Business Communications. SECTION 8.1. Supply Chain Management. BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS. Integration. – Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems. ID: 689868
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CHAPTER EIGHT
ENTERPRISE APPLICATIONS
Business Communications
Slide2SECTION 8.1
Supply Chain Management
Slide3BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
Integration
– Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems
Application integrationData integrationForward integrationBackward integration
Slide4BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
Integration Example
Slide5
BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS
A Central Information Repository Example
Slide6Integration Tools
Enterprise system
– Provide enterprisewide support and data access for a firm’s operations and business processes
Enterprise application integration (EAI) – Connects the plans, methods, and tools aimed at integrating separate enterprise systems
Slide7Integration Tools
Three Primary Enterprise Systems
Slide8SUPPLY CHAIN MANAGEMENT
Supply Chain Management
(SCM) – The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability
Slide9SUPPLY CHAIN MANAGEMENT
The supply chain has three main links
Materials flow from suppliers and their “upstream” suppliers at all levels
Transformation of materials into semifinished and finished products through the organization’s own production processDistribution of products to customers and their “downstream” customers at all levels
Slide10SUPPLY CHAIN MANAGEMENT
Supply Chain Example
Slide11SUPPLY CHAIN MANAGEMENT
Walmart and Procter & Gamble SCM Example
Slide12SUPPLY CHAIN MANAGEMENT
Effective and efficient SCM systems can enable an organization to
Decrease the power of its buyers
Increase its own supplier powerIncrease switching costs to reduce the threat of substitute products or servicesCreate entry barriers thereby reducing the threat of new entrantsIncrease efficiencies while seeking a competitive advantage through cost leadership
Slide13TECHNOLOGIES REINVENTING THE SUPPLY CHAIN
The three components of supply chain management
Procurement
LogisticsMaterials management
Slide14TECHNOLOGIES REINVENTING THE SUPPLY CHAIN
Supply chain management disruptive technologies
3D printing
(supports procurement)Maker movementMakerspaceRadio frequency identification (supports logistics)Drones (supports logistics)Robotics (supports materials management)
Slide15SECTION 8.2
Customer Relationship Management and Enterprise Resource Planning
Slide16CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM)
– Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability
Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems
Slide17The Power of
T
he Customer
The customer is always right and now has more power than ever thanks to the Internet
Slide18Measuring CRM Success
Slide19CRM Communication Channels
Text message
Instant message
Voice mailVoice callEmail letterWeb orderPhone order
Meeting
Customer service call
Evolution of CRM
CRM reporting technology
– Help organizations identify their customers across other applications
CRM analysis technologies – Help organization segment their customers into categories such as best and worst customersCRM predicting technologies – Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving
Slide21Evolution of CRM
Slide22Operational and Analytical CRM
Operational CRM
– Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical CRM – Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
Slide23Operational and Analytical CRM
Slide24ENTERPRISE RESOURCE PLANNING
Enterprise resource planning
– Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations
Slide25ENTERPRISE RESOURCE PLANNING
Reasons ERP systems are powerful tools
ERP is a logical solution to incompatible applications
ERP addresses global information sharing and reportingERP avoids the pain and expense of fixing legacy systems
Slide26ENTERPRISE RESOURCE PLANNING
ERP Systems Automate Business Processes
Slide27ENTERPRISE RESOURCE PLANNING
The Organization Before ERP
Slide28ENTERPRISE RESOURCE PLANNING
ERP Bringing The Organization Together
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