Chapter 10 Highlights.Docx

Chapter 10, Enterprise Information Systems

Legacy systems are old systems of a company that were built using various outdated technologies. They cannot be updated at all or cannot be updated without a lot of effort. They also cannot connect with and exchange data with newer technologies.

Mission-critical systems are ones that, if it crashes, operations could be stopped completely. Legacy systems and newer systems can both be mission-critical systems.

Enterprise systems support core business processes and functions. Databases are linked to share data from internal supply chains and external supply chains. They help improve performance by allowing sharing between departments and with business partners.

Elements of an enterprise system:

Enterprise resource planning (ERP) links an enterprise’s internal applications and supports external business processes. Helps managers run business from front to back. A good ERP can be used to integrate all of an organization’s aspects around a single set of data.

Supply chain management (SCM) supports the steps in the supply chain. This includes the purchase of materials, the manufacturing of materials into intermediate or finished products, distributions of finished products to customers, and recycling or landfill disposal.

Collaborative planning, forecasting, and replenishment (CPFR) is designed to help predict and coordinate with supply chain partners. This is made up of four main collaborative activities: strategy and planning, demand and supply management, execution, and analysis.

Customer relationship management (CRM) “creates a total view of customers to maximize share-of-wallet and profitability.” CRM is used to achieve the following: build better customer loyalty and better profitability per customer, deter loss of customers, acquire new customers that are most likely to be profitable, up-sell or cross-sell to unprofitable customers to make them profitable, and reduce inefficiencies that waste advertising...