Chapter 9: Enterprise Applications

Question 1

Enterprise software

Answer 1

is based on numerous integrated software modules and a common central database
- database collects data from and feeds the data into applications that support internal business activities

Question 2

Four major applications of enterprise applications

Answer 2

• Enterprise systems/enterprise resource planning systems (ERP)
• Supply chain management systems
• Customer relationship management systems
• knowledge management systems

Question 3

Business value of enterprise systems

Answer 3

• 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

Question 4

Enterprise systems are systems that

Answer 4

• span across functional areas and links the enterprise, including all management levels
• that support organisational centralisation by enforcing uniform data standards and business processes throughout the single unified platform of a company

Question 5

How enterprise systems work

Answer 5

Feature a set of integrated software modules and a central database by which business processes and functional areas throughout the enterprise can share data

Question 6

Supply chain management (SCM) systems

Answer 6

coordinate planning, production, and logistics with suppliers and
- automate information flow among members of the supply chain so they can make better decisions
- includes software for supply chain planning and supply chain execution
- makes supply chain leaner

Question 7

Types of SCM

Answer 7

• push-based model (build-to-stock) (old one): earlier SCM systems, schedules based on best guesses and demands
• pull-based model (demand-driven): contemporary, web-based, customer orders trigger events in supply chain

Question 8

Upstream supply chain

Answer 8

firm’s suppliers, suppliers’ suppliers, processes for managing relationship with them

Question 9

Downstream supply chain

Answer 9

organizations and processes responsible for delivering products to customers (distributor, retailer)

Question 10

The bullwhip effect

Answer 10

minor fluctuations in the demand can cause higher fluctuations and overstocking f.e.
- info of product demand gets distorted along the supply chain

Question 11

Global supply chain issues

Answer 11

• greater geographical distances
• greater time differences
• participants from different countries, thus different performance standards, different legal requirements
• internet helps manage global complexities (easier connection)

Question 12

Business value of SCM

Answer 12

• match supply to demand
• reduce inventory levels
• improve delivery service
• speed product time to market
• use assets more affectively
• increase sales

Question 13

Safety stocks

Answer 13

extra quantity of a product which is stored in the warehouse to prevent an out-of-stock situation

Question 14

Customer Relationship Management (CRM) systems

Answer 14

integrate and automate customer-facing processes in sales, marketing, and customer service, providing an enterprise-wide view of customers

Question 15

operational CRM

Answer 15

• customer facing applications (such as sales force automation, call center and customer service support, and marketing automation)

Question 16

analytical CRM

Answer 16

dealing with the analysis of customer data to provide insights for improving business performance

Question 17

business value of CRM

Answer 17

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

Question 18

Churn rate

Answer 18

• number of customers who stop using or purchasing products or services from a company
• indicator of growth or decline of firm’s customer base

Question 19

Enterprise applications challenges and opportunities

Answer 19

• expensive to purchase and implement
• technology changes
• business process changes
• organizational learning, changes
• switching costs, dependence on software vendors
• data standardisation, management, cleansing

Question 20

Enterprise solutions/suites (Next-gen enterprise applications)

Answer 20

• make applications more flexible, web-enabled, integrated with other systems
• cloud-based versions
• functionality for mobile platforms
• versions also available for small and medium-sized business

Question 21

social CRM (next-gen enterprise applications)

Answer 21

• incorporating social networking technologies
• company social networks
• monitor social media activity; social media analytics
• manage social and web-based campaigns

Question 22

Business intelligence (BI) (next-gen enterprise applications)

Answer 22

• inclusion of BI with enterprise applications
• application and technologies to help make better business decisions
• flexible reporting, ad-hoc analysis, what if scenarios, digital dashboards, data visualisation