Date post: | 29-Mar-2015 |
Category: |
Documents |
Upload: | angel-gorrell |
View: | 212 times |
Download: | 0 times |
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-1
INTRODUCTION
Important IT applications businesses are using today Supply chain management (SCM) Customer relationship management (CRM) Business intelligence (BI) Integrated collaboration environments (ICE)
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-2
SUPPLY CHAIN MANAGEMENT
Distribution chain – the path followed from the originator of a product/service to the end consumer
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-3
What are Supply Chain Management Systems?
Supply chain management (SCM) - tracks inventory and information among business processes and across companies
Supply chain management (SCM) system - an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-4
What are Supply Chain Management Systems?
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-5
What are Supply Chain Management Systems?
Just-in-time - an approach that produces or delivers a product or service just at the time the customer wants it
Logistics - the set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-6
Strategic and Competitive Opportunities with SCM
A well-designed supply chain management system helps by optimizing: Fulfillment Logistics Production Revenue and profit Spend
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-7
Strategic and Competitive Opportunities with SCM
Collaborative planning, forecasting, and replenishment (CPFR) - a concept that encourages and facilitates collaborative processes between supply chain partners
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-8
Challenges to Success with Supply Chain Management
Executives must recognize its importanceWork closely with customers and suppliers Your IT systems and the IT systems of your customers
and suppliers must be integratedYour SCM systems must continuously adapt to changing
conditions
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-9
IT Support for Supply Chain Management
Specialized SCM software and ERP software suitesApplication service provider (ASP) - supplies software
applications (and often related services) over the Internet that would otherwise reside on its customers’ in-house computers.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-10
IT Support for Supply Chain Management
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-11
CUSTOMER RELATIONSHIP MANAGEMENT
Two success stories with customer relationship management Wells Fargo Bank sells four additional banking products to
customers compared with an industry average of 2.2 The American Cancer Society is better able to target large
donors
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-12
What are Customer Relationship Management Systems?
Customer relationship management (CRM) system - uses information about customers to gain insights into needs, wants, and behaviors in order to serve them better
Sales force automation (SFA) system - automatically tracks all the steps in the sales process
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-13
What are Customer Relationship Management Systems?
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-14
Strategic and Competitive Opportunities with CRM
More effective marketing campaigns based on customer needs and wants
Assuring the sales force is efficiently managedProviding superior after-sale service and support
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-15
Strategic and Competitive Opportunities with CRM
Revenue Enhancers Increase sales effectiveness Improve customer retention Increase revenue per customer Offer new products/services
Cost Cutters Decrease cost of sales Decrease cost of service Cost per service interaction Transition to more self-service
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-16
Challenges to Success with Customer Relationship Management
More than 50 percent of CRM installations are seen as failures
Why many CRM installations are less than successful The company’s goals are too broad The company’s strategies are too generic Implementations are often too software-centric
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-17
IT Support for Customer Relationship Management
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-18
IT Support for Customer Relationship Management
Front office systems – the primary interface to customers and sales channels
Back office systems - used to fulfill and support customer orders
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-19
IT Support for Customer Relationship Management
CRM software providers (e.g. Clarify, Oracle, SAP, Siebel Systems)
SFA software providers (e.g. Clarify, Siebel, Salesforce.com, Vantive)
Salesforce.com was the first to use an ASP model and others have followed
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-20
BUSINESS INTELLIGENCE
How FiberMark benefits from business intelligence (BI) They used to print 1,000 page reports for each salesperson Now salespeople get the information they want from
FiberMark’s intranet FiberMark’s BI system paid for itself in 9 months
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-21
What are Business Intelligence Systems?
Business intelligence (BI) – knowledge about your customers, your competitors, your business partners, your competitive environment, and your own internal operations – that gives you the ability to make effective, important, and often strategic business decisions.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-22
What are Business Intelligence Systems?
Business intelligence (BI) systems – the IT applications and tools that support the business intelligence function within an organization
Competitive intelligence - business intelligence focused on the external competitive environment
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-23
What are Business Intelligence Systems?
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-24
What are Business Intelligence Systems?
The objective of BI is to help knowledge workers understand Capabilities available in the firm State of the art, trends, and future directions in the market Technological, demographic, economic, political, social, and
regulatory trends Actions of competitors
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-25
What are Business Intelligence Systems?
Data warehouse – a logical collection of information - gathered from many different operational databases – used to create business intelligence that supports business analysis activities and decision-making tasks
Data mart - a subset of the data warehouse in which only a focused portion of the data warehouse information is kept
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-26
What are Business Intelligence Systems?
Other technical components of business intelligence include such tools as Data mining Automatic exception detection with proactive alerting and
automatic recipient determination Automatic learning
Data-mining tool - a software tool you use to query information in a data warehouse
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-27
Strategic and Competitive Opportunities with BI
Strategic uses of business intelligence ranked in order of importance Corporate performance management Optimizing customer relations, monitoring business activity,
and traditional decision support Packaged stand-alone BI applications for specific operations
or strategies Management reporting of business intelligence
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-28
Strategic and Competitive Opportunities with BI
BI systems provide managers with Actionable information and knowledge At the right time At the right location In the right form
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-29
Strategic and Competitive Opportunities with BI
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-30
Challenges to Success with Business Intelligence
Deal with an important business issueProvide customized BI informationBuild discipline and precision in processesKnowledge workers must understand how to use BI tools
effectivelyUnderstand that BI systems are complex and continually
change
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-31
IT Support for Business Intelligence
There are many software companies in the BI field Digital dashboard - displays key information gathered
from several sources on a computer screen in a format tailored to the needs and wants of an individual knowledge worker
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-32
IT Support for Business Intelligence
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-33
INTEGRATED COLLABORATION ENVIRONMENTS
How Siemens benefits from an integrated collaboration environment Much of its work is done by virtual teams SiteScape’s Forum software lets teams share documents and
ideas Each team member can contribute freely from anywhere and
at any time
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-34
What are Integrated Collaboration Environments?
Integrated collaboration environment (ICE) - the environment in which virtual teams do their work
Virtual team - a team whose members are located in varied geographic locations and whose work is supported by specialized ICE software or by more basic collaboration systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-35
What are Integrated Collaboration Environments?
Collaboration system - software that is designed specifically to improve the performance of teams by supporting the sharing and flow of information
Alliance partner – a company your company does business with on a regular basis in a collaborative fashion, usually facilitated by IT systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-36
What are Integrated Collaboration Environments?
Workflow - defines all of the steps or business rules, from beginning to end, required for a business process
Workflow system - facilitates the automation and management of business processes
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-37
What are Integrated Collaboration Environments?
Document management system - manages a document through all the stages of its processing
Knowledge management (KM) system – an IT system that supports the capturing, organization, and dissemination of knowledge (i.e., know-how) throughout an organization
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-38
What are Integrated Collaboration Environments?
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-39
What are Integrated Collaboration Environments?
Social network system - an IT system that links you to people you know and, from there, to people your contacts know Build your network Find the people you need Make a trusted contact
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-40
Strategic and Competitive Opportunities with ICEs
The payoffs can be hugeThe oil and gas exploration industry could save an
estimated $7 billion“If only HP knew what HP knows”
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-41
Challenges to Success with ICEs
Acceptance of knowledge management systems has been particularly difficult People don’t submit their knowledge to the knowledge
repository People are reluctant to share what they know with others People say they don’t have the time to submit information. IT
can help with techniques to capture knowledge automatically
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-42
IT Support for Integrated Collaboration Environments
Collaboration softwareWorkflow systemsDocument management systemsPeer-to-peer collaboration softwareKnowledge management (KM) systemsSocial network systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-43
IT Support for Integrated Collaboration Environments
Presence awareness - a software function which determines whether a user is immediately reachable or is in a less-available status
Peer-to-peer collaboration software - permits users to communicate in real time and share files without going through a central server
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-44
A VIEW OF THE INTEGRATED ENTERPRISE
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-45
Airline Reservation Systems
SABRE and APOLLO were very profitable for American and United
American and United had access to BI on their own as well as on their competitors’ flights
Competitors had to wait to get BI and also had to pay for it
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-46
Frequent Flyer Programs
Frequent flyer programs are a great example of CRMAir travelers concentrate their travel with a single airline
to get “perks” Finnair is using BI to increase loyaltyMost information needed for frequent flyer programs is
obtained from reservation systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-47
Airline Maintenance Systems
Airlines use SCM systems to be sure maintenance parts are available when needed
Integrating SCM and BI helps airlines predict where and when spare parts will be needed
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-48
Yield Management Systems
Yield management system - specialized kind of decision support system designed to maximize the amount of revenue an airline generates on each flight
Fares change over time for a specific flight based on number of seats sold
Objective: highest average cost per seat
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-49
Yield Management Systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-50
Integrated Collaboration Environments
Many airlines are global businesses with employees located all over the world
Airline employees often work in virtual teamsICEs let them avoid travel even though it’s freeICEs are an interesting competitive threat to airlines
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-51
CAN YOU…
1. Describe SCM systems, their competitive advantages, challenges to their use, and IT support
2. Describe CRM systems, their competitive advantages, challenges to their use, and IT support
3. Describe BI systems, their competitive advantages, challenges to their use, and IT support
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
2-52
CAN YOU…
4. Describe ICE systems, their competitive advantages, challenges to their use, and IT support
5. Describe how individual systems work together to give airline companies a competitive advantage
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
Problems with E-tailing and Lessons Learned
Don’t ignore profitabilityManage new risk exposureWatch the cost of brandingDo not start with insufficient fundsThe Web site must be effectiveKeep it interesting
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
Issues in E-Tailing
disintermediation
The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain
reintermediation
The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
Exhibit 3.12 Disintermediation and Reintermediation
in the B2C Supply Chain
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/ Irwin
Issues in E-Tailing
cybermediation (electronic intermediation)
The use of software (intelligent) agents to facilitate intermediation
hypermediation
Extensive use of both human and electronic intermediation to provide assistance in all phases of an e-commerce venture