Instructions for AssignmentRead the unit overviews, the associated chapters in the book, participate in the online discussions until week 6, read related research, the web pages related to this assign

Enterprise Information Systems Topic 5 – Overview Topic’s learning objectives:  Extending the Organization to Customers  Extending the Organization Along the Supply Chain 5.1 Extending the Organization to Customers Until section 4.1 we covered the broad issues that impact an organization and its systems. In the last section we discussed the internal systems so it is logical to follow that with an analysis of how an organization extends its systems to its customers. The next section , 5.2 , follows this logical progression cover ing how organizations extend their systems in the opposite direction , towards their suppliers. The main method an organization uses t o extend to the customer is by utilizing a Customer Relationship Management, CRM, system. A CRM system should be part of a CRM strategy to be customer focused and customer driven. Having the word relationship as part of the term as opposed to transaction indicates the focus on long term nurturing of relationships. Every customer may have different needs and a different value to the organization . A CRM keeps all the information necessary when dealing with a customer in one place and may also enable the process of serving them. It should allow the customer to be treated as an individual as the person from the organization using it will have some information about them such as their name and the previous purchases they made. This should be the case even if the person that deals with them is different each time although many CRM systems try to channel the customer to the same person every time so that the service is even better. One of the benefits of a CRM is in situations where there are large periods o f time between the customer engaging with the organization. The people dealing with that customer might change and even if it is the same person they would not remember all the details about a situation. The CRM can immediately provide a log of previous customer interactions and what was agreed. A place where the CRM ’s role may be more obvious to many people is at a hotel where they know who you are after you give your room number and may even surprise you with a complementary gift if it is you birthday. Hotels are also an environment where the different needs and different value of a customer are clear. A family on holiday will have different needs to a business guest. And someone who rents an expensive suite has a different value to someone that has a standard room. The person that has rented the suite for thousands of pounds a day will be given more attention and could be given complementary gifts worth hundreds of pounds. As with most types of information systems CRMs can be quite simple o r very sophisticated and complex. Most will have the elements illustrated in figure 5.1 and follow that process. When people discuss CRM systems they usually talk about people from the organization using technology to enhance their interaction with the c ustomer. These are referred to customer facing applications . There are other applications where the customer just deals with the system such as search functionalities and recommendations of similar products. Figure 5.1: T he customer relationship management process. Pause for thought A CRM system has a number of typical functiona lities and benefits such as better customer satisfaction and retention. Despite these broad typical functionalities and benefits there are more specific benefits that are dependent on the nature of the company. For the following types of companies consid er what specific benefits can be acrued :  Airline company  Car manufacturer  Mobile phone network operator 5.2 Extending the Organization Along the Supply Chain After looking at how the organization’s systems extend to the consumer we turn our attention to how they extend to the supplier and the supply chain. Some issues are the same for systems that are internal or external linked to either the customer or the supplier . They all share information, make sure all the information is up to date and encourage specific processes to happen. Some more specific issues are particular to supply chains. When people think of supply chains they may think of manufacturing . A car manufacturer is supplied by raw materials such as steel and glass but may also be supplied with parts such as a gear box. Some suppliers may also be competitors. For example a Samsung phone can have a battery from Sony. Beyond the various materials involved in industry a supply chain covers information, money an d serv ices. Whatever is being transferred by the supply chain increasing visibility is important. The process of the supply chain starts with the process of arranging what will happen. This can be considered upstream as illustrated in figure 5.2. The subsequent flow of materials can be considered a second step and can be considered as downstream . Inter -organizational information systems can be used to reduce costs of transactions, improve information quality and flow and speed the process up. There a re some specific systems used for supply chains. The first is the Electronic Data Interchange, EDI is a communication standard that enables partners to send standardised forms often needed by the supply chain. The second are extranets that allow specific partner to have access to specific sections of a company’s systems and network. Lastly portals are a webpage that includes all the information necessary for collaboration between suppliers. Figure 5.2 Generic Supply chain Pause for thought Organizations outsource anything that is not their core competency. They try to find the best supplier possible for each thing. This often leads to using competitors as suppliers . Examples are mobile phones where Sony, Samsung and LG are suppliers for Apple, Sony for Samsung, Samsung for LG and so on. Considering the interconnectedness of modern supply chains identify three advantages and three disadvantages of having your competitors as suppliers . Optional exercise Read following article by Simon Croom on the impact of e -business on the supply chain, an empirical study of key developments and answer the following questions. The article can be found on the internet or on the module website. i. Briefly explain in you r own words the purpose of this study. ii. Briefly discuss what the e -supply chain management priorities are. iii. Briefly discuss how e -supply chains have evolved. Further reading Rainer R.K., Watson H.J. (2012) Management Information Systems: Moving Business Forward, Wiley. Gunasekaran, A., Shea, T. (2009) Organizational Advancements through Enterprise Information Systems: Emerging Applications and Developments: IGI Global Motiw alla, L. And Thompson, J. (2012) Enterprise Systems for Management: International Version, 2/E, Pearson Higher Education Magal, S. R. and Word, J. (2012) Integrated Business Processes with ERP Systems, Wiley Plus course Cruz -Cunha, M. M. (2009) Social, M anagerial, and Organizational Dimensions of Enterprise Information Systems, IGI Global Obrien, J. and Marakas G. (2007): ‘Enterprise Information Systems’, Chapter 12: Local and International Management of Information Technology, 13th ed., McGraw Hill.