Achieving Operational Excellence and Customer Intimacy. Enterprise Applications

1. Name
No. Matric
Vashanntha A/P Murugiah
B061210117
Sanmugam A/L Marimuthu
B061210088
Priya A/P Selvaindran
B061210126
Tea Ann Wen
B061210140
Yew Woi Mei
B061210141

2.  Software
packages that support business
processes, information flows, and data
analytics across the organization

3.  Supply
Chain management
systems
 Customer relationship
management systems
 Knowledge management systems

4.  Software
that is designed for a
particular type of organization and
controls many aspect of its business
 IBM
 SAP
 Oracle Corporation
 Microsoft

5. Increase operational efficiency
o Help to make better decisions
o Help everyone does business in
the same way
o

6. 
Network of organizations and processes
for:
◦ Procuring raw materials
◦ Transforming them into products
◦ Distributing the products

Upstream supply chain:
◦ Firm’s suppliers, suppliers’ suppliers, processes for
managing relationships with them

Downstream supply chain:
◦ Organizations and processes responsible for delivering
products to customers

7. Figure 8-2
This figure illustrates the major entities in Nike’s supply chain and the flow of
information upstream and downstream to coordinate the activities involved in
buying, making, and moving a product. Shown here is a simplified supply chain,
with the upstream portion focusing only on the suppliers for sneakers and
sneaker soles.

8. Parts shortage
 Underutilized plant capacity
 Excessive finished goods
inventory
 high transportation costs


Waste up 25% of company’s
operating costs

9. 
Just-in-time strategy:
◦ Components arrive as they are needed
◦ Finished goods shipped after leaving assembly
line

Safety stock
◦ Buffer for lack of flexibility in supply chain

Bullwhip effect
◦ Information about product demand gets
distorted as it passes from one entity to next
across supply chain

10. Inaccurate information can cause minor fluctuations in
demand for a product to be amplified as one moves further
back in the supply chain. Minor fluctuations in retail sales for
a product can create excess inventory for distributors,
manufacturers, and suppliers.

11. 
Software to help business plan their
supply chains
Supply chain planning systems
• Model existing supply chain.
• Demand planning.
• Develop optimal sourcing and manufacturing plans.
• Establish inventory levels.
• Determining where to store finished goods
• Identify transportation modes.

12. •
Supply chain execution systems
• Manage flow of products through distribution centers and
warehouses.

Example: Warehouse Management
System(WMS)

13. Global supply chain
 interrelated organizations, resources, and
processes
 create and deliver products and services to
end customer.
 It is extended around the world.

14. Before Internet
Difficulties to make info flow
• Internal supply chain
– ERP (Enterprise resource planning)
• External supply chain
– Incompatible technology platform

15. Internet Technology
Intranet
- to improve coordination among internal supply
chain processes
Extranet
- to coordinate supply chain processes shared with
their business partners
Benefits
•
•
•
•
Instantly communication
Up-to-date info
Transportation
International finance

17.  Increase
sales and profits.
 Reduce dependence on their local and national
economies.
 Businesses expansion
 Diversified business and trading
 Lower supply chain costs
 Reduced cycle time
 Competitive advantage
 Enhance speed and efficiency

18.  Geopolitical
risk
 Climate change
 Increasing energy prices and volatility
caused by supply uncertainty
 Increasing dependence upon technology
 Reduction of buffer stock
 Concentration of risk through constant
drive to reduce cost and increase efficiency

19.  Additional
costs of offshore manufacturing
- Transportation
- Inventory
- The need for a larger buffer of safety stock
- Local taxes
- Fees
 Cultural difference

20. A demand driven supply chain
 transforming the traditional supply chain into an
integrated multi-tier supply network
 eliminating information latency and unnecessary
touchpoints
 reducing operating costs
 improving profitability and customer service.

22. Push-based model
- Build-to-stock
• Based on forecast
• Products are pushed to customers

Pull-based model
- Build-to-order
• Orders or purchases trigger events
» Transactions to produce and deliver only what
customers have ordered


23. 
Speed product time to market.

Use assets more effectively.

Reduced supply chain costs lead to increased
profitability.

Increase sales.

Streamline processes

More accurate information

Match supply to demand

Reduce inventory levels

Improve delivery service

Reduce cost

25. • Knowing the customer
• Customer relationship management (CRM)
systems
• Capture and integrate customer data from all
over the organization.
• Consolidate and analyze customer data.
• Distribute customer information to various
systems and customer touch points across
enterprise.
• Provide single enterprise view of customers.

27. 

Customer Relationship Management packages
range from niche tools to large-scale enterprise
applications.
More comprehensive have modules for:
 Partner relationship management
(PRM)
 Integrating lead generation, pricing,
promotions, order configurations, and
availability.
 Tools to assess partners’ performances.

28.  Employee relationship management (ERM)
E.g., setting objectives, employee
performance management, performancebased compensation, employee training.

29.  Customer
Relationship Management
packages typically include tools for:
Sales force automation (SFA)
E.g., sales prospect and contact information,
and sales quote generation capabilities.
Customer service
E.g., assigning and managing customer service
requests; Web-based self-service capabilities.
Marketing
E.g., capturing prospect and customer data,
scheduling and tracking direct-marketing
mailings or e-mail.

33. 
Operational CRM:
Customer-facing applications such as sales force
automation, call center and customer service support,
and marketing automation

Analytical CRM:
Analyzes customer data output from operational CRM
applications
Based on data warehouses populated by operational
CRM systems and customer touch points
Customer lifetime value (CLTV

35. 
Business benefits:
Increased customer satisfaction
Reduced direct-marketing costs
More effective marketing
Lower costs for customer acquisition/retention
Increased sales revenue

Churn rate:
Number of customers who stop using or
purchasing products or services from a company
Indicator of growth or decline of firm’s customer
base

36. Enterprise Applications: New Opportunities
and Challenges
Enterprise Application Challenges
• Highly expensive to purchase and implement enterprise
applications—total cost may be four to five times the price
of software
• Technology changes
• Business process changes
• Organizational changes
• Switching costs, dependence on software vendors
• Data standardization, management, cleansing

37. Extending Enterprise Software
• To bring greater value from enterprise
applications
• Enterprise solutions/suites: make
applications more flexible, Webenabled, integrated with other systems
• Service platform: integrates multiple
applications to deliver a seamless
experience for all parties
• Order-to-cash process
• Portal software

38. Order-to-Cash Service
Order-to-cash is a composite process that integrates data from individual
enterprise systems and legacy financial applications. The process must
be modeled and translated into a software system using application
integration tools.
Figure 8-12

39. Thank You