CTS-115-02IN Info Sys Business Concepts Chapter 11

Chapter 11

analytical CRM system

CRM system that analyzes customer behavior and perceptions in order to provide actionable business intelligence.

bullwhip effect

Erratic shifts in orders up and down the supply chain.

collaborative CRM system

A CRM system in which communications between the organization and its customers are integrated across all aspects of marketing, sales, and customer support processes.

customer-facing CRM applications

Areas in which customers directly interact with the organization, including customer service and support, sales force automation, marketing, and campaign management.

customer interaction center (CIC)

A CRM operation in which organizational representatives use multiple communication channels to interact with customers in functions such as inbound teleservice and outbound telesales.

customer identity management

A marketing technology intended to complete a 360° view of a customer across an organization.

customer relationship management (CRM)

A customer-focused and customer-driven organizational strategy that concentrates on addressing customers’ requirements for products and services, and then providing high-quality, responsive services.

customer-touching CRM applications (also called electronic CRM or e-CRM)

Applications and technologies with which customers interact and typically help themselves.

customer touchpoint

Any interaction between a customer and an organization.

distribution portals

Corporate portals that automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

electronic data interchange (EDI)

A communication standard that enables business partners to transfer routine documents electronically.

extranets

Networks that link business partners over the Internet by providing them access to certain areas of each other’s corporate intranets.

front-office processes

Those processes that directly interact with customers; that is, sales, marketing, and service.

interorganizational information system (IOS)

An information system that supports information flow among two or more organizations.

just-in-time (JIT)

An inventory system in which a supplier delivers the precise number of parts to be assembled into a finished product at precisely the right time.

loyalty programs

Programs that offer rewards to customers to influence future behavior.

mobile CRM system

An interactive CRM system in which communications related to sales, marketing, and customer service activities are conducted through a mobile medium for the purpose of building and maintaining customer relationships between an organization and its customers.

on-demand CRM system

A CRM system that is hosted by an external vendor in the vendor’s data center.

open-source CRM system

CRM software whose source code is available to developers and users.

operational CRM system

The component of CRM that supports the front-office business processes that directly interact with customers (i.e., sales, marketing, and service).

procurement portals

Corporate portals that automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.

pull model

A business model in which the production process begins with a customer order and companies make only what customers want, a process closely aligned with mass customization.

push model

A business model in which the production process begins with a forecast, which predicts the products that customers will want as well as the quantity of each product. The company then produces the amount of products in the forecast, typically by using mass production, and sells, or “pushes,” those products to consumers.

real-time CRM system

A CRM system enabling organizations to respond to customer product searches, requests, complaints, comments, ratings, reviews, and recommendations in near real time, 24/7/365.

sale force automation (SFA)

The component of an operational CRM system that automatically records all the aspects in a sales transaction process.

social CRM

The use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.

supply chain management (SCM)

An activity in which the leadership of an organization provides extensive oversight for the partnerships and processes that compose the supply chain and leverages these relationships to provide an operational advantage.

supply chain visibility

The ability of all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes.

vendor-managed inventory (VMI)

An inventory strategy where the supplier monitors a vendor’s inventory for a product or group of products and replenishes products when needed.

vertical integration

Strategy of integrating the upstream part of the supply chain with the internal part, typically by purchasing upstream suppliers, so as to ensure timely availability of supplies.