Slide 1Slide 2Slide 3Slide 4Slide 6Slide 7Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 258.1© 2007 by Prentice Hall8Chapter Achieving Operational Achieving Operational Excellence and Customer Excellence and Customer Intimacy: Enterprise Intimacy: Enterprise ApplicationsApplicationsAchieving Operational Achieving Operational Excellence and Customer Excellence and Customer Intimacy: Enterprise Intimacy: Enterprise ApplicationsApplications8.2© 2007 by Prentice HallSTUDENT OBJECTIVESEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise Applications•Demonstrate how enterprise systems achieve operational excellence by integrating and coordinating diverse functions and business processes in the firm.•Demonstrate how supply chain management systems coordinate planning, production, and logistics with suppliers.8.3© 2007 by Prentice HallSTUDENT OBJECTIVES•Demonstrate how customer relationship management systems achieve customer intimacy by integrating all customer information and making it available throughout the firm. •Assess the challenges and new opportunities raised by enterprise applications.Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise Applications8.4© 2007 by Prentice HallWhirlpool Fixes Its Supply Chain•Problem: Uncontrollable supply chain, outdated systems.•Solutions: Eliminate manual procedures and implement supply chain software suite to allocate inventory more accurately and forecast demand.•i2 Technologies forecasting software and SAP ERP software reduce inventory and increase sales.•Demonstrates IT’s role in coordinating supply chains.•Illustrates digital technology as part of a solution that can benefit both a firm and its customers.Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise Applications8.6© 2007 by Prentice HallEnterprise Systems•What Are Enterprise Systems?•Based on integrated software modules and a common central database•How Enterprise Systems Work•Best practices•Business Value of Enterprise Systems•Increase operational efficiency•Support decision making and rapid responses to customer requests•Include analytical tools to evaluate overall performanceEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise Applications8.7© 2007 by Prentice HallEnterprise SystemsEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise ApplicationsFigure 8-1Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterpriseHow Enterprise Systems WorkHow Enterprise Systems Work8.9© 2007 by Prentice HallEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise ApplicationsThe Supply ChainThe Supply Chain•A network of organizations and processes for procuring raw materials, transforming them into products, and distributing the products•Upstream supply chain: firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them•Downstream supply chain: organizations and processes responsible for delivering products to customersSupply Chain Management Systems8.10© 2007 by Prentice HallEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise ApplicationsNike’s Supply ChainNike’s Supply ChainSupply Chain Management SystemsFigure 8-2This figure illustrates the major entities in Nike’s supply chain and the flow of information upstream and downstream to coordinate the activities involved in buying, making, and moving a product. Shown here is a simplified supply chain, with the upstream portion focusing only on the suppliers for sneakers and sneaker soles.8.11© 2007 by Prentice HallInformation and Supply Chain ManagementInformation and Supply Chain Management•Inefficiencies cut into a company’s operating costs•Just-in-time strategy•Safety stock•Bullwhip effectEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise ApplicationsSupply Chain Management Systems8.12© 2007 by Prentice HallSupply Chain Management ApplicationsSupply Chain Management Applications•Information visibility•Supply chain planning systems•Demand planning•Supply chain execution systemsEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and CustomerIntimacy: Enterprise ApplicationsIntimacy: Enterprise ApplicationsSupply Chain Management Systems8.13© 2007 by Prentice HallSupply Chain Management and the InternetSupply Chain Management and the Internet•Intranets•Extranets•Demand-driven supply chains•Push-based model•Pull-based model•Digital logistics nervous systemsEssentials of Business Information SystemsEssentials of Business Information SystemsChapter 8 Achieving Operational Excellence and CustomerChapter 8 Achieving Operational Excellence and