Mid Term Exam

Mid Term Exam

Chapters 1,3,4,5,6,10 & (additional readings)

Two parts:

Multiple choice (get scantron form 889 E available in book store)

Short cases

Ch 7

Electronic Business Systems

Learning Objectives

Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company:

a. Enterprise resource planning (ERP)

b. Customer relationship management (CRM)

c. Supply chain management (SCM)

d. Enterprise application integration (EAI)

e. Transaction processing systems (TPS)

f. Enterprise collaboration systems (ECS)

Learning Objectives

2. Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.

3. Understand the need for enterprise application integration to improve support of business interactions across multiple e-business applications.

Suppliers

Customers

Em

plo

yees

Par

tner

s

Supply Chain ManagementSourcing - Procurement

Enterprise Resource PlanningInternal Business Processes

Customer Relationship ManagementMarketing – Sales - Service

Kn

owle

dge

Man

agem

ent

Col

labo

rati

on –

Dec

isio

n S

uppo

rt

Par

tner

Rel

atio

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anag

emen

tSe

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Dis

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Enterprise Application ArchitectureEnterprise Application Architecture

Enterprise Business Systems

ProductionPlanning Integrated

Logistics

Accounting and FinanceHuman

Resources

Sales,Distribution,

OrderManagement

Customer/Employee

Enterprise Resource Planning

The Technological Backbone of The Technological Backbone of e-Businesse-Business

Su

pp

liers

Human ResourcesFinance and Accounting

DemandPlanning

Manufacturing Planning

LogisticsPlanning

DistributionPlanning

OrderEntry


Cu

stom

ers

Purchasing& Accounts

Payable

MRPInbound

InventoryPlant Mgmt.

Manufacturing& Production

Scheduling

InventoryControl &

Warehousing

Distribution& AccountsReceivable


The Business Value of ERPThe Business Value of ERP

Benefits of ERPBenefits of ERP• Quality and Efficiency

• Decreased Costs

• Decision Support

• Enterprise Agility

Failures in ERP Do ExistFailures in ERP Do Exist


Causes of ERP Failures Causes of ERP Failures

• Underestimating the Complexity of Planning, Development, and Training Needed

• Failure to Involve Affected Employees

• Trying to do Too Much Too Fast• Over Reliance by Company on

Claims of Software Companies


Supports an Integrated and Supports an Integrated and Collaborative Relationship Between Collaborative Relationship Between a Business and it’s Customersa Business and it’s Customers

CRM: The Business Focus

CustomerLife Cycle

CRMFunctionalSolutions

CRMIntegratedSolution

The Internet

Acquire Enhance Retain

Direct Marketing Cross-sell and Up-sell Proactive Service

Sales Force Automation Customer Support

CollaborativeService

SharedCustomer Data

Partner Company Customer

CRM Uses IT to Create a Cross-CRM Uses IT to Create a Cross-Functional Enterprise SystemFunctional Enterprise System


Marketing andFulfillment Customer

Service andSupport

Retentionand LoyaltyProgramsContact and

AccountManagement

Sales•Cross-Sell•Up-Sell

Prospect orEmployee

Fax e-Mail

Telephone Web

CRM: The Business FocusBenefits and Challenges of CRMBenefits and Challenges of CRM• Identify and Target the Best Customers• Customization and Personalization of

Products and Services• Track Customer Contacts

CRM FailuresCRM Failures• 50% of Applications Fail to Meet

Expectations• 20% of the Time CRM Damaged

Customer Relationships• Lack of Understanding and Preparation

is Blamed

Gevity HR and Monster.Com: Gevity HR and Monster.Com: Failures in CRM ImplementationFailures in CRM Implementation


• Employees Undercut the System Believing Their Jobs Threatened by CRM On-Line Customer Problem Solutions.

• Complex Installation Since it Touches So Many Legacy Systems

• Failures Lead to Loss of Customer Goodwill and Business and Negatively Affects Employees Also

SCM Software Helps Firms Reengineer and SCM Software Helps Firms Reengineer and Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes

Supply ChainLife Cycle

SCMFunctionalProcesses

SCMIntegratedSolution

Supplier Manufacturer CustomerRetailer

The Internet

CollaborativeFulfillment

SharedMarket Data

Commit Schedule Make Deliver

Strategic Sourcingand Procurement

Forecast and Demand Planning

Customer Order Fulfillment Service

Distribution Network and Warehouse Operations

Transportation and ShipmentManagement

ProductionLogistics

SCM: The Business Network


Supply Chain Management : aSupply Chain Management : a top strategic objective for many top strategic objective for many firms firms

• The Right Products• The Right Place• The Right Time• In the Proper Quantity• At an Acceptable Cost

Business Value GoalsRapid Demand Fulfillment

Collaborative SupplyChain Planning and

Execution

Customer Value GoalsGive customers what theywant, when and how theywant it, at the lowest cost

InterenterpriseCoordination of

Manufacturing andBusiness Process

EffectiveDistribution and

Channel Partnerships

Responsiveness andAccountabilityto Customers

Objectives of Supply Chain Objectives of Supply Chain ManagementManagement



Objective of SCM Efficiently Objective of SCM Efficiently Manages this Process by: Manages this Process by:

• Forecasting Demand• Controlling Inventory• Enhancing Business

Relationships• Receiving Feedback and Status

of Every Link of the Chain

Benefits and Challenges of Benefits and Challenges of SCMSCM


• Lack of Proper Planning

Knowledge, Tools, and Guidelines

• Inaccurate Demand Forecasts• Lack of Adequate

Collaboration• Software Itself Immature

SCMWhen supply chain relationships are reviewed for

streamlining, longtime supply chain partners may no longer be viable. Then the organization must decide between:– preserving a longstanding relationship with a supply

chain partner and sacrificing the benefits of a more rational process,

– or terminating a longtime relationship in favor of a more beneficial supply chain.

Discuss the pros and cons of this decision.– What criteria should an organization use in

determining the appropriate action with regard to longstanding supply chain partners?

Enterprise Application Integration

EAI Software Connects Major e-Business Applications Like CRM and ERPEAI Software Connects Major e-Business Applications Like CRM and ERP

Front-OfficeCRM ApplicationsCustomer Service

Field ServiceProduct Configuration

Sales Order Entry

Back-OfficeERP Applications

DistributionManufacturing

SchedulingFinance

EnterpriseApplicationIntegration

EAI

Functional Systems

HRM

CIM

SFA (sales force automation)

FMS (Financial Management Systems)

AIS (Accounting Information Systems)

TPS (transaction Processing Systems)

MIS and Transaction Processing MIS and Transaction Processing SystemsSystems

Management activity Management activity subsystemssubsystems

Transaction processing, operations

strategic

tactical

operational

STRATEGIC PLANNING

MANAGEMENT

CONTROL

OPERATIONAL

CONTROL

A comparisonA comparisonOperational control

Management control

Strategic planning

task decisionsresource allocation

and control decisions

objective and policy decisions

short-term, days to weeks

medium-term, 1-2 years

long-term, 5-10 years

internal data internal data external data

low uncertainty some uncertainty high uncertainty

low level of resourcesreasonable level of

resourceshigh level of resources

repetitive periodic unique

programmable semi-programmable heuristic

Transaction Processing SystemsTransaction Processing Systems

transactions

data capture

processing

reporting

updating

Data Capture (or Entry)Data Capture (or Entry)

• data transcription– source documents– turnaround documents

• data inscription– optically scanned– MICR

• on-line data entry– no source document

• EDI - Electronic Data Interchange

System flowcharting symbolsSystem flowcharting symbols

document or report

terminal keyboard

terminal display

DASD, disk

magnetic tapes

process, program

manual process

on-page connector

off-page connector

Transaction processing stepsTransaction processing steps1. Data Capture

2. Edit Transaction

3. Updating

4. Reporting

Batch TPSBatch TPStransaction

data entry

edit

errors

update

reports

detail

detail masterapplica-tion

On-line TPSOn-line TPS

reports

applica-tion

errors

master

log file

entry &process

Additional Readings

• ERP

• ERP

• SCM

• CRM

• EAI

http://www.darwinmag.com/read/040104/fsc.html

Mid Term Exam

Documents

Transcript of Mid Term Exam