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Chapter 7 & 8

Cross-functional enterprise systems


Systems that use new advanced methods and focus on all aspects on a business including relationship with the customers and suppliers and improving the efficiency and effectiveness of the processes of the company.

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

Enterprise Resource Planning (ERP): Focuses on the efficiency and effectiveness of a firms production, distribution, and financial processes.
Supply chain management (SCM): Focuses on developing the most efficient and effective processes with the suppliers for the products and services a business needs.

Enterprise Application Integration (EAI): Software used by companies to connect their ebusiness applications.

Enterprise Collaboration Systems (ECS): Software that focuses on communication between employees.

Customer relationship management (CRM):

3 phases 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.

Benefits of CRM

Failures of CRM
1- Lack of understanding and preparation. 2- When new CRM is installed, management is not trained or replaced.

Functions and benefits components of the ERP systems


Facilitates information flows for supplier and customer
Enhance communication with Stakeholders & Partners

ERP
Supports basic internal business processes An integrated suite of software modules

ERP components

Quality and efficiency: ERP creates a system to improve a companys internal processes which results 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 some functional walls of business processes which results in a more open and more competitive business

Sales
Reengineering 15 43 Hardware

15

Software 15 12 Training and Change Managment

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 of the total costs.

The major failure is that managers underestimate the complexity of the ERP systems and the amount of help ERP could provide. They fail to train their employees on how to use ERP and they fail.

Supply Chain Management (CRM)


It is a cross-functional inter enterprise that uses information technology to connect and link a companys key business processes and those of its suppliers, customers, and partners.

Supply Chain life cycle

Supply Chain benefits

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. Goals ( benefits ) : 1- Communicate 2- Coordinate 3- Collaborate

ECS tools

Functional enterprise systems

Marketing

Interactive marketing
Customer-focused marketing process that is based on using internet, intranets, and extranets to establish two-way transactions between business and customers.

Sales force Automation


Software that assists sales people in sales, such as phone calls sales representatives applications.

Manufacturing Information Systems


They support the production/operations function that include all activities concerned with the planning and control of the processes producing goods and services.

Computer-aided manufacturing CIM


Information systems that aid industries in manufacturing. Benefits: 1- Simplify production processes and product design. 2- Automate production processes with robots and machines. 3- Integrate production processes using networks and software.

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.

HRM and the Internet

Accounting Information Systems

Financial management systems

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