Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Learning Objectives
1. 2. 3. 4. 5. How do enterprise systems help businesses achieve operational excellence? How do supply chain management systems coordinate planning, production, and logistics with suppliers? How do customer relationship management systems help firms achieve customer intimacy? What are the challenges posed by enterprise applications? How are enterprise applications used in platforms for new cross-functional services?
9.1 Enterprise Systems What Are Enterprise Systems? Enterprise Software Business Value of Enterprise Systems Supply Chain Management Systems The Supply Chain Information Systems and Supply Chain Management Supply Chain Management Applications Global Supply Chains and the Internet Business Value of Supply Chain Management Systems Customer Relationship Management Systems What is Customer Relationship Management? Customer Relationship Management Software Operational and Analytical CRM Business Value of Customer Relationship Management Systems Enterprise Applications: New Opportunities and Challenges Enterprise Application Challenges Next-Generation Enterprise Applications Hands-On MIS Management Decision Problems Improving Decision Making: Using Database Software to Manage Customer Service Requests Improving Operational Excellence: Evaluating Supply Chain Management Services
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The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided. Analytical CRM, 380 Bullwhip effect, 368 Churn rate, 381 Cross-selling, 378 Customer lifetime value (CLTV), 381 Demand planning, 370 Employee relationship management (ERM), 377 Enterprise software, 364 Just-in-time strategy, 368 Operational CRM, 380 Partner relationship management (PRM), 377 Pull-based model, 373 Push-based model, 373 Service platform, 386 Supply chain, 366 Supply chain execution systems, 370 Supply chain planning system, 370 Touch point, 376
The opening case, “Cannondale Learns to Manage a Global Supply Chain,” illustrates how small firms must manage information in their complex supply chains to help improve profits. The firm’s old legacy systems did not offer the necessary flexibility to track all items through the supply chain and adequately manage the firm’s business processes. Reports were produced on a weekly basis but the information was quickly outdated. The company had to use substitute parts in the manufacturing process because the old system couldn’t keep up with demand. The company went with an on-demand software service that combined data from operations at multiple sites into a single database used for analysis and decision making. Managers are able to use “what-if” scenarios to examine alternative actions. Users are able to see up-to-date information from all manufacturing sites. The improved supply chain management system enabled Cannondale to respond to customer orders more rapidly with lower levels of inventory and safety stock. The company reduced it cycle times and lead times for production and increased the reliability and accuracy of its projected delivery dates. Section 9.1, “Enterprise Systems” This section introduces enterprise systems and explains the benefits and disadvantages of installing them. There have been success stories as well as horror stories about companies who have used enterprise systems. Figure 9-1 is a good way to diagram how enterprise systems work. Use Table 9-1 to discuss various business processes that enterprise systems support. This table shows students how an enterprise system permeates every functional area in a business. Section 9.2, “Supply Chain Management Systems” Section 9.2 goes into great depth about supply chain processes and how information can help managers control the supply chain better. Have your...
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