MIS 180 Chapter Notes - Chapter 8: Enterprise Application Integration, Enterprise Resource Planning, Supplier Relationship Management
Chapter 8
Enterprise Applications: Business Communications
Building a Connected Corporation Through Integrations
Integrations
Allow separate systems to communicate directly with each other,
eliminating the need for manual entry into multiple systems
○
Allows the sharing of information across databases along with
dramatically increasing its quality
○
•
Eintegration
The use of the Internet to provide customers with the ability to gain
personalized information by querying corporate databases and
their information sources
○
•
Application integration
The integration of a company's existing management information
systems
○
•
Data integration
The integration of data from multiple sources, which provides a
unified view of all data
○
•
Forward integration
Takes information entered into a given system and sends it
automatically to all downstream systems and processes
○
•
Backward integration
Takes information entered into a given system and sends it
automatically to all upstream systems and processes
○
•
Integration Tools
Enterprise systems
Provide enterprisewide support and data access for a firm's
operations and business processes
○
Can manage customer information across the enterprise, letting
you view everything your customer has experienced fom sales to
support
○
Often available as a generic, but highly customizable, group of
programs for business functions
○
•
Enterprise application integration (EAI)
Connects the plans, methods, and tools aimed at integrating
separate enterprise systems
○
Reviews how legacy systems fit into the new shape of the firm's
business processes and devises ways to efficiently reuse what
already exists while adding new systems and data
○
•
Middleware
Several different types of software that sit between and provide
connectivity for two or more software applications
○
•
EAI middleware
Takes a new approach to middleware by packaging commonly used
applications together, reducing the time needed to integrate
applications from multiple vendors
○
•
Three Primary Enterprise Systems
Supply Chain Management
○
Customer Relationship Management
○
Enterprise Resource Planning
○
•
Supply Chain Management
Supply chain
Consists of all parties involved, directly or indirectly, in obtaining
raw materials or a product
○
•
Five Basic Supply Chain Activities
Plan
Prepare to manage all resources required to meet demand
§
○
Source
Build relationships with suppliers to procure raw materials
§
○
Make
Manufacture products and create production schedules
§
○
Deliver
Plan for transportation of goods to customers
§
○
Return
Support customers and product returns
§
○
•
Supply chain management (SCM)
The management of information flows between and among
activities in a supply chain to maximize total supply chain
effectiveness and corporate profitability
○
Today, it is an intricate network of business partners linked through
communication channels and relationships
○
Manage and enhance these relationships with the primary goal of
creating a fast, efficient, and low-cost network of business
relationships that take products from concept to market
○
Create the integrations or tight process and information linkages
between all participants in the supply chain
○
Supply chain management performs three main business processes
Materials flow from suppliers and their upstream suppliers at
all levels
§
Materials are transformed into semifinished and finished
products--the organization's own production processes
§
Products are distributed to customers and their downstream
customers at all levels
§
○
Supply chain metrics
Back order
An unfilled customer order for a product that is out of
stock
□
§
Inventory cycle time
The time it takes to manufacture a product and deliver it
to the retailer
□
§
Customer order cycle time
The agreed upon time between the purchase of a
product and the delivery of the product
□
§
Inventory turnover
The frequency of inventory replacement □
§
○
•
Visibility into the Supply Chain
Supply chain design
Determines how to structure a supply chain including the product,
selection of partners, the location and capacity of warehouses,
transportation methods, and supporting management information
systems
○
•
Supply chain visibility
The ability to view all areas up and down the supply chain in real
time
○
•
Supply chain planning systems
Use advanced mathematical algorithms to improve the flow and
efficiency of the supply chain while reducing inventory
○
Require information inputs that are correct and up to date
regarding customers, orders, sales, manufacturing, and distribution
capabilities
○
•
Supply chain execution systems
Ensure supply chain cohesion by automating the different activities
of the supply chain
○
•
Electronic data interchange
A standard format for the electronic exchange of information
between supply chain participants
○
•
Bullwhip effect
Occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain
○
The misinformation regarding a slight rise in demand for a product
could cause different members in the supply chain to stockpile
inventory
○
•
Technologies Reinventing the Supply Chain
Procurement
The purchasing of goods and services to meet the needs of the
supply chain
○
Process is a key supply chain strategy because the capability to
purchase input materials at the right price is directly correlated to
the company's ability to operate
○
•
Logistics
Includes the processes that control the distribution, maintenance,
and replacement of materials and personnel to support the supply
chain
○
Inbound logistics
Acquires raw materials and resources and distributes them to
manufacturing as required
§
○
Outbound logistics
Distributes goods and services to customers
§
○
•
Cradle-to-grave
Provides logistics support throughout the entire system or life of
the product
○
•
Materials management
Includes activities that govern the flow of tangible, physical
materials through the supply chain such as shipping, transport,
distribution, and warehousing
○
You focus on quality and quantity of materials as well as how you
will plan, acquire, use, and dispose of such materials
○
•
3D Printing Supports Procurement
3D Printing
Builds--layer by layer in an additive process-- a three-dimensional
solid object from a digital model
○
The additive manufacturing process of 3D printing is profoundly
different from traditional manufacturing processes
○
•
Computer-aided design/computer-aided manufacturing (CAD/CAM)
Used to create the digital designs and then manufacture the
products
○
•
Maker movement
A cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things
○
•
Makerspaces
A community center that provides technology, manufacturing
equipment, and educational opportunities to the public that would
otherwise be inaccessible or unaffordable
○
•
RFID Supports Logistics
Radio-frequency identification (RFID)
Uses electronic tags and labels to identify objects wirelessly over
short distances
○
Holds the promise of replacing existing identification technologies
such as the bar code
○
•
RFID's Electronic Product Code (RFID EPC)
Promotes serialization or the ability to track individual items by
using the unique serial number associated with each RFID tag
○
•
Drones Support Logistics
Drone
An unmanned aircraft that can fly autonomously, or without a
human
○
•
Robotics Supports Materials Management
Robotics
Focuses on creating artificial intelligence devices that can move and
react to sensory input
○
•
Customer 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
○
Allows an organization to gain insights into customers' shopping
and buying behaviors in order to develop and implement
enterprisewide strategies
○
•
CRM Key Players
Lead
A person or company that is unknown to your business
§
○
Account
An existing business relationship exists and can include
customers, prospects, partners, and competitors
§
○
Contact
Specific individual representing the account
§
○
Sales opportunity
An opportunity exists for a potential sale of goods or services
related to an account or contact
§
○
•
Customer analytics
Involves gathering, classifying, comparing, and studying customer
data to identify buying trends, at-risk customers, and potential
future opportunities
○
•
Sale analytics
Involves gathering, classifying, comparing, and studying company
sales data to analyze product cycles, sales pipelines, and
competitive intelligence
○
•
CRM reporting technologies
Help organizations identify their customers across other
applications
○
•
CRM analysis technologies
Help organizations segment their customers into categories such as
best and worst customers
○
•
CRM predicting technologies
Help organizations predict customer behavior, such as which
customers are at risk of leaving
○
•
Operational 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
○
•
Marketing and Operational CRM
List generators
Compile customer information from a variety of sources and
segment it for different marketing campaigns
○
Provide the marketing department with valuable information on
the type of customer it must target to find success for a marketing
campaign
○
•
Campaign management systems
Guide users through marketing campaigns by performing such tasks
as campaign definition, planning, scheduling, segmentation, and
success analysis
○
Can even calculate the profitability and track the results for each
marketing campaign
○
•
Cross-selling
Selling additional products or services to an existing customer
○
•
Up-selling
Increasing the value of the sale
○
•
Sales and Operational CRM
Customer service and support (CSS)
A part of operational CRM that automates service requests,
complaints, product returns, and information requests
○
•
Sales force automation (SFA)
Automatically tracks all the steps in the sales process
○
Products focus on increasing customer satisfaction, building
customer relationships, and improving product sales
○
•
Sales management CRM systems
Automate each phase of the sales process, helping individual sales
representatives coordinate and organize all their accounts
○
Can even provide an analysis of the sales cycle and calculate how
each individual sales representative is performing during the sales
process
○
•
Contact management CRM system
Maintains customer contact information and identifies prospective
customers for future sales, using tools such as organizational charts,
detailed customer notes, and supplemental sales information
○
•
Opportunity management CRM systems
Target sales opportunities by finding new customers or companies
for future sales
○
Determine potential customers and competitors and define selling
efforts including budgets and schedules
○
Can even calculate the probability of a sale, which can save sales
representatives significant time and money when qualifying new
customers
○
•
Customer Service and Operational CRM
Contact center (call center)
Where customer service representatives answer customer inquiries
and solve problems, usually by email, chat, or phone
○
One of the best assets a customer-driven organization can have
because maintaining a high level of customer support is critical to
obtaining and retaining customers
○
•
Web-based self-service systems
Allow customers to use the web to find answers to their questions
or solutions to their problems
○
•
Click-to-talk
Allow customers to click on a button and talk with a representative
via the Internet
○
•
Call scripting systems
Gather product details and issue resolution information that can be
automatically generated into a script for the representative to read
to the customer
○
Even provide questions the representative can ask the customer to
troubleshoot the problem and find a resolution
○
This feature not only helps reps answer difficult questions quickly
but also presents a uniform response so customers don't receive
different answers
○
•
Analytical CRM
Uplift modeling
A form of predictive analytics for marketing campaigns that
attempts to identify target markets or people who could be
convinced to buy products
○
The "uplift" refers to the increased sales that can follow after this
form of analytical CRM analysis
○
•
Customer segmentation
Divides a market into categories that share similar attributes such
as age, location, gender, habits, and so on
○
•
Website personalization
Occurs when a website has stored enough data about a person's
likes and dislikes to fashion offers more likely to appeal to that
person
○
•
The Future of CRM
Extending Customer Relationship Management
Supplier relationship management (SRM)
Focuses on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects
§
○
Partner relationship management (PRM)
Discovers optimal sales channels by selecting the right partner
and identifying mutual customers
§
○
Employee relationship management (ERM)
Provides web-based self-service tools that streamline and
automate the human resource department
§
○
•
Enterprise Resource Planning
Enterprise resource planning (ERP)
Integrates all departments and functions throughout an
organization into a single system so that employees can make
decisions by viewing enterprisewide information on all business
operations
○
•
Common data repository
Allows every department of a company to store and retrieve
information in real-time allowing information to be more reliable
and accessible
○
•
Module software design
Divides the system into a set of functional units that can be use
independently or combined with other modules for increased
business flexibility
○
•
The Benefits of ERP
Core ERP components
Traditional components included in most ERP systems and primarily
focus on internal operations
○
•
Extended ERP components
The extra components that meet organizational needs not covered
by the core components and primarily focus on external operations
○
•
Core ERP Components
Accounting and finance ERP components
Manage accounting data and financial processes within the
enterprise with functions such as general ledger, accounts payable,
accounts receivable, budgeting, and asset management
○
•
Production and materials management ERP component
Handle production planning and execution tasks such as demand
forecasting, production scheduling, job cost accounting, and quality
control
○
•
Human resources ERP components
Track employee information including payroll, benefits,
compensation, and performance assessment and ensure
compliance with all laws
○
•
Extended ERP Components
Elogistics
Manages the transportation and storage of goods
○
•
Eprocurement
The business-to-business online purchase and sale of supplies and
services
○
•
Measuring ERP Success
Software customization
Modifies existing software according to the business's or user's
requirements
○
•
Balance scorecard
Management system, as well as a measurement system, that a firm
uses to translate business strategies into executable tasks
○
•
Organizational Integration with ERP
On-premise systems
Include a server at a physical location using an internal network for
internal access and firewalls for remote users' access
○
•
Legacy system
An old system that is fast approaching or beyond the end of its
useful life with in an organization
○
•
Software as a Service (SaaS)
Delivers applications over the cloud using a pay-per-use revenue
model
○
•
Hybrid ERP
To split the ERP functions between an on-premises ERP system and
one or more functions handled as SaaS in the cloud
○
•
Chapter 8 Notes
Saturday, April 21, 2018
4:23 PM
Chapter 8
Enterprise Applications: Business Communications
Building a Connected Corporation Through Integrations
Integrations
Allow separate systems to communicate directly with each other,
eliminating the need for manual entry into multiple systems
○
Allows the sharing of information across databases along with
dramatically increasing its quality
○
•
Eintegration
The use of the Internet to provide customers with the ability to gain
personalized information by querying corporate databases and
their information sources
○
•
Application integration
The integration of a company's existing management information
systems
○
•
Data integration
The integration of data from multiple sources, which provides a
unified view of all data
○
•
Forward integration
Takes information entered into a given system and sends it
automatically to all downstream systems and processes
○
•
Backward integration
Takes information entered into a given system and sends it
automatically to all upstream systems and processes
○
•
Integration Tools
Enterprise systems
Provide enterprisewide support and data access for a firm's
operations and business processes
○
Can manage customer information across the enterprise, letting
you view everything your customer has experienced fom sales to
support
○
Often available as a generic, but highly customizable, group of
programs for business functions
○
•
Enterprise application integration (EAI)
Connects the plans, methods, and tools aimed at integrating
separate enterprise systems
○
Reviews how legacy systems fit into the new shape of the firm's
business processes and devises ways to efficiently reuse what
already exists while adding new systems and data
○
•
Middleware
Several different types of software that sit between and provide
connectivity for two or more software applications
○
•
EAI middleware
Takes a new approach to middleware by packaging commonly used
applications together, reducing the time needed to integrate
applications from multiple vendors
○
•
Three Primary Enterprise Systems
Supply Chain Management
○
Customer Relationship Management
○
Enterprise Resource Planning
○
•
Supply Chain Management
Supply chain
Consists of all parties involved, directly or indirectly, in obtaining
raw materials or a product
○
•
Five Basic Supply Chain Activities
Plan
Prepare to manage all resources required to meet demand
§
○
Source
Build relationships with suppliers to procure raw materials
§
○
Make
Manufacture products and create production schedules
§
○
Deliver
Plan for transportation of goods to customers
§
○
Return
Support customers and product returns
§
○
•
Supply chain management (SCM)
The management of information flows between and among
activities in a supply chain to maximize total supply chain
effectiveness and corporate profitability
○
Today, it is an intricate network of business partners linked through
communication channels and relationships
○
Manage and enhance these relationships with the primary goal of
creating a fast, efficient, and low-cost network of business
relationships that take products from concept to market
○
Create the integrations or tight process and information linkages
between all participants in the supply chain
○
Supply chain management performs three main business processes
Materials flow from suppliers and their upstream suppliers at
all levels
§
Materials are transformed into semifinished and finished
products--the organization's own production processes
§
Products are distributed to customers and their downstream
customers at all levels
§
○
Supply chain metrics
Back order
An unfilled customer order for a product that is out of
stock
□
§
Inventory cycle time
The time it takes to manufacture a product and deliver it
to the retailer
□
§
Customer order cycle time
The agreed upon time between the purchase of a
product and the delivery of the product
□
§
Inventory turnover
The frequency of inventory replacement □
§
○
•
Visibility into the Supply Chain
Supply chain design
Determines how to structure a supply chain including the product,
selection of partners, the location and capacity of warehouses,
transportation methods, and supporting management information
systems
○
•
Supply chain visibility
The ability to view all areas up and down the supply chain in real
time
○
•
Supply chain planning systems
Use advanced mathematical algorithms to improve the flow and
efficiency of the supply chain while reducing inventory
○
Require information inputs that are correct and up to date
regarding customers, orders, sales, manufacturing, and distribution
capabilities
○
•
Supply chain execution systems
Ensure supply chain cohesion by automating the different activities
of the supply chain
○
•
Electronic data interchange
A standard format for the electronic exchange of information
between supply chain participants
○
•
Bullwhip effect
Occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain
○
The misinformation regarding a slight rise in demand for a product
could cause different members in the supply chain to stockpile
inventory
○
•
Technologies Reinventing the Supply Chain
Procurement
The purchasing of goods and services to meet the needs of the
supply chain
○
Process is a key supply chain strategy because the capability to
purchase input materials at the right price is directly correlated to
the company's ability to operate
○
•
Logistics
Includes the processes that control the distribution, maintenance,
and replacement of materials and personnel to support the supply
chain
○
Inbound logistics
Acquires raw materials and resources and distributes them to
manufacturing as required
§
○
Outbound logistics
Distributes goods and services to customers
§
○
•
Cradle-to-grave
Provides logistics support throughout the entire system or life of
the product
○
•
Materials management
Includes activities that govern the flow of tangible, physical
materials through the supply chain such as shipping, transport,
distribution, and warehousing
○
You focus on quality and quantity of materials as well as how you
will plan, acquire, use, and dispose of such materials
○
•
3D Printing Supports Procurement
3D Printing
Builds--layer by layer in an additive process-- a three-dimensional
solid object from a digital model
○
The additive manufacturing process of 3D printing is profoundly
different from traditional manufacturing processes
○
•
Computer-aided design/computer-aided manufacturing (CAD/CAM)
Used to create the digital designs and then manufacture the
products
○
•
Maker movement
A cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things
○
•
Makerspaces
A community center that provides technology, manufacturing
equipment, and educational opportunities to the public that would
otherwise be inaccessible or unaffordable
○
•
RFID Supports Logistics
Radio-frequency identification (RFID)
Uses electronic tags and labels to identify objects wirelessly over
short distances
○
Holds the promise of replacing existing identification technologies
such as the bar code
○
•
RFID's Electronic Product Code (RFID EPC)
Promotes serialization or the ability to track individual items by
using the unique serial number associated with each RFID tag
○
•
Drones Support Logistics
Drone
An unmanned aircraft that can fly autonomously, or without a
human
○
•
Robotics Supports Materials Management
Robotics
Focuses on creating artificial intelligence devices that can move and
react to sensory input
○
•
Customer 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
○
Allows an organization to gain insights into customers' shopping
and buying behaviors in order to develop and implement
enterprisewide strategies
○
•
CRM Key Players
Lead
A person or company that is unknown to your business
§
○
Account
An existing business relationship exists and can include
customers, prospects, partners, and competitors
§
○
Contact
Specific individual representing the account
§
○
Sales opportunity
An opportunity exists for a potential sale of goods or services
related to an account or contact
§
○
•
Customer analytics
Involves gathering, classifying, comparing, and studying customer
data to identify buying trends, at-risk customers, and potential
future opportunities
○
•
Sale analytics
Involves gathering, classifying, comparing, and studying company
sales data to analyze product cycles, sales pipelines, and
competitive intelligence
○
•
CRM reporting technologies
Help organizations identify their customers across other
applications
○
•
CRM analysis technologies
Help organizations segment their customers into categories such as
best and worst customers
○
•
CRM predicting technologies
Help organizations predict customer behavior, such as which
customers are at risk of leaving
○
•
Operational 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
○
•
Marketing and Operational CRM
List generators
Compile customer information from a variety of sources and
segment it for different marketing campaigns
○
Provide the marketing department with valuable information on
the type of customer it must target to find success for a marketing
campaign
○
•
Campaign management systems
Guide users through marketing campaigns by performing such tasks
as campaign definition, planning, scheduling, segmentation, and
success analysis
○
Can even calculate the profitability and track the results for each
marketing campaign
○
•
Cross-selling
Selling additional products or services to an existing customer
○
•
Up-selling
Increasing the value of the sale
○
•
Sales and Operational CRM
Customer service and support (CSS)
A part of operational CRM that automates service requests,
complaints, product returns, and information requests
○
•
Sales force automation (SFA)
Automatically tracks all the steps in the sales process
○
Products focus on increasing customer satisfaction, building
customer relationships, and improving product sales
○
•
Sales management CRM systems
Automate each phase of the sales process, helping individual sales
representatives coordinate and organize all their accounts
○
Can even provide an analysis of the sales cycle and calculate how
each individual sales representative is performing during the sales
process
○
•
Contact management CRM system
Maintains customer contact information and identifies prospective
customers for future sales, using tools such as organizational charts,
detailed customer notes, and supplemental sales information
○
•
Opportunity management CRM systems
Target sales opportunities by finding new customers or companies
for future sales
○
Determine potential customers and competitors and define selling
efforts including budgets and schedules
○
Can even calculate the probability of a sale, which can save sales
representatives significant time and money when qualifying new
customers
○
•
Customer Service and Operational CRM
Contact center (call center)
Where customer service representatives answer customer inquiries
and solve problems, usually by email, chat, or phone
○
One of the best assets a customer-driven organization can have
because maintaining a high level of customer support is critical to
obtaining and retaining customers
○
•
Web-based self-service systems
Allow customers to use the web to find answers to their questions
or solutions to their problems
○
•
Click-to-talk
Allow customers to click on a button and talk with a representative
via the Internet
○
•
Call scripting systems
Gather product details and issue resolution information that can be
automatically generated into a script for the representative to read
to the customer
○
Even provide questions the representative can ask the customer to
troubleshoot the problem and find a resolution
○
This feature not only helps reps answer difficult questions quickly
but also presents a uniform response so customers don't receive
different answers
○
•
Analytical CRM
Uplift modeling
A form of predictive analytics for marketing campaigns that
attempts to identify target markets or people who could be
convinced to buy products
○
The "uplift" refers to the increased sales that can follow after this
form of analytical CRM analysis
○
•
Customer segmentation
Divides a market into categories that share similar attributes such
as age, location, gender, habits, and so on
○
•
Website personalization
Occurs when a website has stored enough data about a person's
likes and dislikes to fashion offers more likely to appeal to that
person
○
•
The Future of CRM
Extending Customer Relationship Management
Supplier relationship management (SRM)
Focuses on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects
§
○
Partner relationship management (PRM)
Discovers optimal sales channels by selecting the right partner
and identifying mutual customers
§
○
Employee relationship management (ERM)
Provides web-based self-service tools that streamline and
automate the human resource department
§
○
•
Enterprise Resource Planning
Enterprise resource planning (ERP)
Integrates all departments and functions throughout an
organization into a single system so that employees can make
decisions by viewing enterprisewide information on all business
operations
○
•
Common data repository
Allows every department of a company to store and retrieve
information in real-time allowing information to be more reliable
and accessible
○
•
Module software design
Divides the system into a set of functional units that can be use
independently or combined with other modules for increased
business flexibility
○
•
The Benefits of ERP
Core ERP components
Traditional components included in most ERP systems and primarily
focus on internal operations
○
•
Extended ERP components
The extra components that meet organizational needs not covered
by the core components and primarily focus on external operations
○
•
Core ERP Components
Accounting and finance ERP components
Manage accounting data and financial processes within the
enterprise with functions such as general ledger, accounts payable,
accounts receivable, budgeting, and asset management
○
•
Production and materials management ERP component
Handle production planning and execution tasks such as demand
forecasting, production scheduling, job cost accounting, and quality
control
○
•
Human resources ERP components
Track employee information including payroll, benefits,
compensation, and performance assessment and ensure
compliance with all laws
○
•
Extended ERP Components
Elogistics
Manages the transportation and storage of goods
○
•
Eprocurement
The business-to-business online purchase and sale of supplies and
services
○
•
Measuring ERP Success
Software customization
Modifies existing software according to the business's or user's
requirements
○
•
Balance scorecard
Management system, as well as a measurement system, that a firm
uses to translate business strategies into executable tasks
○
•
Organizational Integration with ERP
On-premise systems
Include a server at a physical location using an internal network for
internal access and firewalls for remote users' access
○
•
Legacy system
An old system that is fast approaching or beyond the end of its
useful life with in an organization
○
•
Software as a Service (SaaS)
Delivers applications over the cloud using a pay-per-use revenue
model
○
•
Hybrid ERP
To split the ERP functions between an on-premises ERP system and
one or more functions handled as SaaS in the cloud
○
•
Chapter 8 Notes
Saturday, April 21, 2018 4:23 PM
Chapter 8
Enterprise Applications: Business Communications
Building a Connected Corporation Through Integrations
Integrations
Allow separate systems to communicate directly with each other,
eliminating the need for manual entry into multiple systems
○
Allows the sharing of information across databases along with
dramatically increasing its quality
○
•
Eintegration
The use of the Internet to provide customers with the ability to gain
personalized information by querying corporate databases and
their information sources
○
•
Application integration
The integration of a company's existing management information
systems
○
•
Data integration
The integration of data from multiple sources, which provides a
unified view of all data
○
•
Forward integration
Takes information entered into a given system and sends it
automatically to all downstream systems and processes
○
•
Backward integration
Takes information entered into a given system and sends it
automatically to all upstream systems and processes
○
•
Integration Tools
Enterprise systems
Provide enterprisewide support and data access for a firm's
operations and business processes
○
Can manage customer information across the enterprise, letting
you view everything your customer has experienced fom sales to
support
○
Often available as a generic, but highly customizable, group of
programs for business functions
○
•
Enterprise application integration (EAI)
Connects the plans, methods, and tools aimed at integrating
separate enterprise systems
○
Reviews how legacy systems fit into the new shape of the firm's
business processes and devises ways to efficiently reuse what
already exists while adding new systems and data
○
•
Middleware
Several different types of software that sit between and provide
connectivity for two or more software applications
○
•
EAI middleware
Takes a new approach to middleware by packaging commonly used
applications together, reducing the time needed to integrate
applications from multiple vendors
○
•
Three Primary Enterprise Systems
Supply Chain Management
○
Customer Relationship Management
○
Enterprise Resource Planning
○
•
Supply Chain Management
Supply chain
Consists of all parties involved, directly or indirectly, in obtaining
raw materials or a product
○
•
Five Basic Supply Chain Activities
Plan
Prepare to manage all resources required to meet demand
§
○
Source
Build relationships with suppliers to procure raw materials
§
○
Make
Manufacture products and create production schedules
§
○
Deliver
Plan for transportation of goods to customers
§
○
Return
Support customers and product returns
§
○
•
Supply chain management (SCM)
The management of information flows between and among
activities in a supply chain to maximize total supply chain
effectiveness and corporate profitability
○
Today, it is an intricate network of business partners linked through
communication channels and relationships
○
Manage and enhance these relationships with the primary goal of
creating a fast, efficient, and low-cost network of business
relationships that take products from concept to market
○
Create the integrations or tight process and information linkages
between all participants in the supply chain
○
Supply chain management performs three main business processes
Materials flow from suppliers and their upstream suppliers at
all levels
§
Materials are transformed into semifinished and finished
products--the organization's own production processes
§
Products are distributed to customers and their downstream
customers at all levels
§
○
Supply chain metrics
Back order
An unfilled customer order for a product that is out of
stock
□
§
Inventory cycle time
The time it takes to manufacture a product and deliver it
to the retailer
□
§
Customer order cycle time
The agreed upon time between the purchase of a
product and the delivery of the product
□
§
Inventory turnover
The frequency of inventory replacement
□
§
○
•
Visibility into the Supply Chain
Supply chain design
Determines how to structure a supply chain including the product,
selection of partners, the location and capacity of warehouses,
transportation methods, and supporting management information
systems
○
•
Supply chain visibility
The ability to view all areas up and down the supply chain in real
time
○
•
Supply chain planning systems
Use advanced mathematical algorithms to improve the flow and
efficiency of the supply chain while reducing inventory
○
Require information inputs that are correct and up to date
regarding customers, orders, sales, manufacturing, and distribution
capabilities
○
•
Supply chain execution systems
Ensure supply chain cohesion by automating the different activities
of the supply chain
○
•
Electronic data interchange
A standard format for the electronic exchange of information
between supply chain participants
○
•
Bullwhip effect
Occurs when distorted product-demand information ripples from
one partner to the next throughout the supply chain
○
The misinformation regarding a slight rise in demand for a product
could cause different members in the supply chain to stockpile
inventory
○
•
Technologies Reinventing the Supply Chain
Procurement
The purchasing of goods and services to meet the needs of the
supply chain
○
Process is a key supply chain strategy because the capability to
purchase input materials at the right price is directly correlated to
the company's ability to operate
○
•
Logistics
Includes the processes that control the distribution, maintenance,
and replacement of materials and personnel to support the supply
chain
○
Inbound logistics
Acquires raw materials and resources and distributes them to
manufacturing as required
§
○
Outbound logistics
Distributes goods and services to customers
§
○
•
Cradle-to-grave
Provides logistics support throughout the entire system or life of
the product
○
•
Materials management
Includes activities that govern the flow of tangible, physical
materials through the supply chain such as shipping, transport,
distribution, and warehousing
○
You focus on quality and quantity of materials as well as how you
will plan, acquire, use, and dispose of such materials
○
•
3D Printing Supports Procurement
3D Printing
Builds--layer by layer in an additive process-- a three-dimensional
solid object from a digital model
○
The additive manufacturing process of 3D printing is profoundly
different from traditional manufacturing processes
○
•
Computer-aided design/computer-aided manufacturing (CAD/CAM)
Used to create the digital designs and then manufacture the
products
○
•
Maker movement
A cultural trend that places value on an individual's ability to be a
creator of things as well as a consumer of things
○
•
Makerspaces
A community center that provides technology, manufacturing
equipment, and educational opportunities to the public that would
otherwise be inaccessible or unaffordable
○
•
RFID Supports Logistics
Radio-frequency identification (RFID)
Uses electronic tags and labels to identify objects wirelessly over
short distances
○
Holds the promise of replacing existing identification technologies
such as the bar code
○
•
RFID's Electronic Product Code (RFID EPC)
Promotes serialization or the ability to track individual items by
using the unique serial number associated with each RFID tag
○
•
Drones Support Logistics
Drone
An unmanned aircraft that can fly autonomously, or without a
human
○
•
Robotics Supports Materials Management
Robotics
Focuses on creating artificial intelligence devices that can move and
react to sensory input
○
•
Customer 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
○
Allows an organization to gain insights into customers' shopping
and buying behaviors in order to develop and implement
enterprisewide strategies
○
•
CRM Key Players
Lead
A person or company that is unknown to your business
§
○
Account
An existing business relationship exists and can include
customers, prospects, partners, and competitors
§
○
Contact
Specific individual representing the account
§
○
Sales opportunity
An opportunity exists for a potential sale of goods or services
related to an account or contact
§
○
•
Customer analytics
Involves gathering, classifying, comparing, and studying customer
data to identify buying trends, at-risk customers, and potential
future opportunities
○
•
Sale analytics
Involves gathering, classifying, comparing, and studying company
sales data to analyze product cycles, sales pipelines, and
competitive intelligence
○
•
CRM reporting technologies
Help organizations identify their customers across other
applications
○
•
CRM analysis technologies
Help organizations segment their customers into categories such as
best and worst customers
○
•
CRM predicting technologies
Help organizations predict customer behavior, such as which
customers are at risk of leaving
○
•
Operational 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
○
•
Marketing and Operational CRM
List generators
Compile customer information from a variety of sources and
segment it for different marketing campaigns
○
Provide the marketing department with valuable information on
the type of customer it must target to find success for a marketing
campaign
○
•
Campaign management systems
Guide users through marketing campaigns by performing such tasks
as campaign definition, planning, scheduling, segmentation, and
success analysis
○
Can even calculate the profitability and track the results for each
marketing campaign
○
•
Cross-selling
Selling additional products or services to an existing customer
○
•
Up-selling
Increasing the value of the sale
○
•
Sales and Operational CRM
Customer service and support (CSS)
A part of operational CRM that automates service requests,
complaints, product returns, and information requests
○
•
Sales force automation (SFA)
Automatically tracks all the steps in the sales process
○
Products focus on increasing customer satisfaction, building
customer relationships, and improving product sales
○
•
Sales management CRM systems
Automate each phase of the sales process, helping individual sales
representatives coordinate and organize all their accounts
○
Can even provide an analysis of the sales cycle and calculate how
each individual sales representative is performing during the sales
process
○
•
Contact management CRM system
Maintains customer contact information and identifies prospective
customers for future sales, using tools such as organizational charts,
detailed customer notes, and supplemental sales information
○
•
Opportunity management CRM systems
Target sales opportunities by finding new customers or companies
for future sales
○
Determine potential customers and competitors and define selling
efforts including budgets and schedules
○
Can even calculate the probability of a sale, which can save sales
representatives significant time and money when qualifying new
customers
○
•
Customer Service and Operational CRM
Contact center (call center)
Where customer service representatives answer customer inquiries
and solve problems, usually by email, chat, or phone
○
One of the best assets a customer-driven organization can have
because maintaining a high level of customer support is critical to
obtaining and retaining customers
○
•
Web-based self-service systems
Allow customers to use the web to find answers to their questions
or solutions to their problems
○
•
Click-to-talk
Allow customers to click on a button and talk with a representative
via the Internet
○
•
Call scripting systems
Gather product details and issue resolution information that can be
automatically generated into a script for the representative to read
to the customer
○
Even provide questions the representative can ask the customer to
troubleshoot the problem and find a resolution
○
This feature not only helps reps answer difficult questions quickly
but also presents a uniform response so customers don't receive
different answers
○
•
Analytical CRM
Uplift modeling
A form of predictive analytics for marketing campaigns that
attempts to identify target markets or people who could be
convinced to buy products
○
The "uplift" refers to the increased sales that can follow after this
form of analytical CRM analysis
○
•
Customer segmentation
Divides a market into categories that share similar attributes such
as age, location, gender, habits, and so on
○
•
Website personalization
Occurs when a website has stored enough data about a person's
likes and dislikes to fashion offers more likely to appeal to that
person
○
•
The Future of CRM
Extending Customer Relationship Management
Supplier relationship management (SRM)
Focuses on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects
§
○
Partner relationship management (PRM)
Discovers optimal sales channels by selecting the right partner
and identifying mutual customers
§
○
Employee relationship management (ERM)
Provides web-based self-service tools that streamline and
automate the human resource department
§
○
•
Enterprise Resource Planning
Enterprise resource planning (ERP)
Integrates all departments and functions throughout an
organization into a single system so that employees can make
decisions by viewing enterprisewide information on all business
operations
○
•
Common data repository
Allows every department of a company to store and retrieve
information in real-time allowing information to be more reliable
and accessible
○
•
Module software design
Divides the system into a set of functional units that can be use
independently or combined with other modules for increased
business flexibility
○
•
The Benefits of ERP
Core ERP components
Traditional components included in most ERP systems and primarily
focus on internal operations
○
•
Extended ERP components
The extra components that meet organizational needs not covered
by the core components and primarily focus on external operations
○
•
Core ERP Components
Accounting and finance ERP components
Manage accounting data and financial processes within the
enterprise with functions such as general ledger, accounts payable,
accounts receivable, budgeting, and asset management
○
•
Production and materials management ERP component
Handle production planning and execution tasks such as demand
forecasting, production scheduling, job cost accounting, and quality
control
○
•
Human resources ERP components
Track employee information including payroll, benefits,
compensation, and performance assessment and ensure
compliance with all laws
○
•
Extended ERP Components
Elogistics
Manages the transportation and storage of goods
○
•
Eprocurement
The business-to-business online purchase and sale of supplies and
services
○
•
Measuring ERP Success
Software customization
Modifies existing software according to the business's or user's
requirements
○
•
Balance scorecard
Management system, as well as a measurement system, that a firm
uses to translate business strategies into executable tasks
○
•
Organizational Integration with ERP
On-premise systems
Include a server at a physical location using an internal network for
internal access and firewalls for remote users' access
○
•
Legacy system
An old system that is fast approaching or beyond the end of its
useful life with in an organization
○
•
Software as a Service (SaaS)
Delivers applications over the cloud using a pay-per-use revenue
model
○
•
Hybrid ERP
To split the ERP functions between an on-premises ERP system and
one or more functions handled as SaaS in the cloud
○
•
Chapter 8 Notes
Saturday, April 21, 2018 4:23 PM
Document Summary
Allow separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems. Allows the sharing of information across databases along with dramatically increasing its quality. The use of the internet to provide customers with the ability to gain personalized information by querying corporate databases and their information sources. The integration of a company"s existing management information systems. The integration of data from multiple sources, which provides a unified view of all data. Takes information entered into a given system and sends it automatically to all downstream systems and processes. Takes information entered into a given system and sends it automatically to all upstream systems and processes. Provide enterprisewide support and data access for a firm"s. Provide enterprisewide support and data access for a firm"s operations and business processes. Can manage customer information across the enterprise, letting you view everything your customer has experienced fom sales to support.
