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AchievingOperationalExcellenceandCustomerIntimacy:EnterpriseApplicationsSTUDENTLEARNINGOBJECTIVESEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsHowdoenterprisesystemshelpbusinessesachieveoperationalexcellence?Howdosupplychainmanagementsystemscoordinateplanning,production,andlogisticswithsuppliers?Howdocustomersrelationshipmanagementsystemshelpfirmsachievecustomerintimacy?STUDENTLEARNINGOBJECTIVESWhatarethechallengesposedbyenterpriseapplications?Howareenterpriseapplicationstakingadvantageofnewtechnologies?EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsSTUDENTLEARNINGOBJECTIVESEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsLearningTracksSAPBusinessProcessMapBusinessProcessesinSupplyChainManagementandSupplyChainMetricsBest-PracticeBusinessProcessesinCRMSoftwareVideoCasesCase1:Workday:EnterpriseCloudSoftware-as-a-Service(SaaS)Case2:EvolutionHomecareManagesPatientswithMicrosoftDynamicsCRMInstructionalVideo1:GSMSProtectsProductsandPatientsBySerializingEveryBottleofDrugsTechnologyHelpsNvidiaAnticipatetheFutureProblem:
Longproductionleadtimewithchangingmarketmadeforecastingofcustomerdemanddifficult,andproductionneverreceivedbusinessunitforecasts.Switchtonew40-nanomenterproductionprocesswhilemaintainingseparateinventoryandsupportforcustomersusingolderchips.Solutions:Enablereal-timereportingbyimplementingenterpriseapplicationEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsSAPAPO(advancedplanningandoptimizations)combinedwithSAPBusinessObjectsWebIntelligenceandcustomizeddashboardsreplacedspreadsheet-basedforecastingsystemIllustrates:Needforenterprise-widesystemsforimproveddatagatheringandsharingtoimproveforecastingcustomerdemandandinventoryneedsDemonstrates:UseofenterprisesoftwaretospeedandforecastingandreduceforecastingerrorsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsTechnologyHelpsNvidiaAnticipatetheFutureEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsTechnologyHelpsNvidiaAnticipatetheFutureEnterpriseSystemsAlsocalled“enterpriseresourceplanning(ERP)systems”SuiteofintegratedsoftwaremodulesandacommoncentraldatabaseCollectsdatafrommanydivisionsoffirmforuseinnearlyalloffirm’sinternalbusinessactivitiesInformationcreatedbyoneprocessisimmediatelyavailableforotherprocessesEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsEnterpriseSystemsEnterpriseSystemsBuiltaroundthousandsofpredefinedbusinessprocessesthatreflectbestpracticesFinance/accounting:generalledger,accountspayable,andsoonHumanresources:personneladministration,payroll,andsoonManufacturing/production:purchasing,shipping,andsoonSales/marketing:orderprocessing,billing,salesplanning,andsoonEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsEnterpriseSoftwareEnterpriseSystemsToimplemententerprisesoftware,firms:Selectfunctionsofsystemtheywishtouse.Mapbusinessprocessestosoftwareprocesses.Usesoftwaresconfigurationtablesforcustomizing.Ifsoftwaredoesn’tsupportbusinessprocessesBusinessescanrewritesomeportions,butthiscancompromiseinformationandprocessintegrationChangingbusinessprocessestomatchsoftware’sprocessesisbetteralternativeEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsEnterpriseSystemsFigure9-1EnterprisesystemsfeatureasetofintegratedsoftwaremodulesandacentraldatabasethatenablesdatatobesharedbymanydifferentbusinessprocessesandfunctionalareasthroughouttheenterpriseHowEnterpriseSystemsWorkEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsEnterpriseSystemsBusinessvalueofenterprisesystemsIncreaseoperationalefficiency.StandardizeandcoordinatebusinessprocessesProvidefirmwideinformationtosupportdecisionmaking.Enablerapidresponsestocustomerrequestsforinformationorproducts.Includeanalyticaltoolstoevaluateoverallorganizationalperformance.EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsTheSupplyChainNetworkoforganizationsandprocessesfor:ProcuringrawmaterialsTransformingthemintoproductsDistributingtheproductsUpstreamsupplychain:Firm’ssuppliers,suppliers’suppliers,processesformanagingrelationshipswiththemDownstreamsupplychain:OrganizationsandprocessesresponsiblefordeliveringproductstocustomersInternalsupplychainSupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsNike’sSupplyChainSupplyChainManagementSystemsFigure9-2ThisfigureillustratesthemajorentitiesinNike’ssupplychainandtheflowofinformationupstreamanddownstreamtocoordinatetheactivitiesinvolvedinbuying,making,andmovingaproduct.Shownhereisasimplifiedsupplychain,withtheupstreamportionfocusingonlyonthesuppliersforsneakersandsneakersoles.EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsInformationSystemsandSupplyChainManagementInefficienciescutintoacompany’soperatingcostsCanwasteupto25percentofoperatingexpensesJust-in-timestrategy:ComponentsarriveastheyareneededFinishedgoodsshippedafterleavingassemblylineSafetystockBufferforlackofflexibilityinsupplychainBullwhipeffectInformationaboutproductdemandgetsdistortedasitpassesfromoneentitytonextacrosssupplychainSupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsTheBullwhipEffectSupplyChainManagementSystemsFigure9-3Inaccurateinformationcancauseminorfluctuationsindemandforaproducttobeamplifiedasonemovesfurtherbackinthesupplychain.Minorfluctuationsinretailsalesforaproductcancreateexcessinventoryfordistributors,manufacturers,andsuppliers.EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsFigure9-3SupplyChainManagementSoftwareSupplychainplanningsystemsModelexistingsupplychain.Demandplanning.Optimizesourcing,manufacturingplans.Establishinventorylevels.Identifytransportationmodes.SupplychainexecutionsystemsManageflowofproductsthroughdistributioncentersandwarehouses.SupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsGlobalSupplyChainsandtheInternetGlobalsupplychainissues:GreatergeographicaldistancesGreatertimedifferencesParticipantsfromdifferentcountriesDifferentperformancestandardsDifferentlegalrequirementsInternethelpscompaniesmanageglobalcomplexitiesWarehousemanagementTransportationmanagementLogisticsOutsourcingSupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsInteractiveSession:TechnologyLandO’LakesButterBecomesFresherwithDemandPlanningReadtheInteractiveSessionandthendiscussthefollowingquestions:WhyareinventorymanagementanddemandplanningsoimportantforLandO’Lakes?Whatisthebusinessimpactofnotbeingabletomanageinventoryorpredictdemandforthiscompany?WhyareinventorymanagementanddemandplanningsoimportantforLandO’Lakes?Whatisthebusinessimpactofnotbeingabletomanageinventoryorpredictdemandforthiscompany?HowdidimplementingDemantrachangemanagementdecisionmakingandthewaythatLandO’Lakesranitsbusiness?DescribetwodecisionsthatwereimprovedbyimplementingDemantra.EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsSupplyChainManagementSystemsDemand-DrivenSupplyChainsSupplychainmanagementsystemsPush-basedmodel(build-to-stock)SchedulesbasedonbestguessesofdemandPull-basedmodel(demand-driven)CustomerorderstriggereventsinsupplychainHelpbusinessesmovefromsequentialsupplychainstoconcurrentsupplychainsSupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsPush-versusPull-BasedSupplyChainModelsFigure9-4Thedifferencebetweenpush-andpull-basedmodelsissummarizedbytheslogan“Makewhatwesell,notsellwhatwemake.”SupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsTheEmergingInternet-DrivenSupplyChainFigure9-5TheemergingInternet-drivensupplychainoperateslikeadigitallogisticsnervoussystem.Itprovidesmultidirectionalcommunicationamongfirms,networksoffirms,ande-marketplacessothatentirenetworksofsupplychainpartnerscanimmediatelyadjustinventories,orders,andcapacities.SupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsMatchsupplytodemand.Reduceinventorylevels.Improvedeliveryservice.Speedproducttimetomarket.Useassetsmoreeffectively.Reducedsupplychaincostsleadtoincreasedprofitability.Totalsupplychaincostscanbe75percentofoperatingbudget.Increasesales.BusinessValueofSupplyChainManagementSystemsSupplyChainManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCustomerRelationshipManagementKnowingthecustomerInlargebusinesses,toomanycustomersandtoomanywayscustomersinteractwithfirmCustomerrelationshipmanagement(CRM)systemsCaptureandintegratecustomerdatafromallovertheorganization.Consolidateandanalyzecustomerdata.Distributecustomerinformationtovarioussystemsandcustomertouchpointsacrossenterprise.Providesingleenterpriseviewofcustomers.CustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCustomerRelationshipManagement(CRM)Figure9-6CRMsystemsexaminecustomersfromamultifacetedperspective.Thesesystemsuseasetofintegratedapplicationstoaddressallaspectsofthecustomerrelationship,includingcustomerservice,sales,andmarketing.CustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCRMSoftwareCRMpackagesrangefromnichetoolstolarge-scaleenterpriseapplications.Morecomprehensivehavemodulesfor:Partnerrelationshipmanagement(PRM)Integratingleadgeneration,pricing,promotions,orderconfigurations,andavailabilityToolstoassesspartners’performancesEmployeerelationshipmanagement(ERM)Settingobjectives,employeeperformancemanagement,performance-basedcompensation,employeetrainingCustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCRMSoftwareCRMpackagestypicallyincludetoolsfor:Salesforceautomation(SFA)Salesprospectandcontactinformation,salesquotegenerationcapabilitiesCustomerserviceAssigningandmanagingcustomerservicerequests,Web-basedself-servicecapabilitiesMarketingCapturingprospectandcustomerdata,schedulingandtrackingdirect-marketingmailingsore-mail,cross-sellingCustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsHowCRMSystemsSupportMarketingFigure9-7Customerrelationshipmanagementsoftwareprovidesasinglepointforuserstomanageandevaluatemarketingcampaignsacrossmultiplechannels,includinge-mail,directmail,telephone,theWeb,andwirelessmessages.CustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCRMSoftwareCapabilitiesFigure9-8ThemajorCRMsoftwareproductssupportbusinessprocessesinsales,service,andmarketing,integratingcustomerinformationfrommanydifferentsources.IncludedaresupportforboththeoperationalandanalyticalaspectsofCRM.CustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsCustomerLoyaltyManagementProcessMapThisprocessmapshowshowabestpracticeforpromotingcustomerloyaltythroughcustomerservicewouldbemodeledbycustomerrelationshipmanagementsoftware.TheCRMsoftwarehelpsfirmsidentifyhigh-valuecustomersforpreferentialtreatment.CustomerRelationshipManagementSystemsFigure9-9EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsOperationalCRM:Customer-facingapplicationssuchassalesforceautomation,callcenterandcustomerservicesupport,andmarketingautomationAnalyticalCRM:BasedondatawarehousespopulatedbyoperationalCRMsystemsandcustomertouchpointsAnalyzescustomerdata(OLAP,datamining,etc.)Customerlifetimevalue(CLTV)CustomerRelationshipManagementSystemsOperationalandAnalyticalCRMEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsAnalyticalCRMDataWarehouseFigure9-10AnalyticalCRMusesacustomerdatawarehouseandtoolstoanalyzecustomerdatacollectedfromthefirm’scustomertouchpointsandfromothersources.CustomerRelationshipManagementSystemsEssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsInteractiveSession:OrganizationsGraybarGoesforCustomerAnalyticsReadtheInteractiveSessionandthendiscussthefollowingquestions:WhatwastheproblematGraybardescribedinthiscase?HowdidthisproblemaffectGraybar’sbusinessperformance?Whatpeople,organization,andtechnologyissueshadtobeaddressedbyGraybartodevelopacustomeranalyticssolution?HowdidanalyticalCRMchangethewayGraybarranitbusiness?ComparethewayGraybarhandleditscustomerrelationshipsbeforeandafteritimplementedanalyticalCRM?GiveexamplesofthreedecisionsthatwereimprovedbyGraybar’snewcustomeranalyticssystem.EssentialsofManagementInformationSystemsChapter9AchievingOperationalExcellenceandCustomer
Intimacy:EnterpriseApplicationsEnterpriseApplications:NewOpportunitiesandChallengesBusinessValueofCustomerRelationshipManagementBusinessbenefits:IncreasedcustomersatisfactionReduceddirect-marketingcostsMoreeffectivemarketingLowercostsforcustomeracquisition/retentionIncreasedsalesrevenueChurnrate:NumberofcustomerswhostopusingorpurchasingproductsorservicesfromacompanyIndicatorofgrowthordeclineoffirm’scustomerbaseCu
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