Enterprise Applications

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					   Enterprise Applications
Be systems that:
 Span functional areas,
 Focus on executing business processes across the business
  firm, and
 Include all levels of management
Help businesses become more flexible and productive
by coordinating their business processes more closely
and integrating groups of processes so they focus on
efficient management of resources and customer
service
Include:
 Enterprise systems or enterprise resource planning (ERP)
  systems
 Supply chain management (SCM) systems
 Customer relationship management (CRM) systems
 Knowledge management systems (KMS)
Enterprise Application Architecture
        Enterprise Systems
Also known as enterprise resource planning (ERP)
systems
Based on a suite of integrated software modules and a
common central database
The database collects data from many different
divisions and departments in a firm, and from a large
number of key business processes in manufacturing
and production, finance and accounting, sales and
marketing, and human resources, making the data
available for applications that support nearly all of an
organization’s internal business activities.
When new information is entered by one process, the
information is made immediately available to other
business processes.
   How Enterprise Systems Work




Enterprise systems feature a set of integrated software modules and
a central database that enables data to be shared by many different
business processes and functional areas throughout the enterprise.
         Enterprise Systems
Making it possible for information that was previously
fragmented in different systems to be shared across the
firm and for different parts of the business to work more
closely together
Speeding communication of information throughout the
company, making it easier for businesses to coordinate
their daily operations
Giving companies the flexibility to respond rapidly to
customer requests while producing and stocking
inventory only with what is needed to fulfill existing
orders
Increasing accurate and on-time shipments, minimizing
costs, and increasing customer satisfaction as well as
increasing firm profitability
Enterprise Systems
  Enterprise Systems (Cont.)
Providing valuable information for improving
management decision making through helping to:
 Create more accurate sales and production forecasts
 Analyze overall product profitability or cost structures
Integrating the key business processes of an
entire firm into a single software system that
enables information to flow seamlessly
throughout the organization
Focusing primarily on internal processes but may
include transactions with customers and vendors
Example of ERP Software
         Enterprise Software
Built around thousands of predefined business
processes that reflect best practices
Companies implementing this software would have to
first select the functions of the system they wished to use
and then map their business processes to the predefined
business processes in the software.
If the enterprise software does not support the way the
organization does business, companies can rewrite
some of the software to support the way their business
processes work.
However, enterprise software is unusually complex, and
extensive customization may degrade system
performance, compromising the information and process
integration that are the main benefits of the system.
Supply Chain Management (SCM) Systems

Supply chain is a network of organizations and
business processes for procuring raw materials,
transforming these materials into intermediate
and finished products, and distributing the
finished products to customers.
Supply chain links suppliers, manufacturing
plants, distribution centers, retail outlets, and
customers to supply goods and services from
source through consumption.
Materials, information, and payments flow
through the supply chain in both directions.
Nike’s Supply Chain
Supply Chain Management (SCM) Systems

 One type of interorganizational system because they
 automate the flow of information across organizational
 boundaries
 Helping businesses manage relationships with their
 suppliers
 Providing information to help suppliers, purchasing
 firms, distributors, and logistics companies share
 information about orders, production, inventory levels,
 and delivery of products and services so that they can
 make better decisions about how to organize and
 schedule sourcing, production, and distribution.
 Increasing firm profitability by:
  Lowering the costs of moving and making products
  Enabling managers to make better decisions about how to
   organize and schedule sourcing, production, and distribution
Supply Chain Management (SCM) Systems
Supply Chain Management (SCM) Systems

The ultimate objective is to get the right amount
of their products from their source to their point
of consumption with the least amount of time
and with the lowest cost.
Information from SCM systems helps firms:
   Decide when and what to produce, store, and move
   Rapidly communicate orders
   Track the status of orders
   Check inventory availability and monitor inventory
    levels
   Reduce inventory, transportation, and warehousing
    costs
   Track shipments
   Plan production based on actual customer demand
   Rapidly communicate changes in product design
Example of a SCM System
Example of SCM Software
             SCM Software
Supply chain software is classified as:
 Supply chain planning systems – software to help
  businesses plan their supply chains
     Enable the firm to model its existing supply chain, generate
     demand forecasts for products, and develop optimal
     sourcing and manufacturing plans
     Help companies make better decisions such as determining
     how much of a specific product to manufacture in a given
     time period; establishing inventory levels for raw materials,
     intermediate products, and finished goods; determining
     where to store finished goods; and identifying the
     transportation mode to use for product delivery
            SCM Software
 Supply chain execution systems – software to help
  them execute the supply chain steps
     Manage the flow of products through distribution centers
     and warehouses to ensure that products are delivered to the
     right locations in the most efficient manner
     Track the physical status of goods, the management of
     materials, warehouse and transportation operations, and
     financial information involving all parties
     The Interactive Session on Technology describes how
     supply chain management software improves operational
     performance and decision making at Procter & Gamble.
Customer Relationship Management (CRM) Systems


   Helping firms manage their relationships with customers
   Providing information to coordinate all of the business
   processes that deal with customers in sales, marketing, and
   service to optimize revenue, customer satisfaction, and
   customer retention so that firms can:
       Identify, attract, and retain the most profitable customers
       Provide better service and support to existing customers
       Increasing the effectiveness of their marketing campaigns
       Hopefully increase sales
   Integrating the firm’s customer-related processes,
   consolidating customer data from multiple communication
   channels – telephone, e-mail, customer service desk,
   conventional mail, wireless devices, retail outlets, or the
   Web, analyzing the data, and then distributing the results to
   various systems and customer touch points across the
   enterprise
Customer Relationship Management (CRM) Systems

  Good CRM systems provide data and analytical tools
  for answering questions such as these:
    What is the value of a particular customer to the firm over his
     or her lifetime?
    Who are our most loyal customers? (It can cost six times
     more to sell to a new customer than to an existing customer.)
    Who are our most profitable customers?
    What do these profitable customers want to buy?

  Firms use the answers to these questions to:
    Acquire new customers
    Provide better service and support to existing customers
    Customize their offerings more precisely to customer
     preferences
    Provide ongoing value to retain profitable customers
Customer Relationship Management (CRM) Systems


Well-designed CRM systems provide a single enterprise
view of customers that is useful for improving both sales
and customer service.
Two main aspects of CRM:
  Operational CRM includes customer-facing applications, such as
   tools for sales force automation, call center and customer service
   support, and marketing automation.
  Analytical CRM includes applications that analyze customer data
   generated by operational CRM applications to provide
   information for improving business performance.
       Analytical CRM applications are based on data warehouses that
       consolidate the data from operational CRM systems and customer
       touch points for use with online analytical processing (OLAP), data
       mining, and other data analysis techniques.
CRM Software Capabilities
Example of a CRM Software
              CRM Software
The more comprehensive CRM packages
contain modules for:
 Partner relationship management (PRM)
     Enhance collaboration between a company and its selling
     partners (distributors and retailers) and help them sell to
     customers directly
     Provide a company and its selling partners with the ability to
     trade info. and distribute leads and data about customers,
     integrating lead generation, pricing, promotions, order
     configurations, and availability
     Provide a firm with tools to assess its partners’
     performances so it can make sure its best partners receive
     the support they need to close more business
 Employee relationship management (ERM)
     Deal with employee issues that are closely related to CRM,
     such as setting objectives, employee performance
     management, performance-based compensation, and
     employee training
              CRM Software
Sales Force Automation (SFA) Modules
 Help sales staff increase their productivity by focusing
  sales efforts on the most profitable customers, those
  who are good candidates for sales and services
 Provide sales prospect and contact info., product
  info., product configuration capabilities, and sales
  quote generation capabilities
 Assemble info. about a particular customer’s past
  purchases to help the salesperson make personalized
  recommendations
 Increase each salesperson’s efficiency in reducing
  the cost per sale as well as the cost of acquiring new
  customers and retaining old ones
 Have capabilities for sales forecasting, territory
  management, and team selling
               CRM Software
Customer Service Modules
 Provide info. And tools to increase the efficiency of
  call centers, help desks, and customer support staff
 Have capabilities for assigning and managing
  customer service requests such as an appointment or
  advice telephone line, and Web-based self-service
  capabilities:
     Call centers and customer service groups achieve greater
     productivity, reduced transaction time, and higher quality of
     service at lower cost. (The customer is happier because he
     or she spends less time on the phone restating his or her
     problem to customer service representatives.)
     The company Web site can be set up to provide inquiring
     customers personalized support info. as well as the option to
     contact customer service staff by phone for additional
     assistance.
               CRM Software
Marketing Modules
 Support direct-marketing campaigns by providing
  capabilities for:
      Capturing prospect and customer data
      Providing product and service info.
      Qualifying leads for targeted marketing
      Scheduling and tracking direct-marketing mailings or e-mail
 Include tools for:
      Analyzing marketing and customer data
      Identifying profitable and unprofitable customers
      Designing products and services to satisfy specific customer
      needs and interests
 Help firms manage and execute marketing campaigns
  at all stages, from planning to determining the rate of
  success for each campaign
Knowledge Management Systems (KMS)

Some firms perform better than others because they have
better knowledge about how to create, produce, and
deliver products and services.
This firm knowledge is difficult to imitate, unique, and can
be leveraged into long-term strategic benefits.
KMS collect all relevant knowledge and experience in the
firm, and make it available wherever and whenever it is
needed to improve business processes and management
decisions.
KMS link the firm to external sources of knowledge.
KMS enable firms to better manage processes for:
  Acquiring, storing, distributing, and applying knowledge and
   expertise
  Creating new knowledge and integrating it into the organization
Knowledge Management Systems (KMS)

 KMS include:
  Enterprise-wide systems for managing and
   distributing documents, graphics, and other digital
   knowledge objects
  Systems for creating corporate knowledge directories
   of employees with special areas of expertise
  Office systems for distributing knowledge and info.
  Knowledge work systems to facilitate knowledge
   creation
  Intelligent techniques that codify knowledge for use
   by other members of the organization
  Tools for knowledge discovery that recognize patterns
   and important relationships in large pools of data
                Types of KMS

There are essentially three major types of
KMS:
 Enterprise-wide knowledge management systems –
  general-purpose firmwide efforts to collect, store,
  distribute, and apply digital content and knowledge
 Knowledge work systems – specialized systems
  built for engineers, scientists, and other knowledge
  workers charged with discovering and creating new
  knowledge for a company
 Intelligent techniques - data mining, expert systems,
  neural networks, fuzzy logic, genetic algorithms, and
  intelligent agents
Enterprise-wide Knowledge Management Systems

Including capabilities for searching for info., storing both
structured and unstructured data, and locating employee
expertise within the firm
Including supporting technologies such as portals,
search engines, collaboration tools (e-mail, instant
messaging, wikis, blogs, and social bookmarking) and
learning management systems
Dealing with all three types of knowledge:
 Structured (explicit) knowledge which exists within the firm in the
  form of structured text documents (reports and presentations) –
  structured knowledge systems
 Semistructured knowledge such as e-mail, voice mail, chat room
  exchanges, videos, digital pictures, brochures, or bulletin board
  postings – semistructured knowledge systems
 Tacit knowledge which resides in the heads of employees
  without any formal or digital info., and is rarely written down –
  knowledge network systems
Knowledge Network System
   Knowledge Work Systems (KWS)

KWS are specialized systems for knowledge workers to
help them create new knowledge and to ensure that this
knowledge is properly integrated into the business.
The development of powerful networked workstations
and software for assisting engineers and scientists in the
discovery of new knowledge has led to the creation of
knowledge work systems such as:
 Computer-aided design (CAD) systems – automating the
  creation and revision of designs, using computers and
  sophisticated graphics software
 Virtual reality systems for visualization, rendering, simulation and
  modeling – using interactive graphics software to create
  computer-generated simulations that are so close to reality
 Investment workstations for the financial industry – leveraging
  the knowledge and time of its brokers, traders, and portfolio
  managers
Example of CAD Systems
Example of Virtual Reality Systems
            Intelligent Techniques
Artificial intelligence and database technology provide a
number of intelligent techniques that firms can use to
capture individual and collective knowledge and to
extend their knowledge base.
These techniques have different objectives:
 Discovering knowledge such as underlying patterns, categories,
  and behaviors in large data sets that could not be discovered by
  managers alone or simply through experience (data mining and
  neural networks)
 Distilling knowledge in the form of rules for a computer program
  or capturing tacit knowledge (expert systems, case-based
  reasoning, and fuzzy logic)
 Discovering optimal solutions for problems that are too large and
  complex for human beings to analyze on their own (genetic
  algorithms)
 Automating routine tasks to help firms search for and filter info.
  for use in E-commerce , supply chain management, and other
  activities (intelligent agents)