1. Functional and Enterprise Systems
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Functional and Enterprise Systems

2. Customer Relationship Management
The philosophy that an organization should focus on the customer
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3. Reasons Why Companies Implement a CRM Strategy
Develop one view of the customer for more successful sales, marketing, and service
Improve customer satisfaction
Improve retention by rewarding loyalty
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4. Reasons Why Companies Implement a CRM Strategy
Increase up-selling and cross-selling of products and services
Target markets more accurately
Improve sales leads
Increase sales closing rates
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5. Reasons Why Companies Implement a CRM Strategy
Increase margin on goods and services
Increase revenue and profits
Respond to competitor’s implementation of CRM
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6. Customer Relationship Management
Sales Force Automation
Replaces manual systems of tracking leads, sales, service requests, and other sales-related information with computerized systems that use sophisticated database software and mobile computers
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7. Customer Relationship Management
Order Handling
Point-of-Sale System (POS)
Records the sale of a product or service and updates company records related to the sale
Order Entry Systems
Record and process the taking of an order
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8. Customer Relationship Management
Electronic Bill Presentment and Payment (EBPP)
Satisfies customers by reducing paperwork and mailing costs
Post-Sales Support
CRM support for call centers provides management of contact with customer
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9. Customer Relationship Management
Managing Distributors
Partner relationship management (PRM)
A philosophy of coordinating with distributors and other channel partners in the sale and distribution of a product or service
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10. Managing Design, Engineering, and Production
Computer-Aided Design (CAD)
Helps designers translate their mental images into physical drawings and specifications
Rapid prototyping can convert a CAD model into a solid physical model.
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11. Managing Design, Engineering, and Production
Computer-Aided Manufacturing (CAM)
The use of computers to control equipment in the manufacturing process
Flexible manufacturing provides multiple uses for computer-controlled machinery
Robots are computer-controlled machinery that exhibit human-like features
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12. Managing Design, Engineering, and Production
CAD/CAM
Integrates CAD and CAM software so that engineering drawings are processed in such a way that their output can be downloaded directly to manufacturing equipment to produce a final product
Automated Guided Vehicles (AGVs)
Computer-controlled vehicles improve manufacturing flexibility
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13. Managing Design, Engineering, and Production
Computer Integrated Manufacturing
The integration of product design, manufacturing planning, manufacturing execution, and shop floor control, as well as the integration of these production functions with the other functions of an organization
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14. Managing Design, Engineering, and Production
Figure 7-10
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15. Managing Design, Engineering, and Production
Mass Customization
The competitive advantage a company would have if it could produce the exact product that each customer wanted as cheaply and efficiently as if it were mass-produced
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16. Managing Design, Engineering, and Production
Figure 7-11
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17. Managing Supplier Relationships
Electronic Procurement
Automates processes relating to procurement
Qualifying
Bidding
Ordering
Receiving
Paying
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18. Managing Supplier Relationships
Just-in-Time Inventory
The practice of receiving supplies just as a company requires it, neither too early nor too late
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19. Managing Supplier Relationships
Vendor Managed Inventory (VMI)
A process in which a supplier manages the inventory in its customer’s facilities
Vendor improves knowledge of product demand and ability to time deliveries
Company usually doesn’t pay for product until it is sold
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20. Managing Warehousing and Transportation
Warehouse Management Systems
Support activities inside the warehouse and at its shipping and receiving docks
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21. Managing Warehousing and Transportation
Warehouse Management System Features
Receiving
Warehouse Management Systems help schedule pickup and deliveries to the warehouse
Shipping
Systems schedule outbound vehicles at docks
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22. Managing Warehousing and Transportation
Warehouse Management System Features
Picking
Systems support automated picking and conveyor systems
Storage
Systems help lay out the storage so that size and weight restrictions are observed and frequently used items are accessed most easily
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23. Managing Warehousing and Transportation
Warehouse Management System Features
Reporting
Warehouse management systems identify the number and value of items in stock
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24. Managing Warehousing and Transportation
Cross-docking systems
Load goods received at a distribution point immediately onto outgoing trucks without entering them into inventory
Auto-ID Systems
Tags merchandise with radio-frequency tags that can be tracked at a distance
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25. Support Systems Human Resource Management Systems
Streamline the processes relating to employee recruitment, development, retention, assessment, and compensation
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26. Support Systems Accounting Systems Accounts receivable
Accounts payable
General ledger
Budgeting, cash management, fixed asset accounting, investment tracking, and other functions
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27. Enterprise and Cross-Enterprise Systems
Enterprise Resource Planning (ERP) Software
Integrates all functional systems in a single package
Can be purchased in modules that address only specific functional needs
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28. Enterprise and Cross-Enterprise Systems
Enterprise Application Integration (EAI)
The process of integrating the functional systems of an organization
One solution is pair-wise matching of inputs and outputs among applications
Another solution is middleware, software that provides and manages inter-application interface
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29. Enterprise and Cross-Enterprise Systems
Figure 7-15
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30. Enterprise and Cross-Enterprise Systems
Supply Chain Management
The manner by which a company and its supply chain partners analyze, optimize, and control the acquisition and delivery of raw materials necessary for the creation of the goods and services that an organization produces
Requires cross-enterprise integration
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31. Functional and Enterprise Systems
End of
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Functional and Enterprise Systems