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Chapter 7 Functional and Enterprise Systems Chapter 7 Chapter 7 Functional and Enterprise Systems Chapter 7

Customer Relationship Management § Customer Relationship Management • The philosophy that an organization should Customer Relationship Management § Customer Relationship Management • The philosophy that an organization should focus on the customer Chapter 7 2

Reasons Why Companies Implement a CRM Strategy § Develop one view of the customer Reasons Why Companies Implement a CRM Strategy § Develop one view of the customer for more successful sales, marketing, and service § Improve customer satisfaction § Improve retention by rewarding loyalty Chapter 7 3

Reasons Why Companies Implement a CRM Strategy § Increase up-selling and crossselling of products Reasons Why Companies Implement a CRM Strategy § Increase up-selling and crossselling of products and services § Target markets more accurately § Improve sales leads § Increase sales closing rates Chapter 7 4

Reasons Why Companies Implement a CRM Strategy § Increase margin on goods and services Reasons Why Companies Implement a CRM Strategy § Increase margin on goods and services § Increase revenue and profits § Respond to competitor’s implementation of CRM Chapter 7 5

Customer Relationship Management § Sales Force Automation § Replaces manual systems of tracking leads, Customer Relationship Management § Sales Force Automation § Replaces manual systems of tracking leads, sales, service requests, and other sales-related information with computerized systems that use sophisticated database software and mobile computers Chapter 7 6

Customer Relationship Management § Order Handling § Point-of-Sale System (POS) § Records the sale Customer Relationship Management § Order Handling § Point-of-Sale System (POS) § Records the sale of a product or service and updates company records related to the sale § Order Entry Systems § Record and process the taking of an order Chapter 7 7

Customer Relationship Management § Electronic Bill Presentment and Payment (EBPP) § Satisfies customers by Customer Relationship Management § Electronic Bill Presentment and Payment (EBPP) § Satisfies customers by reducing paperwork and mailing costs § Post-Sales Support § CRM support for call centers provides management of contact with customer Chapter 7 8

Customer Relationship Management § Managing Distributors § Partner relationship management (PRM) § A philosophy Customer Relationship Management § Managing Distributors § Partner relationship management (PRM) § A philosophy of coordinating with distributors and other channel partners in the sale and distribution of a product or service Chapter 7 9

Managing Design, Engineering, and Production § Computer-Aided Design (CAD) • Helps designers translate their Managing Design, Engineering, and Production § Computer-Aided Design (CAD) • Helps designers translate their mental images into physical drawings and specifications • Rapid prototyping can convert a CAD model into a solid physical model. Chapter 7 10

Managing Design, Engineering, and Production § Computer-Aided Manufacturing (CAM) • The use of computers Managing Design, Engineering, and Production § Computer-Aided Manufacturing (CAM) • The use of computers to control equipment in the manufacturing process • Flexible manufacturing provides multiple uses for computer-controlled machinery • Robots are computer-controlled machinery that exhibit human-like features Chapter 7 11

Managing Design, Engineering, and Production § CAD/CAM • Integrates CAD and CAM software so Managing Design, Engineering, and Production § CAD/CAM • Integrates CAD and CAM software so that engineering drawings are processed in such a way that their output can be downloaded directly to manufacturing equipment to produce a final product § Automated Guided Vehicles (AGVs) • Computer-controlled vehicles improve manufacturing flexibility Chapter 7 12

Managing Design, Engineering, and Production § Computer Integrated Manufacturing • The integration of product Managing Design, Engineering, and Production § Computer Integrated Manufacturing • The integration of product design, manufacturing planning, manufacturing execution, and shop floor control, as well as the integration of these production functions with the other functions of an organization Chapter 7 13

Managing Design, Engineering, and Production Figure 7 -10 Chapter 7 14 Managing Design, Engineering, and Production Figure 7 -10 Chapter 7 14

Managing Design, Engineering, and Production § Mass Customization • The competitive advantage a company Managing Design, Engineering, and Production § Mass Customization • The competitive advantage a company would have if it could produce the exact product that each customer wanted as cheaply and efficiently as if it were massproduced Chapter 7 15

Managing Design, Engineering, and Production Figure 7 -11 Chapter 7 16 Managing Design, Engineering, and Production Figure 7 -11 Chapter 7 16

Managing Supplier Relationships § Electronic Procurement • Automates processes relating to procurement v. Qualifying Managing Supplier Relationships § Electronic Procurement • Automates processes relating to procurement v. Qualifying v. Bidding v. Ordering v. Receiving v. Paying Chapter 7 17

Managing Supplier Relationships § Just-in-Time Inventory • The practice of receiving supplies just as Managing Supplier Relationships § Just-in-Time Inventory • The practice of receiving supplies just as a company requires it, neither too early nor too late Chapter 7 18

Managing Supplier Relationships § Vendor Managed Inventory (VMI) • A process in which a Managing Supplier Relationships § Vendor Managed Inventory (VMI) • A process in which a supplier manages the inventory in its customer’s facilities • Vendor improves knowledge of product demand ability to time deliveries • Company usually doesn’t pay for product until it is sold Chapter 7 19

Managing Warehousing and Transportation § Warehouse Management Systems • Support activities inside the warehouse Managing Warehousing and Transportation § Warehouse Management Systems • Support activities inside the warehouse and at its shipping and receiving docks Chapter 7 20

Managing Warehousing and Transportation § Warehouse Management System Features • Receiving v. Warehouse Management Managing Warehousing and Transportation § Warehouse Management System Features • Receiving v. Warehouse Management Systems help schedule pickup and deliveries to the warehouse • Shipping v. Systems schedule outbound vehicles at docks Chapter 7 21

Managing Warehousing and Transportation § Warehouse Management System Features • Picking v. Systems support Managing Warehousing and Transportation § Warehouse Management System Features • Picking v. Systems support automated picking and conveyor systems • Storage v. Systems help lay out the storage so that size and weight restrictions are observed and frequently used items are accessed most easily Chapter 7 22

Managing Warehousing and Transportation § Warehouse Management System Features • Reporting v. Warehouse management Managing Warehousing and Transportation § Warehouse Management System Features • Reporting v. Warehouse management systems identify the number and value of items in stock Chapter 7 23

Managing Warehousing and Transportation § Cross-docking systems • Load goods received at a distribution Managing Warehousing and Transportation § Cross-docking systems • Load goods received at a distribution point immediately onto outgoing trucks without entering them into inventory § Auto-ID Systems • Tags merchandise with radio-frequency tags that can be tracked at a distance Chapter 7 24

Support Systems § Human Resource Management Systems • Streamline the processes relating to employee Support Systems § Human Resource Management Systems • Streamline the processes relating to employee recruitment, development, retention, assessment, and compensation Chapter 7 25

Support Systems § Accounting Systems • • Accounts receivable Accounts payable General ledger Budgeting, Support Systems § Accounting Systems • • Accounts receivable Accounts payable General ledger Budgeting, cash management, fixed asset accounting, investment tracking, and other functions Chapter 7 26

Enterprise and Cross-Enterprise Systems § Enterprise Resource Planning (ERP) Software • Integrates all functional Enterprise and Cross-Enterprise Systems § Enterprise Resource Planning (ERP) Software • Integrates all functional systems in a single package • Can be purchased in modules that address only specific functional needs Chapter 7 27

Enterprise and Cross-Enterprise Systems § Enterprise Application Integration (EAI) • The process of integrating Enterprise and Cross-Enterprise Systems § Enterprise Application Integration (EAI) • The process of integrating the functional systems of an organization • One solution is pair-wise matching of inputs and outputs among applications • Another solution is middleware, software that provides and manages interapplication interface Chapter 7 28

Enterprise and Cross-Enterprise Systems Figure 7 -15 Chapter 7 29 Enterprise and Cross-Enterprise Systems Figure 7 -15 Chapter 7 29

Enterprise and Cross-Enterprise Systems § Supply Chain Management • The manner by which a Enterprise and Cross-Enterprise Systems § Supply Chain Management • The manner by which a company and its supply chain partners analyze, optimize, and control the acquisition and delivery of raw materials necessary for the creation of the goods and services that an organization produces • Requires cross-enterprise integration Chapter 7 30

End of Chapter 7 Functional and Enterprise Systems Chapter 7 End of Chapter 7 Functional and Enterprise Systems Chapter 7