Enterprise Applications for Operational Excellence

Enterprise Systems Overview

• Integrated software modules and a central database enable data sharing across various business processes and functions.
• Key functions include personnel administration, payroll, manufacturing, production, purchasing, shipping, and sales/marketing tasks like order processing and billing.
• Firms map business processes to software processes and configure software using customization tables.

Business Value of Enterprise Systems

• Enhance operational efficiency, providing comprehensive information for decision-making.
• Facilitate rapid responses to customer inquiries and product requests.
• Incorporate analytical tools to assess organizational performance.

Supply Chain Management Systems

• Supply chains consist of networks for procuring raw materials, transforming them into products, and distributing them.
• Upstream supply chain involves suppliers and their suppliers, managing relationships.
• Downstream supply chain focuses on the delivery of products to customers.
• Example depicted: Nike's supply chain illustrates information flow for product coordination.

Customer Relationship Management (CRM) Systems

• Operational CRM covers customer-facing applications like sales force automation and marketing automation.
• Analytical CRM examines and analyzes data from operational CRM outputs using data warehouses.
• Customer lifetime value (CLTV) is a core metric examined by CRM systems.

CRM Business Value

• Increases customer satisfaction and reduces direct marketing costs.
• Enhances marketing effectiveness with lower customer acquisition and retention costs.
• Boosts sales revenue and reduces customer churn rates.

CRM Software Features

• Ranges from specialized tools to large-scale enterprise applications with comprehensive modules.
• Partner Relationship Management (PRM) focuses on lead generation and partner performance evaluation.
• Employee Relationship Management (ERM) helps with performance management and training.

Cannondale Case Study

• Highlights the management of global supply chains amidst changing product lines and international suppliers.
• Transitioned to Kinaxis on-demand Rapid Response service for real-time information sharing and faster customer response.
• Demonstrates the necessity for enterprise-wide systems for supply chain coordination.

Enterprise Applications Challenges and Opportunities

• High implementation costs ranging from $3.5 million to over $12 million.
• Necessitates technological, business process, and organizational changes with potential high switching costs.
• Focus on data standardization, management, and cleansing.

Evolution of Enterprise Applications

• Next-gen applications aim for increased flexibility, web enablement, and better integration with other systems.
• Emphasis on enterprise suites to facilitate CRM, SCM, and enterprise systems compatibility with client systems.
• Incorporates web services, service-oriented architecture (SOA), mobile compatibility, and analytics features.

Cloud-Based Enterprise Applications

• Companies most likely to adopt cloud-based ERP and CRM services are those seeking scalability and flexibility.
• Industries with less stringent data security requirements may find cloud solutions well-suited.
• Advantages include reduced infrastructure costs and easy access, while disadvantages might include security concerns and vendor dependency.

Learn how enterprise applications are used to achieve operational excellence and customer intimacy. This quiz covers the use of enterprise applications in managing global supply chains, including the Cannondale case study.