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11Chapter

EnterpriseApplicationsandBusinessProcessIntegration

11ChapterEnterpriseApplicatiAssesshowenterprisesystemsprovidevalueforbusinessesanddescribehowtheyworkAssesshowsupplychainmanagementsystemsprovidevalueforbusinessesanddescribehowtheyworkAssesshowcustomerrelationshipmanagementsystemsprovidevalueforbusinessesanddescribehowtheyworkManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationOBJECTIVESAssesshowenterprisesystemsExplainhowenterpriseapplicationscanbeusedinplatformsfornewcross-functionalservices

IdentifythechallengesposedbyenterpriseapplicationsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationExplainhowenterpriseapplicaChallenge:developasingleviewofcorporateandprivatebankingcustomers;overcomehistoricsegmentationofcustomersbyproductandlocationSolutions:developacustomerrelationshipmanagementsystem(CRM)anddatawarehousetointegratecustomerdatafromdiverselegacysystemsEnableasingleviewofcorporatecustomersIllustratestheroleofenterprisesystemsindevelopingaholisticviewofcustomersandachievinghighercustomerloyaltyandprofitabilityManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPNCBankCaseChallenge:developasingleviWhatAreEnterpriseSystems?ENTERPRISESYSTEMSEnterpriseSystemArchitecture

Figure11-1ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationWhatAreEnterpriseSystems?EHowEnterpriseSystemsWorkENTERPRISESYSTEMSEnterpriseResourcePlanning(ERP)systemsInterdependentsoftwaremoduleswithacommoncentraldatabasethatsupportbasicinternalbusinessprocessesforfinanceandaccounting,humanresources,manufacturingandproduction,andsalesandmarketing

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationEnterpriseSystems:HowEnterpriseSystemsWorkENENTERPRISESYSTEMSEnablesdatatobeusedbymultiplefunctionsandbusinessprocessesforpreciseorganizationalcoordinationandcontrol.

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationHowEnterpriseSystemsWork(Continued)EnterpriseSystems:(Continued)ENTERPRISESYSTEMSEnablesdatProcessMapforProcuringNewEquipmentENTERPRISESYSTEMSFigure11-2ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationProcessMapforProcuringNewAmoreuniformorganizationMoreefficientoperationsandcustomer-drivenbusinessprocessesFirmwideinformationforimproveddecisionmakingBusinessValueofEnterpriseSystems

ENTERPRISESYSTEMSManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationAmoreuniformorganizationBuSUPPLYCHAINMANAGEMENTSYSTEMSNetworkoforganizationsandbusinessprocessesforprocuringrawmaterials,transformingintoproducts,anddistributingthemtocustomersMaterials,information,andpaymentsflowthroughthesupplychaininbothdirections.TheSupplyChainSupplychain:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSCoordinationofbusinessprocessestospeedinformation,product,andfundflowsupanddownasupplychaintoreducetime,redundanteffort,andinventorycostsSupplychainmanagement:

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheSupplyChain(Continued)SUPPLYCHAINMANAGEMENTSYSTEMASupplyChainSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-3ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationASupplyChainSUPPLYCHAINMASUPPLYCHAINMANAGEMENTSYSTEMSPlan:Balancingdemandandsupplytomeetsourcing,production,anddeliveryrequirementsSource:ProcurementofgoodsandservicesneededtocreateaproductorserviceSupplyChainProcessesSCOR(ChainOperationsReferenceModel)identifiesfivemajorsupplychainprocesses:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSMake:ProcessesthattransformaproductintoafinishedstateDeliver:ProcessestomanageordertransportationanddistributionReturn:Processesassociatedwithproductreturnsandpostdeliverycustomersupport

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainProcesses(Continued)SUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSPlanningandcontrolofallfactorsthathaveanimpactonthesupplychainLogistics:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainProcesses(Continued)SUPPLYCHAINMANAGEMENTSYSTEMKeySupplyChainManagementProcessesSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-4ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationKeySupplyChainManagementPrSUPPLYCHAINMANAGEMENTSYSTEMSSchedulingsystemforminimizinginventorybyhavingcomponentsarriveexactlyatthemomenttheyareneededandfinishedgoodsshippedassoonastheyleavetheassemblylineJust-in-timestrategy:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationInformationandSupplyChainManagementInaccurateoruntimelyinformationcausesinefficienciesinsupplychain,suchasshortages,excessiveinventorySUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSDistortionofinformationaboutthedemandforaproductasitpassesfromoneentitytothenextacrossthesupplychainBullwhipeffect:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationInformationandSupplyChainManagement(Continued)SUPPLYCHAINMANAGEMENTSYSTEMTheBullwhipEffectSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-5ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheBullwhipEffectSUPPLYCHASupplychainmanagementsystems:AutomateflowofinformationbetweencompanyandsupplychainpartnersSUPPLYCHAINMANAGEMENTSYSTEMSSupplyChainManagementApplicationsSupplychainplanningsystems:Generatedemandforecastsforaproduct(demandplanning)andhelpdevelopsourcingandmanufacturingplansforthatproductManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplychainmanagementsystemSUPPLYCHAINMANAGEMENTSYSTEMSSupplychainexecutionsystems:ManagetheflowofproductsthroughdistributioncentersandwarehousestoensurethatproductsaredeliveredtotherightlocationsinthemostefficientmannerManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainManagementApplications(Continued)SUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSMetricsformeasuringsupplychainperformance:SupplyChainPerformanceMeasurementFillrate(theabilitytofillordersbytheduedate)AveragetimefromordertodeliveryThenumberofdaysofsupplyininventory

ForecastaccuracyThecycletimeforsourcingandmakingaproductManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSupplyChainManagementandtheInternetIntranetsandExtranetsforSupplyChainManagementSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-6ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainManagementandthSUPPLYCHAINMANAGEMENTSYSTEMSInternet-basedsupplychainmanagementapplications:ProvidestandardsetoftoolsFacilitateglobalsupplychainsReducecostsEnableefficientcustomerresponseAllowconcurrentsupplychainsManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSPush-basedmodel:Productionmasterschedulesbasedonforecastsofdemandforproducts,andproductsare“pushed”tocustomersManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPull-basedmodel:SupplychaindrivenbyactualcustomerordersorpurchasesSUPPLYCHAINMANAGEMENTSYSTEMPush-versusPull-BasedSupplyChainModelsSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-7ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPush-versusPull-BasedSupplTheFutureInternet-DrivenSupplyChainSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-8ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheFutureInternet-DrivenSupSUPPLYCHAINMANAGEMENTSYSTEMSBusinessValueofSupplyChainManagementSystemsImprovedcustomerserviceandresponsivenessCostreductionCashutilizationManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMCustomerRelationshipManagementandPartnerRelationshipManagementCustomerRelationshipManagement(CRM):Businessandtechnologydisciplineformanagingcustomerrelationshipstooptimizerevenue,profitability,customersatisfaction,andcustomerretentionCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCustomerRelationshipManagemePartnerRelationshipManagement(PRM):Automationofthefirm’srelationshipswithitssellingpartnersusingcustomerdataandanalyticaltoolstoimprovecoordinationandcustomersalesCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPartnerRelationshipManagemenCustomerRelationshipManagementApplicationsCRMsystems:CaptureandintegratecustomerdatafromallovertheorganizationConsolidateandanalyzethedataDistributeresultstovarioussystemsandcustomertouchpointsacrosstheenterpriseCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCustomerRelationshipManagemeTouchpoint:Amethodofinteractionwithacustomer,suchastelephone,e-mail,customerservicedesk,conventionalmail,Website,orretailstoreCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCustomerRelationshipManagementApplications(Continued)Touchpoint:AmethodofinterCustomerRelationshipManagement(CRM)SoftwareCanrangefromnichetoolstolarge-scaleenterpriseapplicationsCanlinktoothermajorenterpriseapplications,suchassupplychainmanagementCanincludemodulesforPRMandemployeerelationshipmanagement(ERM)CUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCustomerRelationshipManagemeSalesForceAutomation(SFA)CustomerserviceMarketingCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTypicallyincludecapabilitiesforCustomerRelationshipManagement(CRM)Software(Continued)SalesForceAutomation(SFA)CFigure11-9CRMSoftwareCapabilitiesCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationFigure11-9CRMSoftwareCapabiCustomerLoyaltyManagementProcessMapFigure11-10CUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCustomerLoyaltyManagementPrOperationalandAnalyticalCRMOperationalCRM:Customer-facingapplications,suchassalesforceautomation,callcenterandcustomerservicesupport,andmarketingautomationExamples:Campaignmanagement,e-marketing,accountandcontactmanagement,leadmanagement,telemarketing,teleselling,e-selling,fieldsalesCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationOperationalandAnalyticalCRMCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationAnalyticalCRM:ApplicationsthatanalyzecustomerdatageneratedbyoperationalCRMapplicationstoprovideinformationforimprovingbusinessperformanceExamples:Developcustomersegmentationstrategiesandcustomerprofiles;analyzecustomerorproductprofitability;identifytrendsinsaleslengthcycle;analyzeleadsgeneratedandconversionratesCUSTOMERRELATIONSHIPMANAGEMECUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

AnalyticalCRMDataWarehouseFigure11-11ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationCUSTOMERRELATIONSHIPMANAGEMEBusinessValueofCustomerRelationshipManagementSystemsIncreasedcustomersatisfactionMoreeffectivemarketingandreduceddirectmarketingcostsLowercostsforcustomeracquisitionandretentionCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationBusinessValueofCustomerRelReducechurnrate:Increasedrevenuefromidentifyingmostprofitablecustomersandsegmentsformarketing,cross-selling,up-sellingCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationNumberofcustomerswhostopusingorpurchasingproductsorservicesfromacompanyBusinessValueofCustomerRelationshipManagementSystems(Continued)Reducechurnrate:IncreasedreTheImportanceofCRMPerformanceMeasurementMetricsforCRMmayinclude:CUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSuccessfulCRMimplementationsrequirethatfinancialandoperationgoals,andmetricforevaluation,areclearlydefinedatoutsetofprojectCostperlead

Costpersale

TheImportanceofCRMPerformaCUSTOMERRELATIONSHIPMANAGEMENTSYSTEMS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationNumberofrepeatcustomersReductionofchurn

SalesclosingrateCustomerLifetimeValue(CLTV):DifferencebetweenrevenuesandexpensesminusthecostofpromotionalmarketingusedtoretainanaccountTheImportanceofCRMPerformanceMeasurement(Continued)CUSTOMERRELATIONSHIPMANAGEMEServicePlatformsandBusinessProcessManagementServicePlatform:Integrationofmultipleapplicationsfrommultiplebusinessfunctions,businessunits,orbusinesspartnerstodeliveraseamlessexperienceforthecustomer,employee,manager,orbusinesspartnerENTERPRISEINTEGRATIONTRENDS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationServicePlatformsandBusinessBusinessProcessManagement:Amethodologyfordealingwiththeorganization’sneedtochangeitsbusinessprocessescontinuallytoremaincompetitivePortals:Frameworksforbuildingcompositeservices,integratinginformationformenterpriseapplicationsandin-houselegacysystemsENTERPRISEINTEGRATIONTRENDS

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationBusinessProcessManagement:AOrder-to-CashServiceENTERPRISEINTEGRATIONTRENDS

Figure11-12ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationOrder-to-CashServiceENTERPRIImprovementofprocesscoordinationandmanagementdecisionmakingReductionsininventorycosts,order-to-deliverytime,andmoreefficientcustomerresponseandhigherproductandcustomerprofitabilityMANAGEMENTOPPORTUNITIES,CHALLENGESANDSOLUTIONSManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationManagementOpportunities:ImprovementofprocesscoordinHightotalcostofownershipOrganizationalchangerequirementsRealizingstrategicvalueManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationManagementChallenges:MANAGEMENTOPPORTUNITIES,CHALLENGESANDSOLUTIONSHightotalcostofownershipMLookatbusinessobjectivesfirstAttentiontodataanddatamanagementSeniormanagementcommitmentandemployeesupportEducationandtrainingManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSolutionGuidelines:MANAGEMENTOPPORTUNITIES,CHALLENGESANDSOLUTIONSLookatbusinessobjectivesfi11Chapter

EnterpriseApplicationsandBusinessProcessIntegration

11ChapterEnterpriseApplicatiAssesshowenterprisesystemsprovidevalueforbusinessesanddescribehowtheyworkAssesshowsupplychainmanagementsystemsprovidevalueforbusinessesanddescribehowtheyworkAssesshowcustomerrelationshipmanagementsystemsprovidevalueforbusinessesanddescribehowtheyworkManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationOBJECTIVESAssesshowenterprisesystemsExplainhowenterpriseapplicationscanbeusedinplatformsfornewcross-functionalservices

IdentifythechallengesposedbyenterpriseapplicationsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationExplainhowenterpriseapplicaChallenge:developasingleviewofcorporateandprivatebankingcustomers;overcomehistoricsegmentationofcustomersbyproductandlocationSolutions:developacustomerrelationshipmanagementsystem(CRM)anddatawarehousetointegratecustomerdatafromdiverselegacysystemsEnableasingleviewofcorporatecustomersIllustratestheroleofenterprisesystemsindevelopingaholisticviewofcustomersandachievinghighercustomerloyaltyandprofitabilityManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPNCBankCaseChallenge:developasingleviWhatAreEnterpriseSystems?ENTERPRISESYSTEMSEnterpriseSystemArchitecture

Figure11-1ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationWhatAreEnterpriseSystems?EHowEnterpriseSystemsWorkENTERPRISESYSTEMSEnterpriseResourcePlanning(ERP)systemsInterdependentsoftwaremoduleswithacommoncentraldatabasethatsupportbasicinternalbusinessprocessesforfinanceandaccounting,humanresources,manufacturingandproduction,andsalesandmarketing

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationEnterpriseSystems:HowEnterpriseSystemsWorkENENTERPRISESYSTEMSEnablesdatatobeusedbymultiplefunctionsandbusinessprocessesforpreciseorganizationalcoordinationandcontrol.

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationHowEnterpriseSystemsWork(Continued)EnterpriseSystems:(Continued)ENTERPRISESYSTEMSEnablesdatProcessMapforProcuringNewEquipmentENTERPRISESYSTEMSFigure11-2ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationProcessMapforProcuringNewAmoreuniformorganizationMoreefficientoperationsandcustomer-drivenbusinessprocessesFirmwideinformationforimproveddecisionmakingBusinessValueofEnterpriseSystems

ENTERPRISESYSTEMSManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationAmoreuniformorganizationBuSUPPLYCHAINMANAGEMENTSYSTEMSNetworkoforganizationsandbusinessprocessesforprocuringrawmaterials,transformingintoproducts,anddistributingthemtocustomersMaterials,information,andpaymentsflowthroughthesupplychaininbothdirections.TheSupplyChainSupplychain:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSCoordinationofbusinessprocessestospeedinformation,product,andfundflowsupanddownasupplychaintoreducetime,redundanteffort,andinventorycostsSupplychainmanagement:

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheSupplyChain(Continued)SUPPLYCHAINMANAGEMENTSYSTEMASupplyChainSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-3ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationASupplyChainSUPPLYCHAINMASUPPLYCHAINMANAGEMENTSYSTEMSPlan:Balancingdemandandsupplytomeetsourcing,production,anddeliveryrequirementsSource:ProcurementofgoodsandservicesneededtocreateaproductorserviceSupplyChainProcessesSCOR(ChainOperationsReferenceModel)identifiesfivemajorsupplychainprocesses:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSMake:ProcessesthattransformaproductintoafinishedstateDeliver:ProcessestomanageordertransportationanddistributionReturn:Processesassociatedwithproductreturnsandpostdeliverycustomersupport

ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainProcesses(Continued)SUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSPlanningandcontrolofallfactorsthathaveanimpactonthesupplychainLogistics:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainProcesses(Continued)SUPPLYCHAINMANAGEMENTSYSTEMKeySupplyChainManagementProcessesSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-4ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationKeySupplyChainManagementPrSUPPLYCHAINMANAGEMENTSYSTEMSSchedulingsystemforminimizinginventorybyhavingcomponentsarriveexactlyatthemomenttheyareneededandfinishedgoodsshippedassoonastheyleavetheassemblylineJust-in-timestrategy:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationInformationandSupplyChainManagementInaccurateoruntimelyinformationcausesinefficienciesinsupplychain,suchasshortages,excessiveinventorySUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSDistortionofinformationaboutthedemandforaproductasitpassesfromoneentitytothenextacrossthesupplychainBullwhipeffect:ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationInformationandSupplyChainManagement(Continued)SUPPLYCHAINMANAGEMENTSYSTEMTheBullwhipEffectSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-5ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheBullwhipEffectSUPPLYCHASupplychainmanagementsystems:AutomateflowofinformationbetweencompanyandsupplychainpartnersSUPPLYCHAINMANAGEMENTSYSTEMSSupplyChainManagementApplicationsSupplychainplanningsystems:Generatedemandforecastsforaproduct(demandplanning)andhelpdevelopsourcingandmanufacturingplansforthatproductManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplychainmanagementsystemSUPPLYCHAINMANAGEMENTSYSTEMSSupplychainexecutionsystems:ManagetheflowofproductsthroughdistributioncentersandwarehousestoensurethatproductsaredeliveredtotherightlocationsinthemostefficientmannerManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainManagementApplications(Continued)SUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSMetricsformeasuringsupplychainperformance:SupplyChainPerformanceMeasurementFillrate(theabilitytofillordersbytheduedate)AveragetimefromordertodeliveryThenumberofdaysofsupplyininventory

ForecastaccuracyThecycletimeforsourcingandmakingaproductManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSupplyChainManagementandtheInternetIntranetsandExtranetsforSupplyChainManagementSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-6ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSupplyChainManagementandthSUPPLYCHAINMANAGEMENTSYSTEMSInternet-basedsupplychainmanagementapplications:ProvidestandardsetoftoolsFacilitateglobalsupplychainsReducecostsEnableefficientcustomerresponseAllowconcurrentsupplychainsManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationSUPPLYCHAINMANAGEMENTSYSTEMSUPPLYCHAINMANAGEMENTSYSTEMSPush-basedmodel:Productionmasterschedulesbasedonforecastsofdemandforproducts,andproductsare“pushed”tocustomersManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPull-basedmodel:SupplychaindrivenbyactualcustomerordersorpurchasesSUPPLYCHAINMANAGEMENTSYSTEMPush-versusPull-BasedSupplyChainModelsSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-7ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationPush-versusPull-BasedSupplTheFutureInternet-DrivenSupplyChainSUPPLYCHAINMANAGEMENTSYSTEMSFigure11-8ManagementInformationSystemsChapter11EnterpriseApplicationsandBusinessProcessIntegrationTheFutureInternet-DrivenSupSUPPLYCHAINMANAGEMENTSYSTEMSBusinessValueofSupplyChainManagementSystemsImprovedcustomerserviceandrespo

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