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Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications. Yousub Hwang PhD., College of Business Administration University of Seoul. What are Enterprise Systems?. Built around predefined business processes that reflect best practices

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Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

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  1. Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications YousubHwang PhD., College of Business Administration University of Seoul

  2. What are Enterprise Systems? • Built around predefined business processes that reflect best practices • Best practices come from two sources: consulting firms(KPMG, McKinsey, PWC, etc.) or enterprise software firms(SAP, Oracle, MS, etc.)

  3. Business Value of Enterprise Systems • Supporting managers to make better decisions • SAP ERP Human Capital Management (HCM) Demo • Increasing operational efficiency • LG Electronic Builds Global Single Instance (GSI) ERP

  4. Supply Chain Management • A supply chain is a network of material and information that flows between suppliers, manufacturers, distributors and customers.

  5. Nike’s Supply Chain Figure 9-2

  6. Figure 9-3 Bullwhip Effect

  7. Build-to-stock Build-to-order Push- Vs. Pull-based supply chain model Figure 9-5

  8. Supply Chain Management Applications • To minimize bullwhip effect by reducing uncertainties about demand and supply • Two types of supply chain software • Supply chain planning systems • To generate demand forecast for a product and to develop manufacturing plans • Supply chain execution systems • To manage the flow of products through distribution centers

  9. Supply Chain Management and the Internet platform Figure 9-4

  10. Business Value of Supply Chain Management Systems Match supply to demand Reduce inventory levels Improve delivery service Use assets more effectively Reducing supply chain costs  higher profitability

  11. Customer Relationship Management • Companies need to know: • Exactly who customers are • How to contact them • What kinds of products they are interested in • How much money they spend on • Integrate customer data, analyze the data, and distribute the results through customer contact points (touch points)

  12. Customer Relationship Management Figure 9-7

  13. Customer Relationship Management Software • Sales Force Automation (SFA) • assists sales staff increase their productivity by focusing on the most profitable customers • based on the customer’s purchasing history, it generates personalized recommendations • Customer Service • Tools to increase the efficiency of customer service activitiesex) phone service or web site • Marketing • CRMs support marketing campaigns and marketing analytics • Operational and analytical CRM

  14. How CRM systems support marketing Figure 9-8

  15. Analytical CRM Data Warehouse Figure 9-11

  16. CRM Software Capabilities Figure 9-9

  17. Business Value of CRM Increasing customer satisfaction Reducing marketing costs More effective marketing Reducing customer acquisition and retention costs

  18. Enterprise application challenge • Enterprise applications are expensive in terms of implementation and maintenance! • Software, database and analytic tools, consulting fees, training • Relatively high switching cost(vender-dependant)

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