Disc 112 Chapter 9 Notes

Enterprise systems: Enterprise systems are large-scale software packages that are able to
track and control all of the complex operations of a business. These systems are used as a
central command hub to help automate the business and make reporting and decision making
easier.
Pros.
1. Increases operational efficiency.
2. Providing firmwide info for better decisions
3. Helps firm rapidly respond to order/query from client.
4. Includes analytical tools to use data.

Supply chain: a network of organisation and business processes for procuring raw
materials/transforming them to intermediaries or end products/ distributing to final customer.
Upstream portion of supply chain includes company supplier and their supplier.
Downstream portion of supply chain consist of organisation and processes for delivering to
customers.
Supply chain inefficiencies waste as much as 25% of a company operating cost.
Just in time strategy: Just-in-time, or JIT, is an inventory management method in which
goods are received from suppliers only as they are needed./ safety stocks act as buffers.
Bull whip affect: distortion in numbers is magnified.
Demand planning: determines how much of a product a business needs to make to satisfy all
customer demands.

Supply chain Management Systems/SCM: manages the flow of products through distribution
centres and warehouses to ensure that products are delivered to customer at the right location
in an efficient manner.
Global Supply Chain issues:
1. Time zone
2. Govt Regulation/cultural differences
Push Vs Pull Method:
Push Method: production master schedules are based on forecasts and best guesses on
demands of product.
Pull Method: demand driven/actual order trigger event in supply chain
Business value of SCM Systems:
1. Match supply to demand.
2. Reduce inventory levels.
3. Improve delivery service.
4. Speed product line to market
5. Use assets effectively.
6. Increased sales

Customer Relations management/CRM: capture and integrate customer data from all over
the organisation/consolidate/analyse and distribute the results to various touch points across
enterprise. /Need software for Sales/Marketing/customer service
Touch Point: method of interaction with customers.
Partner Relationship Management/PRM: uses data/tools/systems to enhance collaboration
between a company and its selling partners.
Employee relationship Management: deals with employee issues/setting
objective/incentives/employee performance/training and workshops
How CRM helps Sales/marketing/customer service
Sales Marketing Customer Service
Provide sales force Capture prospect customer Increase call centre/helpdesk
automation data efficiency
Increasing productivity by Provide product/service info More calls/less duration
focusing on promising
clients.
Assemble past info and Quality leads for targeted Reduce transaction time
make personalised marketing
customisation.
Reduce cost for acquiring Identify
and retaining customers. profitable/unprofitable client
Identify opportunity for
cross selling.

Cross Selling: marketing of complementary products to client.

Customer Loyalty Deep:

Operational CRM: includes customer facing applications such as tools/call centres/customer

service support/marketing automation.
Analytical CRM: based on data from operational CRM/customer touch point/data
mining/data analysis techniques.
Customer lifetime Value/CLTV: relationship between revenue produced by a specific
customer/expense occurred in acquiring and expected life of relationship between customer
and company.
Benefits of CRM Systems.
1. Increased customer satisfaction
2. Reduced direct marketing cost.
3. Effective Marketing
4. Lower customer retention cost
5. Reduced customer churn/who stopped using product or services.
Enterprise Application Challenge:
1. Expensive to purchase and implement.
2. Change the way business operates.
3. Dependency on vendors
Enterprise suites: E businesses that combine CRM/SCM/ERP.