Essay Questions (MIS-CH08)

 

1.       

Identify and briefly describe three major enterprise applications. 

 

Enterprise systems, customer relationship management, and supply chain management are three enterprise applications.  Enterprise systems are based on a suite of integrated software modules and a common central database.  Enterprise systems utilize enterprise software to support financial and accounting, human resources, manufacturing and production, and sales and marketing processes.  Enterprise systems provide many benefits including an enterprise-enabled organization, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven business processes.

 

Supply chain management systems help an organization better manage its supply chain, including planning, sourcing, making, delivering, and returning items.  Supply chain management software can be categorized as a supply chain planning system or as a supply chain execution system.  A supply chain planning system enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. 

A supply chain execution system manages the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.  Supply chain management benefits include improved customer service and responsiveness, cost reduction, and cash utilization.

 

Customer relationship management systems help firms maximize the benefits of their customer assets.  These systems capture and consolidate data from all over the organization and then distribute the results to various systems and customer touch points across the enterprise.  Customer relationship management systems can be classified as operational or as analytical.  Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation.  Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance.  Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for customer acquisition and retention. 

 

2.       

What is an enterprise system?  What is enterprise software?

 

Enterprise systems focus on integrating the key internal business processes of the firm.  Enterprise software is used by enterprise systems and is a set of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes.

 

3.       

(Evaluation)

 

What are the benefits of enterprise systems?  What are the challenges of enterprise systems?

 

Benefits include creating an enterprise-enabled organization, providing firmwide knowledge-based management processes, providing a unified information system technology platform and environment, and enabling more efficient operations and customer-driven business processes.  Challenges include a daunting implementation process, surviving a cost-benefit analysis, inflexibility, and realizing strategic value.

 

(Evaluation in terms of assess, judge)

 

4.       

Identify two classifications for supply chain software.  For each classification, identify five capabilities.

 

Supply chain planning systems and supply chain execution systems are two classifications for supply chain software.  Supply chain planning systems enable a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product.  Capabilities include order planning, advanced scheduling and manufacturing planning, demand planning, distribution planning, and transportation planning.  Supply chain execution systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations.  Capabilities include order commitments, final production, replenishment, distribution management, and reverse distribution.

 

5.       

Identify two supply chain models. Which is better?

 

Push-based and pull-based models were discussed in the textbook.  Push-based refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products.  Pull-based refers to a supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered.  Pull-based models are better.

 

6.       

Identify two aspects of customer relationships management.

 

Operational CRM and analytical CRM are two aspects.  Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation.  Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance.

 

7.       

Identify five benefits of customer relationship management systems.

 

Benefits include: better customer service, make call centers more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, acquire new profitable customers, sell additional products and services, provide customer information for developing new products, increase product utilization, reduce sales and marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitability, respond quickly to market opportunities.

 

 

8.       

(Synthesis)

 

You have been hired by Santori, Inc., a small company that imports and distributes an Italian sparkling water. The company is interested in what benefits an enterprise system would bring. Would an enterprise system be appropriate for this company? What steps would you take in determining this?

 

An enterprise system may be too expensive, although there are enterprise software packages that are available to smaller companies. A hosted enterprise application might be the most economical way to implement an enterprise system. To determine whether this would be beneficial to Santori, I would first look at their existing business processes. It would be ideal to determine if their efficiency meets benchmarks in their industry and allows them to be competitive with other businesses in their niche. Then I would review existing hosted applications to see how the applications business processes matched up with Santori’s. It would be important to compare the costs of instituting new business processes with the benefits and cost-savings.

 

(Synthesis in terms of propose, plan)

 

9.       

(Evaluation)

 

Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have hundreds of smaller nurseries based around the country that grow the plant stock. The majority of their business is conducted online: Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery. What unique problems might you anticipate they have in their supply chain? What might remedy these problems?

 

Typical problems in supply chains arise from unforeseeable events. In a plant nursery, variations in the weather, growing season, plant diseases, crop output would be uncertainties. Other problems might be interstate regulations governing plants allowed in different states, and making sure plants survive and are healthy during transportation. It would be very important to have up-to-date forecasting of the weather or growing seasons that could anticipate possible problems, and analyze and determine the best transportation routes.

 

(Evaluation in terms of appraise, assess)

 

 

10.   

(Evaluation)

 

You have been hired by Croydon Visiting Nurse Services, whose business processes are all manual, paper-based processes. How might a CRM system benefit them?

 

A CRM system that includes patient’s health records would allow any nurse to take over if another needed replacement. Assuming that the nurses had access via laptops or other PDAs to the system, a new nurse would have instant access to the patients needs. The CRM might also be able to record which types of treatments or products customers were most interested in or gave the greatest benefit to customers, and help anticipate needs. Additionally, with PRM capabilities, products needed by the nursing service would be more easily anticipated, ordered, and delivered. Since the employees work in the field, or away from a central office, Internet-based communications might provide tools for reviewing employee performance.

 

(Evaluation in terms of appraise, assess)