Mis Assignment.
Mis Assignment.
DEPARTMENT OF MANAGEMENT
MASTERS OF BUSINECE ADIMINSTIRATION
PROGRAM (MBA Program)
MANAGEMENT INFORMATION SYSTEMS
Course code (MBA 621)
Assignment one
Enterprise Business Systems
By: -
1. Sena Tefera HMBA/214957/13
2. Asegedech Tefera HMBA/214958/13
3. Redwan Abduljaber HMBA/214928/13
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Fig.1. Application Clusters in CRM.
Contract and Account Management
CRM software helps sales, marketing, and service professionals capture and track relevant data
about every past and planned contact with prospects and customers, as well as other business and
life cycle events of customers.
Sales
CRM software tracks customer contacts and other business and life cycle events of customers for
cross-selling and up-selling.
Marketing and Fulfilment
CRM software can automate tasks such as qualifying leads, managing responses, scheduling
sales contacts, and providing information to prospects and customers.
Customer Service and Support
CRM helps customer service managers quickly create, assign, and manage service requests. Help
desk software assists customer service reps in helping customers whom are having problems with
a product or service, by providing relevant service data and suggestions for resolving problems.
Retention and Loyalty Programs
• It costs six times more to sell to a new customer than to sell to an existing one.
• A typical dissatisfied customer will tell eight to ten people about his or her experience.
• A company can boost its profits 85 percent by increasing its annual customer retention by only
5 percent.
• The odds of selling a product to a new customer are 15 percent, whereas the odds of selling a
product to an existing customer are 50 percent.
• Seventy percent of complaining customers will do business with the company again if it
quickly takes care of a service snafu.
• More than 90 percent of existing companies don’t have the necessary sales and service
integration to support e-commerce.
Examples of business benefits of customer relationship management include:
• CRM allows a business to identify and target their best customers; those who are the most
profitable to the business, so they can be retained as lifelong customers for greater and more
profitable services.
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• CRM enables real-time customization and personalization of products and services based on
customer wants, needs, buying habits, and life cycles.
• CRM can keep track of when a customer contacts the company, regardless of the contact point.
• CRM enables a company to provide a consistent customer experience and superior service and
support across all the contact points a customer chooses.
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Fig.2.The Three Phases of CRM.
Benefits and Challenges of CRM
• CRM allows a business to identify and target their best customers; those who are the most
profitable to the business, so they can be retained as lifelong customers for greater and more
profitable services.
• CRM enables real-time customization and personalization of products and services based on
customer wants, needs, buying habits, and life cycles.
• CRM can keep track of when a customer contacts the company, regardless of the contact point.
• CRM enables a company to provide a consistent customer experience and superior service and
support across all the contact points a customer chooses.
CRM Failures:
• Major reason for the failure of CRM systems is the lack of understanding and preparation.
Trends in CRM:
Four types or categories of CRM that are being implemented by many companies today include:
• Operational CRM – most businesses start out with operational CRM systems such as sales
force automation and customer service centers.
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• Analytical CRM – analytical CRM applications are implemented using several analytical
marketing tools, such as data mining, to extract vital data about customers and prospects for
targeted marketing campaigns.
• Collaborative CRM – CRM systems to involve business partners as well as customers in
collaborative customer service.
• Portal-based CRM – Internet, intranet, and extranet Web-based CRM portals as a common
gateway for various levels of access to all customer information, as well as operational,
analytical, and collaborative CRM tools for customers, employees, and business partners.
Increasingly, businesses are moving to collaborative CRM systems, to involve business partners
as well as customers in collaborative customer services. This includes systems for customer self-
service and feedback, as well as partner relationship management (PRM) systems.
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ERP Application Components
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• Decision support – ERP provides vital cross-functional information on business performance
quickly to managers to significantly improve their ability to make better decisions in a timely
manner across the entire business enterprise.
• Enterprise agility – ERP can be used in breaking down many former departmental and
functional walls, which results in more flexible organizational structures, managerial
responsibility, and work roles. The result is a more agile and adaptive organization and
workforce that can more easily capitalize on new business opportunities.
The Cost of ERP:
• Costs and risks involved in implementing ERP are considerable.
• Hardware and software costs are a small part of the total costs. The costs of developing new
business processes (reengineering) and preparing employees for the new system (training and
change management) make up the bulk of implementing a new ERP system.
• Converting data from previous legacy systems to the new cross-functional ERP system is
another major category of ERP implementation costs.
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• Failure to involve affected employees in the planning and development phases and change
management programs
• Trying to do too much too fast in the conversion process.
• Insufficient training in the new work tasks required by the ERP system.
• Failure to do enough data conversion and testing.
• Overreliance by company or IT management on claims of ERP software vendors or the
assistance of prestigious consulting firms hired to lead the implementation.
Trends in ERP:
Four major developments and trends that are evolving in ERP applications include:
• ERP software packages are gradually being modified into more flexible products.
• In relation to the growth of the Internet and corporate intranets and extranets prompted software
companies to use Internet technologies to build Web interfaces and network capabilities into
ERP systems.
• Development of interenterprise ERP systems that provide Web-enabled links between key
business systems of a company and its customers, suppliers, distributors, and others.
• ERP software companies have developed modular, Web-enabled software suites that integrate
ERO, customer relationship management, supply chain management, procurement, decision
support, enterprise portals, and other business applications and functions.
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3. Supply Chain Management: The Business Network
Introduction
Fundamentally, supply chain management helps a company get the right products to the right
place at the right time, in the proper quantity and at an acceptable cost. The goal of SCM is to
efficiently manage this process by forecasting demand; controlling inventory; enhancing the
network of business relationships a company has with customers, suppliers, distributors, and
others; and receiving feedback on the status of every link in the supply chain. To achieve this
goal, many companies today are turning to Internet technologies to Web-enable their supply
chain processes, decision-making, and information flows.
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• Keep inventory as low as possible and still offers superior customer service.
• Reduce cycle times. Supply chain management seeks to simplify and accelerate operations that
deal with how customer orders are processed through the system and ultimately filled, as
well as how raw materials are acquired and delivered for manufacturing processes.
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The Role of SCM:
SCM supports the objectives of the top three management levels of an organization (strategic,
tactical, and operational). The role of information technology in SCM is to support these
objectives with interenterprise information systems that produce many of the outcomes a
business needs to effectively manage its supply chain.
Benefits and Challenges of SCM
Major business benefits that are possible with effective supply chain management systems
include:
• Faster, more accurate order processing, reductions in inventory levels, quicker time to market,
lower transaction and materials costs, and strategic relationships with suppliers.
• Companies can achieve agility and responsiveness in meeting the demands of their customers
and the needs of their business partners.
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• Inaccurate production, inventory, and other business data provided by a company’s other
information systems are frequent causes of SCM problems.
• Lack of adequate collaboration among marketing, production, and inventory management
departments within a company, and with suppliers, distributors, and others.
• SCM software tools are considered to be immature, incomplete, and hard to implement by
many companies who are installing SCM systems.
Trends in SCM:
Three possible stages in a company’s implementation of SCM systems.
• First stage – a company concentrates on making improvements to its internal supply chain
process and its external processes and relationships with suppliers and customers.
• Second stage – a company accomplishes substantial supply chain management applications by
using selected SCM software programs internally, as well as externally via intranet and
extranet links among suppliers, distributors, customers, and other trading partners.
• Third stage – company begins to develop and implement cutting-edge collaborative supply
chain management applications using advance SCM software, full-service extranets links,
and private and public e-commerce exchanges.
Reference:
James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007,
8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
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