Omis Test 3

What does ERP stand for?

Enterprise Resource Planning

What is an enterprise resource planning system?

- a suite of integrated software modules and a common

central database

- Collects data from many divisions of firm for use in nearly all of firm's internal business activities

What is the business value of the ERP system?

• Increased operational efficiency

• Provide firm-wide information to support decision making

• Enable rapid responses to customer requests for information or products

• Include analytical tools to evaluate overall organizational

performance and improve decision-making

How has AI been implemented into the ERP system?

• ERP system vendors are increasingly incorporating AI

• Many ERP systems now include natural language

processing capabilities

• AI-driven ERP systems can identify patterns in very large

volumes of data

Best practices

to proven methods, techniques, and guidelines that are the most efficient and effective way to achieve a goal

What does SCM stand for?

Supply chain management

What does supply chain management do?

Network of organizations and processes for:

▪ Procuring materials

▪ Transforming materials into products

▪ Distributing the products

What is the upstream supply chain?

What is the downstream supply chain?

What is the internal supply chain?

What are the global issues of a SCM?

- Geographical distances, time differences

- Participants from different countries

▪ Different performance standards

▪ Different legal requirements

What is the business value of SCM?

• Match supply to demand

• Reduce inventory levels

• Improve delivery service

• Speed product time to market

• Use assets more effectively

- Total supply chain costs can be 75 percent of operating budget

• Increase sales

How AI has been implemented into the SCM system

• AI is very useful for analyzing the proliferating amount of

big 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

Just-in-time strategy

a scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line

Safety stock

buffer to deal with lack of flexibility and uncertainties in the supply chain

Bullwhip effect

a distortion of information about the demand for a product as it passes from one entity to the next across the supply chain

What does CRM stand for?

Customer Relations Management

What does the CRM system do?

- Captures and integrates customer data from all over the

organization

- Consolidates and analyzes customer data

- Distributes customer information to various systems and

customer touch points across enterprise

- Provides a single enterprise view of customers

What are the three components of CRM?

Marketing

Sales

Customer Service

Marketing

▪ Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail

▪ Cross-selling

Sales

▪ Sales prospect and contact information

▪ Sales quote generation capabilities

Customer service

▪ Assigning and managing customer service requests

▪ Web-based self-service capabilities

What is the business value of the CRM system?

- Increased customer satisfaction

- Reduced direct-marketing costs

- More effective marketing

- Lower costs for customer acquisition/retention

- Increased sales revenue

How AI has been implemented into the CRM system

• Machine learning, generative AI, and other AI

technologies are being integrated into CRM systems

- To automate, enhance, and optimize CRM processes

• AI enables businesses to analyze vast amounts of

customer data in real time

Churn rate

of the number of customers who stop using or purchasing products or services from a company

Dynamic pricing

Price of a product or service varies depending on the demand characteristics of the customer or the supply situation of the seller

Disintermediation

The removal of organizations or business process layers

responsible for intermediary steps in a value chain

Digital goods

- Delivered over a digital network

- Cost of producing first unit is almost entire cost of product

- Costs of delivery over the Internet very low

- Marketing costs remain the same; pricing highly variable

- Industries with digital goods are undergoing revolutionary

changes (publishers, record labels, etc.)

E-commerce

- The use of the Internet and the web, and mobile apps and

browsers running on mobile devices to transact business

- Can be defined as digitally enabled commercial transactions

between and among organizations and individuals

- Said to have begun in 1995

- Social, mobile, and local e-commerce are connected

- Move from desktop to smartphone

Ubiquity

- Marketspace is virtual

- Transaction costs reduced

Global reach

- Transactions cross cultural and national boundaries

Universal standards

Technical standards of the Internet and greatly lower market entry costs

Richness in E-commerce

- Refers to the complexity and content of a message

Interactivity in E-commerce

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

Information density in E-commerce

- 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

What are the three major types of E-commerce

- Business-to-consumer e-commerce (B2C)

- Business-to-business e-commerce (B2B)

- Consumer-to-consumer e-commerce (C2C)

Examples of Business-to-consumer e-commerce

▪ Walmart, Amazon, Apple Music

Examples of Business-to-business e-commerce

Grainger

Examples of Consumer-to-consumer e-commerce

▪ eBay, Craigslist

Advertising revenue model

▪ Based on generating revenue from online advertising

Sales revenue model

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

Subscription revenue model

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

Free/Freemium revenue model

▪ Basic services or content for free but generates 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