管理信息系统（第7版）PPT+试题库 Ch08-7E.docx

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1、Essentials of Business Information Systems, 7ELaudon & LaudonLecture Files, Barbara J. EllestadChapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise ApplicationsOver the last decade businesses have come to realize how important it is to totally integrate business processes acr

2、oss the enterprise. Weve spoken about islands of information many times. In todays fast-paced world, managing information assets is more important than ever before. In this chapter well look at how important it is for information to be available in every nook and cranny in the enterprise.8.1 Enterpr

3、ise SystemsWeve look at enterprise resource planning systems in previous chapters and also discovered the importance of efficiently and effectively maintaining data that businesses can develop into useful information. As weve seen, it can be disastrous for an organization to have more than one set o

4、f data for customers, employees, and suppliers. The best idea is to have one database that supplies information where and when necessary across functional lines. Everyone from employees to managers, from customers to suppliers, would have the necessary tools to extract the data that they need and pr

5、esent it in the format that fits them best. Thats where enterprise systems come in.What are Enterprise Systems?Enterprise systems aim to correct the problem of firms not having integrated information. Also known as enterprise resource planning (ERP) systems, their main goal is to bridge the communic

6、ation gap among all departments and all users of information within a company. If production enters information about its processes, the data are available to accounting, sales, and human resources. If sales and marketing is planning a new advertising campaign, anyone anywhere within the organizatio

7、n will have access to that information. Enterprise systems truly allow a company to use information as a vital resource and enhance the bottom line.Data integration throughout the firm is the key. Consolidated data from divisions and departments throughout the business, including key business proces

8、ses, are immediately available to any authorized user.These companies investments succeeded because they first analyzed their business needs and goals, reengineered existing business processes to take advantage of the data they were capturing, and put technology in place thats both easy to use and s

9、upports the needs of users as well as the companys business objectives. And they havent forgotten that its the customer-facing employee who can make all the difference in whether or not a customer feels well served-and that no technology, however superior, can make up for that human touch.” (CIO Mag

10、azine, Feb 15, 2004)Many companies are overloaded with data about customers. Unfortunately, the companies dont have any useful information that can help them increase customer satisfaction and retention, thereby increasing revenues and profitability. The ability to turn raw data into useful informat

11、ion is where CRM systems shine. CRM systems can gather customer information from all corners of a business, consolidate the information and then provide it to the customer touch points. By offering a consolidated viewpoint of the customer to these touch points, a company can cater to the customer th

12、at offers the most profitability.Financial institutions are a prime example of how effective CRM systems can be to help identify the customers that offer the most “bang fbr the buck. Most of the larger banks offer more than just checking and savings accounts. They provide investment services, insura

13、nce policies, and loans. Its much cheaper for Wells Fargo bank for instance, to provide its current customers with all of these financial products, rather than trying to attract new customers for each of the product lines. Information gleaned from a CRM system can provide Wells Fargo with informatio

14、n about which customers are more likely to purchase these products and the sales force can target that market better.Focus on Organizations: IHOP Cooks Customer Data to Order (see p. 277 of the text) discusses how the well-known restaurateur used middleware to combine data from five different legacy

15、 systems into one consolidated viewpoint of its customers.CRM SoftwareCRM application software ranges in size and complexity making it possible for an organization to select the type of software it needs the most. Modules focusing on partner relationship management or employee relationship managemen

16、t can be integrated into the customer relationship management software at a later date.Partner relationship management systems are a reflection of internal customer relationship management systems but extend past the immediate borders of a firm to its selling partners. For instance, Levi Jeans doesn

17、t sell directly to its customer but rather through other retail outlets. How Levis partners cater to the customer directly affects its profitability. Therefore, Levi is very interested in sharing information about itscustomers with its partners to increase sales of its products. Using partner relati

18、onship management systems not only helps Levi but also its retailers.Employee relationship management modules associated with CRM focus more on how employees perform and interact with customers. These modules help a company manage Employee objectives Employee performance Performance-based compensati

19、on Employee trainingSome of the more common capabilities of CRM software are: Sales force automation: allows the sales force to focus on the most profitable customer. It also reduces the cost per sale for acquiring new customers and retaining old ones Customer service: gathers information from a var

20、iety of sources and makes it available across organizational functions so that data is input only once Marketing: Allows companies to engage in cross-selling, up-selling, and bundling through better analysis of customer dataFigure 8-9 shows how customer data feeds into these three functions.Figure 8

21、-9: CRM Software Capabilities.Operational and Analytical CRMIts important to understand the difference between the operational and analytical aspects of CRM systems. Operational CRM includes everything a company should provide those employees who interface directly or indirectly with the customer: t

22、he sales force, call centers, and support activities. Managers and decision makers would use the analytical CRM to help them improve business performance. The analytical CRM uses data from the operational CRM and provides managers with the opportunity to target smaller, specific customer groups or m

23、arket segmentation. Rather than trying to blanket a huge group of potential customers, many of whom are not interested, managers use the analytical CRM to focus their efforts on those customers who can offer the most profit at the least cost. Table 8.3 will help you differentiate between operational

24、 and analytical CRM examples.Operational CRMAnalytical CRMCampaign managementE-marketingAccount and contact managementLead managementTelemarketingTelesellingE-sellingField salesField service dispatchCustomer care and help deskDevelop customer segmentation strategiesDevelop customer profilesAnalyze c

25、ustomer profitabilityAnalyze product profitabilityIdentify cross-selling and up-selling opportunitiesSelect the best marketing, service, and sales channels for each customergroupIdentify trends in sales cycle length, win rate, and average deal sizeAnalyze service resolution timesr service levels bas

26、ed on communication channels, and service activity by product line and accountAnalyze leads generated and conversion ratesAnalyze sales representative and customer service representative productivityExamples of Operational Versus Analytical CRMOne of the most important benefits of analytical CRM is

27、the ability to determine the customer lifetime value (CLTV). The text mention that it costs six times more to gain a new customer than to keep an old one. By measuring the CLTV of customers, organizations can calculate customer profitability and determine which customers they should cater to.Busines

28、s Value of Customer Relationship Management SystemsAs the old saying goes, Wee wasting half of our advertising budget; we just dont know which half.” CRM software will help managers better understand their customers thereby helping them make better decisions about product lines and marketing campaig

29、ns. CRM systems can also help reduce the customer churn rate and identify which customers are most profitable. Hopefully CRM will help them discover which half of the ad budget is wasted.Once again, the benefits of using CRM systems are worth the challenges youll face.Benefits: Increased customer sa

30、tisfaction Reduced marketing costs More effective marketing Lower costs for customer acquisition and retention Increased sales revenue Better response to customer needsBottom Line: Customer relationship management systems allow a firm to focus all of their energy and attention to developing profitab

31、le customers and foregoing unprofitable ones. Useful information produced by CRM systems allow firms to improve business performance while reducing costs associated with gaining and retaining customers. Information can be shared internally and externally.8.4 Enterprise Applications: New Opportunitie

32、s and ChallengesBefore implementing enterprise application systems, organizations need a very clear picture of where they are now and where they want to go. Organizations must decide which processes provide the most value and which processes need the most improvement. And, the firm must allocate the

33、 organization resources where they are most needed.Challenges and OpportunitiesThe return on investment to companies that implement enterprise systems can be enormous in terms of enhanced information between suppliers, employees, customers, and business partners. The better the information is, the b

34、etter the decisions. The better the information is, the better the products and services are for the customer. The more customers there are, the higher profits for the company.Hang on for a rough ride: Daunting Implementation: technological and fundamental changes will pervade every corner of the or

35、ganization. The organizational structure and culture will change. The most daunting task will be retraining thousands of workers and convincing them the change is good. It will be easier to fail than to succeed. High Up-Front Costs and Future Benefits: There is no such thing as an overnight success

36、when implementing an enterprise system. On average, it takes three to five years to fully implement an enterprise system. Keeping the firm on track and focused on the end result is more difficult than most firms comprehend. Data Management: Its more important than ever before. Now that one database

37、serves the entire organization, if data are mismanaged, it will affect the every business function and process. Inflexibility: Make a change in one area of the business is much more difficult after implementing an enterprise system. The software is just too complex to easily change. Realizing Strate

38、gic Value: Businesses that rely on unique or cutting-edge processes to gain a competitive advantage will lose that edge with enterprise system software. Enterprise systems are not the answer for every firm.Extending Enterprise SoftwareAs companies get more comfortable with supply chain management an

39、d customer relationship management programs they realize the importance of branching out to enterprise solutions, enterprise suites, or e-business suites. Software manufacturers are creating these programs and ensuring firms can integrate more easily with customers, suppliers, and business partners.

40、Bottom Line: All of the challenges of implementing a new enterprise system are directly related to people. Many organizations fail to understand this fact and pay more attention to the hardware and software elements of the new system. The real emphasis should be placed on the persware element of the

41、 new system instead.The greatest enticement of enterprise systems is the chance to cut costs firm-wide and enhance the ability to pass information throughout the organization. Take the success of Oracle Corporation as an example. The company now has an enterprise-wide system for managing customer co

42、ntacts. Previously, the salesforce used a network that was different from the fulfillment and shipping network. By unifying these networks, salespeople dont have to duplicate the efforts of others in the organization, and thereby save time and money. At the beginning of the year, the company said th

43、at it expected the changeover to save $1.2 billion over the next four quarters. Just three months later, Chief Financial Officer Jeff Henley told analysts that Oracle will save nearly twice that by year-end. (BusinessWeek, April 6, 2000)How Enterprise Systems WorkMany businesses assume that their op

44、erations are totally integrated across functional lines. After all, Manufacturing responds to an order from Sales and produces a product for which Accounting and Finance sends an invoice. A Production manager sends an email to the Human Resources Department requesting five new employees. When the Ma

45、rketing department decides on a new advertising campaign, a copy of the brochure is included in all employees pay envelope at the end of the month. Once a week all department managers meet with the executive staff and review statistics from last months business.Whats the problem? Many times, departm

46、ents will fail to fully communicate with all the other departments about every process that is taking place in a company. They dont do it on purpose but forget how important total communication about every process and every piece of data is. Sales sends an order to Manufacturing with a shipment date

47、 that cant possibly be met. Accounting and Finance bills for supplies that Production never order. Human Resources holds a training class that interferes with a rush production job.Whats the solution? Enterprise software allows every functional area to share every process and every piece of data. A

48、business can select specific processes in specific areas but eventually everything the company does will be shared across all lines. The software uses predefined processes and requires the company to adapt itself to the software. While many companies may balk at having to change, the software is des

49、igned around the best practices for that particular function. The company can benefit from using the most successful solutions in a particular industry to help achieve its objectives. The software helps the organization automate many of the steps in the best practices instead of having to do everything manually. And best of all, the software will help employees remember all o