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Chapter 7 & 8

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Cross-functional enterprise

systems

Systems that use new advanced methods and

focus on all aspects on a business including

relationship with the customers and suppliersand improving the efficiency and

effectiveness of the processes of the

company.

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Customer relationship management (CRM):Focuses on making relationships withcustomers who bring profit to the company.

Enterprise Resource Planning (ERP): Focuses onthe efficiency and effectiveness of a firms

production, distribution, and financialprocesses.

Supply chain management (SCM): Focuses ondeveloping the most efficient and effectiveprocesses with the suppliers for the productsand services a business needs.

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Enterprise Application Integration (EAI):

Software used by companies to connect their e-business applications.

Enterprise Collaboration Systems (ECS):

Software that focuses on communication

between employees.

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Customer relationship

management (CRM):

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3 phases of CRM

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Benefits of CRM 1- Allows a business to identify and target its best

customers. 2- Possible customization of products based on

customer needs and wants.

3- Keeps track of customer contacts.

Failures of CRM 1- Lack of understanding and preparation.

2- When new CRM is installed, management isnot trained or replaced.

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Functions and benefits

components of the ERP systems

Facilitates information flows

for supplier and customer

Supports basicinternal business

processes

An integrated

suite of software

modules

Enhance communication with

Stakeholders & Partners

ERP

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ERP components

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Quality and efficiency: ERP creates a system toimprove a companys internal processes whichresults in more effective customer service,

production, and distribution. Decreased costs: ERP systems have low costs for

hardware, software and IT support.

Enterprise agility: ERP breaks down somefunctional walls of business processes whichresults in a more open and more competitivebusiness

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43

12

15

15

15

Sales

Reengineering

Hardware

Software

Training and

Change

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The costs of hardware and software are a

small part of total costs, and the costs of

developing new business process(reengineering) and preparing the employees

for the new system (training and change

management) make up the biggest part ofthe total costs.

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The major failure is that managers

underestimate the complexity of the ERP

systems and the amount of help ERP couldprovide. They fail to train their employees on

how to use ERP and they fail.

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Supply Chain Management

(CRM)

It is a cross-functional inter enterprise that

uses information technology to connect and

link a companys key business processes andthose of its suppliers, customers, and

partners.

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Supply Chain life cycle

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Supply Chain benefits

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Enterprise Application

Integration (EAI)

Software used by companies to connect their

e-business applications.

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Enterprise Collaboration Systems

(ECS)

Software that focuses on communication

between employees.

Goals ( benefits ) :

1- Communicate

2- Coordinate

3- Collaborate

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ECS tools

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Functional enterprise systems

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Marketing

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Interactive marketing

Customer-focused marketing process that isbased on using internet, intranets, andextranets to establish two-way transactionsbetween business and customers.

Sales force Automation Software that assists sales people in sales,

such as phone calls sales representatives

applications.

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Manufacturing Information

Systems

They support the production/operations

function that include all activities concerned

with the planning and control of theprocesses producing goods and services.

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Computer-aided manufacturing

CIM

Information systems that aid industries inmanufacturing.

Benefits:1- Simplify production processes and productdesign.

2- Automate production processes with robotsand machines.

3- Integrate production processes usingnetworks and software.

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Human Resource Management

(HRM)

1- Designed to plan to meet the personnel

needs of the business.

2- Maintain personnel records.

3- Analyze the use of personnel in business

operations.

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HRM and the Internet

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Accounting Information Systems

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Financial management systems