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Chapter 7 Functional and Enterprise Systems

Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management Customer Relationship Management The philosophy that

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Page 1: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7Chapter 7

Functional and Enterprise Systems

Page 2: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 2

CustomerRelationship ManagementCustomerRelationship Management

Customer Relationship Management• The philosophy that an organization should

focus on the customer

Page 3: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 4: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 5: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 6: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 7: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 8: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 9: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 10: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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.

Page 11: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 12: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 13: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 14: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 14

Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production

Figure 7-10

Page 15: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 16: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 16

Managing Design, Engineering, and ProductionManaging Design, Engineering, and Production

Figure 7-11

Page 17: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 17

Managing Supplier RelationshipsManaging Supplier Relationships

Electronic Procurement• Automates processes relating to

procurementQualifyingBiddingOrderingReceivingPaying

Page 18: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 19: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 20: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 21: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 22: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 23: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 24: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 25: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 25

Support SystemsSupport Systems

Human Resource Management Systems• Streamline the processes relating to

employee recruitment, development, retention, assessment, and compensation

Page 26: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 27: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

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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

Page 29: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

Chapter 7 Slide 29

Enterprise and Cross-Enterprise SystemsEnterprise and Cross-Enterprise Systems

Figure 7-15

Page 30: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

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

Page 31: Chapter 7 Functional and Enterprise Systems. Chapter 7Slide 2 Customer Relationship Management  Customer Relationship Management The philosophy that

End of Chapter 7End of

Chapter 7

Functional and Enterprise Systems