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Exam 4

Legacy Systems

a current or existing system that will become the base for upgrading or integrating with a new system

Enterprise Application Integration (EAI)

connects the plans, methods, and tools aimed at integrating separate enterprise systems; reviews how legacy systems fit into the new shape of the firm's business processes and devises ways to efficiently reuse what already exists while adding new systems and data


integrations are achieved by using; several different types of software that sit between and provide connectivity for two or more software applications; translates information between disparate 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 Application Integration Middleware

packages 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 corporate profitability

Supply Chain: Plan

prepare to manage all resources required to meet demand

Supply Chain: Source

build relationships with suppliers to procure raw materials

Supply Chain: Make

manufacture products and create production schedules

Supply Chain: Deliver

plan for transportation of goods to customers

Supply Chain: Return

support customers and product returns

Inventory Cycle Time

the time it takes to manufacture a product and deliver it to the retailer

Supply Chain Planning Software

use advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory; require information inputs that are correct and up-to-date regarding customers, orders, sales, manufacturing, and distribution capabilities

Supply Chain Execution Software

ensure supply chain cohesion by automating the different activities of the supply chain

Demand Planning System

generate demand forecasts using statistical tools and forecasting techniques, so companies can respond faster and more effectively to consumer demands through supply chain enhancements; implemented to understand customer demand and production capabilities so they can estimate supply chain costs that ultimately impact the firm's performance and business strategies

Partner Relationship Management

discovers optimal sales channels by selecting the right partners and identifying mutual customers

Five Basic Supply Chain Activities

1. Plan
2. Source
3. Make
4. Deliver
5. Return

Collaborative Engineering

reduces product development costs

Customer Relationship Management (CRM)

a means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability; allows an organization to gain insights into customers' shopping and buying behaviors; every time a customer communicates with a company, the firm has the chance to build a trusting relationship with that particular customer

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

Opportunity Management CRM System

target sales opportunities by finding new customers or companies for future sales; determine potential customers and competitors and define selling efforts including budgets and schedules; deals with new or potential customers

Contact Center (or Call Center)

where customer service representatives answer customer inquiries and solve problems, usually by email, chat, or phone; also track customer communications histories along with problem resolutions-information critical for providing a comprehensive customer view to the service representative


increasing the value of the sale; McDonald's performs this by asking customers whether they would like to super-size their meals for an extra cost

Enterprise Resource Planning (ERP)

integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise wide information about all business operations

Core (Common) ERP Components

the traditional components included in most ERP systems and primarily focus on internal operations:
1. Accounting and Finance
2. Production and Materials Management
3. Human Resources

Production and Materials Management (Planning)

handle production planning and execution tasks such as demand forecasting, production scheduling, job cost accounting, and quality control

Accounting and Finance

manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

Human Resources

track employee information including payroll, benefits, compensation, and performance assessment and ensure compliance with all laws; allow the organization to perform detailed employee analysis such as identifying who is likely to leave the company unless additional compensation or benefits are provided, and whether the most talented people are working in areas where they can have the greatest impact; identify which employees are using which resources, such as online training and long-distance telephone services

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