Integration
Allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems
Forward integration
Takes information entered into a given system and sends it automatically to all downstream systems and processes.
Backward integration
Takes information entered into a given system and sends it automatically to all upstream systems and processes.
Enterprise system
Provide enterprisewide support and data access for a firm's operations and business processes
Enterprise application integration (EAI)
connects the plans, methods, and tools aimed at integrating separate enterprise systems
Middleware
Connects the plans, methods, and tools aimed at integrating separate enterprise systems. Note: Legacy Systems., several different types of software that sit in the middle of and provide connectivity between two or more software applications
Enterprise application integration middleware
Takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors
Supply Chain Management (SCM)
The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability
Supply chain visibility
The ability to view all areas up and down the supply chain in real time
Supply chain planning system
Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory
Supply chain execution system
Automates the different activities of the supply chain
Bullwhip effect
occurs when distorted product demand information passes from one entity to the next throughout the supply chain
Demand planning system
Generates demand forecasts using statistical tools and forecasting techniques, so companies can respond faster and more effectively to consumer demands through supply chain enhancements
Common supply chain metrics include
� Back order
� Inventory cycle time
� Customer order cycle time
� Inventory turnover
Primary challenges include
Cost - help implementing the system
Complexity - complexity in the supply chain
Fastest growing SCM components
�Collaborative demand planning
�Collaborative engineering
�Selling chain management
�Supply chain event management (SCEM)
Customer relationship management (CRM)
involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability
CRM reporting technology
help organizations identify their customers across other applications
CRM analysis technologies
Help organizations 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
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
Enterprise resource planning
integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations
Core ERP component
traditional components included in most ERP systems and they primarily focus on internal operations
Extended ERP component
extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
Three most common core ERP components
-Accounting and finance
-Production and materials management
-Human resource
Production and materials management ERP component
handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
Human resource ERP component
tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
Extended ERP components
business intelligence
customer relationship management
supply chain management
ebusiness
Balanced scorecard
enables organizations to clarify their vision and strategy and translate them into action
From where does the Balanced scorecard view the organiztion?
� Learning and growth
� Internal business process
� Customer
� Financial