MIS 5 ENTERPRISE SYSTEMS 11 BIDGOLI Copyright ©2016 Cengage Learning. All Rights Reserved. May not...

MIS 5

ENTERPRISE SYSTEMS

11

BIDGOLI

Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

LEARNING OUTCOMES

2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MIS5 | CH11

1 Explain how supply chain management is used

2 Describe customer relationship management systems

3 Describe knowledge management systems

4 Describe enterprise resource planning systems


Enterprise System

• Application used in all the functions of a business which supports decision making throughout the organization

• Supply chain • Integrated network consisting of an

organization, its suppliers, transportation companies, and brokers

• Used to deliver goods and services to customers


Exhibit

11.1 Supply Chain Configuration


Supply Chain Management (SCM)

• Process of working with suppliers and other partners in the supply chain to improve procedures for delivering products

• Functions• Procuring materials• Transforming materials into intermediate and

finished products• Distributing finished products to customers


Supply Chain Management (SCM)

• Communication in SCM system takes place among• Product flow• Information flow• Finances flow

• Key decisions in SCM• Location• Inventory• Production• Transportation


Electronic Data Interchange (EDI)

• Enables business partners to exchange information• Expedites delivering accurate information• Web-based EDI: Using the Internet and Web

protocols to transmit documents• Lowers cost• Platform independent and easy to use


Drawbacks of EDI

• Uses proprietary standards• Cost per partner is higher when the number

of partners is small• Organizations can use the Internet and

Open EDI to perform the same function as EDI


Internet-Enabled SCM

• Improves information sharing throughout the supply chain

• Improves SCM activities• Purchasing/procurement• Inventory management• Transportation• Order processing• Customer service• Production scheduling


E-Marketplaces

• Third-party exchange that provides a platform for buyers and sellers to interact and trade efficiently

• Helps maintain a competitive edge in the supply chain• Provides opportunities for sellers and buyers to

establish partnerships • Offers a single platform for prices, availability,

and stock levels that’s accessible to all participants

www.Alibaba.com


E-Marketplaces

• Solves time constraint problems for international trade

• Makes it easy to compare prices and products from a single source instead of spending time contacting each seller

• Reduces marketing costs more than traditional sales channels


E-Distributor http://www.powersourceonline.com/http://www.farms.com/

• Marketplace owned and operated by a third party that provides an electronic catalog of products

• Maintenance, repair, and operations (MROs) services including services from different vendors

• Example of a horizontal market• Offers fast delivery of a wide selection of products

and services, at lower prices• Helps companies reduce the time and expense of

searching for goods


Online Auctions

• Brings traditional auctions to customers around the globe • Makes it possible to sell far more goods and

services than at a traditional auction • Based on the brokerage business model which

brings buyers and sellers together• Cost-effective for selling excessive inventory

• Reverse auctions• Invite sellers to submit bids for products and

services• One-to-many relationship (choose the seller)


Collaborative Planning, Forecasting, and Replenishment

• Used to coordinate supply chain members through point-of-sale (POS) data sharing and joint planning

• Aims to improve operational efficiency and manage inventory

• Advantages: Decreases merchandising, inventory, and logistics costs


Collaborative Planning, Forecasting, and Replenishment

• Ensures that inventory and sales data are shared across the supply chain

• Exception management: Planning for handling unforeseen problems• Lessons learned during the process can be used

in future planning


Exhibit

11.2 CPFR Process


Customer Relationship Management (CRM)

• Consists of the processes a company uses to track and organize its contacts with customers

• Improves services offered to customers• Uses customer contact information for

targeted marketing• Involves marketing strategies which focus

on long-term relationships• Identifying customer segments


Customer Relationship Management (CRM)

• Improving products to meet customers’ needs• Improving customer retention• Identifying a company’s profitable and loyal

customers• Helps organizations make use of data, and

knowledge to understand customers• Gives organizations complete picture of

their customers


CRM Activities

• Sales automation• Order processing• Marketing automation• Customer support• Knowledge management• Personalization technology


CRM Applications

• Implemented with either on-premise CRM or Web-based CRM approach

• Software packages available for setting up a CRM system• Amdocs CRM• Optima Technologies ExSellence• Infor CRM• SAP mySAP• Oracle PeopleSoft CRM• Oracle Siebel


Features of Software Packages

• Salesforce automation• eCRM or Web-based CRM• Survey management• Automated customer service


Personalization Technology

• Personalization: Process of satisfying customers’ needs, building customer relationships, and increasing profits• Design goods and services that meet customers’

preferences better• Customization: Allows customers to modify

the standard offering• Selecting a different home page to be displayed

each time you open your Web browser


Personalization Technology

• Using personalization requires gathering customer information• Preferences and shopping patterns

• Used by companies to improve customer service• Implementation requires• Internet, databases• Data warehouse/data marts• Data-mining tools• Mobile networks


Collaborative Filtering (CF)

• Search for specific information or patterns, using input from multiple business partners and data sources• Identifies groups of people based on common

interests and recommends products• Works well for a single product category• Drawback: Needs a large sample of users and

content to work well• Fails to make recommendations across unrelated

categories


Knowledge Management (KM)

• Draws on concepts of organizational learning, culture, and best practices to convert tacit knowledge into explicit knowledge

• Creates a knowledge sharing culture in an organization

• Eliminates obstacles to sharing knowledge• Technique to improve CRM systems• Identifying, storing, and disseminating facts about

how to perform tasks


Knowledge Management (KM)

• Knowledge repository • Stores knowledge of experts• Created for employees to refer to when needed

• Knowledge management system consists of using groupware

• Other tools and technologies• DBMSs, data-mining tools, decision support

systems


Contributions of Knowledge Management System to Organizations• Promote innovation by encouraging free

exchange of ideas • Improve customer service by reducing

response time • Increase revenue by reducing the delivery

time for products and services • Improve employee retention rates by

rewarding employees for their knowledge


Chief Knowledge Officer (CKO)

• Position created by organizations because of the importance of• Knowledge• Knowledge management• Knowledge management systems

• Responsible for overseeing knowledge management within an organization


Chief Knowledge Officer (CKO)

• Ensures knowledge resources are properly collected stored, and disseminated among the decision-makers

• Ensures organization profits from knowledge resources

• Tries to maximize the return on investment (ROI) related to KM, KMS and processes


Enterprise Resource Planning (ERP)

• Integrated system that collects and processes data

• Manages and coordinates resources, information, and functions throughout an organization

• Includes hardware, software, procedures, and input from all functional areas

• Uses a unified database to store data for various functions


Exhibit

11.3 ERP Configuration


Table 11.1 ERP Components


Benefits of a Well-designed ERP System

• Increased:• Availability and timeliness of information • Data accuracy and improved response time

• Improved:• Customer satisfaction • Employee satisfaction • Planning and scheduling • Supplier relationship • Reliability of information


Benefits of a Well-designed ERP System

• Reduced:• Inventory costs • Labor costs • Order-to-fulfillment time


ERP Systems

• Drawbacks• High cost• Difficulties in installation• Needs extensive training• Compatibility problems with legacy systems

• Available as modules so an organization can purchase only required components• Keeps costs down for organizations

KEY TERMS


• Collaborative filtering (CF)• Collaborative planning, forecasting, and

replenishment (CPFR)• Customer relationship management (CRM)• Customization• e-marketplace• Electronic data interchange (EDI)• Enterprise resource planning (ERP)

KEY TERMS


• Enterprise system• Knowledge management (KM)• Online auction• Personalization• Reverse auction• Supply chain• Supply chain management (SCM)

SUMMARY


• Supply chains exist in both service and manufacturing organizations, although the chain’s vary in different organizations and industries

• CRM system helps organizations make better use of data and knowledge to understand their customers

• ERP systems use a unified database to store data for various functions

MIS 5 ENTERPRISE SYSTEMS 11 BIDGOLI Copyright ©2016 Cengage Learning. All Rights Reserved. May not...

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