Scribd
Upload
10 views34 pages

LIS5

The document discusses the role of enterprise systems, including ERP, supply chain management, and customer relationship management, in achieving operational excellence for businesses. It outlines how these systems improve efficiency, decision-making, and customer intimacy while also highlighting challenges and the impact of new technologies. Key concepts such as supply chain dynamics, the bullwhip effect, and the benefits of CRM systems are also emphasized.

Uploaded by

mobster44
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views34 pages

LIS5

The document discusses the role of enterprise systems, including ERP, supply chain management, and customer relationship management, in achieving operational excellence for businesses. It outlines how these systems improve efficiency, decision-making, and customer intimacy while also highlighting challenges and the impact of new technologies. Key concepts such as supply chain dynamics, the bullwhip effect, and the benefits of CRM systems are also emphasized.

Uploaded by

mobster44
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 34

MBIS401 INFORMATION

SYSTEMS & STRATEGY

Lecture 5
Achieving operational excellence in enterprise
applications

Textbook Reading:
Chapter 9
Learning Objectives

• How do enterprise systems help businesses achieve


operational excellence?
• How do supply chain management systems
coordinate planning, production, and logistics with
suppliers?
• How do customer relationship management
systems help firms achieve customer intimacy?
• What are the challenges that enterprise
applications pose, and how are enterprise
applications taking advantage of new technologies?
Enterprise Systems

• Enterprise resource planning (ERP) systems


• Suite of integrated software modules and a
common central
• database
• Collects data from many divisions of firm for use in
nearly all of firm’s internal business activities
• Information entered in one process is immediately
available for other processes
How Enterprise Systems Work
Enterprise Software

• Built around thousands of predefined business


processes that reflect best practices
• Finance and accounting
• Human resources
• Manufacturing and production
• Sales and marketing
• To implement, firms:
• Select functions of system they wish to use
• Map business processes to software processes
• Use software’s configuration tables for customizing
Business Value of Enterprise
Systems
• Increase operational efficiency
• Provide firm-wide information to support decision
making
• Enable rapid responses to customer requests for
information or products
• Include analytical tools to evaluate overall
organizational performance and improve decision-
making
ERP Implementation

ERP Implementation Plan: 6 Key Phases for Success


https://www.youtube.com/watch?v=CVV3wgik2RQ

5 Steps to a Successful ERP Implementation


https://www.youtube.com/watch?v=bbP5ZKILFJQ
The Supply Chain

• Network of organisations and processes for:


• Procuring materials
• Transforming materials into products
• Distributing the products
• Upstream supply chain
• Downstream supply chain
• Internal supply chain
Nike’s Supply Chain
Supply Chain Management

• Inefficiencies cut into a company’s operating costs


• Can waste up to 25 percent of operating expenses
• Just-in-time strategy
• Components arrive as they are needed
• Finished goods shipped after leaving assembly line
• Safety stock: buffer for lack of flexibility in supply
chain
• Bullwhip effect
• Information about product demand gets distorted as it
passes from one entity to next across supply chain
The Bullwhip Effect
YouTube Video

• What is the Bullwhip Effect and What Causes It?


• https://www.youtube.com/watch?v=iALiS4FBB6E
Supply Chain Management
Software
• Supply chain planning systems
• Model existing supply chain
• Enable demand planning
• Optimise sourcing, manufacturing plans
• Establish inventory levels
• Identify transportation modes
• Supply chain execution systems
• Manage flow of products through distribution centers
and warehouses
Global Supply Chains and the
Internet
• Global supply chain issues
• Greater geographical distances, time differences
• Participants from different countries
• Different performance standards
• Different legal requirements
• Internet helps manage global complexities
• Warehouse management
• Transportation management
• Logistics
• Outsourcing
Demand-Driven Supply Chains:
From Push to Pull Manufacturing
and Efficient Customer Response
• Push-based model (build-to-stock)
• Earlier SCM systems
• Schedules based on best guesses of demand
• Pull-based model (demand-driven)
• Web-based
• Customer orders trigger events in supply chain
• Internet enables move from sequential supply
chains to concurrent supply chains
• Complex networks of suppliers can adjust immediately
Push- Versus Pull- Based
Supply Chain Models
The Emerging Internet-Driven
Supply Chain
Business Value of Supply Chain
Management Systems
• Match supply to demand
• Reduce inventory levels
• Improve delivery service
• Speed product time to market
• Use assets more effectively
• Total supply chain costs can be 75 percent of operating
budget
• Increase sales
Importance of Supply Chain
Management
The following video will show you the importance of
supply chain management

https://www.youtube.com/watch?v=LZYEREK0qz4
Customer Relationship
Management
• Knowing the customer
• In large businesses, too many customers and too
many ways customers interact with firm
• CRM systems
• Capture and integrate customer data from all over the
organisation
• Consolidate and analyse customer data
• Distribute customer information to various systems and
customer touch points across enterprise
• Provide single enterprise view of customers
Customer Relationship
Management (CRM)
Customer Relationship
Management Software (1 of 2)
• Packages range from niche tools to large-scale
enterprise applications
• More comprehensive packages have modules for:
• Partner relationship management (PRM)
• Integrating lead generation, pricing, promotions, order
configurations, and availability
• Tools to assess partners’ performances
• Employee relationship management (ERM)
• Setting objectives, employee performance management,
performance-based compensation, employee training
Customer Relationship
Management Software (2 of 2)
• CRM packages typically include tools for:
• Sales force automation (SFA)
• Sales prospect and contact information
• Sales quote generation capabilities
• Customer service
• Assigning and managing customer service requests
• Web-based self-service capabilities
• Marketing
• Capturing prospect and customer data, scheduling and tracking
direct-marketing mailings or e-mail
• Cross-selling
How CRM Systems Support
Marketing
CRM Software Capabilities
Customer Loyalty
Management Process Map
Operational and Analytical CRM

• Operational CRM
• Customer-facing applications
• Sales force automation call center and customer service
support
• Marketing automation
• Analytical CRM
• Based on data warehouses populated by operational
CRM systems and customer touch points
• Analyses customer data (OLAP, data mining, etc.)
• Customer lifetime value (CLTV)
Analytical CRM Data Warehouse
Business Value of Customer
Relationship Management
Systems
• Business value of CRM systems
• Increased customer satisfaction
• Reduced direct-marketing costs
• More effective marketing
• Lower costs for customer acquisition/retention
• Increased sales revenue
• Churn rate
• Number of customers who stop using or purchasing
products or services from a company
• Indicator of growth or decline of firm’s customer base
Benefits of Customer
Relationship Management
Systems
The following video will show you 10 benefits of
CRM System:

https://www.youtube.com/watch?v=p8KRZdo5VyQ
Enterprise Application
Challenges
• Expensive to purchase and implement enterprise
applications
• Multi-million dollar projects in 2018
• Long development times
• Technology changes
• Business process changes
• Organisational learning, changes
• Switching costs, dependence on software vendors
• Data standardisation, management, cleansing
Next-Generation Enterprise
Applications (1 of 2)
• Enterprise solutions/suites
• Make applications more flexible, web-enabled, integrated
with other systems
• SOA standards
• Open-source applications
• On-demand solutions
• Cloud-based versions
• Functionality for mobile platform
Next-Generation Enterprise
Applications (2 of 2)
• Social CRM
• Incorporating social networking technologies
• Company social networks
• Monitor social media activity; social media analytics
• Manage social and web-based campaigns
• Business intelligence
• Inclusion of BI with enterprise applications
• Flexible reporting, ad hoc analysis, “what-if” scenarios,
digital dashboards, data visualization
Summary

• Enterprise resource planning (ERP) systems


• Built around thousands of predefined business
• processes that reflect best practices
• The Supply Chain – Upstream supply chain,
Downstream supply chain, Internal supply chain
• Supply Chain Management
• Customer Relationship Management

You might also like