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  Ch 9 - Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

1. Enterprise Systems    (p339)
   1. What are Enterprise Systems?  See Ch2 outline IV.B.1
      Def - Enterprise Systems (also known as Enterprise Resource Planning (ERP)) - integrated enterprise-wide info systems that coordinate key internal processes of the firm by storing the data in a single central database.
                Note by PJL from Mgt 3325 (for your info only): for an operations management explanation
                         of ERP see http://www.patlyons.com/m3325/chapters/h914.htm.
   2. As explained in Ch5 outline IV.E Changing Sources of Software, Enterprise Systems are usually provided as software packages by vendors, such as SAP, or Oracle, or by application service providers.
   3. When implementing an Enterprise System, a firm receives the benefit of the vendor's knowledge base of best practices accumulated from years of experience with similar clients.
       
2. Supply Chain Mgt Systems     (p342)

   1. The Supply Chain

      1. Def - 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.  See Nike's Supply Chain, Fig 9-2, p343.

   2. Information Systems and Supply Chain Mgt

      1. Def - Bullwhip Effect - information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain.

      2. Example - during aggressive price promotions, customer purchases of Procter & Gamble's Pampers disposable diapers in stores were fairly stable.  However, each supplier in the supply chain for Pampers components would anticipate higher demand.  See Fig 9-3, p345.  P&G eliminated this problem with improved supply chain processes.
         See http://en.wikipedia.org/wiki/Bullwhip_effect

   3. Supply Chain Mgt Software

      1. Def - Supply Chain Management (SCM) Systems - see Ch2 outline IV.B.2 - information systems that share info about orders, production, inventory, and delivery dates between a firm and its suppliers in order to improve efficiency.

      2. Firms use intranets to coordinate internal processes and extranets for external processes with business partners.  See Fig 9-4, p366.  See Ch2 outline V.A for definitions of intranet and extranet.

   4. Demand-driven Supply Chains       (p350)

      1. Def - Push-based Model - a production model where master production schedules are based on forecasts.  Products are "pushed" to customers.  Earlier supply chain mgt systems were push-based.

      2. Def - Pull-based Model - a production model where actual customer orders trigger events in the supply chain.  Production requirements are "pulled" from customer orders.  Many present supply chain mgt systems are pull-based.  See Fig 9-5, p351.
          

3. Customer Relationship Mgt Systems     (p352)

   1. Def - Customer Relationship Management (CRM) Systems - see Ch2 outline IV.B.3 - information systems that track a company's interactions with its customers and analyze these interactions to improve profit, customer satisfaction, and customer retention.

   2. Operational Customer Relationship Mgt Tools - see Fig 9-9, p358.

      1. Sales Force Automation (SFA)

         1. Account Mgt - focus on most profitable customers

         2. Order Mgt - generate sales quotes for complex products

         3. Lead Mgt

      2. Customer Service

         1. Call Center and Help Desk Mgt - customer spends less time on phone restating problem

         2. Service Planning - realistic scheduling of car service appointments

         3. Returns Mgt

      3. Marketing

         1. Campaign Mgt

         2. Events Mgt

         3. Promotions Mgt

   3. Analytical Customer Relationship Mgt

      1. Based on data warehouse of operational CRM data (above)

      2. Uses Online Analytical Processing (OLAP), and Data Mining - see Ch6 outline VI.B.2.

      3. Determines profitable customers, customer profiles, customer lifetime value
          

4. Enterprise Applications: New Opportunities and Challenges - skip     (p360)

                             (This page was last edited on January 17, 2010 .)