Chapter 8: Discussion questions

1)      Should every company become a customer focused business? Why or why not?

Costumers are the most valuable assets of an organization. Whatever the organization does, either it’s about improving quality or providing variety, all is in order to enhance satisfaction level of costumers. The ultimate aim of organization is to earn customers, satisfy them, retain them and increase the number with time and grow. If an organization could make its costumer happy then it can prosper so the key to success and prosperity of an organization is its ability to value its costumers and make them happy. So in order to achieve profitability and long term benefits every

organization should do customer focused business.

2)     Why would systems that enhance a company’s relationships with customers have such a big rate of failure?

Surveys have shown that 50% of CRM projects did not produce the promised results. The system that is implemented in order to enhance the customer relationship has such a big rate of failure because of various reasons:

·         Lack of proper understanding of the system and insufficient preparation.

·         Manager’s inefficiency of not to try to solve new problem without even developing the business process changes and change management programs which are required for the effective implementation of CRM systems.

·         Implementation of the major system without the participation of its business stakeholders.

·         No any arrangements of training programs for employees to adopt the change.

3)      Refer to the Real World Case on Net Suite, Berlin Packaging, and Churchill Downs in the chapter. In this case how could CRM systems like those reviewed help a business that you know or deal with provide you with better service? Provide some examples other than those discussed in the case.

Almost every business organization benefits from the implementation of Costumer Relationship Management system in it business. As mentioned in the case on New Suite, Berlin Packaging, and Churchill Downs in the chapter, CRM facilitates....... click below to read all.

the tracking of customer with detailed information’s about customer and their specific taste and preferences. CRM also emphasizes on real time customization and personalization of products and services so that they can be related easily with each other.

 Hotel business for example can benefit a lot from the use of CRM system in its performance. Many client check in the hotel and if their information is managed properly then hotels can increase their business by satisfying their customers by treating them as per their nature and tracking them time and again. They function directly with their customers so it is even more important for them to have good CRM system so as to enjoy the customer loyalty and high growth rates from those retained customers.

4)      How could some of the spectacular failures of ERP Systems have been avoided?

The failures of ERP would have avoided if certain things would have been considered before and after the implementation of ERP system in an organization:

·         Proper plan backed with logical reasoning would have made the implementation process much easier.

·         Managers and IT professionals should have considered the chances of utmost complexities that could be encountered during the process and should have prepared themselves with safety measures.

·         Development of training to the employees in order to undertake the new system would have made the workforce efficient enough to take and handle the change.

5)      Should companies use EDI systems? Why or why not?

Electronic Data Management is one of the earliest uses of information technology for supply chain management. It involves the electronic exchange of business transaction documents overt the internet and other networks between supply chain trading partners. Actually, EDI software is used to convert a company’s own document format into standardized EDI formats as specified by various industry and international protocols.

Since EDI is one of the basic component of B2B e-commerce application over the internet I think organizations should continue to use EDI systems.EDI facilitates the function of data transmission over network links directly between computers without paper documents and human intervention. They are secure and costs low so I think business organizations can use it to lower their cost and increase the speed of the transmission as well as enhance the accuracy of the data transaction.

6)      Refer to the Real World Case on open Source ERP systems in the chapter. Does this approach reduce the potential risks of ERP implementations because these packages have no up-front licensing commitments? Why? Defend your answer.

Open ERP software package are independent and can be customized as per the need and requirement of organizations. Every organization is different, so is their transaction pattern and working structure so there is no standard ERP as such, which is perfect for each and every organization. So, open software packages are the best option for the business organizations if they need some consideration and integration in the software as per their working pattern. This approach of ERP system is much flexible and productive because adjustments are possible to be made. This definitely reduces the risk of ERO implementations because they have no up-front licensing commitments. When there is no standard that is to be maintained then organizations can modify it easily as per their convenience in order to increase the productivity, efficiency and effectiveness of an organization.

7)      How can the problem of overenthusiastic demand forecasts in supply chain management be avoided?

Demand is accumulated as per the trends and practices followed regarding the product during the time being. Some kind of gut feeling and estimation techniques is used while demand forecasting. Demand forecasting is the supporting feature to supply chain management because demand and supply are to inseparable issues. Sometimes people become over optimistic regarding the demand forecasting in certain scenarios and that results in overenthusiastic demand forecasting. Supply chain is managed as per the forecasted demand and if supply is increased to meet the overenthusiastic demand organization has to maintain high inventory stock. Such problems can be managed by taking various steps:

·         Making the proper analysis of situation.

·         Development of information as an alternative to inventory.

·         Making proper adjustments in case of low demand from the market.

·         Being on safe side by having proper information about where to turn when demand exceeds or does not reach the demand forecast.

8)      What challenges do you see for a company that wants to implement collaborative SCM systems? How would you meet such challenges?

The challenges that organization needs to tackle down, that wants to implement collaborative SCM systems are pointed below:

·         Development of effective SCM systems is a very complex job.

·         It is one of the very difficult applications of information technology to business operations.

·         Rapid demand fulfillment and achievement of goals and objectives of SCM.

·         Effective distribution and channel partnership.

·         Responsiveness and accountability to its customers.

9)      Refer to the Real World Case on the challenges of SCM faced during the holiday season. Do you think end-of-year shopping is inherently unpredictable? Could companies develop strategies to cope with this issue such as preordering products at a discount (Which Amazon.com extensively practices)?

End of the year, the time of Christmas and New Year. We generally assume that people want to shop more in order to consume themselves or to present as gift. So this is the time when an organization needs to concentrate on demand and supply chain in an industry. But since actual transaction or business depends upon the customer’s choice, taste and preference it’s a very complex and difficult period for suppliers as well as retailers to anticipate the actual demand. Costumer may go buy things this year or they may wait for New Year to come. At such point both under forecasting and overcastting of demand results the company’s loss. So I think such time of a year is very unpredictable time to forecast demand.

Yes, as per the business objectives and strategies of organizations, an organization can develop strategies to cope with this issue. Arranging sale in heavy discounts and providing free gift vouchers in buying of products may be better option to go for in order to enhance sales in such periods.

10)  Should companies install e-business software suites or “best of breed” e- business software components? Why?

After the web enabled ERP software, development in ERP system resulted the introduction of integration of ERP functions into e- business suites. The major ERP software companies have developed modular, web enabled software suites that integrate ERP, Customer relationship management, procurement, decision support, enterprise portals and other business applications and functions. E- Business software suites are much advance and for very sophisticated use. This software suite enables organization to run most of their business process using one web enabled system of integrated software and database, instead of variety of separate e-business applications.

Use of such kind of software enhances the productivity of the organization increasing its efficiency and effectiveness. Such software’s make the software using portion easier and flexible but they come with good costs as well. So companies should use it as per their budget and if the budget constraint is low then there are several other open software package options available.

Advertisement