed below.l www.sap.com, l www.oracle.com, l www.i2.com, l www.salesforce.com
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Case Study Questions1. What is the business value of SCM systems for
Brunswick and Whirlpool?2. Does the business value of SCM depend upon what
type of business a company is in? Explain.3. How does Brunswick’s approach to SCM differ
from that of Whirlpool’s? Is one approach superior to all others? Why or why not?