CK

Enterprise Applications and Management Systems

Enterprise Systems

  • Also known as Enterprise Resource Planning (ERP) systems.

  • Integrated software modules with a common central database.

  • Data from various divisions is shared across internal business activities.

Enterprise Software Overview

  • Built around predefined best practice processes.

  • Includes tasks for specific business functions (e.g., sales, finance).

  • Implementation involves mapping business processes to software processes.

Business Value of Enterprise Systems

  • Enhance operational efficiency and standardize processes.

  • Provide firm-wide information for decision-making.

  • Support rapid response to customer requests.

Supply Chain Management (SCM)

  • Network for procuring, transforming, and distributing products.

  • Upstream: Suppliers and their processes.

  • Downstream: Customer delivery processes.

  • Issues: Inefficiencies can cut operating costs by up to 25%.

Supply Chain Management Software

  • Planning systems optimize sourcing and inventory levels.

  • Execution systems manage product flow through distribution.

Customer Relationship Management (CRM)

  • Integrates customer data across the organization to improve intimacy.

  • Provides a comprehensive view of customer interactions.

CRM Software Components

  • Includes tools for sales, customer service, and marketing automation.

  • Analytical CRM helps in data analysis and customer lifetime value assessment.

Operational vs. Analytical CRM

  • Operational CRM: Customer-facing applications.

  • Analytical CRM: Data analysis from operational systems for insights.

Business Value of CRM Systems

  • Increases satisfaction and reduces marketing costs.

  • Affects customer acquisition, retention, and sales revenue positively.

Challenges in Enterprise Applications

  • High costs of implementation (average ERP cost: $7 million).

  • Lengthy completion times (average over 17 months).

  • Complex technology and business process changes.