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Chapter 7Chapter 7
Functional and Enterprise Systems
Chapter 7 Slide 2
CustomerRelationship ManagementCustomerRelationship Management
Customer Relationship Management• The philosophy that an organization should
focus on the customer
Chapter 7 Slide 3
Reasons Why Companies Implement a CRM StrategyReasons Why Companies Implement a CRM Strategy
Develop one view of the customer for more successful sales, marketing, and service
Improve customer satisfaction Improve retention by rewarding
loyalty
Chapter 7 Slide 4
Reasons Why Companies Implement a CRM StrategyReasons Why Companies Implement a CRM Strategy
Increase up-selling and cross-selling of products and services
Target markets more accurately Improve sales leads Increase sales closing rates
Chapter 7 Slide 5
Reasons Why Companies Implement a CRM StrategyReasons Why Companies Implement a CRM Strategy
Increase margin on goods and services
Increase revenue and profits Respond to competitor’s
implementation of CRM
Chapter 7 Slide 6
CustomerRelationship ManagementCustomerRelationship Management
Sales Force Automation Replaces manual systems of tracking
leads, sales, service requests, and other sales-related information with computerized systems that use sophisticated database software and mobile computers
Chapter 7 Slide 7
CustomerRelationship ManagementCustomerRelationship Management
Order Handling Point-of-Sale System (POS)
Records the sale of a product or service and updates company records related to the sale
Order Entry Systems Record and process the taking of an order
Chapter 7 Slide 8
CustomerRelationship ManagementCustomerRelationship Management
Electronic Bill Presentment and Payment (EBPP) Satisfies customers by reducing paperwork
and mailing costs
Post-Sales Support CRM support for call centers provides
management of contact with customer
Chapter 7 Slide 9
CustomerRelationship ManagementCustomerRelationship Management
Managing Distributors Partner relationship management (PRM)
A philosophy of coordinating with distributors and other channel partners in the sale and distribution of a product or service
Chapter 7 Slide 10
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Computer-Aided Design (CAD)• Helps designers translate their mental
images into physical drawings and specifications
• Rapid prototyping can convert a CAD model into a solid physical model.
Chapter 7 Slide 11
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Computer-Aided Manufacturing (CAM)• The use of computers to control equipment
in the manufacturing process• Flexible manufacturing provides multiple
uses for computer-controlled machinery• Robots are computer-controlled machinery
that exhibit human-like features
Chapter 7 Slide 12
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
CAD/CAM• Integrates CAD and CAM software so that
engineering drawings are processed in such a way that their output can be downloaded directly to manufacturing equipment to produce a final product
Automated Guided Vehicles (AGVs)• Computer-controlled vehicles improve
manufacturing flexibility
Chapter 7 Slide 13
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Computer Integrated Manufacturing• The integration of product design,
manufacturing planning, manufacturing execution, and shop floor control, as well as the integration of these production functions with the other functions of an organization
Chapter 7 Slide 14
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Figure 7-10
Chapter 7 Slide 15
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Mass Customization• The competitive advantage a company
would have if it could produce the exact product that each customer wanted as cheaply and efficiently as if it were mass-produced
Chapter 7 Slide 16
Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production
Figure 7-11
Chapter 7 Slide 17
Managing Supplier RelationshipsManaging Supplier Relationships
Electronic Procurement• Automates processes relating to
procurementQualifyingBiddingOrderingReceivingPaying
Chapter 7 Slide 18
Managing Supplier RelationshipsManaging Supplier Relationships
Just-in-Time Inventory• The practice of receiving supplies just as a
company requires it, neither too early nor too late
Chapter 7 Slide 19
Managing Supplier RelationshipsManaging Supplier Relationships
Vendor Managed Inventory (VMI)• A process in which a supplier manages the
inventory in its customer’s facilities• Vendor improves knowledge of product
demand and ability to time deliveries• Company usually doesn’t pay for product
until it is sold
Chapter 7 Slide 20
Managing Warehousing and TransportationManaging Warehousing and Transportation
Warehouse Management Systems• Support activities inside the warehouse
and at its shipping and receiving docks
Chapter 7 Slide 21
Managing Warehousing and TransportationManaging Warehousing and Transportation
Warehouse Management System Features• Receiving
Warehouse Management Systems help schedule pickup and deliveries to the warehouse
• ShippingSystems schedule outbound vehicles at docks
Chapter 7 Slide 22
Managing Warehousing and TransportationManaging Warehousing and Transportation
Warehouse Management System Features• Picking
Systems support automated picking and conveyor systems
• StorageSystems help lay out the storage so that size
and weight restrictions are observed and frequently used items are accessed most easily
Chapter 7 Slide 23
Managing Warehousing and TransportationManaging Warehousing and Transportation
Warehouse Management System Features• Reporting
Warehouse management systems identify the number and value of items in stock
Chapter 7 Slide 24
Managing Warehousing and TransportationManaging Warehousing and Transportation
Cross-docking systems• Load goods received at a distribution point
immediately onto outgoing trucks without entering them into inventory
Auto-ID Systems• Tags merchandise with radio-frequency
tags that can be tracked at a distance
Chapter 7 Slide 25
Support SystemsSupport Systems
Human Resource Management Systems• Streamline the processes relating to
employee recruitment, development, retention, assessment, and compensation
Chapter 7 Slide 26
Support SystemsSupport Systems
Accounting Systems• Accounts receivable• Accounts payable• General ledger• Budgeting, cash management, fixed asset
accounting, investment tracking, and other functions
Chapter 7 Slide 27
Enterprise and Cross-Enterprise SystemsEnterprise and Cross-Enterprise Systems
Enterprise Resource Planning (ERP) Software• Integrates all functional systems in a single
package• Can be purchased in modules that address
only specific functional needs
Chapter 7 Slide 28
Enterprise and Cross-Enterprise SystemsEnterprise and Cross-Enterprise Systems
Enterprise Application Integration (EAI)• The process of integrating the functional
systems of an organization• One solution is pair-wise matching of
inputs and outputs among applications• Another solution is middleware, software
that provides and manages inter-application interface
Chapter 7 Slide 29
Enterprise and Cross-Enterprise SystemsEnterprise and Cross-Enterprise Systems
Figure 7-15
Chapter 7 Slide 30
Enterprise and Cross-Enterprise SystemsEnterprise and Cross-Enterprise Systems
Supply Chain Management• The manner by which a company and its
supply chain partners analyze, optimize, and control the acquisition and delivery of raw materials necessary for the creation of the goods and services that an organization produces
• Requires cross-enterprise integration
End of Chapter 7End of
Chapter 7
Functional and Enterprise Systems
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