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Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications. Yousub Hwang PhD., College of Business Administration University of Seoul. What are Enterprise Systems?. Built around predefined business processes that reflect best practices

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chapter 9 achieving operational excellence and customer intimacy enterprise applications

Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

YousubHwang PhD.,

College of Business Administration

University of Seoul

what are enterprise systems
What are Enterprise Systems?
  • Built around predefined business processes that reflect best practices
  • Best practices come from two sources: consulting firms(KPMG, McKinsey, PWC, etc.) or enterprise software firms(SAP, Oracle, MS, etc.)
business value of enterprise systems
Business Value of Enterprise Systems
  • Supporting managers to make better decisions
    • SAP ERP Human Capital Management (HCM) Demo
  • Increasing operational efficiency
    • LG Electronic Builds Global Single Instance (GSI) ERP Demo
supply chain management
Supply Chain Management
  • A supply chain is a network of material and information that flows between suppliers, manufacturers, distributors and customers.
supply chain management applications
Supply Chain Management Applications
  • To minimize bullwhip effect by reducing uncertainties about demand and supply
  • Two types of supply chain software
    • Supply chain planning systems
      • To generate demand forecast for a product and to develop manufacturing plans
    • Supply chain execution systems
      • To manage the flow of products through distribution centers
business value of supply chain management systems
Business Value of Supply Chain Management Systems

Match supply to demand

Reduce inventory levels

Improve delivery service

Use assets more effectively

Reducing supply chain costs  higher profitability

customer relationship management
Customer Relationship Management
  • Companies need to know:
    • Exactly who customers are
    • How to contact them
    • What kinds of products they are interested in
    • How much money they spend on
  • Integrate customer data, analyze the data, and distribute the results through customer contact points (touch points)
customer relationship management software
Customer Relationship Management Software
  • Sales Force Automation (SFA)
    • assists sales staff increase their productivity by focusing on the most profitable customers
    • based on the customer’s purchasing history, it generates personalized recommendations
  • Customer Service
    • Tools to increase the efficiency of customer service activitiesex) phone service or web site
  • Marketing
    • CRMs support marketing campaigns and marketing analytics
  • Operational and analytical CRM
business value of crm
Business Value of CRM

Increasing customer satisfaction

Reducing marketing costs

More effective marketing

Reducing customer acquisition and retention costs

enterprise application challenge
Enterprise application challenge
  • Enterprise applications are expensive in terms of implementation and maintenance!
    • Software, database and analytic tools, consulting fees, training
    • Relatively high switching cost(vender-dependant)