Bài giảng Management information systems - Chương 8: Enterprise Business Systems

Enterprise Business SystemsChapter8Identify and give examples to illustrate the following aspects of customer relationship management, enterprise resource management, and supply chain management systems:Business processes supportedCustomer and business value providedPotential challenges and trendsLearning ObjectivesWhy Study Customer Relationship Management?It is easier than ever for customers to comparison shop and, with a click of the mouse, to switch companies. As a result, customer relationships have become a company’s most valued asset.Case #1: Implementing CRM SystemsMitsubishi Motor Sales Goal:Call center should provide one voice and one set of ears for the customerCase #1: Implementing CRM SystemsCRM Project Goals:Choose best-of-breed CRM software components rather than integrated CRM suitesImplement changes slowly. Must be simple, scalable, and satisfy need.Case #1: Implementing CRM SystemsCRM Project Challenges:Keeping 18 vendors heading in the same directionDirty data had to be cleansedCase #1: Implementing CRM SystemsWhat are the key application components of Mitsubishi’s CRM system? What is the business purpose of each of them?What are the benefits to a business and its customers of a CRM system like Mitsubishi’s?Case #1: Implementing CRM SystemsDo you approve of Mitsubishi’s approach to acquiring and installing its CRM system? Why or why not?Why have many CRM systems failed to provide promised benefits like those generated by Mitsubishi’s system?Customer Relationship Management (CRM)Definition:The use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customersCRM Application ClustersCRM Application ComponentsContact and Account Management – helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customersSales – provides sales reps with tools and company data sources needed to support and manage sales activities, and optimize cross-selling and up-sellingCRM Application ComponentsMarketing Fulfillment – help marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailingsCustomer Service and Support – provides service reps with software tools and real-time access to the common customer database shared by sales and marketing professionalsCRM Application ComponentsRetention and Loyalty Programs – help a company identify, reward, and market to their most loyal and profitable customersThree Phases of CRMThree Phases of CRMAcquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillmentEnhance relationship with customer by supporting superior service from a responsive networked team of sales and service specialists and business partnersRetain and expand business with customers by proactively identifying and rewarding the most loyal and profitable customersBenefits of CRMCRM allows a business to identify and target their best customers so they can be retained as lifelong customers for greater and more profitable services.CRM makes possible real-time customization and personalization of products and services based on customer wants, needs, buying habits, and life cycles.Benefits of CRMCRM can keep track of when a customer contacts the company, regardless of the contact point.CRM systems can enable a company to provide a consistent customer experience and superior service and support across all the contact points a customer chooses.CRM FailuresLack of understanding and preparationRely on CRM to solve business problem without first developing the business process changes and change management programs that are requiredCRM projects implemented without the participation of the business stakeholders involvedTrends in CRMOperationalAnalyticalCollaborativePortal-basedOperational CRMSupports customer interaction with greater convenience through a variety of channels.Synchronizes customer interactions consistently across all channelsMakes your company easier to do business withAnalytical CRMExtracts in-depth customer history, preferences, and profitability information from your data warehouse and other databasesAllows you to analyze, predict, and derive customer value and behavior and forecast demandLets you approach your customers with relevant information and offers that are tailored to their needsCollaborative CRMEnables easy collaboration with customers, suppliers, and partnersImproves efficiency and integration throughout the supply chainAllows greater responsiveness to customer needs through sourcing of products and services outside of your enterprisePortal-based CRMProvides all users with the tools and information that fit their individual roles and preferencesEmpowers all employees to respond to customer demands more quickly and become truly customer-focusedProvides the capability to instantly access, link, and use all internal and external customer informationPartner Relationship Management (PRM)Definition:Applications that apply many of the same tools used in CRM systems to enhance collaboration between a company and its business partners, such as distributors and dealers, to better coordinate and optimize sales and service to customers across all marketing channelsCase #2: Challenges of Implementing ERPEnterprise resource planning (ERP) implementations are a lot more than software packages. They are a fundamental transformation of a company’s business processes. People, processes, policies, the company’s culture are all factors that should be taken into consideration when implementing a major enterprise system.Case #2: Challenges of Implementing ERPReasons for ERP Failures:Management’s inability to spec out their own requirementsImplementer’s inability to implement specsUndertake too much too quicklyCase #2: Challenges of Implementing ERPWhat are the main reasons companies experience failures in implementing ERP systems?What are several key things companies should do to avoid ERP systems failures? Explain the reasons for your proposals.Case #2: Challenges of Implementing ERPWhy do you think ERP systems in particular are often cited as examples of failures in IT systems development, implementation, or management?Enterprise Resource Planning (ERP)Definition:A cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a companyERP Application ComponentsERP Process & Information FlowsERP BenefitsQuality and Efficiency – ERP creates a framework for integrating and improving a company’s internal business processes that results in significant improvements in the quality and efficiency of customer service, production, and distributionDecreased Costs – Significant reductions in transaction processing costs and hardware, software, and IT support staffERP BenefitsDecision Support – Provides vital cross-functional information on business performance quickly to managers to significantly improve their ability to make better decisions in a timely mannerEnterprise Agility – ERP breaks down many former departmental and functional walls of business processes, information systems, and information resourcesCosts of ERPCauses of ERP FailuresBusiness mangers and IT professionals underestimate the complexity of the planning, development, and training needed Failure to involve affected employees in the planning and development phasesTrying to do too much too fast in the conversion processFailure to do enough data conversion and testingTrends in ERPCase #3: Business Value of SCMBenefits of SCM:Reduces production and distribution costsImproves timeliness of shipmentsReduces manufacturer inventory levelsCase #3: Business Value of SCMChallenges of SCM:Acquisition of secure extranetChange company structureResistance from employees wedded to traditional processesCase #3: Business Value of SCMHow 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?Case #3: Business Value of SCMWhat other SCM initiatives would you recommend that TaylorMade Golf or HON Industries implement to improve their supply chain performance and business value? Explain the business value of your proposals.What are several ways a small business could use supply chain management to improve the efficiency and business value of its supply chain? Give several examples to illustrate your answer.Supply Chain Management (SCM)Definition:A cross-functional interenterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partnersSCM Life CycleElectronic Data Interchange (EDI)Definition:Involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partnersEDI ActivitiesRole of SCMSCM Planning FunctionsSupply Chain Design – optimize network of suppliers, plants, and distribution centersCollaborative Demand and Supply Planning – develop an accurate forecast of customer demand by sharing demand and supply forecasts instantaneously across multiple tiersSCM Execution FunctionsMaterials Management – share accurate inventory and procurement order information, ensure materials required for production are available in the right place at the right time, and reduce raw material spending, procurement costs, safety stocks, and raw material and finished goods inventoryCollaborative Manufacturing – optimize plans and schedules while considering resource, material, and dependency constraintsSCM Execution FunctionsCollaborative Fulfillment – commit to delivery dates in real time, fulfill orders from all channels on time with order management, transportation planning, and vehicle scheduling, and support the entire logistics process, including picking, packing, shipping, and delivery in foreign countriesSupply Chain Event Management – monitor every stage of the supply chain process, from price quotation to the moment the customer receives the product, and receive alerts when problems ariseSCM Execution FunctionsSupply Chain Performance Management – report key measurements in the supply chain, such as filling rates, order cycle times, and capacity utilizationSCM ObjectivesSCM BenefitsFaster, more accurate order processingReductions in inventory levelsQuicker times to marketLower transaction and material costsStrategic relationship with suppliersCauses of SCM FailuresLack of proper demand planning knowledge, tools and guidelinesInaccurate or overoptimistic demand forecastsInaccurate production, inventory and other business data provided by a company’s other information systemsLack of adequate collaboration among marketing, production, and inventory management departments within a companyImmature, incomplete or hard to implement SCM software toolsTrends in SCMCase #4: Benefits & Challenges of SCMBenefits of SCM:Materials prices reducedFewer employees needed to manage supply chainOrder fulfillment time reducedIncreased sales by reducing inventory shortagesEnables new business partnershipsCase #4: Benefits & Challenges of SCMSupplier reluctance:Cost of hardware and softwareSoftware can be confusing, contradictory and not sculpted to their needsImpenetrable technical jargonCase #4: Benefits & Challenges of SCMWhy can both large and small businesses cut costs and increase revenues by moving their supply chains online? Use the companies in this case as examples.What is the business value to Eastman Chemical and W. W. Grainger of their initiatives to help their suppliers and customers do business online?Case #4: Benefits & Challenges of SCMWhy are many small suppliers reluctant to do business online with their large customers? What can be done to encourage small suppliers online?Case #5: SCM Best Practices Why is Wal-Mart’s IT infrastructure a key competitive advantage?Wal-Mart invested early and heavily in cutting-edge technology to identify and track sales on the individual item level.The company is still pushing the limits of supply chain management, searching for and supporting better technology that promises to make its IT infrastructure more efficient.Case #5: SCM Best PracticesThe Wal-Mart Example:Opened sales and inventory databases to suppliersImplemented a collaborative planning, forecasting, and replenishment programJIT inventory program that reduced carrying costs for Wal-Mart and its suppliersCase #5: SCM Best PracticesDo you agree that Wal-Mart is “the best supply chain operator of all time”? Why or why not?What has Mattel learned from Wal-Mart? How well are they applying it to their own business? Explain your evaluation.Case #5: SCM Best PracticesWhat can other businesses learn from the experiences of Wal-Mart and Mattel that could improve their supply chain performance? Use an example to illustrate your answer.SummaryCustomer relationship management is a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customers.SummaryEnterprise resource planning is a cross-functional enterprise system that integrates and automates many of the internal business processes of a company, particularly those within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business.SummarySupply chain management is a cross-functional inter-enterprise system that integrates and automates the network of business processes and relationships between a company and its suppliers, customers, distributors, and other business partners.End of ChapterChapter8