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Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 393
Key Terms
Analytical CRM, 386 Operational CRM, 386
Bullwhip effect, 374 Partner relationship management (PRM), 382
Churn rate, 387 Pull-based model, 379
Cross-selling, 384 Push-based model, 379
Customer lifetime value (CLTV), 386 Social CRM, 389
Demand planning, 376 Supply chain, 372
Employee relationship management (ERM), 382 Supply chain execution systems, 376
Enterprise software, 370 Supply chain planning systems, 376
Just-in-time strategy, 374 Touch point, 381
Review Questions
1. How do enterprise systems help businesses
• Define customer relationship management
achieve operational excellence?
and explain why customer relationships are so
• Define an enterprise system and explain how important today.
enterprise software works.
• Describe how partner relationship manage-
• Describe how enterprise systems provide ment (PRM) and employee relationship
value for a business. management (ERM) are related to customer
2. How do supply chain management systems relationship management (CRM).
coordinate planning, production, and logistics • Describe the tools and capabilities of customer
with suppliers? relationship management software for sales,
• Define a supply chain and identify each of its marketing, and customer service.
components. • Distinguish between operational and analyti-
• Explain how supply chain management sys- cal CRM.
tems help reduce the bullwhip effect and how 4. What are the challenges posed by enterprise
they provide value for a business. applications?
• Define and compare supply chain planning • List and describe the challenges posed by
systems and supply chain execution systems. enterprise applications.
• Describe the challenges of global supply • Explain how these challenges can be
chains and how Internet technology can help addressed.
companies manage them better.
5. How are enterprise applications taking advan-
• Distinguish between a push-based and a tage of new technologies?
pull-based model of supply chain management
• How are enterprise applications taking advan-
and explain how contemporary supply chain
tage of SOA, Web services, open source
management systems facilitate a pull-based
software, and wireless technology?
model.
• Define social CRM and explain how customer
3. How do customer relationship management
relationship management systems are using
systems help firms achieve customer intimacy?
social networking.
Discussion Questions
1. Supply chain management is less about managing 3. Which enterprise application should a business
the physical movement of goods and more about install first: ERP, SCM, or CRM? Explain your
managing information. Discuss the implications answer.
of this statement.
2. If a company wants to implement an enterprise
application, it had better do its homework. Discuss
the implications of this statement.
MIS_13_Ch_09 Global.indd 393 1/17/2013 2:28:58 PM
