5 enterprise applications

Enterprise ApplicationsEnterprise Applications

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 2 E-Business: How Businesses Use Information SystemsChapter 2 E-Business: How Businesses Use Information Systems

Systems That Span the Enterprise

• Enterprise applications are systems that span functional areas and automate processes for multiple business functions and organizational areas; they include:

• Enterprise systems

• Supply chain management systems

• Customer relationship management systems

• Knowledge management systems

Enterprise Systems

• What Are Enterprise Systems?• Based on integrated software modules and a

common central database

• How Enterprise Systems Work• Best practices – most successful solutions

• Business Value of Enterprise Systems• Increase operational efficiency

• Support decision making and rapid responses to customer requests

• Include analytical tools to evaluate overall performance

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and Customer

Intimacy: Enterprise ApplicationsIntimacy: Enterprise Applications

• Also known as enterprise resource planning (ERP) systems

• Integrate key business processes of an entire firm into a single system enabling managers of large firms to assemble an overall view of operations

Enterprise SystemsEnterprise Systems



Enterprise Systems

Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise

How Enterprise Systems WorkHow Enterprise Systems Work

Enterprise Systems

ENTERPRISE APPLICATION

Firm structure and organization: One organization

•Management: Firm-wide knowledge-based management processes

•Technology: Unified platform

•Business: More efficient operations and customer-driven business processes

Benefits of Enterprise Systems

•Difficult to build: Require fundamental changes in the way the business operates

•Technology: Require complex pieces of software and large investments of time, money, and expertise

•Centralized organizational coordination and decision making: Not the best way for the firms to operate

Challenges of Enterprise Systems



The Supply ChainThe Supply Chain

• A network of organizations and processes for procuring raw materials, transforming them into products, and distributing the products

• Upstream supply chain: firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them

• Downstream supply chain: organizations and processes responsible for delivering products to customers

Supply Chain Management Systems



Supply ChainSupply Chain


Figure 8-2

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.

• Aim to move the correct amount of product from source to point of consumption as quickly as possible and at the lowest cost

• Used by firms to manage relationships with suppliers, purchasing firms, distributors, and logistics companies through shared information about orders, production, inventory levels, and more

• Automate the flow of information across organizational boundaries

Supply Chain Management SystemsSupply Chain Management Systems


Features

Supply Chain Management

Network of organization and business processes for procuring materials, transforming raw materials into intermediate and finished products and distributing the

finished products to customers .•Helps in distribution of the finished products

to customers

•Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

Supply Chain Management (SCM)

•Close linkage and coordination of activities involved in buying, making, and moving a product

•Integrates supplier, manufacturer, distributor, and customer logistics time

•Reduces time, redundant effort, and inventory costs

•Helps in procurement of materials, transformation of raw materials into intermediate and finished products

Information and Supply Chain ManagementInformation and Supply Chain Management

• Inefficiencies cut into a company’s operating costs

• Just-in-time strategy

• Safety stock

• Bullwhip effect – information about the demand for a product gets distorted.




Supply Chain Management ApplicationsSupply Chain Management Applications

• Information visibility – open and rapid communication

and information sharing

• Supply chain planning systems – enables the firm to

generate demand forecasts

• Demand planning – determines how much product a

business needs to satisfy customer’s demands

• Supply chain execution systems – manages the flow

of products through distribution centers




Supply Chain Management and the InternetSupply Chain Management and the Internet

• Intranets – to improve coordination among their internal supply chain processes

• Extranets – to coordinate supply chain processes shared with their business partners

• Demand-driven supply chains

• Push-based model – production master schedules are bases on forecasts

• Pull-based model – actual customer orders trigger events in the supply chain

• Digital logistics nervous systems




Push- Versus Pull-Based Supply Chain ModelsPush- Versus Pull-Based Supply Chain Models

The difference between push- and pull-based models is summarized by the slogan “Make what we sell, not sell what we make.”




• Match supply to demand

• Reduce inventory levels

• Improve delivery service

• Speed product time to market

• Use assets more effectively

• Reduced supply chain costs lead to increased profitability

• Increased sales

Business Value of Supply Chain Management SystemsBusiness Value of Supply Chain Management Systems




How IS can facilitate Supply Chain Management System

•Decide when and what to produce, store and move.•Rapidly communicate orders

•Track the status of orders•Check inventory availability and monitor inventory

levels•Reduce inventory, transportation and warehousing

costs•Track shipments

•Plan production, based on actual customers demand•Rapidly communicate changes in product design

Limitations:

•Inefficiencies can waste as much as 25% of company’s operating costs

•Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next

Supply Chain Management (SCM)

Management Information Systems 8/eManagement Information Systems 8/eChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

ENTERPRISE APPLICATIONS

Supply Chain Management System:

•Planning System (Capabilities)

–Order Planning

–Advanced scheduling

–Manufacturing Planning

–Demand Planning

–Distribution Planning

–Transportation Planning

•Execution System (Capabilities)

–Order Communication

–Final Production

–Replenishment & Refilling

–Distribution Management

–Reverse Distribution

What Is Customer Relationship Management?What Is Customer Relationship Management?

• Knowing the customer

• Touch points (Contact points)

• Single enterprise view of customers

• Data and analytical tools answer important questions about customers

Customer Relationship Management Systems



• Coordinate all of the business processes that deal with customers to optimize revenue and customer satisfaction, and increase sales

• Sales, marketing, and service record data from multiple communication channels can be combined

Customer Relationship Management SystemsCustomer Relationship Management Systems



Customer Relationship Management (CRM)

•Manages all ways used by firms to deal with existing and potential new customers

•Business and Technology discipline

•Uses information system to coordinate entire business processes of a firm




•Provides end-to-end customer care

•Provides a unified view of customer across the company

•Consolidates customer data from multiple sources and provides analytical tools for answering questions




Customer Relationship Management (CRM)Customer Relationship Management (CRM)

Figure 8-7

CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.

CRM SoftwareCRM Software

• CRM packages are available with a wide spectrum of functions• Partner relationship management (PRM)

• Employee relationship management (ERM)

• Sales force automation (SFA) – focusing sales efforts on the most profitable customers

• Customer service

• Marketing

• Cross-selling

• Up-selling

• Bundling




• Operational: customer-facing applications such as sales force automation, call center and customer service support, and marketing automation

• Analytical: applications that analyze customer data output from operational CRM applications

• Based on data warehouses populated by operational CRM systems and customer touch points

• Customer lifetime value (CLTV)




Operational and Analytical CRMOperational and Analytical CRM

Business Value of Customer Relationship ManagementBusiness Value of Customer Relationship Management

• Business benefits:

• Increased customer satisfaction

• Reduced direct-marketing costs

• More effective marketing

• Lower costs for customer acquisition/retention

• Increased sales revenue




Challenges and OpportunitiesChallenges and Opportunities

• Technology changes

• Business process changes

• Organizational changes

• Switching costs

• Data management

Enterprise Applications: New Opportunities and Challenges





• Intangible knowledge assets provide value to firms

• Knowledge management systems manage the capture, storage, distribution, and application of knowledge so that it can be leveraged for strategic benefit

Knowledge Management SystemsKnowledge Management Systems

Knowledge Management Systems

•Creating knowledge

•Discovering and codifying knowledge

•Sharing knowledge

•Distributing knowledge


• Getting more value from enterprise applications

• Flexibility

• Integration with other systems

• Enterprise suites

• Links to customer and supplier systems

Enterprise Applications: New Opportunities and Challenges



Extending Enterprise SoftwareExtending Enterprise Software

5 enterprise applications

Technology

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