Quiz 4

Source

Schedule and execute necessary steps for obtaining, materials, goods, and services from suppliers that are needed to produce a company's products and services

Make

Schedule and execute the necessary steps for creating a company's products and services

Deliver

Schedule and execute the necessary steps for delivering a company's products and services to their customers

Return

Schedule and execute the necessary steps for receiving returned products from their customers and for cancelled services by their customers

Examples of Marketing Support Metrics and KPIs

- promotional mail/e-mail response rate -Increase in sales during the marketing campaign -Increase in number of customers during the marketing campaign

Examples of Business Process

-Carrying out a sale of a product to a customer -Enrolling a customer into a loyalty program -Performing a credit check on a customer -Booking a business trip for an employee -Resolving a credit-card fraud instance

Blockchain characteristics

-Ideal for crypto-currencies -Not controlled by central authority -No trust between the participants -Solution for scenarios where absence of trust justifies the high cost

Examples of Sales Support Metrics and KPIs

-Leads-to- conversions rate -Average profit per customer in a time period -Upsell revenues in a time period

Examples of Customer Service Metrics and KPIs

-Number of complaints in a time period -Customer ratings of service -Average time to complete problem resolution

Goals of CRM

-increasing customer retention -driving sales growth and revenue -segmenting customer base -understanding seasonality -identifying potential new customers

Disadvantages of back order rates

-much higher rate of cancellations for back ordered products -Backorder notification cost -Loss of goodwill and future sales to current customers -Lost cost of initial customer acquisition

4 ways to implement an Integrated Enterprise Info System

1. As an ERP 2. As a best-of-breed collection 3. As a custom developed enterprise IS 4. Using Mixed Approach

Blockchain

A mechanism for keeping track of sequences of data in completely decentralized distributed fashion -continuously growing -data stored on computers -replicate and save identical copies of recorded transactions -allow data only to be added and viewed

RFM

A method for analyzing customer value -Recency: When was the most recent purchase by the customer? -Frequency: How often does the customer purchase over a period of time? -Monetary Value: What is the value of the customer's purchase over a period of time?

Business Process

A set of activities that once completed, accomplish a company's task or goal

Implementation as a Custom Developed Enterprise IS

A single fully-integrated custom-developed multi-functional system

Implementation as a Best-of-Breed

An integrated collection of function-specific commercial off-the -shelf software (COTS) systems

Steps in BPR

Automating, Streamlining, BPR, Paradigm shift

Paradigm shift (strategic reengineering)

BPR effort in one company redefines the entire industry ex: credit company resolves fraud claim with detection and resolution process, which is then adopted by other companies

Automating (BPR)

Changing the business process by automating it ex: credit card company answers every call directly by a customer service representative

Streamlining

Changing the business process by removing unnecessary, outmoded, or inefficient steps and methods in the existing process ex: Customer navigates several levels of menu-choices by entering or speaking their choice

Software as a Service (SaaS)

Computer applications offered as a service on demand ex: JDA Stratus, Gmail, Google Drive, Microsoft Office 365

Infrastructure as a Service (IaaS)

Computer hardware provided as standardized services over the network ex: Amazon Web Services, Microsoft Azure

Operational Decision Making

Day-to-day decisions ex: How much inventory to order based on today's events

Plan

Develop and communicate plans for sourcing, making, delivering, and returning/cancelling company's products/services

SCM Automation

Enabled by the use of digital information and other technological advances

Strategic Decision Making

Longer-term decisions ex: Should we consider using overseas suppliers in the next 3 to 5 years

Inventory Turnover Rate

Measures how many times a year a company is able to sell its entire inventory - cost of goods sold (in a period)/value of average (end of period) inventory

Tactical Decision Making

Medium-term decisions ex: What terms to include in the annual contract with our supplier for the upcoming year

Bullwhip Effect

Occurs when product demand information passes throughout the supply chain in a distorted (delayed) way

Customer Relationship Management

Use existing customer data to drive loyalty and engagement, and to maximize profitability from lost, current and potential customers

Industrial Internet of Things (IIOT)

Use of internet-connected smart sensors in manufacturing and industrial processes ex: self-diagnosing machines and engines

Cloud computing systems

Use the internet to deliver data storage and processing services hosted by a service provider

Supply Chain Management

a network between a company, its suppliers, and its customers whose purpose is to produce and distribute the company's products and/or and services

Enable

actively and jointly manage all SCM-related processes+elements while measuring & monitoring SCM performance through usage of data and information systems

Implementation as an ERP

an ERP suite provide function-specific modules integrated into a larger system

Automating

changing the business process by automating it -ex: every phone call is answered by a computerized system

BPR

changing the business process not by performing the same process faster, cheaper, and more efficient, but completely redesigning the process ex: Customer notices a fraud transaction on her credit card statement and reports it to the company who investigates and cancels the card.

Distributed Database Systems

distribute data among separate computers -kept geographically separate -a centralized coordinating system that manages sharing between various locations

Integrated information system

enables data sharing by multiple functional areas of the organization

SCOR mdoel

framework for supply chain management -plan -source -make -deliver -return -enable

Integrated enterprise-wide information systems

integrated info systems spanning across the entire enterprise with a goal to reduce the silo effect and enabling departments and functional area to work together sharing info.

Objectives of CRM

maintain, enhance, and improve relationships with customer and potential customers

Back Order Rate

percentage of orders that cannot be filled at the time a customer places them - number of back orders/number of all orders

Rate of Return

percentage of shipped items that are returned by the customers - number of returned items/ number of all shipped (bought items)

Internet of Things (IOT)

physical devices and objects connected via Internet communicating and exchanging data ex: driverless cars, smart homes, wearables

Enterprise resources planning system (ERP)

premade, integrated, corporate information system

Platform as a Service (PaaS)

resources required for building applications provided as standardized services over a network ex: Amazon Web Services, Microsoft Azure

Middleware

software that connects two otherwise separate applications

Database as a Service (DBaaS)

specialized version of SaaS developed for database management in clouds ex: Google Cloud SQL, Amazon Relational Database Service

Business Process Reengineering

the analysis and redesign of workflows within and between enterprises in order to optimize business processes

Logistics

the part of the supply chain process that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption

Purpose of BPR

to make business processes as good as possible