OMIS 3500 Exam 3

What does EPR system stand for?

Enterprise resource planning

What is an ERP System?

It collects data from many divisions of firm for use in nearly all of firm for use in nearly all of firm’s internal business activities. Information entered in one process is immediately available for other processes

ERP software is built around what?

thousands of predefined business processes that reflect best practices

ERP helps with what?

Finance and accounting, Human Resources, manufacturing and production, sales and marketing

What’s is the Value of ERP System?

Provide firm wide information to support decision making, enable rapid response to costumer requests for information or products, include analytical tools to evaluate overall organizational performance and improve decision marking

SCM Systems (The supply chain) is what?

Network of organization and processes for procuring materials, transforming materials into products, distributing the products

Safety Stock is?

Buffer for lack of flexibility in supply chain

Bullwhip effect is?

Information about product demand get distorted as it passes from one entity to next across supply chain

Supply chain planning systems…

Model existing supply chain, enable demand planning, optimize sourcing, manufacturing plans, establish inventory levels, identify transportation modes.

Supply chain execution systems

Manage flow of products through distribution centers and warehouses

What is the business value of SCM systems?

Match supply to demand, reduce inventory levels, improve delivery service, speed production time to market. Use assets more effectively, increase sales

How much does SCM Systems cost?

Total supply chain costs can be 75% of operating budget

What are the Global supply chain issues?

Geographical distances, time differences, participants from different countries

What are Issues with participants from different countries?

Different performance standards and different legal requirements

How can internet help with managing global complexities?

Warehouse management, transportation management, logistics, outsourcing

How is AI helpful with supply chain management?

AI is very useful for analyzing the proliferating amount of bug data generated by modern global supply chains to develop more accurate forecasts, reveal operational insights, improve efficiency of storage and transportation processes across vast logistics networks with multiple partners

What does CRM systems stand for?

Costumer relationship management system

What does CRM system do?

Captures integrates costumer data from all over the organization, consolidates and analyzes customer data, distributes costumer information to various systems and costumer touch points across enterprise, and provides a single enterprise view of customer

What does CRM system does for Sales?

Telephone sales, web sales, retail store sales, field sales

What does CRM system does for marketing?

Campaign data, content, and data analysis

What does CRM system does for service?

Call center data, web self service data, mobile data, Feild service data, social network data

CRM systems is…

A commercial CRM system software packages range from niche tools to large scale enterprise applications

What does SFA stand for?

Sales force automation

What does SFA do?

Sales prospects and contact information and sales quote generation capabilities

CRM systems help with costumer service by..

Assigning and managing customer service requests and web based self service capabilities

CRM systems help with marketing by..

Capturing prospect and costumer data, scheduling and tracking direct-marketing mailings or e-mail, cross selling

What is the business value of CRM system?

Increased costumer satisfaction, reduce direct marketing costs, more effective marketing, lower cost for customer acquisitions/retention, increased sales revenue

Churn rate is..

The number of customers who stop using or purchasing products or services from a company and an indicator of growth or decline of firm’s customer base

How does CRM and AI work together?

Machine learning, generative ai and other ai tech. Are being integrated into CRM systems to automate, enhance, and optimize processes. As well add enabling businesses to analyze vast amounts of customer data in real time

what can AI-Driven ERP system can do?

Can identify patterns in very large volumes of data.

E-Commerce

Digitally enabled commercial transactions between and among organizations and individuals. Like the use of the internet and the web, mobile apps, and browsers running on mobile devices to transact business .

when E-Commerce begun?

1995

What is an example AI and E-commerce?

eBay’s shop the Look replies on GenAI to provide users with a curated selection of outfits based on shopping histories

Ubiquity

Market space is virtual

Transaction cost reduced

Global reach

Transactions cross cultural and national boundaries

Universal Standards

Technical standards of the internet.

It can greatly lower market entry costs

What is the Market entry costs?

The costs merchant must pay simply to bring their goods to market

What are the unique features of E-Commerce?

Ubiquity, Global Reach, Universal standards, Richness, interactivity, information density, personalization/customization, social technology

Richness

Refers to the complexity and content of a message

Interactivity

Devices allow for two way communication between merchant and consumer and peer-to-peer communication among individuals

Information Density

Total amount and quality of information available to all market participants, consumers, and merchants alike

Price Transparency

The ease with which consumers can find out the variety of prices in a market

Cost transparency

The ability of consumers to discover the actual costs that merchants pay for products

Price discrimination

Selling the same goods, or nearly the same goods to different targeted groups at different prices

Personalization

When merchants target their marketing messages to specific individuals by adjusting the message to a person’s clickstream behavior, name, interests, and past purchases

Customization

Changing the delivered product or service based on a user’s preferences or prior behavior

Social Technology

Promotes user content generation and social networking

Internet and digital markets have changed the way companies conduct business…

Information asymmetry reduced, menu costs, search and transaction costs reduced, dynamic pricing enabled, switching costs may be increased or decreased, and disintermediation

Digital markets are flexible efficient, and operate with..

Reduced search and transaction costs and lower menu costs

Lower menu costs consist of…

Merchants’ cost of changing prices, greater price discrimination, and the ability to change prices dynamically based on market conditions

Dynamic pricing

Price of a product or service varies depending on the demand characteristics of the costumers or the supple situation of the seller

Disintermediation

The removal of organizations or business process layers responsible for intermediary steps in a value chain is called.

Digital goods

Delivered over digital network, cost of producing first unit is almost entire cost of product, cost of delivery over the internet very low, marketing costs remain the same; pricing highly variable, industries with digital goods undergoing revolutionary changes

(publishers, record labels, ect.)

What are the three major types of E-commerce and e-commerce business models?

Business to consumer e commerce (B2C)

Business to businesses e commerce (B2B)

Consumer to consumer e commerce (C2C)

B2C example

Walmart, Amazon, Apple Music

B2B example

Grainger

C2C

eBay, Craigslist

E-Commerce Revenue Models

A firm’s revenue model describes how the firm will earn revenues, generates profits, and produce a return on investment.

What are some E-Commerce Revenue Models?

Advertising revenue model, sales revenue model, and subscription revenue model, free/freemium revenue model, transaction fee revenue, model, affiliate revenue model

Advertising revenue model

Based on generating revenue from online advertising

Sales revenue models

Based on generating revenue from the sale of goods, content, and/or services to customers

Subscription revenue models

Based on generating revenue from subscription fees charged for access to some or all of a company’s content and services

Free/Freemium revenue model

Basic services or content for free but generated revenue from a premium charged for advanced or special features

Transaction fee revenue model

Based on generating revenue from fees for enabling or executing transactions

Affiliate Revenue model

A business steers customers to an “Affiliate” which then pays the company a referral fee or percentage of the revenue from any resulting sales