Chapter 9: Enterprise Applications

Question 1

What are enterprise systems?

Answer 1

• systems based on numerous integrated software modules & a common central DB
• spanning across functional areas & links the enterprise, incl. all management levels
• DB collect data from & feeds data into applications that support business activities
• supporting org. centralization by enforcing uniform data standards & BPs through a single unified platform

Question 2

What are the four major applications of enterprise systems?

Answer 2

• enterprise systems/ enterprise resource planning systems (ERP)
• supply chain management systems (SCM)
• customer relationship management systems (CRM)
• knowledge management systems

Question 3

Main purposes of SCM system

Answer 3

• coordination of planning, production & logistics with suppliers
• automation of information flow within supply chain
• leaner supply chain

Question 4

Types of SCM

Answer 4

• push-based model (build-to-stock): schedules based on best guesses of demand
• pull-based model (demand-driven): web-based, customer orders trigger events in supply chain –> contemporary
• development from sequential to concurrent supply chain through Internet (combining short-term execution plans with long-term business plans)

Question 5

Supply chain components

Answer 5

• upstream: managing relationship with firm’s suppliers & supplier’s suppliers
• downstream: managing relationship with organizations responsible for delivering products to customers
• internal

Question 6

What has to be kept in mind regarding SCM systems?

Answer 6

• more accurate info = less uncertainty & bullwhip effect (Effects of fluctuations in demand along a multi-level supply chain, often caused by lack of information exchange)
• Internet facilitates connectivity in global supply chains
• improved communication = more profitable demand-driven model
• keep some safety stocks to prevent out-of-stock situations

Question 7

What is the business value of SCM systems?

Answer 7

• match supply to demand
• reduce inventory levels
• improve delivery service
• speed product time to market
• use assets more effectively
• reduced supply chain costs (higher profitability) –> SCM costs can be up to 75%
• increase sales

Question 8

Main purposes of CRM system

Answer 8

• integrate & automate customer-facing processes in sales, marketing & customer service
  providing enterprise-wide view of customers (which are (un)profitable)
• provide better services & sell new products due to better customer knowledge
• reduce churn rate (Kudenabwanderungsrate)

Question 9

Functional areas of CRM

Answer 9

• operational CRM: customer-facing applications (sales force/ marketing automation, call center & service support)
• analytical CRM: analysis of customer data
• partner relationship management
• employee relationship management

Question 10

What is the business value of CRM systems?

Answer 10

• increased customer satisfaction
• reduced direct marketing costs
• more effective marketing
• lower customer acquisition/ retention costs
• increased sales revenue
• lower churn rate

Question 11

What are the challenges of implementing enterprise systems?

Answer 11

• difficult to implement
• extensive org. change & resources
• staff training
• large investments
• careful assessment
• cannot be built atop flawed processes
• a lot attention to data management

Question 12

What are the biggest positives of implementing enterprise systems?

Answer 12

• flexible, web-enabled & capable of integration with other systems (also cloud & mobile)
• social networking capabilities through CRM to enhance internal collaboration external communication
• analyzing large amounts of data intelligently

Question 13

Next-generation enterprise applications

Answer 13

• flexible enterprise solutions/ suites
• cloud-based versions
• functionality for mobile platform
• scalable versions for different corporate sizes
• social CRM (linking social networking info from customers to CRM processes)
• business intelligence (helping user make better business decisions)