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Harris

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What are the benefits and drawbacks of the OnQ system at Hilton? ... Jo-Ann Stores and Petsmart Blamed Software for Poor Financial Performance ... – PowerPoint PPT presentation

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Title: Harris


1
Electronic Business Systems
  • OBrien Chapter Seven

2
Objectives
  • Cross-functional e-business systems
  • Provide significant business value to company,
    its customers partners
  • Examples
  • Enterprise resource planning (ERP)
  • Customer relationship management (CRM)
  • Supply chain management (SCM)
  • Integrated Systems
  • Online transaction processing
  • Enterprise collaboration
  • How Internet other technologies support
    business processes

3
Case 1 Hilton Hotels CorporationData-Driven
Hospitality
  • OnQ the IT piece of a customers really matter
    strategy
  • Goal to
  • Build customer loyalty
  • More revenue per visit
  • Customer profiles

4
Case Study Questions
  • What are the benefits and drawbacks of the OnQ
    system at Hilton?
  • What does Hilton have to do to create a
    competitive advantage through OnQ? Provide some
    specific examples.
  • Is it possible to have too much information about
    a customer? Explain.

5
Major E-Business Applications
other networks
Front End Back End
6
Cross-functional Systems
  • Cross the boundaries of traditional business
    functions
  • In order to reengineer and improve vital business
    processes all across the enterprise

New Product Development Process
7
Enterprise Business Systems
Enterprise Application Architecture
8
Customer Relationship Management (CRM)
  • CRM uses technology to
  • Create a cross-functional enterprise system
  • That integrates and automates many of the
    processes in sales, marketing customer service
    that interact with customers
  • Create a framework of web-enabled software
    databases that integrate these processes with the
    rest of the companys processes

9
Customer Relationship Management
  • CRM Uses IT to Create a Cross-Functional
    Enterprise System

Marketing and Fulfillment
Customer Service and Support
e-Mail
Fax
  • Sales
  • Cross-Sell
  • Up-Sell

Prospect or Employee
Web
Telephone
Retention and Loyalty Programs
Contact and Account Management
10
CRM applications
  • Contract and Account Management
  • Helps sales, marketing service professionals
  • Capture track data about past/planned contacts
    with customers/prospects
  • Sales
  • Provides sales reps with software tools data
    they need to support manage sales activities
  • Cross-selling is trying to sell a customer of one
    product with a related product
  • Up-selling is trying to sell customer a better
    product than they are currently seeking

11
CRM applications
  • Marketing and Fulfillment
  • Help marketing professionals accomplish direct
    marketing campaigns by tasks such as
  • Qualifying leads for targeted marketing
    scheduling tracking direct marketing mailings

12
CRM applications
  • Customer Service and Support
  • Provides sales reps with software tools
    database access to customer database shared by
    sales marketing professions
  • Helps create, assign and manage requests for
    service
  • Call center software routes calls to customer
    support agents based upon their skills and type
    of call
  • Help desk software provides relevant service data
    suggestions for resolving problems for customer
    service reps helping customers with problems

13
CRM applications
  • Retention and Loyalty Programs
  • Try to help a company identify, reward, market
    to their most loyal and profitable customers
  • Data mining tools analytical software
  • Customer data warehouse

14
CRM The Business Focus
  • Supports integrated collaborative relationship
    between a business its customers

Customer Life Cycle
CRMFunctional Solutions
The Internet
Collaborative Service
Shared Customer Data
CRMIntegrated Solution
15
Benefits Challenges of CRM
  • CRM Benefits
  • Identify and target the best customers
  • Customization personalization of products
    services
  • Track customer contacts
  • Provide consistent customer experience superior
    service/support
  • CRM failures
  • 50 of applications fail to meet expectations
  • 20 of the time CRM damaged customer
    relationships
  • Lack of understanding preparation is blamed

16
Enterprise Resource Planning (ERP)
  • Cross-functional enterprise system
  • with an integrated suite of software modules
  • that support the basic internal business
    processes of a company

17
Enterprise Resource Planning
Integrated Logistics
Production Planning
Sales Distribution, Order Management
Customer/ Employee
Accounting and Finance
Human Resources
18
Benefits of ERP
  • Quality and Efficiency
  • Decreased Costs
  • Decision Support
  • Enterprise Agility

19
Costs of implementing a new ERP
20
Failures in ERP Do Exist
  • SAP AGs Software Installation Problems of ERP
    Integrated Suite into a Retail Environment
  • Jo-Ann Stores and Petsmart Blamed Software for
    Poor Financial Performance
  • Sobeys Grocer Had Problems with Number of
    Transactions
  • Sobeys is Replacing System

21
Causes of ERP Failures
  • Underestimating complexity of planning,
    development training needed
  • Failure to involve affected employees
  • Trying to do too much too fast
  • Insufficient training in new work tasks
  • Failure to do enough data conversion testing
  • Over reliance by company on claims of ERP vendors
    or consultants

22
Supply Chain Management (SCM)
  • A cross-functional interenterprise system
  • To help support and manage the links between a
    companys key business processes
  • And those of its suppliers, customers business
    partners

23
Supply Chain Management
Commit
24
Supply Chain Management
  • SCM A top strategic objective for many firms
  • The right products
  • The right place
  • The right time
  • In the proper quantity
  • At an acceptable cost

25
Role of SCM
26
  • SCM Software Helps Firms Reengineer and Integrate
    The Functional SCM Processes

Supply Chain Life Cycle
Forecast and Demand Planning
Strategic Sourcing and Procurement
SCMFunctional Processes
Customer Order Fulfillment Service
Distribution Network and Warehouse Operations
Transportation and Shipment Management
Production Logistics
The Internet
Collaborative Fulfillment
Shared Market Data
SCMIntegrated Solution
27
SCM goal
  • Fast, efficient, low-cost network of business
    relationships or supply chain to get a companys
    products from concept to market
  • A supply chain
  • Interrelationships with suppliers, customers,
    distributors, and other businesses that are
    needed to design, build and sell a product

28
Causes of problems in SCM
  • Lack of proper demand-planning knowledge, tools
    guidelines
  • Inaccurate or overoptimistic demand forecasts
  • Inaccurate production, inventory other data
  • Lack of adequate collaboration within the company
    between partners
  • SCM software considered immature, incomplete
    hard to implement

29
SCM
30
Cross-Functional Integrated Systems
EAI Software Connects Major e-Business
Applications Like CRM and ERP
31
Dell Computer Enterprise Application
Integration page 207 (253)
  • Survey of 75 related companies revealed 18
    different software packages
  • Lack of integration reduces cost and speed
    savings that might be realized
  • Use of webmethods EAI to coordinate processes
  • New system generated cost savings
  • Orders for product automatically orders parts

32
How EAI works
33
Enterprise Application Integration (EAI)
  • EAI connects cross-functional systems
  • Serves as middleware to
  • Provide data conversion
  • Communication between systems
  • Access to system interfaces

34
Enterprise Collaboration Systems (ECS)
  • ECS
  • Cross-functional IS that enhance communication,
    coordination and collaboration among the members
    of business teams and workgroups

35
ECS Goals
  • Communicate share information with each other
  • Coordinate coordinate individual work efforts
    and use of resources with each other
  • Collaborate work together cooperatively on
    joint projects and assignments

36
ECS Tools
37
Why Collaborate?
  • Workgroups project teams work together
    efficiently effectively
  • regardless of location
  • Share information,
  • Coordinate work efforts and resources
  • Work together cooperatively.

38
  • General Electric Co
  • Committed to Enterprise Collaboration
  • page 210 (256)
  • Committed to Lotus tools Quickplace
  • Quickplace-web-based work spaces
  • Sametime (real-time online meetings)
  • Tools streamline communication
  • 18,000 Quickplaces for 250,000 users

39
Functional Business Systems
  • A variety of information systems (transaction
    processing, management information systems,
    decision support, etc.)
  • That support the business functions of
  • Accounting, finance, marketing, operations
    management human resource management

40
Functional Business Systems
  • Examples of Functional Business Information
    Systems

Marketing
  • Customer relationship management
  • Interactive marketing
  • Sales force automation

Production Operations
Human Resource Management
  • Compensation analysis
  • Employee skills inventory
  • Personnel requirements forecasting
  • Manufacturing resource planning
  • Manufacturing execution systems
  • Process control

Functional Business Systems
  • Cash management
  • Credit management
  • Investment management
  • Capital budgeting
  • Financial forecasting
  • Order processing
  • Inventory control
  • Accounts receivable
  • Accounts payable
  • Payroll
  • General ledger

Finance
Accounting
41
Marketing Information Systems
Market Information Systems
42
Interactive marketing
  • Interactive marketing
  • A customer-focused marketing process
  • Using the Internet, intranets extranets
  • To establish two-transactions
  • Between a company its customers or potential
    customers
  • Goal
  • to profitably attract and keep customers
  • who will become partners with the business
  • in creating, purchasing improving products
    services

43
Targeted Marketing
  • An advertising promotion management concept
    that includes five targeting components

44
Targeted Marketing Components
  • Community customize advertising to appeal to
    people of specific virtual communities
  • Content advertising placed on a variety of
    selected websites aimed at a specific audience
  • Context advertising placed on web pages that
    are relevant to the content of a product or
    service
  • Demographic/Psychographic web marketing efforts
    aimed at specific types or classes or people
  • Online Behavior promotion efforts tailored to
    each visit to a site by an individual, e.g.,
    using cookies files

45
Internet Marketing
Push
E-Mail
Web Publishing
Pull
46
Sales Force Automation
  • Outfit sales force with notebook computers, web
    browsers sales contract management software
  • Connect them to marketing websites company
    intranet
  • Goal
  • Increase personal productivity
  • Speeds up capture analysis of sales data from
    the field to marketing managers
  • Gain strategic advantage

47
The End
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