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Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
Lecture 9_EBS_aggarwal.PPT
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Lecture 9_EBS_aggarwal.PPT

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  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to explain the component parts of an enterprise's architecture-ranging from suppliers to customers and employees to partners.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM functional solutions and a CRM integrated solution address the stages in a customer's life cycle. Take the time to explain each of the components and their actions.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM uses IT to create a cross-functional enterprise system. Explain each of the component parts and the roles they play.
  • This slide features the benefits and challenges of CRM along with problems of CRM failures. It was useful in targeting prime customers and personalizing products and services to them. CRM failures are significant in number and often are cited for damaging customer relationships. The case blames a lack of understanding for the failures.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to explain the technological backbone of e-Business. The model puts the customer or employee at the center of the various activities that occur technologically within a business. Take the time to describe each of the functions represented by the wedges of the pie chart as they individually enter.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to further explain the components and interrelationships in the Colgate-Palmolive ERP.
  • Continue the discussion of ERP citing the benefits that can be realized in quality, efficiency, and decreased costs. Explain how ERP can enhance enterprise agility. Make the point that failures do exist in ERP implementations.
  • Continue the discussion of ERP citing the reasons for failures. Underestimating the complexity of the project is a dominant theme. Of particular interest should be noted the lack of human participation and training so that they would buy into the changed process.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic shows how SCM functional processes and an SCM integrated solution address the supply chain life cycle. Take the time to define and explain each of the component parts and their interrelationships.
  • Introduce and define supply chain management. Demonstrate how SCM is designed to get the right product to the right place at the right time in the proper quantity at an acceptable cost. Point out the savings in inventory carrying costs including storage, handling, as well as money invested.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to demonstrate the objectives of supply chain management moving from Business Value Goals to Customer Value Goals. The component parts are self explanatory.
  • Continue discussion of SCM explaining how its objectives are managed by the system. For example, forecasting demand, controlling inventory, etc., while receiving feedback at every step of the chain.
  • Challenges of SCM include lack of proper planning knowledge, inaccurate demand forecast, lack of adequate collaboration, as well as the fact that the SCM software itself is immature.
  • PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic is designed to show enterprise application integration. The integration occurs in the example between front-office CRM applications and back-office ERP applications.
  • Transcript

    • 1. Mid Term Exam <ul><li>Chapters 1,3,4,5,6,10 & (additional readings) </li></ul><ul><li>Two parts: </li></ul><ul><li>Multiple choice (get scantron form 889 E available in book store) </li></ul><ul><li>Short cases </li></ul>
    • 2. CASE: Implementing Success or Failure: It’s in the eye of the beholder Q: Two sides? <ul><li>Should not have been a surprise </li></ul><ul><li>They knew when the semester was starting </li></ul><ul><li>Project manager should know better than to underestimate the complexity of the problem </li></ul><ul><li>Should know “end-users” importance from past experiences </li></ul><ul><li>“ Interface” issue should have been studied </li></ul><ul><li>Should know never implement a system without properly testing it </li></ul><ul><li>Should know never to implement a “critical” system all at once </li></ul>
    • 3. Is it possible that some implementation problems cannot be easily foreseen or prevented? Give some examples. <ul><li>Rapid change in outside environment </li></ul><ul><li>Unexpected shifts in market conditions </li></ul><ul><li>Mergers & Acquisitions That were not in place during system development </li></ul>
    • 4. What could Indiana University have done differently to prevent this unfortunate event from occurring? <ul><li>Paid more attention to the following: </li></ul><ul><li>Lack of a “sponsor” </li></ul><ul><li>Lack of system “analysis” </li></ul><ul><li>Lack of Project Management experience, hence planning </li></ul><ul><li>Violated most principles of project management </li></ul><ul><li>Ignoring the Complexity of problem (break it into small modules) </li></ul><ul><li>Implement on one campus at a time </li></ul><ul><li>Apparent rush to implement the system </li></ul><ul><li>Ignore analysts warnings </li></ul><ul><li>Lack of testing & Training </li></ul>
    • 5. Is there evidence to suggest that they learned from this experience? <ul><li>It appears they learned from their mistakes. </li></ul><ul><li>They were able to identify causes of failures – first step in correcting errors </li></ul>
    • 6. What is a Business Process? <ul><li>A collection of related, structured activities--a chain of events--that produce a specific service or product for a particular customer or customers. www.gao.gov/policy/itguide/glossary.htm </li></ul><ul><li>The complete response that a business makes to an event. A business process entails the execution of a sequence of one or more process steps. It has a clearly defined deliverable or outcome. www.georgetown.edu/uis/ia/dw/GLOSSARY0816.html </li></ul><ul><li>A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer. www.crfonline.org/orc/glossary/b.html </li></ul>
    • 7. Ch 7 <ul><li>Electronic Business Systems </li></ul>
    • 8. Learning Objectives <ul><li>Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company: </li></ul><ul><ul><li>Enterprise resource planning (ERP) </li></ul></ul><ul><ul><li>Customer relationship management (CRM) </li></ul></ul><ul><ul><li>Supply chain management (SCM) </li></ul></ul><ul><ul><li>Enterprise application integration (EAI) </li></ul></ul><ul><ul><li>Transaction processing systems (TPS) </li></ul></ul><ul><ul><li>Enterprise collaboration systems (ECS) </li></ul></ul>
    • 9. Learning Objectives <ul><li>Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management. </li></ul><ul><li>Understand the need for enterprise application integration to improve support of business interactions across multiple e-business applications. </li></ul>
    • 10. Case 1/p235
    • 11. What are the benefits and drawbacks of the OnQ system at Hilton ? <ul><li>Benefits could include: </li></ul><ul><ul><li>Prompt resolution of problems </li></ul></ul><ul><ul><li>Matching customers with their profiles, and thus provide personalized services and accommodations </li></ul></ul><ul><ul><li>Supports brand and loyalty building </li></ul></ul><ul><ul><li>Differentiates customers in terms of their value to the franchise (measured in frequency of stay, duration, revenue per customer, past complaints, etc.) </li></ul></ul><ul><li>Drawbacks could include: </li></ul><ul><li>Company could become exposed to legal issues concerning privacy rights regarding the information it is storing and its usage </li></ul><ul><li>While very useful to the franchise, the OnQ system does not have a direct impact on the bottom line and thus may be subject to questions about whether its benefits outweigh its costs </li></ul><ul><li>Being custom-developed, the system requires the maintenance of a large IT staff to support and modify it, without relying on outside vendors </li></ul>
    • 12. What does Hilton have to do to create a competitive advantage through OnQ? Provide some specific examples . <ul><li>A competitive advantage exists when a firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). OnQ is most likely intended to produce a competitive advantage of the second kind. </li></ul><ul><li>Examples: </li></ul><ul><li>Automatic accommodation assignment (room type, special needs, etc.) based on past experiences </li></ul><ul><li>Self-service check-in with prior reservation (similar to what Hertz does with car rentals in certain programs) </li></ul>
    • 13. Is it possible to have too much information about a customer? Explain. <ul><li>For the marketing department, it is never possible to have too much information about a customer. And that is probably true at the aggregate level, i.e. for grouping or segmenting, planning and forecasting, etc. </li></ul><ul><li>However, at the point of contact with the customer, in this case most likely the front desk or the call center, providing too much of that information to service representatives can impede efficient and effective communication. </li></ul><ul><li>There are two reasons why this might happen: </li></ul><ul><li>representatives would need to process a significant amount of data in a very short period of time, and then, </li></ul><ul><li>also in a very short time, decide which pieces to use to form a decision and how. In this sense, it would be better to provide representatives with a distilled set of facts that would directly enhance their decision making rather than flood them with all the available data. </li></ul>
    • 14. Cross Functional Enterprise Systems <ul><li>Focus on supporting integrated clusters of business processes involved in operations of an organization </li></ul><ul><li>Re-engineering business processes across functions, customers and suppliers </li></ul>
    • 15. Enterprise Business Systems Enterprise Application Architecture Suppliers Customers Employees Partners Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes Customer Relationship Management Marketing – Sales - Service Knowledge Management Collaboration – Decision Support Partner Relationship Management Selling – Distribution
    • 16. CRM – Business Focus <ul><li>CRM is an organization-wide strategy to manage customer experience and perception. </li></ul><ul><li>CRM requires a customer-centric business philosophy and culture to support effective marketing, sales and service processes. </li></ul>
    • 17. CRM <ul><li>‘ Customer’ represents the intended group organization serves. </li></ul><ul><li>‘ Relationship,’ the most important term, represents the level of trust organization forms with its intended customers. </li></ul><ul><li>‘ Management,’ represents the effort organizations put forth to support the ‘Customer Relationship. </li></ul>
    • 18. <ul><li>Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers </li></ul>CRM: The Business Focus Customer Life Cycle CRM Functional Solutions CRM Integrated Solution The Internet Collaborative Service Shared Customer Data Acquire Enhance Retain Direct Marketing Cross-sell and Up-sell Proactive Service Sales Force Automation Customer Support Partner Company Customer
    • 19. <ul><li>CRM Uses IT to Create a Cross-Functional Enterprise System </li></ul>CRM: The Business Focus Marketing and Fulfillment Customer Service and Support Retention and Loyalty Programs Contact and Account Management <ul><li>Sales </li></ul><ul><li>Cross-Sell </li></ul><ul><li>Up-Sell </li></ul>Prospect or Employee Fax e-Mail Telephone Web
    • 20. CRM: The Business Focus <ul><li>Benefits and Challenges of CRM </li></ul><ul><li>Identify and Target the Best Customers </li></ul><ul><li>Customization and Personalization of Products and Services </li></ul><ul><li>Track Customer Contacts </li></ul><ul><li>CRM Failures </li></ul><ul><li>50% of Applications Fail to Meet Expectations </li></ul><ul><li>20% of the Time CRM Damaged Customer Relationships </li></ul><ul><li>Lack of Understanding and Preparation is Blamed </li></ul>
    • 21. INTUIT <ul><li>How can CRM support Intuit during this tax season? </li></ul><ul><li>CRM Integrated Solution? (Page 241) </li></ul>
    • 22. <ul><li>Partner </li></ul><ul><ul><li>IRS </li></ul></ul><ul><ul><li>Bank </li></ul></ul><ul><li>Company </li></ul><ul><li> Intuit </li></ul><ul><li>Customer: </li></ul><ul><li>Tax payers </li></ul>
    • 23. ERP – Business Backbone <ul><li>E Enterprise </li></ul><ul><li>R Resources </li></ul><ul><li>P Planning </li></ul><ul><li>ERP is ENTERPRISE </li></ul><ul><li>ERP software attempts to integrate all departments and functions across a company onto a single computer system that can serve all those departments’ particular needs. </li></ul>
    • 24. Enterprise Resource Planning Production Planning Integrated Logistics Accounting and Finance Human Resources Sales, Distribution, Order Management Customer/ Employee The Technological Backbone of e-Business
    • 25. Enterprise Resource Planning Suppliers Human Resources Finance and Accounting Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning Customers Purchasing & Accounts Payable MRP Inbound Inventory Plant Mgmt. Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable The Business Value of ERP
    • 26. <ul><li>Benefits of ERP </li></ul><ul><li>Quality and Efficiency </li></ul><ul><li>Decreased Costs </li></ul><ul><li>Decision Support </li></ul><ul><li>Enterprise Agility </li></ul><ul><li>Failures in ERP Do Exist </li></ul>Enterprise Resource Planning
    • 27. <ul><li>Causes of ERP Failures </li></ul><ul><li>Underestimating the Complexity of Planning, Development, and Training Needed </li></ul><ul><li>Failure to Involve Affected Employees </li></ul><ul><li>Trying to do Too Much Too Fast </li></ul><ul><li>Over Reliance by Company on Claims of Software Companies </li></ul>Enterprise Resource Planning
    • 28. SCM –Business Backbone <ul><li>It is the art & science that goes into improving the way your company finds raw components it needs to make a product or service and deliver it to customers </li></ul><ul><li>Five Components of SCM: </li></ul><ul><li>PLAN (Strategic Part) </li></ul><ul><li>SOURCE (Choose Supplier) </li></ul><ul><li>MAKE (Manufacturing Step) </li></ul><ul><li>DELIVER (Logistics) </li></ul><ul><li>RETURN ( Return/Support Customers) </li></ul>
    • 29. <ul><li>SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes </li></ul>SCM: The Business Network Supply Chain Life Cycle SCM Functional Processes SCM Integrated Solution The Internet Collaborative Fulfillment Shared Market Data Strategic Sourcing and Procurement Forecast and Demand Planning Customer Order Fulfillment Service Distribution Network and Warehouse Operations Transportation and Shipment Management Production Logistics Supplier Manufacturer Customer Retailer Commit Schedule Make Deliver
    • 30. SCM: The Business Network <ul><li>Supply Chain Management : a top strategic objective for many firms </li></ul><ul><li>The Right Products </li></ul><ul><li>The Right Place </li></ul><ul><li>The Right Time </li></ul><ul><li>In the Proper Quantity </li></ul><ul><li>At an Acceptable Cost </li></ul>
    • 31. SCM: The Business Network Business Value Goals Rapid Demand Fulfillment Collaborative Supply Chain Planning and Execution Customer Value Goals Give customers what they want, when and how they want it, at the lowest cost Interenterprise Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability to Customers Objectives of Supply Chain Management
    • 32. Value Chain Example <ul><li>Define SCM for producing pork products </li></ul>
    • 33. Pork Industry <ul><li>A value chain in the pork industry might include: </li></ul><ul><li>an input supplier (of food, housing, veterinary care, etc.) </li></ul><ul><li>the farmer or producer (to raise and market the animals) </li></ul><ul><li>the packing plant (for primal cuts) </li></ul><ul><li>the fabrication plant (for portion cuts) </li></ul><ul><li>the food service distributor who gets the product to wholesalers and other markets </li></ul><ul><li>the consumer who buys the pork chop or pork roast </li></ul>
    • 34. VALUE CHAIN
    • 35. SCM: The Business Network <ul><li>Objective of SCM Efficiently Manages this Process by: </li></ul><ul><li>Forecasting Demand </li></ul><ul><li>Controlling Inventory </li></ul><ul><li>Enhancing Business Relationships </li></ul><ul><li>Receiving Feedback and Status of Every Link of the Chain </li></ul>
    • 36. SCM: The Business Network <ul><li>Lack of Proper Planning Knowledge, Tools, and Guidelines </li></ul><ul><li>Inaccurate Demand Forecasts </li></ul><ul><li>Lack of Adequate Collaboration </li></ul><ul><li>Software Itself Immature </li></ul>Benefits and Challenges of SCM
    • 37. Question: SCM <ul><li>When supply chain relationships are reviewed for streamlining, longtime supply chain partners may no longer be viable. Then the organization must decide between: </li></ul><ul><ul><li>preserving a longstanding relationship with a supply chain partner and sacrificing the benefits of a more rational process, </li></ul></ul><ul><ul><li>or terminating a longtime relationship in favor of a more beneficial supply chain. </li></ul></ul><ul><ul><li>Discuss the pros and cons of this decision. </li></ul></ul><ul><ul><li>What criteria should an organization use in determining the appropriate action with regard to longstanding supply chain partners? </li></ul></ul>
    • 38. Question <ul><li>Criteria for partnerships: </li></ul><ul><li>- Accuracy (251, 317) - Seamless integration (253) - Efficiency (245) - Ease of use/Fexibility (245) - Quality (245) - Predictability/Dependability - Compatibility/Risk </li></ul><ul><li>PRO Pros of Preserving </li></ul><ul><li>- Already established relationship (mutual understanding and agreements) - Ease of ordering - Supply chain's knowledge of your business and its processes </li></ul><ul><li>CONS of Preserving </li></ul><ul><li>- Stuck in a rut (not as obvious to see changes needed/more efficient processes) </li></ul>
    • 39. Question? <ul><li>What’s the relationship between ERP & SCM? </li></ul>
    • 40. Enterprise Application Integration <ul><li>EAI Software Connects Major e-Business Applications Like CRM and ERP </li></ul>Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry Back-Office ERP Applications Distribution Manufacturing Scheduling Finance Enterprise Application Integration EAI
    • 41. Functional Systems <ul><li>CIM </li></ul><ul><li>SFA (sales force automation) </li></ul><ul><li>FMS (Financial Management Systems) </li></ul><ul><li>AIS (Accounting Information Systems) </li></ul><ul><li>HRM - BQ list </li></ul><ul><li>TPS (transaction Processing Systems) </li></ul>
    • 42. <ul><li>MIS and Transaction Processing Systems </li></ul>
    • 43. Management activity subsystems
    • 44. Transaction Processing Systems
    • 45. Data Capture (or Entry) <ul><li>data transcription </li></ul><ul><ul><li>source documents </li></ul></ul><ul><ul><li>turnaround documents </li></ul></ul><ul><li>data inscription </li></ul><ul><ul><li>optically scanned </li></ul></ul><ul><ul><li>MICR </li></ul></ul><ul><li>on-line data entry </li></ul><ul><ul><li>no source document </li></ul></ul><ul><li>EDI - Electronic Data Interchange </li></ul>
    • 46. System flowcharting symbols document or report terminal keyboard terminal display DASD, disk magnetic tapes process, program manual process on-page connector off-page connector
    • 47. Transaction processing steps 1. Data Capture 2. Edit Transaction 3. Updating 4. Reporting
    • 48. Batch TPS
    • 49. On-line TPS
    • 50. Hilton Case/ P 236 <ul><li>What are the benefits and drawbacks of the OnQ system at Hilton? </li></ul><ul><li>Benefits could include: </li></ul><ul><ul><li>Prompt resolution of problems </li></ul></ul><ul><ul><li>Matching customers with their profiles, and thus provide personalized services and accommodations </li></ul></ul><ul><ul><li>Supports brand and loyalty building </li></ul></ul><ul><ul><li>Differentiates customers in terms of their value to the franchise (measured in frequency of stay, duration, revenue per customer, past complaints, etc.) </li></ul></ul><ul><li>Drawbacks could include: </li></ul><ul><li>Company could become exposed to legal issues concerning privacy rights regarding the information it is storing and its usage </li></ul><ul><li>While very useful to the franchise, the OnQ system does not have a direct impact on the bottom line and thus may be subject to questions about whether its benefits outweigh its costs </li></ul><ul><li>Being custom-developed, the system requires the maintenance of a large IT staff to support and modify it, without relying on outside vendors </li></ul>
    • 51. What does Hilton have to do to create a competitive advantage through OnQ? Provide some specific examples. <ul><li>A competitive advantage exists when a firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). OnQ is most likely intended to produce a competitive advantage of the second kind. </li></ul><ul><li>Examples </li></ul><ul><li>Automatic accommodation assignment (room type, special needs, etc.) based on past experiences </li></ul><ul><li>Self-service check-in with prior reservation (similar to what Hertz does with car rentals in certain programs) </li></ul>
    • 52. Is it possible to have too much information about a customer? Explain . <ul><li>For the marketing department, </li></ul><ul><li>it is never possible to have too much information about a customer. And that is probably true at the aggregate level, i.e. for grouping or segmenting, planning and forecasting, </li></ul><ul><li>Front line worker ex: front desk or the call center, </li></ul><ul><li>providing too much of that information to service representatives can impede efficient and effective communication. </li></ul><ul><li>Representatives would need to process a significant amount of data in a very short period of time </li></ul><ul><li>Decide which pieces to use to form a decision and how. </li></ul>
    • 53. Why has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives? <ul><li>The need to meld disparate systems together such as the integration of front- and back-office applications. </li></ul><ul><li>The need to quickly deliver data to employees, customers and partners. Corporate Express needed to dramatically improve customer service. </li></ul><ul><li>The need for complex corporations such as Baxter International and General Electric Co. to connect the independent operations of various business units. </li></ul><ul><li>To reduce costs internally as well as for its customers. </li></ul>
    • 54. Additional Readings <ul><li>ERP </li></ul><ul><li>SCM </li></ul><ul><li>CRM </li></ul><ul><li>EAI </li></ul>

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