materi 11 enterprise business systems

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    Management Information

    System

    Dr. Hary Budiarto

    Materi 11Enterprise Business

    Systems

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    Customer RelationshipManagement (CRM)

    Definition: The use of information technology to

    create a cross-functional enterprise

    system that integrates and automates

    many of the customer-serving processes

    in sales, marketing, and customer servicesthat interact with a companys customers

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    CRM Application Clusters

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    CRM Application Components

    Contact and Account Management helpssales, marketing, and service professionals

    capture and track relevant data about every past

    and planned contact with prospects andcustomers, as well as other business and life

    cycle events of customers

    Sales provides sales reps with tools and

    company data sources needed to support and

    manage sales activities, and optimize cross-sellin and u -sellin

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    CRM Application Components

    Marketing Fulfillment help marketingprofessionals accomplish direct marketing

    campaigns by automating such tasks as

    qualifying leads for targeted marketing, andscheduling and tracking direct marketing

    mailings

    Customer Service and Support providesservice reps with software tools and real-time

    access to the common customer database

    shared by sales and marketing professionals

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    CRM Application Components

    Retention and Loyalty Programs help acompany identify, reward, and market to

    their most loyal and profitable customers

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    Three Phases of CRM

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    Three Phases of CRM

    Acquire new customers by doing a superior jobof contact management, sales prospecting,selling, direct marketing, and fulfillment

    Enhance relationship with customer bysupporting superior service from a responsivenetworked team of sales and service specialistsand business partners

    Retain and expand business with customers byproactively identifying and rewarding the mostloyal and profitable customers

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    Benefits of CRM

    CRM allows a business to identify andtarget their best customers so they can be

    retained as lifelong customers for greater

    and more profitable services.

    CRM makes possible real-time

    customization and personalization ofproducts and services based on customer

    wants, needs, buying habits, and life

    cycles.

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    Benefits of CRM

    CRM can keep track of when a customercontacts the company, regardless of the

    contact point.

    CRM systems can enable a company to

    provide a consistent customer experienceand superior service and support across

    all the contact points a customer chooses.

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    CRM Failures

    Lack of understanding and preparation

    Rely on CRM to solve business problem

    without first developing the businessprocess changes and changemanagement programs that are required

    CRM projects implemented without theparticipation of the business stakeholdersinvolved

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    Trends in CRM

    Operational

    Analytical

    Collaborative

    Portal-based

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    Operational CRM

    Supports customer interaction with greaterconvenience through a variety of

    channels.

    Synchronizes customer interactions

    consistently across all channels

    Makes your company easier to do

    business with

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    Analytical CRM

    Extracts in-depth customer history, preferences,and profitability information from your data

    warehouse and other databases

    Allows you to analyze, predict, and derivecustomer value and behavior and forecast

    demand

    Lets you approach your customers with relevantinformation and offers that are tailored to their

    needs

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    Collaborative CRM

    Enables easy collaboration withcustomers, suppliers, and partners

    Improves efficiency and integration

    throughout the supply chainAllows greater responsiveness to

    customer needs through sourcing of

    products and services outside of yourenterprise

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    Portal-based CRM

    Provides all users with the tools and informationthat fit their individual roles and preferences

    Empowers all employees to respond to customer

    demands more quickly and become trulycustomer-focused

    Provides the capability to instantly access, link,

    and use all internal and external customerinformation

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    Partner RelationshipManagement (PRM)

    Definition:Applications that apply many of the same

    tools used in CRM systems to enhance

    collaboration between a company and its

    business partners, such as distributors

    and dealers, to better coordinate and

    optimize sales and service to customers

    across all marketing channels

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    Enterprise Resource Planning(ERP)

    Definition:A cross-functional enterprise system

    driven by an integrated suite of software

    modules that supports the basic internal

    business processes of a company

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    ERP Application Components

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    ERP Process & InformationFlows

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    ERP Benefits

    Quality and Efficiency ERP creates aframework for integrating and improving a

    companys internal business processes

    that results in significant improvements inthe quality and efficiency of customer

    service, production, and distribution

    Decreased Costs Significant reductions

    in transaction processing costs and

    hardware, software, and IT support staff

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    ERP Benefits

    Decision Support Provides vital cross-functional information on business

    performance quickly to managers to

    significantly improve their ability to makebetter decisions in a timely manner

    Enterprise Agility ERP breaks down

    many former departmental and functional

    walls of business processes, information

    systems, and information resources

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    Costs of ERP

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    Causes of ERP Failures

    Business mangers and IT professionalsunderestimate the complexity of the planning,development, and training needed

    Failure to involve affected employees in theplanning and development phases

    Trying to do too much too fast in the conversionprocess

    Failure to do enough data conversion and

    testing

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    Trends in ERP

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    Supply Chain Management(SCM)

    Definition:A cross-functional interenterprise system

    that uses information technology to help

    support and manage the links betweensome of a companys key business

    processes and those of its suppliers,

    customers, and business partners

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    SCM Life Cycle

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    Electronic Data Interchange(EDI)

    Definition: Involves the electronic exchange of

    business transaction documents over the

    Internet and other networks betweensupply chain trading partners

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    EDI Activities

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    Role of SCM

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    SCM Planning Functions

    Supply Chain Design optimize networkof suppliers, plants, and distribution

    centers

    Collaborative Demand and Supply

    Planning develop an accurate forecast ofcustomer demand by sharing demand and

    supply forecasts instantaneously across

    multiple tiers

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    SCM Execution Functions

    Materials Management share accurateinventory and procurement order information,

    ensure materials required for production are

    available in the right place at the right time, and

    reduce raw material spending, procurement

    costs, safety stocks, and raw material and

    finished goods inventory

    Collaborative Manufacturing optimize plans

    and schedules while considering resource,

    material, and dependency constraints

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    SCM Execution Functions

    Collaborative Fulfillment commit to deliverydates in real time, fulfill orders from all channelson time with order management, transportationplanning, and vehicle scheduling, and supportthe entire logistics process, including picking,packing, shipping, and delivery in foreigncountries

    Supply Chain Event Management monitorevery stage of the supply chain process, fromprice quotation to the moment the customerreceives the product, and receive alerts when

    problems arise

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    SCM Execution Functions

    Supply Chain Performance Managementreport key measurements in the supply

    chain, such as filling rates, order cycle

    times, and capacity utilization

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    SCM Objectives

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    SCM Benefits

    Faster, more accurate order processing

    Reductions in inventory levels

    Quicker times to market

    Lower transaction and material costs

    Strategic relationship with suppliers

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    Causes of SCM Failures

    Lack of proper demand planning knowledge, tools andguidelines

    Inaccurate or overoptimistic demand forecasts

    Inaccurate production, inventory and other business dataprovided by a companys other information systems

    Lack of adequate collaboration among marketing,production, and inventory management departmentswithin a company

    Immature, incomplete or hard to implement SCMsoftware tools

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    Trends in SCM

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    Summary

    Customer relationship management is across-functional enterprise system that

    integrates and automates many of the

    customer-serving processes in sales,marketing, and customer services that

    interact with a companys customers.

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    Summary

    Enterprise resource planning is a cross-functional enterprise system that

    integrates and automates many of the

    internal business processes of a company,particularly those within the manufacturing,

    logistics, distribution, accounting, finance,

    and human resource functions of thebusiness.

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    Summary

    Supply chain management is a cross-functional inter-enterprise system that

    integrates and automates the network of

    business processes and relationshipsbetween a company and its suppliers,

    customers, distributors, and other

    business partners.