8 Enterprise Applications: Achieving Operational Excellence and Customer Intimacy Flashcards Preview

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Flashcards in 8 Enterprise Applications: Achieving Operational Excellence and Customer Intimacy Deck (30)
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1
Q

What are enterprise resource planning (ERP) systems?

A
  • Suite of integrated software modules and a common central database.
  • Collects data from many divisions of firm for use in nearly all of firm’s internal business activities.
  • Information entered in one process is immediately available for other processes.
2
Q

How do enterprise systems work?

A
Built around thousands of
predefined business processes that reflect best practices.
• Finance and accounting
• Human resources
• Manufacturing and
production
• Sales and marketing
3
Q

What is the business value of enterprise systems?

A
  • Increase operational efficiency
  • Provide firm-wide information to support decision making
  • Enable rapid responses to customer requests for information or products
  • Include analytical tools to evaluate overall organisational performance and improve decision-making
4
Q

What is a supply chain?

A

Network of organisations and processes for:
• Procuring materials
• Transforming materials into products
• Distributing the products

5
Q

What different kinds of supply chains are there?

A
  • Upstream supply chain
  • Downstream supply chain
  • Internal supply chain
6
Q

What can happen if there are inefficiencies in the supply chain management?

A

Inefficiencies cut into a company’s operating costs.

• Can waste up to 25 percent of operating expenses

7
Q

What is the just-in-time strategy?

A
  • Components arrive as they are needed.

* Finished goods shipped after leaving assembly line.

8
Q

What is safety stock?

A
  • Buffer for lack of flexibility or uncertainties in supply chain.
9
Q

What is the bullwhip effect?

A

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

10
Q

What are some causes and solutions of the bullwhip effect?

A
  • Price fluctuations -> everyday low prices/low fluctuating prices.
  • Order batching -> Frequent ordering
  • Shortage gaming -> Forecast on sales history
  • Forecast inaccuracies -> Information sharing
11
Q

What do supply chain planning systems do?

A
  • Model existing supply chain
  • Enable demand planning
  • Optimise sourcing, manufacturing plans
  • Establish inventory levels
  • Identify transportation modes
12
Q

What do supply chain execution systems do?

A

• Manage flow of products through distribution centres and warehouses

13
Q

What are some global supply chain issues?

A
  • Greater geographical distances, time differences
  • Participants from different countries
    • Different performance standards
    • Different legal requirements
14
Q

What areas does the internet help manage global complexities?

A
  • Warehouse management
  • Transportation management
  • Logistics
  • Outsourcing
15
Q

What is the push-based model (build-to-stock) supply chain?

A
  • Earlier SCM systems

* Schedules based on best guesses of demand.

16
Q

What is the pull-based model (demand-driven) supply chain?

A
  • Web-based

* Customer orders trigger events in supply chain

17
Q

What role does the internet have in supply chains?

A
  • Internet enables move from sequential supply chains to concurrent supply chains.
  • Complex networks of suppliers can adjust immediately.
18
Q

What is the business value of supply chain management systems?

A
  • Match supply to demand
  • Reduce inventory levels
  • Improve delivery service
  • Speed product time to market
  • Use assets more effectively
    • Total supply chain costs can be 75 percent of operating budget
  • Increase sales
19
Q

What is customer relationship management?

A
  • Knowing the customer

* In large businesses, too many customers and too many ways customers interact with firm.

20
Q

What do customer relationship management systems do?

A
  • Capture and integrate customer data from all over the organisation
  • Consolidate and analyse customer data
  • Distribute customer information to various systems and customer touch points across enterprise
  • Provide single enterprise view of customers
21
Q

What is the business value of CRM systems?

A
  • Increased customer satisfaction
  • Reduced direct-marketing costs
  • More effective marketing
  • Lower costs for customer acquisition/retention
  • Increased sales revenue
22
Q

What is a churn rate?

A
  • Number of customers who stop using or purchasing products or services from a company
  • Indicator of growth or decline of firm’s customer base
23
Q

What are some challenges of enterprise applications?

A
  • Highly expensive to purchase and implement enterprise applications
  • Technology changes
  • Business process changes
  • Organisational learning, changes
  • Switching costs, dependence on software vendors
  • Data standardisation, management, cleansing
24
Q

What are some next-generation enterprise applications?

A
  • Social CRM

- Business Intelligence

25
Q

What is Social CRM?

A
  • Incorporating social networking technologies
  • Company social networks
  • Monitor social media activity; social media analytics
  • Manage social and web-based campaigns
26
Q

What is business intelligence?

A
  • Inclusion of BI with enterprise applications

* Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data visualisation

27
Q

What is enterprise software built around?

A

Built around thousands of predefined business processes that reflect best practices.

28
Q

What is the upstream portion of the supply chain?

A

Refers to a company’s suppliers, the suppliers’ suppliers, and the processes for managing relationships with them.

29
Q

What is middleware?

A

Enables a company to tailor a particular aspect of enterprise software to the way a company does business.

30
Q

What is the downstream portion of the supply chain.?

A

Distribution and delivery of products to retailers.