Functional and Enterprise Systems

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Chapter 7

• Functional and Enterprise Systems

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CustomerRelationship Management

• Customer Relationship Management
• The philosophy that an organization should focus
  on the customer

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Reasons Why Companies Implement a CRM Strategy

• Develop one view of the customer for more
  successful sales, marketing, and service
• Improve customer satisfaction
• Improve retention by rewarding loyalty

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Reasons Why Companies Implement a CRM Strategy

• Increase up-selling and cross-selling of products
  and services
• Target markets more accurately
• Improve sales leads
• Increase sales closing rates

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Reasons Why Companies Implement a CRM Strategy

• Increase margin on goods and services
• Increase revenue and profits
• Respond to competitors implementation of CRM

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CustomerRelationship Management

• Sales Force Automation
• Replaces manual systems of tracking leads, sales,
  service requests, and other sales-related
  information with computerized systems that use
  sophisticated database software and mobile
  computers

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CustomerRelationship Management

• Order Handling
• Point-of-Sale System (POS)
• Records the sale of a product or service and
  updates company records related to the sale
• Order Entry Systems
• Record and process the taking of an order

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CustomerRelationship Management

• Electronic Bill Presentment and Payment (EBPP)
• Satisfies customers by reducing paperwork and
  mailing costs
• Post-Sales Support
• CRM support for call centers provides management
  of contact with customer

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CustomerRelationship Management

• Managing Distributors
• Partner relationship management (PRM)
• A philosophy of coordinating with distributors
  and other channel partners in the sale and
  distribution of a product or service

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Managing Design, Engineering, and Production

• Computer-Aided Design (CAD)
• Helps designers translate their mental images
  into physical drawings and specifications
• Rapid prototyping can convert a CAD model into a
  solid physical model.

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Managing Design, Engineering, and Production

• Computer-Aided Manufacturing (CAM)
• The use of computers to control equipment in the
  manufacturing process
• Flexible manufacturing provides multiple uses for
  computer-controlled machinery
• Robots are computer-controlled machinery that
  exhibit human-like features

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Managing Design, Engineering, and Production

• CAD/CAM
• Integrates CAD and CAM software so that
  engineering drawings are processed in such a way
  that their output can be downloaded directly to
  manufacturing equipment to produce a final
  product
• Automated Guided Vehicles (AGVs)
• Computer-controlled vehicles improve
  manufacturing flexibility

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Managing Design, Engineering, and Production

• Computer Integrated Manufacturing
• The integration of product design, manufacturing
  planning, manufacturing execution, and shop floor
  control, as well as the integration of these
  production functions with the other functions of
  an organization

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Managing Design, Engineering, and Production
Figure 7-10
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Managing Design, Engineering, and Production

• Mass Customization
• The competitive advantage a company would have if
  it could produce the exact product that each
  customer wanted as cheaply and efficiently as if
  it were mass-produced

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Managing Design, Engineering, and Production
Figure 7-11
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Managing Supplier Relationships

• Electronic Procurement
• Automates processes relating to procurement
• Qualifying
• Bidding
• Ordering
• Receiving
• Paying

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Managing Supplier Relationships

• Just-in-Time Inventory
• The practice of receiving supplies just as a
  company requires it, neither too early nor too
  late

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Managing Supplier Relationships

• Vendor Managed Inventory (VMI)
• A process in which a supplier manages the
  inventory in its customers facilities
• Vendor improves knowledge of product demand and
  ability to time deliveries
• Company usually doesnt pay for product until it
  is sold

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Managing Warehousing and Transportation

• Warehouse Management Systems
• Support activities inside the warehouse and at
  its shipping and receiving docks

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Managing Warehousing and Transportation

• Warehouse Management System Features
• Receiving
• Warehouse Management Systems help schedule pickup
  and deliveries to the warehouse
• Shipping
• Systems schedule outbound vehicles at docks

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Managing Warehousing and Transportation

• Warehouse Management System Features
• Picking
• Systems support automated picking and conveyor
  systems
• Storage
• Systems help lay out the storage so that size and
  weight restrictions are observed and frequently
  used items are accessed most easily

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Managing Warehousing and Transportation

• Warehouse Management System Features
• Reporting
• Warehouse management systems identify the number
  and value of items in stock

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Managing Warehousing and Transportation

• Cross-docking systems
• Load goods received at a distribution point
  immediately onto outgoing trucks without entering
  them into inventory
• Auto-ID Systems
• Tags merchandise with radio-frequency tags that
  can be tracked at a distance

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Support Systems

• Human Resource Management Systems
• Streamline the processes relating to employee
  recruitment, development, retention, assessment,
  and compensation

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Support Systems

• Accounting Systems
• Accounts receivable
• Accounts payable
• General ledger
• Budgeting, cash management, fixed asset
  accounting, investment tracking, and other
  functions

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Enterprise and Cross-Enterprise Systems

• Enterprise Resource Planning (ERP) Software
• Integrates all functional systems in a single
  package
• Can be purchased in modules that address only
  specific functional needs

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Enterprise and Cross-Enterprise Systems

• Enterprise Application Integration (EAI)
• The process of integrating the functional systems
  of an organization
• One solution is pair-wise matching of inputs and
  outputs among applications
• Another solution is middleware, software that
  provides and manages inter-application interface

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Enterprise and Cross-Enterprise Systems
Figure 7-15
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Enterprise and Cross-Enterprise Systems

• Supply Chain Management
• The manner by which a company and its supply
  chain partners analyze, optimize, and control the
  acquisition and delivery of raw materials
  necessary for the creation of the goods and
  services that an organization produces
• Requires cross-enterprise integration

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End of Chapter 7

• Functional and Enterprise Systems