26870209 Enterprise E Business Systems

8/8/2019 26870209 Enterprise E Business Systems

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McGraw-Hill/Irwin Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

6

Enterprise e-Business Systems


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Learning Objectives

Identify and give examples to illustrate the

following aspects of customer relationship

management, enterprise resource

management, and supply chain management

systems:

Business processes supported

Customer and business value provided

Potential challenges and trends


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Section I

Customer Relationship Management:

The Business Focus


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Customer Relationship Management

Provides customer-facing employees with a

single, complete view of every customer at

every touch point and across all channels

Provides the customer with a single, complete

view of the company and its extended channels


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Customer Relationship Management (continued)

CRM..

Integrates and automates many of the

customer serving processes

Creates an IT framework of Web-enabled

software & databases that integrates these

processes with the rest of the companys

business operations


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Includes software modules that provide tools

that enable a business & its employees to

provide fast, convenient, dependable,

consistent service.


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Major Application Components

Contact & Account Management Helps capture and track relevant data

about past and planned contacts with

prospects & customers.


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Sales

Provides sales reps with software tools &

company data needed to support &

manage their sales activities.

Helps optimize cross-selling & up-selling


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Marketing & Fulfillment

Helps accomplish direct marketing

campaigns by automating tasks Helps capture & manage prospect &

customer response data

Helps in fulfillment by quickly schedulingsales contacts & providing appropriate

information on products & services to

them


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Customer Service and Support

Provides software tools & real-time access

to the common customer database

Helps create, assign, & manage requests

for service from customers

Call center software

Help desk software


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Retention andLoyalty Programs

Helps the company identify, reward, andmarket to their most loyal and profitable

customers


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Three Phases ofCRM

Acquire (new customers) By doing a superior job of contact

management, sales prospecting, selling,

direct marketing, & fulfillment.


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Enhance (customer satisfaction)

By supporting superior service from aresponsive networked team of sales and

service specialists.


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Retain (your customers)

Help identify and reward your most loyal,profitable customers.


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Benefits andChallenges

Allows a business to identify its best

customers

Makes possible real-time customization &

personalization of products & services based

on customer wants, needs, buying habits, &

life cycles


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Benefits andChallenges (continued)

Enables a company to provide a consistent

customer service experience

Failures

Due to lack of understanding & preparation. CRM is not a silver bullet


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Trends

Operational CRM

Analytical CRM Collaborative CRM

Portal-basedCRM


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Section II

Enterprise Resource Planning:

The Business Backbone


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Enterprise Resource Planning

Serves as a cross-functional enterprise

backbone that integrates & automates many

internal business processes and information

systems

Helps companies gain the efficiency, agility, &

responsiveness needed to succeed today


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Enterprise Resource Planning (continued)

Gives a company an integrated real-time view

of its core business processes

ERP software suites typically consist of

integrated modules of

Manufacturing

Distribution

Sales

Accounting

Human Resource Management


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Quality and efficiency

Helps improve the quality and efficiency ofcustomer service, production, &

distribution by creating a framework for

integrating and improving internal

business processes


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DecreasedCosts

Reductions in transaction processing costsand hardware, software, andIT support

staff


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Decision support

Provides cross-functional information onbusiness performance to assist managers in

making better decisions


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Enterprise agility

Results in more flexible organizationalstructures, managerial responsibilities, and

work roles


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Costs of ERP

The costs and risks of failure inimplementing a new ERP system are

substantial.


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Causes of ERP failures

Underestimating the complexity of the

planning, development, and trainingrequired

Failure to involve affected employees in the

planning & development phases and changemanagement programs


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Trying to do too much, too fast

Insufficient training

Believing everything the software vendors

and/or consultants say


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Trends

Flexible ERP

Web-enabled ERP Interenterprise ERP

E-Business Suites


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Section III

Supply Chain Management:

The Business Network


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Supply Chain Management

A cross-functional interenterprise system that

uses IT to help support & manage the links

between some of a companys key business

processes and those of its suppliers, customers,& business partners.

Goal is to create a fast, efficient, & low-costnetwork of business relationships.


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Supply Chain Management (continued)


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Electronic data interchange

Exchanging business transactiondocuments over the Internet & other

networks between supply chain trading

partners


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The Role of SCM


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Can provide faster, more accurate orderprocessing, reductions in inventory levels,

quicker time to market, lower transaction

and materials costs, & strategic relationships

with suppliers


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Problem causes

Lack of proper demand planning knowledge,

tools, and guidelines

Inaccurate or overoptimistic demand

forecasts

Inaccurate production, inventory, and other

business data

Lack of adequate collaboration


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Trends


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Discussion Questions

Should a company become a customer-focused

business?

Why would systems that enhance a companys

relationships with customers have such a high

rate of failure?


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Discussion Questions (continued)

How could some of the spectacular failures of

ERP systems have been avoided?

Should companies continue to use EDI

systems?


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How can the problem of overenthusiastic

demand forecasts in supply chain planning be

avoided?

What challenges do you see for a company that

wants to implement collaborative SCM

systems?

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Should companies install e-business software

suites or best of breed e-business software

components?

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Real WorldCase 1 Mitsubishi Motor Sales

What are the key application components of

Mitsubishis CRM system?

What is the business use of each of those

components?

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Real WorldCase 1 (continued)

What are the benefits to a business and its

customers of a CRM system like Mitsubishis?

Do you approve of Mitsubishis approach to

acquiring and installing its CRM system?

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Why have many CRM systems failed to

provide promised benefits like those generated

by Mitsubishis system?

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Real WorldCase 2 Agilent Technologies & Russ Berrie

What are the main reasons companies

experience failures in implementing ERP

systems?

What are several key things companies should

do to avoid ERP systems failures?

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Why do you think ERP systems in particular

are often cited as examples of failures in IT

systems development, implementation, or

management?

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What do you think caused the major failure of

Agilents ERP implementation?

Why do you think they did not act to avoid the

reasons you specified?

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Real WorldCase 3 TaylorMade Golf & HON Industries

How could moving business information

systems with suppliers anddistributors to the

Web result in such dramatic business benefits

as experienced by TaylorMade Golf?

How does HON Industries new SCM system

improve the efficiency of their supply chain?

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What other SCM initiatives would you

recommend that TaylorMade or HON

Industries implement to improve their supply

chain performance and business value?

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What are several ways a small business could

use supply chain management to improve the

efficiency and business value of their supply

chain?

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Real WorldCase 4 H-P, Eastman Chemical, & Others

Why can both large and small businesses cut

costs and increase revenues by moving their

supply chains online?

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What is the business value to Eastman

Chemical and W.W. Grainger of their

initiatives to help their suppliers and

customers do business online?

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Why are many small suppliers reluctant to do

business online with their large customers?

What can be done to encourage small suppliers

to get online?

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Real WorldCase 5 Wal-Mart & Mattel

Do you agree that Wal-Mart is the best

supply chain operator of all time?

Why or why not?

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What has Mattel learned from Wal-Mart?

How well are they applying it to their own

business?

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What can other businesses learn from the

experiences of Wal-Mart and Mattel that

could improve their supply chain

performance?

Documents

26870209 Enterprise E Business Systems