Bài giảng Business Driven Information Systems - Chapter eight: Enterprise applications business communications

CHAPTER EIGHTENTERPRISE APPLICATIONSBUSINESS COMMUNICATIONSCHAPTER OVERVIEWSECTION 8.1 – Enterprise Systems and Supply Chain ManagementBuilding a Connected Corporation Through IntegrationsSupply Chain ManagementThe Benefits of SCMThe Challenges of SCMThe Future of SCMCHAPTER OVERVIEWSECTION 8.2 – Customer Relationship Management and Enterprise Resource PlanningCustomer Relationship ManagementThe Benefits of CRMThe challenges of CRMThe Future of CRMEnterprise Resource PlanningThe Benefits of ERPThe challenges of ERPThe Future of Enterprise Systems, Integrating SCM, CRM, and ERPSECTION 8.1Enterprise Systems and Supply Chain ManagementLEARNING OUTCOMESExplain integrations and the role they play in connecting a corporationDescribe supply chain management along with its associated benefits and challengesBUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONSIntegration – Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systemsForward integrationBackward integrationBUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS Integration Example BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONSA Central Information Repository ExampleIntegration ToolsEnterprise system – Provide enterprisewide support and data access for a firm’s operations and business processesEnterprise application integration (EAI) – Connects the plans, methods, and tools aimed at integrating separate enterprise systemsIntegration ToolsMiddleware – Several different types of software that sit between and provide connectivity for two or more software applicationsEnterprise application integration middleware – Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendorsIntegration Tools Three Primary Enterprise SystemsSUPPLY CHAIN MANAGEMENTFive basic supply chain activitiesSUPPLY CHAIN MANAGEMENTSupply Chain Management (SCM) – The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitabilitySUPPLY CHAIN MANAGEMENTThe supply chain has three main linksMaterials flow from suppliers and their “upstream” suppliers at all levelsTransformation of materials into semifinished and finished products through the organization’s own production processDistribution of products to customers and their “downstream” customers at all levelsSUPPLY CHAIN MANAGEMENTSupply Chain ExampleSUPPLY CHAIN MANAGEMENTWalmart and Procter & Gamble SCM ExampleSUPPLY CHAIN MANAGEMENTEffective and efficient SCM systems can enable an organization toDecrease the power of its buyersIncrease its own supplier powerIncrease switching costs to reduce the threat of substitute products or servicesCreate entry barriers thereby reducing the threat of new entrantsIncrease efficiencies while seeking a competitive advantage through cost leadershipSUPPLY CHAIN MANAGEMENTEffective and Efficient SCM Systems Effect on Porter’s Five ForcesTHE BENEFITS OF SCM: Improved VisibilitySupply chain visibility – The ability to view all areas up and down the supply chain in real timeSupply chain planning system – Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventorySupply chain execution system – Automates the different activities of the supply chainBullwhip effect – Occurs when distorted product demand information ripples from one partner to the next throughout the supply chainTHE BENEFITS OF SCM: Improved VisibilitySupply Chain Planning and ExecutionTHE BENEFITS OF SCM: Improved ProfitabilityCompanies can respond faster and more effectively to consumer demands through supply chain enhances Demand planning system – Generates demand forecasts using statistical tools and forecasting techniques, so companies can respond faster and more effectively to consumer demands through supply chain enhancementsTHE BENEFITS OF SCM: Improved ProfitabilityCommon supply chain metrics include:Back orderInventory cycle timeCustomer order cycle timeInventory turnoverTHE CHALLENGES OF SCMPrimary challenges includeCost – An SCM system can cost millions of dollars for the software and millions more for help implementing the systemComplexity - The move towards globalization is increasing complexity in the supply chainTHE FUTURE OF SCMFastest growing SCM componentsCollaborative demand planningCollaborative engineeringSelling chain management Supply chain event management (SCEM)SECTION 8.2Customer Relationship Management and Enterprise Resource PlanningLEARNING OUTCOMESDescribe customer relationship management along with its associated benefits and challenges Describe enterprise resource management along with its associated benefits and challengesCUSTOMER RELATIONSHIP MANAGEMENTCustomer relationship management (CRM) – Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitabilityMany organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systemsCUSTOMER RELATIONSHIP MANAGEMENTTHE BENEFITS OF CRMOrganizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary valueHow recently a customer purchased itemsHow frequently a customer purchased itemsThe monetary value of each customer purchaseEvolution of CRMCRM reporting technology – Help organizations identify their customers across other applicationsCRM analysis technologies – Help organization segment their customers into categories such as best and worst customersCRM predicting technologies – Help organizations make predictions regarding customer behavior such as which customers are at risk of leavingEvolution of CRMOperational and Analytical CRMOperational CRM – Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customersAnalytical CRM – Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customersOperational and Analytical CRMOperational and Analytical CRMMarketing and operational CRM technologyList generator, campaign management, cross-selling and up-sellingSales and operational CRM technologySales management, contact management, opportunity managementCustomer service and operational CRM technologyContact center, Web-based self-service, call scriptingMarketing and Operational CRMThree marketing operational CRM technologiesList generator Campaign management systemCross-selling and up-sellingSales and Operational CRMThe sales department was the first to begin developing CRM systems with sales force automation a system that automatically tracks all of the steps in the sales processSales and Operational CRMSales and operational CRM technologiesSales management CRM systemContact management CRM systemOpportunity management CRM systemCustomer Service and Operational CRMThree customer service operational CRM technologiesContact center (call center) Web-based self-service system Call scripting systemCommon features included in contact centersAutomatic call distributionInteractive voice responsePredictive dialingAnalytical CRMWebsite personalization – Occurs when a website has stored enough data about a person’s likes and dislikes to fashion offers more likely to appeal to that personAnalytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behaviorThese systems quickly aggregate, analyze, and disseminate customer information throughout an organizationTHE CHALLENGES OF CRMThe customer is always right and now has more power than ever thanks to the InternetTHE FUTURE OF CRMCurrent trends includeSupplier relationship management (SRM) Partner relationship management (PRM) Employee relationship management (ERM) ENTERPRISE RESOURCE PLANNINGEnterprise resource planning – Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operationsENTERPRISE RESOURCE PLANNINGReasons ERP systems are powerful toolsERP is a logical solution to incompatible applicationsERP addresses global information sharing and reportingERP avoids the pain and expense of fixing legacy systemsENTERPRISE RESOURCE PLANNINGERP systems collect data from across an organization and correlates the data generating an enterprisewide viewENTERPRISE RESOURCE PLANNINGERP Systems Automate Business ProcessesENTERPRISE RESOURCE PLANNINGThe Organization Before ERPENTERPRISE RESOURCE PLANNINGERP Bringing The Organization TogetherTHE BENEFITS OF ERPCore ERP component – Traditional components included in most ERP systems and they primarily focus on internal operationsExtended ERP component – Extra components that meet the organizational needs not covered by the core components and primarily focus on external operationsTHE BENEFITS OF ERPTHE BENEFITS OF ERPCore ERP ComponentsThree most common core ERP componentsAccounting and finance Production and materials managementHuman resourceAccounting and Finance ERP ComponentsAccounting and finance ERP component – Manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset managementProduction and Materials Management ERP ComponentsProduction and materials management ERP component – Handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality controlHuman Resource ERP ComponentHuman resource ERP component – Tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authoritiesExtended ERP ComponentsExtended ERP components include:Business intelligenceCustomer relationship managementSupply chain managementEbusiness components includeElogistics EprocurementMeasuring ERP SuccessBalanced scorecard – Enables organizations to clarify their vision and strategy and translate them into actionBalanced scorecard views the organization from four perspectivesLearning and growthInternal business processCustomerFinancialMeasuring ERP SuccessTHE CHALLENGE OF ERPERP systems contain multiple complex components that are not only expensive to purchase, but also expensive to implement Costs includeSoftwareConsulting feesHardware expensesTraining feesTHE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERPSCM, CRM, and ERP are the backbone of ebusinessIntegration of these applications is the key to success for many companiesIntegration allows the unlocking of information to make it available to any user, anywhere, anytimeTHE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERPTHE FUTURE OF ENTERPRISE SYSTEMS: INTEGRATING SCM, CRM, AND ERP SCM, CRM, and ERP IntegrationLEARNING OUTCOME REVIEWNow that you have finished the chapter please review the learning outcomes in your text