Enterprise Applications Chapter 10

Chapter 10: Enterprise Applications and Business Process Integration

• Chapter objectives include understanding how enterprise systems provide value for businesses, how supply chain management systems work, customer relationship management systems' value and challenges, using enterprise applications in cross-functional services, and implementing enterprise applications.
• Chapter 10, Management Challenges cover: thinking beyond corporate walls and obtaining value from enterprise applications.
• Enterprise software consists of integrated modules for finance, accounting, human resources, manufacturing, and sales/marketing. Data is used by multiple functions and business processes.
• Enterprise system architecture diagrams the centralized database connecting finance & accounting (like cash and credit), sales & marketing (orders, forecasting), manufacturing & production (materials, schedules), and human resources (hours worked, skills) functions.
• A process map for procuring new equipment outlines value potentials for cost control, workflow enhancement, maintenance expense reductions, asset management accuracy, and response time improvements. Key elements include maintenance engineers, material managers, asset accountants, and automatic data comparisons to streamline the process.
• Best practices are the most successful problem-solving methods for achieving business goals effectively.
• Benefits of Enterprise Systems include firm structure and organization (one organization), and management (firmwide knowledge-based management processes). Other benefits include technology (unified platform), and business aspects (more efficient operations and customer-driven business processes).
• Enterprise system challenges consist of daunting implementation, high up-front costs and future benefits, inflexibility, and realizing strategic value.
• Supply chain processes include planning (balancing aggregate demand and supply), sourcing (procuring goods and services), making (transforming products), delivering (meeting demand), and returning (handling returns). Key supply chain management processes (Plan, Make, Deliver, Return) are outlined in a figure, showing responsibilities of each aspect.
• Logistics involves planning and controlling factors impacting product/service transportation. Just-in-Time scheduling minimizes inventory by having components arrive when needed, and finished goods shipped as they leave assembly. The bullwhip effect describes the distortion of demand information as it moves through a supply chain.
• Key supply chain management applications are outlined, including supply chain planning (demand forecasting and planning), demand planning (determining product needs to satisfy demands), and supply chain execution (managing product flow).
• Supply chain management applications also include supply chain strategy (functional products and innovative products), and supply chain performance measurement (defining metrics).
• Internet-driven supply chains use intranets (internal supply chain coordination) and extranets (external partner coordination).
• Customer relationship management (CRM) helps firms maximize customer assets; partner relationship management (PRM) automates firm relationships with partners using customer data.
• Customer data comes from touch points (phone calls, emails, etc.), advertising and marketing, sales and purchase data, account data, service and support records, and legacy data, as well as from external sources (lists, demographics, psychographics).
• CRM applications include modules for partner relationship management (PRM) and employee relationship management (ERM).
• Customer relationship management applications cover cross-selling (complimentary products), up-selling (higher-value products), and bundling (combining products at reduced pricing).
• Operational CRM deals with customer-facing applications (sales, call center, service); analytical CRM analyzes customer data for business improvement. Metrics for CRM include cost per lead, sales closing rate, cost per sale, customer satisfaction, number/percentage of problems, lead generation rate, conversion rate, and churn reduction.
• Customer Lifetime Value (CLTV) measures the difference between a customer's revenues and expenses throughout their relationship.
• Canadian firm success with CRM offers insights into the associated management and organizational factors.
• Enterprise integration trends include extensions of enterprise software for customer relationship management, supply chain management, decision support and enterprise portals. These are often Web-enabled.
• Service platforms and business process management integrate applications for a seamless experience. Business process management addresses business processes as fundamental info system building blocks. Enterprise portals are Web interfaces for accessing information and services.
• A case study covers PepsiCo and its value chain, competitive forces, integration methods, delivery system changes, and enterprise system implementation challenges.

Explore the intricacies of enterprise applications in this quiz based on Chapter 10. Understand the integration of business processes, the value of various management systems, and the architecture of enterprise software. Test your knowledge on the essential components that facilitate cross-functional collaboration in organizations.