1. 1
Chapter
6
Enterprise e-Business Systems
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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 trends
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3. 3
Section I
Customer Relationship Management:
The Business Focus
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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 channels
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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 operations
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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.
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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.
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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-selling
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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
them
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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 software
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11. 11
Customer Relationship Management (continued)
Retention and Loyalty Programs
Helps the company identify, reward, and
market to their most loyal and profitable
customers
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12. 12
Customer Relationship Management (continued)
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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.
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14. 14
Customer Relationship Management (continued)
Enhance (customer satisfaction)
By supporting superior service from a
responsive networked team of sales and
service specialists.
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15. 15
Customer Relationship Management (continued)
Retain (your customers)
Help identify and reward your most loyal,
profitable customers.
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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 cycles
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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 bullet
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18. 18
Customer Relationship Management (continued)
Trends
Operational CRM
Analytical CRM
Collaborative CRM
Portal-based CRM
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19. 19
Section II
Enterprise Resource Planning:
The Business Backbone
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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 today
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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 Management
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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 processes
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23. 23
Enterprise Resource Planning (continued)
Decreased Costs
Reductions in transaction processing costs
and hardware, software, and IT support
staff
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24. 24
Enterprise Resource Planning (continued)
Decision support
Provides cross-functional information on
business performance to assist managers in
making better decisions
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25. 25
Enterprise Resource Planning (continued)
Enterprise agility
Results in more flexible organizational
structures, managerial responsibilities, and
work roles
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26. 26
Enterprise Resource Planning (continued)
Costs of ERP
The costs and risks of failure in
implementing a new ERP system are
substantial.
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27. 27
Enterprise Resource Planning (continued)
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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 programs
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29. 29
Enterprise Resource Planning (continued)
Trying to do too much, too fast
Insufficient training
Believing everything the software vendors
and/or consultants say
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30. 30
Enterprise Resource Planning (continued)
Trends
FlexibleERP
Web-enabled ERP
Interenterprise ERP
E-Business Suites
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31. 31
Section III
Supply Chain Management:
The Business Network
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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.
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33. 33
Supply Chain Management (continued)
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34. 34
Supply Chain Management (continued)
Electronic data interchange
Exchanging business transaction
documents over the Internet & other
networks between supply chain trading
partners
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35. 35
Supply Chain Management (continued)
 The Role of SCM
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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 suppliers
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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 collaboration
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38. 38
Supply Chain Management (continued)
 Trends
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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?
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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?
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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?
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42. 42
Discussion Questions (continued)
Should companies install e-business software
suites or “best of breed” e-business software
components?
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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?
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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?
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45. 45
Real World Case 1 (continued)
Why have many CRM systems failed to
provide promised benefits like those generated
by Mitsubishi’s system?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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56. 56
Real World Case 5 (continued)
What has Mattel learned from Wal-Mart?
How well are they applying it to their own
business?
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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?
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