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1、11Chapter Enterprise Applications and Business Process Integration Assess how enterprise systems provide value for businesses and describe how they work Assess how supply chain management systems provide value for businesses and describe how they work Assess how customer relationship management syst
2、ems provide value for businesses and describe how they work Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration OBJECTIVESExplain how enterprise applications can be used in platforms for new cross-functional services Identify the challenges posed by ente
3、rprise applications and management solutions OBJECTIVES (Continued)Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Challenge: develop a single view of corporate and private banking customers; overcome historic segmentation of customers by product and
4、 locationSolutions: develop a customer relationship management system (CRM) and data warehouse to integrate customer data from diverse legacy systemsEnable a single view of corporate customersIllustrates the role of enterprise systems in developing a holistic view of customers and achieving higher c
5、ustomer loyalty and profitabilityManagement Information SystemsChapter 11 Enterprise Applications and Business Process Integration PNC Bank CaseWhat Are Enterprise Systems? ENTERPRISE SYSTEMS Enterprise System Architecture Figure 11-1Management Information SystemsChapter 11 Enterprise Applications a
6、nd Business Process Integration ENTERPRISE SYSTEMS Enables data to be used by multiple functions and business processes for precise organizational coordination and control. Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration How Enterprise Systems Work (
7、Continued)Enterprise Systems: (Continued)Process Map for Procuring New Equipment ENTERPRISE SYSTEMS Figure 11-2Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration SUPPLY CHAIN MANAGEMENT SYSTEMS Network of organizations and business processes for procuri
8、ng raw materials, transforming into products, and distributing them to customers Materials, information, and payments flow through the supply chain in both directions.The Supply Chain Supply chain:Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration SUPPL
9、Y CHAIN MANAGEMENT SYSTEMS Coordination of business processes to speed information, product, and fund flows up and down a supply chain to reduce time, redundant effort, and inventory costsSupply chain management: Management Information SystemsChapter 11 Enterprise Applications and Business Process I
10、ntegration The Supply Chain (Continued)A Supply Chain SUPPLY CHAIN MANAGEMENT SYSTEMS Figure 11-3Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration SUPPLY CHAIN MANAGEMENT SYSTEMS Make: Processes that transform a product into a finished state Deliver: P
11、rocesses to manage order transportation and distribution Return: Processes associated with product returns and post delivery customer support Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Supply Chain Processes (Continued)SUPPLY CHAIN MANAGEMENT SY
12、STEMS Planning and control of all factors that have an impact on the supply chain Logistics: Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Supply Chain Processes (Continued)SUPPLY CHAIN MANAGEMENT SYSTEMS Scheduling system for minimizing inventory
13、by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line Just-in-time strategy : Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Information and Supply Chain Management Inacc
14、urate or untimely information causes inefficiencies in supply chain, such as shortages, excessive inventory SUPPLY CHAIN MANAGEMENT SYSTEMS Distortion of information about the demand for a product as it passes from one entity to the next across the supply chain Bullwhip effect: Management Informatio
15、n SystemsChapter 11 Enterprise Applications and Business Process Integration Information and Supply Chain Management (Continued)The Bullwhip Effect SUPPLY CHAIN MANAGEMENT SYSTEMS Figure 11-5Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Supply chai
16、n management systems: Automate flow of information between company and supply chain partners SUPPLY CHAIN MANAGEMENT SYSTEMS Supply Chain Management Applications Supply chain planning systems: Generate demand forecasts for a product (demand planning) and help develop sourcing and manufacturing plans
17、 for that productManagement Information SystemsChapter 11 Enterprise Applications and Business Process Integration SUPPLY CHAIN MANAGEMENT SYSTEMS Supply chain execution systems: Manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the righ
18、t locations in the most efficient manner Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Supply Chain Management Applications (Continued)SUPPLY CHAIN MANAGEMENT SYSTEMS Metrics for measuring supply chain performance: Supply Chain Performance Measurem
19、ent Fill rate (the ability to fill orders by the due date)Average time from order to deliveryThe number of days of supply in inventory Forecast accuracyThe cycle time for sourcing and making a productManagement Information SystemsChapter 11 Enterprise Applications and Business Process Integration SU
20、PPLY CHAIN MANAGEMENT SYSTEMS Internet-based supply chain management applications: Provide standard set of tools Facilitate global supply chains Reduce costs Enable efficient customer response Allow concurrent supply chains Management Information SystemsChapter 11 Enterprise Applications and Busines
21、s Process Integration SUPPLY CHAIN MANAGEMENT SYSTEMS Push-based model: Production master schedules based on forecasts of demand for products, and products are “pushed” to customersManagement Information SystemsChapter 11 Enterprise Applications and Business Process Integration Pull-based model: Sup
22、ply chain driven by actual customer orders or purchases The Future Internet-Driven Supply Chain SUPPLY CHAIN MANAGEMENT SYSTEMS Figure 11-8Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration SUPPLY CHAIN MANAGEMENT SYSTEMS Business Value of Supply Chain
23、Management Systems Improved customer service and responsiveness Cost reduction Cash utilization Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Customer Relationship Management and Partner Relationship Management Customer Relationship Management (CRM
24、): Business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Partn
25、er Relationship Management (PRM): Automation of the firms relationships with its selling partners using customer data and analytical tools to improve coordination and customer sales CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business
26、 Process Integration Customer Relationship Management Applications CRM systems: Capture and integrate customer data from all over the organization Consolidate and analyze the data Distribute results to various systems and customer touch points across the enterprise CUSTOMER RELATIONSHIP MANAGEMENT S
27、YSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Touch point: A method of interaction with a customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, or retail store CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Manag
28、ement Information SystemsChapter 11 Enterprise Applications and Business Process Integration Customer Relationship Management Applications (Continued)Customer Relationship Management (CRM) Software Can range from niche tools to large-scale enterprise applications Can link to other major enterprise a
29、pplications, such as supply chain management Can include modules for PRM and employee relationship management (ERM) CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Sales Force Automation (SFA) Customer service
30、 Marketing CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Typically include capabilities for Customer Relationship Management (CRM) Software (Continued)Figure 11-9CRM Software Capabilities CUSTOMER RELATIONSH
31、IP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Customer Loyalty Management Process Map Figure 11-10CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process I
32、ntegration Operational and Analytical CRM Operational CRM:Customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation Examples: Campaign management, e-marketing, account and contact management, lead management, telemarketing, teles
33、elling, e-selling, field sales CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Int
34、egration Analytical CRM: Applications that analyze customer data generated by operational CRM applications to provide information for improving business performanceExamples: Develop customer segmentation strategies and customer profiles; analyze customer or product profitability; identify trends in
35、sales length cycle; analyze leads generated and conversion rates CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Analytical CRM Data Warehouse Figure 11-11Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Business Value of Customer Relationship Management Sys
36、tems Increased customer satisfaction More effective marketing and reduced direct marketing costs Lower costs for customer acquisition and retention CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Reduce churn
37、rate:Increased revenue from identifying most profitable customers and segments for marketing, cross-selling, up-selling CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Number of customers who stop using or pur
38、chasing products or services from a companyBusiness Value of Customer Relationship Management Systems (Continued)The Importance of CRM Performance Measurement Metrics for CRM may include:CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applications and Bus
39、iness Process Integration Successful CRM implementations require that financial and operation goals, and metric for evaluation, are clearly defined at outset of project Cost per lead Cost per sale CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Management Information SystemsChapter 11 Enterprise Applicatio
40、ns and Business Process Integration Number of repeat customers Reduction of churn Sales closing rateCustomer Lifetime Value (CLTV): Difference between revenues and expenses minus the cost of promotional marketing used to retain an accountThe Importance of CRM Performance Measurement (Continued)Servi
41、ce Platforms and Business Process Management Service Platform: Integration of multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner ENTERPRISE INTEGRATION TRENDS Management Information SystemsChapter 11 Enterprise Applications and Business Process Integration Business Process Management: A methodology for dealing with the organizations need to change its business processes continually to remain
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