9.

1
a)
- Problem:
+ Large companies often rely on numerous separate databases and systems
that don't communicate.
+ This makes it difficult to get a holistic view of the business and make informed
decisions.
- ERP:
+ ERP systems integrate data from various departments (finance, sales,
production, HR) into a central database.
+ This allows information to flow seamlessly between departments, streamlining
processes.
=> Improved decision-making with access to real-time, accurate data.
b) ERP
- Enterprise software is like a filing system built around these pre-written instructions.
Companies need to take their own existing way of doing things (their current
business processes) and organize them to fit the filing system (the software).
There's some flexibility, like choosing folders (configuration tables) for how to
categorize information (e.g., tracking revenue by product line).
- Customization & Beneffit:
+ The software allows some customization through configuration settings (like
choosing the type of screw).
+ But heavily modifying the software (like completely changing the furniture
design) can be risky => might slow things down or make it harder for different
parts of the software to work together.
=> extensive customization can hurt the benefits of the software
9.2
a) The Supply chain
- A supply chain is a network of businesses involved in getting a product from raw
materials to the customer
- Include: suppliers, manufacturers, distributors, retailers and customers
+ Raw materials are transformed into finished products through a series of
steps.
+ Finished products are shipped to stores and eventually reach the customer.
There can also be a reverse flow for returned items.)
b) Information Systems and Supply Chain Management
- Inefficiency in supply chains (shortages, excess inventory) is often caused by
inaccurate or untimely information
=> companies keeping extra safety stock, which is expensive
- The Bullwhip Effect:
+ Inaccurate demand information gets distorted as it travels through the supply
chain
+ Small rise in demand => distributors, manufacturers, suppliers over-ordering
to be safe, creating a ripple effect of excess inventory and costs.
- Roles: Supply chain management (SCM) systems provide the platform for
information sharing and improve decision-making.
- Types:
 + Demand Planning Systems: Help determine how much product to make to
meet customer demand
+ Supply Chain Execution Systems: Manage product flow through warehouses
and distribution centers for efficient delivery
c) Supply chains management software
- Supply Chain Planning Software:
+ Helps businesses plan their supply chain activities.
+ Modeling existing supply chains
+ Generating demand forecasts
+ Developing optimal sourcing and manufacturing plans
+ Making key decisions like: how much, where, transportation.
- Supply Chain Execution Software:
+ Manages the execution of those plans.
+ manage the flow of products
d) Global supply chain and the Internet
- Issues:
+ Greater distances and time differences compared to domestic chains.
+ Varying performance standards and regulations across countries.
+ Cultural differences that need to be considered.
- Internet's role:
+ Helps with sourcing, transportation, communication, and international finance.
+ Enables companies to manage global production
+ Allows companies to use third-party logistics providers for warehousing,
transportation,...
+ Provides web-based tools for customers to monitor inventory and shipments
globally.
- Shift from push-based to pull-based model:
+ Push-based model (traditional): Production based on forecasts, potentially
leading to excess inventory.
+ Pull-based model (internet-enabled): Production triggered by actual customer
orders, leading to more efficient use of resources
d) Business value
- Supply chain management (SCM) systems improve efficiency throughout the supply
chain (internal & external).
- They provide better information for decision-making on production, storage, and
transportation.
- Benefits:
+ Matching supply to demand
+ Lower inventory levels
+ Improved delivery service
+ Faster time to market for products
+ More effective use of company assets
- Lower cost, increase sales
9.3
a) What Is Customer Relationship Management?
- Challenges:
+ Difficulty maintaining personal relationships with a large customer base.
 + Customers interact through various channels (web, phone, etc.) making data
collection complex.
+ Information about a single customer may be scattered across different
departments
- Address:
+ Capture and integrate customer data from all departments.
+ Consolidate and analyze customer data to provide a unified view.
+ Distribute customer information to relevant departments for better customer
interactions.
b) Software
- Partner relationship management (PRM) - for collaboration with sales partners.
- Employee relationship management (ERM) - for employee-related tasks.
- Function:
+ Sales force automation (SFA): helps target profitable customers, provides
customer data and tools for sales calls, and improves sales efficiency
+ Customer service: provides information and tools for handling customer
inquiries efficiently (e.g., call routing, customer profiles).
+ Marketing: supports targeted marketing campaigns, analyzes customer data,
and helps identify cross-selling opportunities.
c) Operational and Analytical CRM:
- Operational CRM: Focuses on customer-facing tasks like sales, call center support,
and marketing automation. These are the tools that directly interact with customers.
- Analytical CRM: Analyzes customer data collected from operational CRM systems
and other sources to improve business performance.
+ Sources: Data from operational CRM systems
Customer touchpoints (interactions)
Other sources like data warehouses and external data
+ Techniques: Online Analytical Processing (OLAP)
Data mining
Other data analysis techniques
d) Business Value of Customer Relationship Management Systems
- Benefits for business
+ Increased customer satisfaction
+ Reduced marketing costs
+ More effective marketing campaigns
+ Lower customer acquisition and retention costs
- CRM systems help:
+ Identify profitable customers
+ Reduce customer churn