Achieving operational excellence and customer intimacy. enterprise applications

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Achieving Operational Excellence and Customer Intimacy. Enterprise Applications

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Achieving operational excellence and customer intimacy. enterprise applications

  1. 1. Name No. Matric Vashanntha A/P Murugiah B061210117 Sanmugam A/L Marimuthu B061210088 Priya A/P Selvaindran B061210126 Tea Ann Wen B061210140 Yew Woi Mei B061210141
  2. 2.  Software packages that support business processes, information flows, and data analytics across the organization
  3. 3.  Supply Chain management systems  Customer relationship management systems  Knowledge management systems
  4. 4.  Software that is designed for a particular type of organization and controls many aspect of its business  IBM  SAP  Oracle Corporation  Microsoft
  5. 5. Increase operational efficiency o Help to make better decisions o Help everyone does business in the same way o
  6. 6.  Network of organizations and processes for: ◦ Procuring raw materials ◦ Transforming them into products ◦ Distributing the products  Upstream supply chain: ◦ Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them  Downstream supply chain: ◦ Organizations and processes responsible for delivering products to customers
  7. 7. Figure 8-2 This figure illustrates the major entities in Nike’s supply chain and the flow of information upstream and downstream to coordinate the activities involved in buying, making, and moving a product. Shown here is a simplified supply chain, with the upstream portion focusing only on the suppliers for sneakers and sneaker soles.
  8. 8. Parts shortage  Underutilized plant capacity  Excessive finished goods inventory  high transportation costs   Waste up 25% of company’s operating costs
  9. 9.  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
  10. 10. Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain. Minor fluctuations in retail sales for a product can create excess inventory for distributors, manufacturers, and suppliers.
  11. 11.  Software to help business plan their supply chains Supply chain planning systems • Model existing supply chain. • Demand planning. • Develop optimal sourcing and manufacturing plans. • Establish inventory levels. • Determining where to store finished goods • Identify transportation modes.
  12. 12. • Supply chain execution systems • Manage flow of products through distribution centers and warehouses.  Example: Warehouse Management System(WMS)
  13. 13. Global supply chain  interrelated organizations, resources, and processes  create and deliver products and services to end customer.  It is extended around the world.
  14. 14. Before Internet Difficulties to make info flow • Internal supply chain – ERP (Enterprise resource planning) • External supply chain – Incompatible technology platform
  15. 15. Internet Technology Intranet - to improve coordination among internal supply chain processes Extranet - to coordinate supply chain processes shared with their business partners Benefits • • • • Instantly communication Up-to-date info Transportation International finance
  16. 16.  Increase sales and profits.  Reduce dependence on their local and national economies.  Businesses expansion  Diversified business and trading  Lower supply chain costs  Reduced cycle time  Competitive advantage  Enhance speed and efficiency
  17. 17.  Geopolitical risk  Climate change  Increasing energy prices and volatility caused by supply uncertainty  Increasing dependence upon technology  Reduction of buffer stock  Concentration of risk through constant drive to reduce cost and increase efficiency
  18. 18.  Additional costs of offshore manufacturing - Transportation - Inventory - The need for a larger buffer of safety stock - Local taxes - Fees  Cultural difference
  19. 19. A demand driven supply chain  transforming the traditional supply chain into an integrated multi-tier supply network  eliminating information latency and unnecessary touchpoints  reducing operating costs  improving profitability and customer service.
  20. 20. Push-based model - Build-to-stock • Based on forecast • Products are pushed to customers  Pull-based model - Build-to-order • Orders or purchases trigger events » Transactions to produce and deliver only what customers have ordered 
  21. 21.  Speed product time to market.  Use assets more effectively.  Reduced supply chain costs lead to increased profitability.  Increase sales.  Streamline processes  More accurate information  Match supply to demand  Reduce inventory levels  Improve delivery service  Reduce cost
  22. 22. • Knowing the customer • Customer relationship management (CRM) systems • Capture and integrate customer data from all over the organization. • Consolidate and analyze customer data. • Distribute customer information to various systems and customer touch points across enterprise. • Provide single enterprise view of customers.
  23. 23.   Customer Relationship Management packages range from niche tools to large-scale enterprise applications. More comprehensive have modules for:  Partner relationship management (PRM)  Integrating lead generation, pricing, promotions, order configurations, and availability.  Tools to assess partners’ performances.
  24. 24.  Employee relationship management (ERM) E.g., setting objectives, employee performance management, performancebased compensation, employee training.
  25. 25.  Customer Relationship Management packages typically include tools for: Sales force automation (SFA) E.g., sales prospect and contact information, and sales quote generation capabilities. Customer service E.g., assigning and managing customer service requests; Web-based self-service capabilities. Marketing E.g., capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail.
  26. 26.  Operational CRM: Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation  Analytical CRM: Analyzes customer data output from operational CRM applications Based on data warehouses populated by operational CRM systems and customer touch points Customer lifetime value (CLTV
  27. 27.  Business benefits: 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
  28. 28. Enterprise Applications: New Opportunities and Challenges Enterprise Application Challenges • Highly expensive to purchase and implement enterprise applications—total cost may be four to five times the price of software • Technology changes • Business process changes • Organizational changes • Switching costs, dependence on software vendors • Data standardization, management, cleansing
  29. 29. Extending Enterprise Software • To bring greater value from enterprise applications • Enterprise solutions/suites: make applications more flexible, Webenabled, integrated with other systems • Service platform: integrates multiple applications to deliver a seamless experience for all parties • Order-to-cash process • Portal software
  30. 30. Order-to-Cash Service Order-to-cash is a composite process that integrates data from individual enterprise systems and legacy financial applications. The process must be modeled and translated into a software system using application integration tools. Figure 8-12
  31. 31. Thank You

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