Test 2 study guide
| 37 questionstwo articles ( 4,5)
What are Enterprise systems?
| Enterprise resource planning systems are a suite of integrated software modules and common central database. It collects data from many divisions of firm for use in nearly all of firms internal activities. Information entered in one process is immediately available for other processes.
| Business value of enterprise systems
| Creates a more uniform organization. More efficient operations and customer-driven business processes. Firmwide information for imporved decision making.
| Disadvantages of enterprise systems
| not very customizable because of the complexity of the code, therefore companies usually have to change to conform to the ERP system.
| What are Supply chain systems?
| network or organizations and business processes for procuring raw materials, transforming into products, and distributing them to customers. Materials, info, and payments flow through the supply chain in both directions.
| Upstream and downstream portion of supply chain systems
| upstream are suppliers and downstream are manufactures, distributors, and customers.
| Bullwhip effect
| distortion of information about the demand for a product as it passes from one entity to the next up the supply chain( towards suppliers)
| Supply chain management systems
| automate flow of information between company and supply chain partners
| How to control or tame bullwhip effect
| by reducing uncertainties about demand and supply when all members of the supply chain have accurate and up-to-date information.
| Supply chain planning systems
| generate demand forecasts for a product( demand planning) and help develop sourcing and manufacturing plans for that product.
| Supply chain execution systems
| manage the flow of products through distrbution centers and warehouses to ensure that products are delivered to the reight locations in the mose efficient manner.
| Push based and pull based models of supply chain systems
| Push based model: production master schedules based on forecasts of demand for products, and products are "pushed" to customers. Pull based model: supply chain driven by actual customer orders or purchases.
| Business value of supply chain systems
| improved customer service and responsiveness, cost reduction, and cash utilization.
| What is Customer relationship management system?
| business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention
| Customer relation management system software (sales force automation, customer service, marketing)
| typically include capabilities for: sales force automation, customer service, and marketing.
| Cross selling and upselling marketing strategies
| upselling: a sales person ,knowing customer history, may suggest a more expensive product. Cross-selling: when a sales person suggest a complementary product for one the customer is buying.
| Operational CRM
| customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation.
| Analytical CRM
| applications that analyze customer data generated by operational CRM applications to provide information for improving business performance.
| Business value of customer relationship management systems
| 1. increased customer satisfaction. 2. more effective marketing and reduced direct marketing costs. 3. lower costs for customer acquistion and retention. Increased revenue from identifying most profitable customers and segements for marketing, cross-selling and up-selling. Reduce churn rate or better retention rate
| Customer life time value (CLTV)
| is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the...
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