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LEARNING OBJECTIVES
Enterprise Systems
Enterprise systems
feature a set of
integrated software
modules and a
central database that
enables data to be
shared by many
different business
processes and
functional areas
throughout the
enterprise.
Figure 9-1
Enterprise Systems
Enterprise software
Built around thousands of predefined
business processes that reflect best
practices
Finance and accounting
Human resources
Manufacturing and production
Sales and marketing
To implement, firms:
Enterprise software
Enterprise software allows every functional
area to share every process and every piece
of data.
A business can select specific processes in
specific areas but eventually everything the
company does will be shared across all lines.
The software uses predefined processes and
requires the company to adapt itself to the
software.
Enterprise Systems
Supply chain
It includes all of the internal
functions of an organization,
along with suppliers, distributors,
retailers, and customers.
They are all intertwined and rely on
information from one another to
effectively meet the businesss
objectives.
Supply chain
Network of organizations and processes for:
Procuring materials, transforming them into products, and
distributing the products
Figure 9-2
This figure illustrates the major entities in Nikes 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.
Just-in-time strategy:
Components arrive as they are needed
Finished goods shipped after leaving assembly line
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.
Figure 9.3
Warehouse management
Transportation management
Logistics
Outsourcing
Demand-driven
Figure 9-4
Figure 9-5
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
Figure 9-6
CRM software
Packages range from niche tools to
large-scale enterprise applications.
More comprehensive have modules for:
Partner relationship management systems
are a reflection of internal customer
relationship management systems but extend
past the immediate borders of a firm to its
selling partners.
Integrating lead generation, pricing, promotions,
order configurations, and availability
Tools to assess partners performances
CRM software
Employee relationship management
(ERM)
Setting objectives, employee performance
management, performance-based compensation,
employee training
CRM software
Employee relationship management
modules associated with CRM focus
more on how employees perform and
interact with customers.
These modules help a company manage:
Employee objectives
Employee performance
Performance-based compensation
Employee training
Customer service
Assigning and managing customer service requests,
Web-based self-service capabilities
Marketing
Capturing prospect and customer data, scheduling
and tracking direct-marketing mailings or e-mail,
cross-selling
Figure 9-7
Figure 9-8
Figure 9-9
This process map shows how a best practice for promoting customer loyalty
through customer service would be modeled by customer relationship management
software. The CRM software helps firms identify high-value customers for
preferential treatment.
Operational CRM:
Customer-facing applications such as
sales force automation, call center and
customer service support, and
marketing automation
Analytical CRM:
Based on data warehouses populated by
operational CRM systems and customer
touch points
Analyzes customer data (OLAP, data mining,
etc.)
Customer lifetime value (CLTV) - It costs six times
more to gain a new customer than to keep an old
one.
By measuring the CLTV of customers, organizations
can calculate customer profitability and determine
which customers they should cater to.
Churn rate:
Number of customers who stop using or
purchasing products or services from a
company
Indicator of growth or decline of firms
customer base
Daunting Implementation:
Technological and fundamental changes
will pervade every corner of the
organization.
The organizational structure and culture
will change.
The most daunting task will be retraining
thousands of workers and convincing them
the change is good. It will be easier to fail
than to succeed.
Data Management:
Now that one database serves the entire
organization, if data are mismanaged, it will
affect every business function and process.
Inflexibility:
Making changes in one area of the business
is much more difficult after implementing
an enterprise system.
The software is just too complex to easily
change.
Technology changes
Business process changes
Organizational learning, changes
Switching costs, dependence on software
vendors
Integrating cloud applications
Next-generation enterprise
applications
Enterprise solutions/suites:
Make applications more flexible, Web-enabled,
integrated with other systems
Social CRM
Incorporating social networking technologies
Company social networks
Monitor social media activity; social media
analytics
Manage social and Web-based campaigns
Social CRM
DreamFace combines Social Networking, Rich
Internet Application, and Web 2.0 personalization
and customization technologies in a disciplined
approach to help businesses create a new class of
Enterprise Social Applications.
DreamFace is composed of a Widget Platform to
create, use, and distribute dynamic content, a Social
Networking Framework to manage and connect
users, who consume and convey information through
their social networks and Mobile Services for
Broadcasting or Publishing information to mobile
devices.
Business intelligence
Inclusion of BI with enterprise applications
Flexible reporting, ad hoc analysis, what-if
scenarios, digital dashboards, data
visualization