MIS Final - Chapter 9

Pull-based model (demand-driven)

Customer orders trigger events in supply chain Ex: Walmart. Helps businesses move from sequential supply chains to concurrent supply chains.

Operational CRM

Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation

True or False: Enterprise systems provide value by both increasing operational efficiency and providing firm-wide information

True

True or False: Inefficiencies cut into a company's operating costs and can waste up to 25% of operating expenses.

True

Touch point (Contact Point):

a method of interaction with the customer, such as telephone, email, customer service, etc.

The Supply Chain

a network of organizations and facilities that transforms raw materials into products delivered to customers. materials, information, and payments flow through the supply chain in both directions

Demand planning

determines how much product a business needs to make to satisfy all of its customers' demands

Next Generation Enterprise Applications

-Move is to make applications more flexible, Web-enabled, integrated with other systems -Bring greater value from enterprise applications -Inclusion of SOA standards to link 3rd party software -Open source & on-demand solutions -Mobile compatible; Web 2.0 capabilities -Complementary analytics products

Customer Relationship Management (CRM) Systems

-capture & integrate customer data from all over the organization -consolidate & analyze customer data -distribute customer information to various systems & customer touch points across enterprise -provide single enterprise views of customers

Analytical CRM

Based on data warehouses populated by operational CRM systems and customer touch points. Analyzes customer data (OLAP, data mining, etc.)

Safety stock

Buffer for lack of flexibility in supply chain

Business Value of Customer Relationship Management

Business benefits: -Increased customer satisfaction -Reduced direct-marketing costs -More effective marketing -Lower costs for customer acquisition/retention -Increased sales revenue Churn rate: -Number of customers who stop using or purchasing products or services from a company -Indicator of growth or decline of firm's customer base

CRM software

CRM packages range from niche tools to large-scale enterprise applications.

Just-in-time strategy

Components arrive as they are needed Finished goods shipped after leaving assembly line

Supply Chain Management Systems

Enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans.

Upstream Supply Chain

Firm's suppliers, suppliers' suppliers, processes for managing relationships with them

business intelligence

Inclusion of BI with enterprise applications Flexible reporting, ad hoc analysis, "what-if" scenarios, digital dashboards, data visualization

bullwhip effect

Information about product demand gets distorted as it passes from one entity to next across supply chain

Partner relationship management (PRM)

Integrating lead generation, pricing, promotions, order configurations, and availability Tools to assess partners' performances

Customer Relationship Management

Knowing the customer. (In large businesses, too many customers and too many ways customers interact with firm)

supply chain execution systems

Manage flow of products through distribution centers and warehouses

Downstream Supply Chain

Organizations and processes responsible for delivering products to customers

CRM packages typically include tools for:

Sales force automation (SFA) E.g. sales prospect and contact information, and sales quote generation capabilities Customer service E.g. assigning and managing customer service requests; Web-based self-service capabilities Marketing E.g. capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail

Push-based model (build-to-stock)

Schedules based on best guesses of demand

Employee relationship management (ERM)

Setting objectives, employee performance management, performance-based compensation, employee training

internal supply chain

Supplying operations with parts and materials, performing work on products, and/or performing services are part of the firm's

True or False: Customer lifetime value (CLTV) is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and serving that customer, and the expected life of the relationship between the customer * the company

True

Social CRM

based on incorporating social networking technologies. company social networks. customer interaction via facebook

Enterprise software

built around thousands of predefined business processes that reflect best practices. -Finance/Accounting: General ledger, accounts payable -Human Resources: personnel administration, payroll -Manufacturing/Production: purchasing, shipping, etc -Sales/Marketing: Order processing, billing, sales planning, etc.

What are enterprise systems? (also called "enterprise resource planning ERP systems)

suite of integrated software modules & a common central database. collects data from many divisions of firm for use in nearly all of firms internal business activities. information created by one process is immediately available for other processes.