1Chapter   6     Enterprise e-Business SystemsMcGraw-Hill/Irwin   Copyright © 2004, The McGraw-Hill Companies, Inc. All ri...
2                    Learning ObjectivesIdentify  and give examples to illustrate the  following aspects of customer rela...
3                     Section I         Customer Relationship Management:                  The Business FocusMcGraw-Hill/I...
4        Customer Relationship ManagementProvides   customer-facing employees with a  single, complete view of every cust...
5                    Customer Relationship Management (continued)CRM..   Integrates  and automates many of the      cust...
6                    Customer Relationship Management (continued)   Includes   software modules that provide tools      t...
7                    Customer Relationship Management (continued)Major         Application Components   Contact   & Acco...
8                     Customer Relationship Management (continued)   Sales       Provides sales reps with software tools...
9                    Customer Relationship Management (continued)   Marketing     & Fulfillment       Helps accomplish d...
10                    Customer Relationship Management (continued)   Customer     Service and Support       Provides sof...
11                    Customer Relationship Management (continued)Retention          and Loyalty Programs   Helps   the ...
12                    Customer Relationship Management (continued)McGraw-Hill/Irwin                 Copyright © 2004, The ...
13                    Customer Relationship Management (continued)Three         Phases of CRM   Acquire    (new customer...
14                    Customer Relationship Management (continued)   Enhance     (customer satisfaction)       By suppor...
15                    Customer Relationship Management (continued)   Retain    (your customers)       Help identify and ...
16                    Customer Relationship Management (continued)Benefits   and Challenges   Allows a business to ident...
17                    Customer Relationship Management (continued)Benefits and Challenges (continued)   Enables a compan...
18                    Customer Relationship Management (continued)Trends   Operational CRM   Analytical CRM   Collabor...
19                         Section II               Enterprise Resource Planning:                   The Business BackboneM...
20               Enterprise Resource PlanningServes as a cross-functional enterprise backbone that integrates & automates...
21                    Enterprise Resource Planning (continued)Gives   a company an integrated real-time view of its core ...
22                    Enterprise Resource Planning (continued)Benefits and Challenges   Quality and efficiency    Helps...
23                    Enterprise Resource Planning (continued)   Decreased   Costs       Reductions in transaction proce...
24                    Enterprise Resource Planning (continued)Decision  support   Provides cross-functional information ...
25                    Enterprise Resource Planning (continued)Enterprise   agility   Results in more flexible organizati...
26                    Enterprise Resource Planning (continued)Costs  of ERP   The costs and risks of failure in    imple...
27                    Enterprise Resource Planning (continued)McGraw-Hill/Irwin               Copyright © 2004, The McGraw...
28                    Enterprise Resource Planning (continued)Causes  of ERP failures   Underestimating the complexity o...
29                       Enterprise Resource Planning (continued)   Trying          to do too much, too fast   Insuffici...
30                    Enterprise Resource Planning (continued)Trends   FlexibleERP   Web-enabled ERP   Interenterprise...
31                           Section III                    Supply Chain Management:                       The Business Ne...
32                    Supply Chain ManagementA  cross-functional interenterprise system that  uses IT to help support & m...
33                    Supply Chain Management (continued)McGraw-Hill/Irwin             Copyright © 2004, The McGraw-Hill C...
34                    Supply Chain Management (continued)   Electronic   data interchange       Exchanging business tran...
35                    Supply Chain Management (continued) The    Role of SCMMcGraw-Hill/Irwin             Copyright © 200...
36                    Supply Chain Management (continued)Benefits  and Challenges   Can provide faster, more accurate or...
37                    Supply Chain Management (continued)Problem   causes   Lack of proper demand planning    knowledge,...
38                    Supply Chain Management (continued) TrendsMcGraw-Hill/Irwin             Copyright © 2004, The McGra...
39                    Discussion QuestionsShould  a company become a customer-focused  business?Why    would systems tha...
40                    Discussion Questions (continued)How  could some of the spectacular failures of  ERP systems have be...
41                    Discussion Questions (continued)How   can the problem of overenthusiastic  demand forecasts in supp...
42                    Discussion Questions (continued)Should   companies install e-business software  suites or “best of ...
43   Real World Case 1 – Mitsubishi Motor SalesWhat  are the key application components of  Mitsubishi’s CRM system?What...
44                    Real World Case 1 (continued)What   are the benefits to a business and its  customers of a CRM syst...
45                    Real World Case 1 (continued)Why   have many CRM systems failed to  provide promised benefits like ...
46    Real World Case 2 – Agilent Technologies & Russ BerrieWhat   are the main reasons companies  experience failures in...
47                    Real World Case 2 (continued)Why    do you think ERP systems in particular  are often cited as exam...
48                    Real World Case 2 (continued)What   do you think caused the major failure of  Agilent’s ERP impleme...
49    Real World Case 3 – TaylorMade Golf & HON IndustriesHow   could moving business information  systems with suppliers...
50                    Real World Case 3 (continued)What   other SCM initiatives would you  recommend that TaylorMade or H...
51                    Real World Case 3 (continued)What    are several ways a small business could  use supply chain mana...
52    Real World Case 4 – H-P, Eastman Chemical, & OthersWhy    can both large and small businesses cut  costs and increa...
53                    Real World Case 4 (continued)What     is the business value to Eastman  Chemical and W.W. Grainger ...
54                    Real World Case 4 (continued)Why   are many small suppliers reluctant to do  business online with t...
55    Real World Case 5 – Wal-Mart & MattelDo  you agree that Wal-Mart is “the best  supply chain operator of all time”?...
56                      Real World Case 5 (continued)What         has Mattel learned from Wal-Mart?How   well are they a...
57                    Real World Case 5 (continued)What   can other businesses learn from the  experiences of Wal-Mart an...
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Chap006 MIS

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Chap006 MIS

  1. 1. 1Chapter 6 Enterprise e-Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  2. 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. 3 Section I Customer Relationship Management: The Business FocusMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  4. 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. 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. 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. 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. 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. 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. 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. 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. 12 Customer Relationship Management (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  13. 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. 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. 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. 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. 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. 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. 19 Section II Enterprise Resource Planning: The Business BackboneMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  20. 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. 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. 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. 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. 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. 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. 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. 27 Enterprise Resource Planning (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  28. 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. 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. 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. 31 Section III Supply Chain Management: The Business NetworkMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  32. 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. 33 Supply Chain Management (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  34. 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. 35 Supply Chain Management (continued) The Role of SCMMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  36. 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. 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. 38 Supply Chain Management (continued) TrendsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  39. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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