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Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
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Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
Chap006 MIS
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Chap006 MIS
Chap006 MIS
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Chap006 MIS

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  • 1. 1Chapter 6 Enterprise e-Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. 2 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 trendsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 3. 3 Section I Customer Relationship Management: The Business FocusMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 4. 4 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 channelsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 5. 5 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 company’s business operationsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 6. 6 Customer Relationship Management (continued) Includes software modules that provide tools that enable a business & its employees to provide fast, convenient, dependable, consistent service.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 7. 7 Customer Relationship Management (continued)Major Application Components Contact & Account Management Helps capture and track relevant data about past and planned contacts with prospects & customers.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 8. 8 Customer Relationship Management (continued) Sales Provides sales reps with software tools & company data needed to support & manage their sales activities. Helps optimize cross-selling & up-sellingMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 9. 9 Customer Relationship Management (continued) Marketing & Fulfillment Helps accomplish direct marketing campaigns by automating tasks Helps capture & manage prospect & customer response data Helps in fulfillment by quickly scheduling sales contacts & providing appropriate information on products & services to themMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 10. 10 Customer Relationship Management (continued) 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 softwareMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 11. 11 Customer Relationship Management (continued)Retention and Loyalty Programs Helps the company identify, reward, and market to their most loyal and profitable customersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 12. 12 Customer Relationship Management (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 13. 13 Customer Relationship Management (continued)Three Phases of CRM Acquire (new customers) By doing a superior job of contact management, sales prospecting, selling, direct marketing, & fulfillment.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 14. 14 Customer Relationship Management (continued) Enhance (customer satisfaction) By supporting superior service from a responsive networked team of sales and service specialists.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 15. 15 Customer Relationship Management (continued) Retain (your customers) Help identify and reward your most loyal, profitable customers.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 16. 16 Customer Relationship Management (continued)Benefits and Challenges 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 cyclesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 17. 17 Customer Relationship Management (continued)Benefits and Challenges (continued) Enables a company to provide a consistent customer service experienceFailures Dueto lack of understanding & preparation. CRM is not a silver bulletMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 18. 18 Customer Relationship Management (continued)Trends Operational CRM Analytical CRM Collaborative CRM Portal-based CRMMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 19. 19 Section II Enterprise Resource Planning: The Business BackboneMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 20. 20 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 todayMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 21. 21 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 ManagementMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 22. 22 Enterprise Resource Planning (continued)Benefits and Challenges Quality and efficiency Helps improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 23. 23 Enterprise Resource Planning (continued) Decreased Costs Reductions in transaction processing costs and hardware, software, and IT support staffMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 24. 24 Enterprise Resource Planning (continued)Decision support Provides cross-functional information on business performance to assist managers in making better decisionsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 25. 25 Enterprise Resource Planning (continued)Enterprise agility Results in more flexible organizational structures, managerial responsibilities, and work rolesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 26. 26 Enterprise Resource Planning (continued)Costs of ERP The costs and risks of failure in implementing a new ERP system are substantial.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 27. 27 Enterprise Resource Planning (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 28. 28 Enterprise Resource Planning (continued)Causes of ERP failures Underestimating the complexity of the planning, development, and training required Failure to involve affected employees in the planning & development phases and change management programsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 29. 29 Enterprise Resource Planning (continued) Trying to do too much, too fast Insufficient training Believing everything the software vendors and/or consultants sayMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 30. 30 Enterprise Resource Planning (continued)Trends FlexibleERP Web-enabled ERP Interenterprise ERP E-Business SuitesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 31. 31 Section III Supply Chain Management: The Business NetworkMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 32. 32 Supply Chain ManagementA cross-functional interenterprise system that uses IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners.Goal is to create a fast, efficient, & low-cost network of business relationships.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 33. 33 Supply Chain Management (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 34. 34 Supply Chain Management (continued) Electronic data interchange Exchanging business transaction documents over the Internet & other networks between supply chain trading partnersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 35. 35 Supply Chain Management (continued) The Role of SCMMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 36. 36 Supply Chain Management (continued)Benefits and Challenges Can provide faster, more accurate order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 37. 37 Supply Chain Management (continued)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 collaborationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 38. 38 Supply Chain Management (continued) TrendsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 39. 39 Discussion QuestionsShould a company become a customer-focused business?Why would systems that enhance a company’s relationships with customers have such a high rate of failure?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 40. 40 Discussion Questions (continued)How could some of the spectacular failures of ERP systems have been avoided?Should companies continue to use EDI systems?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 41. 41 Discussion Questions (continued)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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 42. 42 Discussion Questions (continued)Should companies install e-business software suites or “best of breed” e-business software components?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 43. 43 Real World Case 1 – Mitsubishi Motor SalesWhat are the key application components of Mitsubishi’s CRM system?What is the business use of each of those components?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 44. 44 Real World Case 1 (continued)What are the benefits to a business and its customers of a CRM system like Mitsubishi’s?Do you approve of Mitsubishi’s approach to acquiring and installing its CRM system?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 45. 45 Real World Case 1 (continued)Why have many CRM systems failed to provide promised benefits like those generated by Mitsubishi’s system?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 46. 46 Real World Case 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 47. 47 Real World Case 2 (continued)Why do you think ERP systems in particular are often cited as examples of failures in IT systems development, implementation, or management?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 48. 48 Real World Case 2 (continued)What do you think caused the major failure of Agilent’s ERP implementation?Why do you think they did not act to avoid the reasons you specified?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 49. 49 Real World Case 3 – TaylorMade Golf & HON IndustriesHow could moving business information systems with suppliers and distributors 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 50. 50 Real World Case 3 (continued)What other SCM initiatives would you recommend that TaylorMade or HON Industries implement to improve their supply chain performance and business value?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 51. 51 Real World Case 3 (continued)What are several ways a small business could use supply chain management to improve the efficiency and business value of their supply chain?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 52. 52 Real World Case 4 – H-P, Eastman Chemical, & OthersWhy can both large and small businesses cut costs and increase revenues by moving their supply chains online?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 53. 53 Real World Case 4 (continued)What is the business value to Eastman Chemical and W.W. Grainger of their initiatives to help their suppliers and customers do business online?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 54. 54 Real World Case 4 (continued)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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 55. 55 Real World Case 5 – Wal-Mart & MattelDo you agree that Wal-Mart is “the best supply chain operator of all time”?Why or why not?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 56. 56 Real World Case 5 (continued)What has Mattel learned from Wal-Mart?How well are they applying it to their own business?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 57. 57 Real World Case 5 (continued)What can other businesses learn from the experiences of Wal-Mart and Mattel that could improve their supply chain performance?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.

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