Mike's IT Test - CHAPTER 10 Extending the...

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CHAPTER 10 •Extending the Organization—Supply Chain Management BASICS OF SUPPLY CHAIN •The supply chain has three main links: 1.Materials flow from suppliers and their “upstream” suppliers at all levels 2.Transformation of materials into semifinished and finished products through the organization’s own production process 3.Distribution of products to customers and their “downstream” customers at all levels BASICS OF SUPPLY CHAIN •Organizations must embrace technologies that can effectively manage supply chains BASICS OF SUPPLY CHAIN INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN •Factors Driving SCM
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Visibility Supply chain visibility – the ability to view all areas up and down the supply chain Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain Speed •Three factors fostering speed SCM SUCCESS STORIES •Top reasons why more and more executives are turning to SCM to manage their extended enterprises CHAPTER 11 •Building a Customer-Centric Organization—Customer Relationship Management CUSTOMER RELATIONSHIP MANAGEMENT (CRM) •CRM enables an organization to: –Provide better customer service –Make call centers more efficient –Cross sell products more effectively –Help sales staff close deals faster –Simplify marketing and sales processes –Discover new customers –Increase customer revenues RECENCY, FREQUENCY, AND MONETARY VALUE •An organization can find its most valuable customers by using a formula that industry insiders call RFM: –How recently a customer purchased items (recency) –How frequently a customer purchases items (frequency) –How much a customer spends on each purchase (monetary value) CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH •CRM Business Drivers
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USING ANALYTICAL CRM TO ENHANCE DECISIONS Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers CHAPTER 12 •Integrating the Organization from End to End—Enterprise Resource Planning ENTERPRISE RESOURCE PLANNING (ERP) •At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system ENTERPRISE RESOURCE PLANNING (ERP) •ERP systems automate business processes ENTERPRISE RESOURCE PLANNING’S EXPLOSIVE GROWTH •SAP boasts 20,000 installations and 10 million users worldwide •ERP solutions are growing because: –ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses –ERP addresses the need for global information sharing and reporting –ERP is used to avoid the pain and expense of fixing legacy systems
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This note was uploaded on 12/12/2010 for the course ACCT 307 taught by Professor Murray during the Spring '10 term at Central Texas College.

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Mike's IT Test - CHAPTER 10 Extending the...

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