week 6 IMS

  • Created by: jmf00632
  • Created on: 04-01-20 13:49
how do firms achieve integration?
In order to achieve integration, firms implement enterprise systems
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what do enterprise systems provide?
Enterprise systems provide support and data access for a firm’s operation and business processes
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what is a business process?
A business process is an activity or set of activities that will accomplish a specific organizational goal
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what is enterprise resource planning? (ERP) (1)
Suite of integrated software modules and a common central databas
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what is enterprise resource planning? (ERP) (2)
Collects data from many divisions of firm for use in nearly all of firm’s internal business activities
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what is enterprise resource planning? (ERP) (2)
information entered in one process is immedialtey available for other processes
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An example of a enterprise resource plan (ERP) being used in Finance/accounting
General ledger, accounts payable, etc.
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An example of a enterprise resource plan (ERP) being used in human resources -
Personnel administration, payroll, etc.
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challenges associated with supply chain man
Increased Costs Throughout the Supply Chain. Supply Chain Complexity Due to Multiple Channels to Market. Consumer Demands Drive Need for Improved Speed, Quality and Service. Risk in the Supply Chain Creates Pressure. The Impact of Supply Chain Volati
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how supply chain man impacts business
• Effective risk pooling with less stocking points • High visibility of inventory • Dynamic pricing in accordance with inventory level and production capacity • More possibilities of customisation (“delayed differentiation”)
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another way.....
Real-time data for decision making
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the 2 characteristics of vertical integration
1. majority of manufacture in house. 2. distant relationships with suppliers
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Application of vertical integration
specalized or proprietary production (owner)
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characteristics of vertical disintergation (disaggregation)
1. move to outsourcing (from a contract) 2. network of suppliers
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application of vertical disintergation (disaggregation)
cost reduction and focus on core capabilities
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characteristics of vertical integration
-completely rely on linked third parties -close relationship with suppliers
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application of vertical integration
rapid market penetration (going into the market) (dot com approach)
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virtual integration (5)
• Reduced physical assets • Rely on knowledge and core competence • Decentralised units linked by communication techs • Flat and boundaryless • Mobile and global workforce
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1. dis of supply chain man
Inefficiencies cut into a company’s operating costs - can waste up to 25 percent of operating expenses
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2. dis of supply chain man
safety stock - oBuffer for lack of flexibility in supply chain
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3. dis of supply chain man
bullwhip effect - oInformation about product demand gets distorted as it passes from one entity to next across supply chain
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what is the bullwhip effect?
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, a
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oSupply chain planning systems allows.... (4)
▪Enable demand planning ▪Optimise sourcing, manufacturing plans ▪Establish inventory levels ▪Identify transportation modes
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what does Supply chain execution systems do/ allow?
Manage flow of products through distribution centers and warehouses
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how is global supply chain different to normal supply chain?
Global supply chains typically span greater geographic distances and time differences
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what are the issues with global supply chain?
• More complex pricing issues (local taxes, transportation, etc.) • Foreign government regulations
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how does the internet help companies manage global supply chain?
Sourcing, transportation, communications, international finance
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pursh vs pull based straegy
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Business Value of SCM (how supply chain man brings the business value) (6)
• Match supply to demand; reduce inventory levels • Improve delivery service • Speed product time to market • Use assets more effectively • Reduced supply chain costs lead to increased profitability • Increase sales
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what is customer relationship management (CRM)
Knowing the customer •In large businesses, too many customers and too many ways customers interact with firm.
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Customer relationship managment (crm) in sales:
telephone sales, web sales, retail store sales, feild sales
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customer reltationship man (crm) in service:
call centre data,web self service data, wirelss data, field data, social networking data
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what do crm systems do? (3)
oCapture and integrate customer data from all over the organisation oConsolidate and analyse customer data oProvide single enterprise view of customers
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customer loyalty man process map
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What is operational crm?
oCustomer-facing applications such as sales force automation, call center and customer service support, and marketing automation
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what is analytical crm?
Based on data warehouses populated by operational CRM systems and customer touch points - analuses customer data e.g. data mininig
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what is data mininig
the practice of examining large pre-existing databases in order to generate new information. - customer lifetime value (clv)
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how crm (customemr rel managment systems) value business? (4)
• Increased customer satisfaction • Reduced direct-marketing costs • Lower costs for customer acquisition/retention • Increased sales revenue and reduced churn rate
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what is a churn rate?
Churn rate: oIndicator of growth or decline of firm’s customer base. It is one of two primary factors that determine the steady-state level of customers a business will support.
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why move to erp (enterprise resource planning)
In late 2000 - Desire to outsource • Today - Requirement to be in Business oTop down push
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what are the benefits of erp (enterprise resource plannig) (4)
• Integrates business functional areas with one another • Makes management reporting and decision making faster and more uniform • Promotes thinking about corporate (as opposed to a single department) goals • Serves as the backbone for future expansi
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what are the costs of erp (enterprise resource plannig systems)
Depending on several factors: oThe size of the ERP software oThe need for new hardware o The amount of customisation o Consultants’ fees o Time for implementation oEmployee training
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enterprie application challenges
expensive to purchase impleent applications, required fundemental changes, tech changes, business process changes, org changes, could incur switiching costs depening on software vendors
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Enterprise Application Opportunities - social crm
o Incorporating social networking technologies o Company social networks o Monitor social media activity; social media analytics o Manage social and Web-based campaigns
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Enterprise Application Opportunities- business intelligence
o Inclusion of BI with enterprise applications o Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards, data visualisation
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to sum up: what does erp do?
ERP integrates business functional areas to assist systemic thinking
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what scm critical for?
SCM is critical for cost-reduction and valueadding in business operations
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Other cards in this set

Card 2


what do enterprise systems provide?


Enterprise systems provide support and data access for a firm’s operation and business processes

Card 3


what is a business process?


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Card 4


what is enterprise resource planning? (ERP) (1)


Preview of the front of card 4

Card 5


what is enterprise resource planning? (ERP) (2)


Preview of the front of card 5
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