Monday, February 22, 2016

Chapter 12 : Intergrating the Organizational from End to End- Enterprise Resource Planning




ENTERPRISE RESOURCE PLANNING (ERP)


- Serve as the organization's backbone in providing fundamental decision-making support.
At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system






Bringing the Organization Together

- ERP enables employees across the organization to share information across a single,centralized database.


The Evolution of ERP

- to deliver automation across multiple units of an organization 
- to help facilitate the manufacturing process and address issues such as raw materials, inventory, order entry and distribution

Integrating SCM, CRM, and ERP

- SCM, CRM, and ERP are the backbone of e-business
- Allows the unlocking of information to make it available to any user, anywhere, anytime
- Integration of these applications is the key to success for many companies

Integration Tools
- Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together
  • Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications 
  • Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors


Chapter 11 : Building a Customer-centric Organization- Customer Relationship Management.



Customer Relationship Management (CRM)

CRM enables an organization to:
  • Provide better customer service
  • Make call centers more efficient
  • Cross sell products more effectively
  • Help sales staff close deals faster
  • Simplify marketing and sales processes
  • Discover new customers
  • Increase customer revenues

Recency, Frequency, and Monetary Value

Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
  • How recently a customer purchased items (Recency)
  • How frequently a customer purchased items (Frequency)
  • How much a customer spends on each purchase (Monetary Value)


The Evolution of CRM

  • CRM reporting technology – help organizations identify their customers across other applications

  • CRM analysis technologies – help organization segment their customers into categories such as best and worst customers

  • CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving


Using Analytical CRM to Enhance Decisions


- Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

- Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

Customer Relationship Management Success Factors



CRM success factors include:

  • Clearly communicate the CRM strategy 
  • Define information needs and flows
  • Build an integrated view of the customer
  • Implement in iterations
  • Scalability for organizational growth

CHAPTER 10 : EXTENDING THE ORGANIZATION SUPPLY CHAIN MANAGEMENT









Supply Chain Management


The average company spends nearly half of every dollar that it earns on production 

In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains

Basics of Supply Chain

The supply chain has three main links:
  1. Materials flow from suppliers and their “upstream” suppliers at all levels
  2. Transformation of materials into semifinished and finished products through the organization’s own production process
  3. Distribution of products to customers and their “downstream” customers at all levels




Information Technology’s Role in the Supply Chain


IT’s primary role is to create integrations or tight process and information linkages between functions within a firm





Visibility


Supply chain visibility – the ability to view all areas up and down the supply chain

Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain


Consumer Behavior


Companies can respond faster and more effectively to consumer demands through supply chain enhances 

Demand planning software – generates demand forecasts using statistical tools and forecasting techniques


Competition


Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain

Supply chain execution (SCE) software – automates the different steps and stages of the supply chain


Speed


Three factors fostering speed



Supply Chain Management Success Factors



SCM Stories






Tuesday, February 16, 2016

CHAPTER 9: ENABLING THE ORGANIZATION -DECISION MAKING

CHAPTER 9: ENABLING THE ORGANIZATION -DECISION MAKING





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CHAPTER 8: ACCESSING ORGANIZATIONAL INFORMATION -DATA WAREHOUSE


CHAPTER 8: ACCESSING ORGANIZATIONAL INFORMATION -DATA WAREHOUSE



















































business intelligence - information that people use to support their decision-making efforts 


  • principle BI enablers include :
  • technology
  • people  
  • culture 




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CHAPTER 7:STORING ORGANIZATIONAL INFORMATION -DATABASE

CHAPTER 7:STORING ORGANIZATIONAL INFORMATION -DATABASE








Storing Organizational Information

  • the computer program used to manage and query a databases is known asa database management system (DBMS).
  • the central concept of a database is that of a collection of records,or pieces of information.
  • typically a given database has a structural description of the type of facts held in that database:
-this description is known as a schema.
-the schema describes the objects that are represented in the database and the relationships among them.
-there are a number of different ways of organizing a schema,that is,of modeling the database structure:
  • these are known as data base models(or data models)
  • the most commonly used model today is the relational model
  • other models,such as the hierarchical model,and network model,use a more explicit representation of relationships.
Relational Database Fundamentals
  • a database maintains information about various types of objects(inventory),events(transactions),people(employees),places(warehouses).
  • hierarchical database model,information is organized into a tree like structure that allows repeating information using parent/child relationships in such way that it cannot have too many relationships.
  • the network database model is a flexible way of representing objects and their relationships.
  • the relational database model is a type of database that stores information in the form of logically related two-dimensional tables.
Entities and Attributes
  • entity in the relational database model is a person,place,thing,transaction,or event about which information is stored.
  • attributes also called fields or columns,are characteristics or properties of an entity class.
Keys and Relationships
  • to manage and organize various entity classes within the relational database model,develops must identity primary keys and foreign keys and use them to create logical relationships.
  • a primary keys is a  field(or group of fields) that uniquely identifies a given entity in a table.
  • a foreign key in the relational database model is a primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables.



Relational Database Advantages
  • from a business perspective database information offers many advantages,includng:
-increased flexibility
-increased scalability and performance
-reduced information redundancy
-increased information integrity(quality)
-increased information security

Increased Flexibility
  • the physical view of information deals with the physical storage of information on a storage device such as hard disk.
  • the logical view of information focuses on how users logically access information to meet their particular business needs.
Increased Scalability and Performance
  • scalability refers to how well a system can adapt to increased demands.
  • performance measures how quickly a system performs a certain process or transaction
Reduced Information Redundancy
  • redundancy is the duplication of information,or storing the same information in multiple places.
Increased Information Integrity(Quality)
  • information integrity is a measure of the quality of information.
  • integrity constraints are rules that help ensure the quality of information
  • can be defined and built into the database design.
  • the  database(more appropriately,the database management system,which is discussed below)ensures that users can never violate these constraints.
  • there are two types of integrity constraints:
-relational integrity constraints and business critical integrity constraints
  • relational integrity constraints are rules that enforce basic and fundamental information-based constraints.
  • business-critical integrity constraints enforce business rules vital to  an organization's success and often require more insight and knowledge than relational integrity constraints.

Increased Information Security
  • access levels determine who has access to the different types of information,and access controls determine what type of access they have to the information.
Database Management Systems
  • database management system(DBMS) is software through which users and application programs interact with a database.
Interacting Directly and Indirectly with a Database through a DBMS


Data-Driven Websites
  • the pages on website must change according to what a site visitor is interested in browsing.
  • data-driven websites is an interactive website kept constantly updated and relevent to the needs of  its customers through the use of a database.
Data-Driven Website Business Advantages


Data-Driven Business Intelligence



Integrating Information among Multiple Databases
  • without integration,an organization will spend considerable time entering the same information in multiple systems and suffer from the low quality and inconsistency typically embedded in redundant information.
  • a forward integration takes information entered into a given system and sends it automatically to all downstream systems and processes.
  • a backward integration takes information entered into a given system and sends it automatically to all upstream systems and processes.
A Forward and Backward Customer Information Integration Example




Integrating Customer Information among Databases