Weekly Question #5
Leave your response as a comment on this post by the beginning of class on June 14th, 2016. Your response only needs to be about three or four sentences. For these weekly questions, I’m mainly interested in your understanding of the readings. In your response, indicate from which reading you are pulling your key points and details. You may use the same reading as another class mate, but try to pull out a point or detail that hasn’t been shared yet. As a class, you can use this to build out your Study Guide on the readings for each exam.
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Here is the question:
Select one of the readings from Unit 4.1 or 4.2 and pull out 1 key point of the reading. Provide some detail as to why this is important, based on your understanding of the readings.
“This process lets manufacturers purchase and receive components just before they’re needed on the assembly line. As a consequence, it relieves manufacturers of the cost and burden of housing and managing idle parts.” JIT manufacturing has been tried by many, implemented by some, and perfected by few. This process of manufacturing allows a company to keep costs low and cash flow high. I’ve worked in apparel & footwear for 13 years and can tell you many manufacturers tried this method and few succeeded. Although this concept has adds tremendous value to the supply chain, it’s very difficult to master.
The article I read “What is RFID?” discusses the various ways in which Radio Frequency Identification (RFID) is implemented into multiple devices in our everyday lives. The RFID tags carry electromagnetic energy in order to transmit information and identify objects. The wireless technology carries sensors in the tags which enable us to track any object that carries the special RFID tag. It is suggested that this technology will provide multiple advantages in our society, but not many people take into consideration the implications that may arise. Once this technology progresses and becomes more accessible, there are more opportunities for the devices to become an invasion of privacy. The tags have the capability to store private information, and encode any type of data, as well as track the specific whereabouts of an individual. It is frightening to consider that anyone can have access to your private information if the tags where to get the in hands of a stranger.
Supply Chain Management (SCM) Definition and Solutions –having a strategic plan within the organization to improve the way raw materials and/or services are produced and delivered to the customer; basically the process in which goods and services flow within an organization.
There are 5 basic components of a SCM:
1) Plan – develop a strategy to manage all of your resources towards meeting the demand and expectations of the customer being cost effective; yet efficient. 2) Source- selects suppliers to deliver your good/services to the customer. Once pricing, delivery and payment processes with the suppliers are established via the supply chain managers there another set of processes that’s required to maintain and continuous improve the relationship. Next, SCM managers put together a system for managing their product/service relative to inventory, receiving, verification of shipments, transfer to manufacturing plants and authorizing payments.
3) Make – production, testing, packaging and delivery preparations – in this step, companies can measure the productivity, quality and production. 4) Deliver – Logistics, receipt of customer orders are coordinated, warehouse relationships are established, carriers chosen and customers begin to receive ordered products and invoice/payments are created. 5) Return – system has to be implemented for customers to be able to return defective, excess or unwanted/needed products. This step must be responsive and flexible.
To me, “Return” this is the most important component of all and the most problematic step. Yes, all other components are necessary for a SCM to work effective and efficiently, but from a customers’ point of view if he/she experiences major difficulty returning the item(s), you are guaranteed to lose that customer and many more.
According to the article “Difference Between CRM and ERP” are two software used by companies to increase their profitability. Customer relationship management “manages the relationship with customers and clients while enterprise resource planning emphasis on the planning of the resources of an enterprise”. There are six major differences between ERP and CRM. “1) CRM is defined as a software that lets the organization to trace every transaction with the clients and customers. ERP refers to a software program that helps the company to manage its business processes, going on across the company. 2) ERP consolidates the information provided by various functional groups of the organization through systems like CRM, Supply Chain Management, Human Resources Management, etc. 3) ERP was developed earlier than CRM. 4) The CRM is mainly utilized in conducting back office activities, whereas ERP is used in accomplish back office activities. 5) CRM is oriented towards the management of customer’s relationship with the enterprise while ERP is mainly concerned with planning the resources of the organization to ensure its best possible use. 6) CRM focus on increasing sales and is oriented toward customers while ERP is focus on reducing cost and is oriented toward enterprise”.
With the implementation of these two software, companies can increase their profitability and achieve their goals faster.
I choose to analyze the article, “CRM and ERP: What is the difference?” CRM and ERP have a brother/sister like relationship. CRM and ERP are both used to increase the overall profitability of a business. CRM focuses on the customer(s), whereas, ERP focuses on the business. CRM’s builds relationships with their customers in order to increase revenues; ERP’s aims at reducing expenses. As mentioned in the article, “CRM is the engine that drives a business – improves sales and increases profits. ERP is the steering wheel – it allows a business to be guided with precision and to steer around obstacles well in advance.” This article caught my interest as I learned that CRM utilizes front office activities and ERP utilizes the back office activities.
After reading “What is RFID?” I was able to gain a great understanding as to what exactly an RFID does as well as what potential it has become in the future. Simply put, the article describes RFID, or radio frequency identification, as a wireless technology that is inserted into objects and allows you to track them. Including both a reader and a tag, an RFID can develop in a large network of tracked objects all over the world. This makes supply chain management much more effective for large companies. The future potential for this technology is endless. Whether they are utilized for medical applications, libraries, access control, animal identification, faster payments, or sports events, an RFID can increase efficiency and save money in many industries around the world.
My summary is on the article “what is a platform?” The article defines a platform as a business model that creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers. Successful platforms facilitate exchanges by reducing transaction costs and/or by enabling externalized innovation. Platforms also create ecosystems and leverage their inherent network effects. Some core values being exchanged by platform types are: Services marketplace –a service, Product marketplace –a physical product, Payment platform –payment, and investment platform –investment.
I read the article entitled “CRM and ERP: What is the difference?”. Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) both are used by firms to increase the overall profitability of their business, however both systems are quite different in achieving that goal. CRM is system that stores and tracks interactions with a business’s customers. This standardized data is easily shared throughout the company, so different groups within can assess its information. This storage of customer data can help businesses better understand their customers instincts and tendencies, which can increase sales and improve customer service. On the other hand, ERP focuses on the operational side of the business. Like CRM, this standardized data can be shared easily throughout the business, but it does not focus customers, rather it focuses on reducing overhead and cutting costs.
The article “What is RFID?” was very helpful in fully explaining what it actually is. RFID stands for Radio Frequency Identification. It’s a type of wireless technology that lets you identify objects that have been fitted with special RF identification tags.It has a lot of great uses such as using it to track packages across the country and finding their estimated location. It can also be used in a patients medical wrist band so that it can be scanned and you can view their patient profile. You can also use RFID to track your pets or other animals by placing an ear tag on them with all of their information. This type of technology is quickly changing the world and all of the great uses it can provide. You can even use it to pay things with a quick scan of your phone!
The article I am going to talk about this week is “18 surprising CRM statistics”. I find it important for a couple reasons. For example, there are up to 23.8% of respondents in a survey that are not using any CRM system. This is important because the market is growing substantially. Not only that but CRM offers an average return of $5.60 for every $1 spent. Those numbers themselves should prove to the 23.8% of the people not using a CRM that it is extremely beneficial to incorporate one; if the business is over 10 people that is. Also with higher returns and a 15% productivity increase with access to CRM applications mobile, that just meaning more money for they company as well. A happy customer is a returning customer. Also with that being said a satisfied customers word of mouth can also travel a long way. But if the customer has a poor experience 78% of the time they will not return.
According to the article “Difference Between CRM and ERP” are two software used by companies to increase their profitability. Customer relationship management “manages the relationship with customers and clients while enterprise resource planning emphasis on the planning of the resources of an enterprise”. There are six major differences between ERP and CRM. “1) CRM is defined as a software that lets the organization to trace every transaction with the clients and customers. ERP refers to a software program that helps the company to manage its business processes, going on across the company. 2) ERP consolidates the information provided by various functional groups of the organization through systems like CRM, Supply Chain Management, Human Resources Management, etc. 3) ERP was developed earlier than CRM. 4) The CRM is mainly utilized in conducting back office activities, whereas ERP is used in accomplish back office activities. 5) CRM is oriented towards the management of customer’s relationship with the enterprise while ERP is mainly concerned with planning the resources of the organization to ensure its best possible use. 6) CRM focus on increasing sales and is oriented toward customers while ERP is focus on reducing cost and is oriented toward enterprise”.
With the implementation of these two software, companies can increase their profitability and achieve their goals faster, making
In the article “Choosing CRM Software: A Buyer’s Guide” the author gives an example of what characteristics companies are looking for in an ideal CRM software:
1. Easiness of use (no extra time and money required for extensive training.)
2. Customization (the software should address the unique needs of the company.)
3. Third-party integration (ability of the software to work with other programs.)
4. Industry-based (designed specifically for the industry the company is in.)
5. Cloud-based (ability to access CRM from any device using the Internet.)
6. Mobile-based (ability to access CRM from mobile devices.)
7. Security (protect the information from unauthorized users.)
The article I read was ‘Vendor-Managed Inventory (VMI): What is it and When Does It Make Sense to Use It’. VMI is inventory that is managed by the supplier. An example the author uses is old independent hardware stores inventory of items like nuts and bolts would be maanged by the vendor. While moving inventory has improved with technology, there are still pros and cons of using VMI. From the vendor’s perspective, the benefits of VMI outweigh the downsides as they are able to control more of the customers inventory, they won’t be stuck with large quantities of unused goods. The benefit from the customer’s perspective is they are partnering with a vendor who is better at managing inventory then they would. I certainly think that VMI can be beneficial, but the vendor must show the customer that they can add that much more value to the bottom line.
In the Just-in-time article it talks about the importance and efficiency of online supply chain management systems. The first example they give is about car companies and how they can easily have cars in the correct colors shipped to them from the internet. It involves almost no human interaction and works well and fast. Many car companies are moving towards this to run more efficiently. Another example they give is about Dell computers and how they can easily order what they need through their internet systems. This is important because companies cannot predict what it consumers are going to want ahead of time so they need quick and easy ways to fill orders. Internet supply chain management system seem to be a key in making this process run smoothly.
I thought the article “What is Watson” by IBM was pretty interesting. Watson is a computer that analyzes unstructured data on the internet to learn things. Watson is able to be asked questions, it then sifts through all the relevant data, finding evidence to return in the form of an answer. The best answer. It is truly an amazing development in the AI world.
The article titled, “Just-in-Time Manufacturing,” provides in an insight on the built to order process of manufacturing. The just-in-time manufacturing process reduces large costs of storing and managing inventory parts, and allows for more product customization to the customer’s particular preference. Many companies that currently use this system efficiently are looking to further implement web based technology in their systems process to help increase communications between suppliers, manufacturers and retailers. This creation of communication through technology is the main focus of the article. Companies like Dell and Cisco are increasing their data visibility across all sectors of the supply chain process to allow for seamless transitions from data analysis to production. Overall the increasing utilization of technology in the just-in-time manufacturing process will reduce holding costs, lead time and human handling error. These are all aspects of the current supply chain that companies like Dell, Cisco and Toyota are looking to increase efficiency in by better utilization of technology in the just-in-time or built to order manufacturing process.
I chose to summarize section 4.1 that is about the difference between ERP and CRM. Both are used to increase the overall profitability of a business. A CRM is a system for recording and storing all information related to customer interactions. The goal of CRM is to provide a comprehensive store customer data that can be used to increase sales, improve customer retention, and make customer relations more efficient. An ERP is focused on the customer and less on the business. It streamlines information to all departments. It is important to understand the differences and similarities between the two because they intertwine. CRM drives the business while ERP steers. It is important to distinguish between the two and incorporate them.
When reading about CRM and many people’s perception of it was very interesting. For example, it is almost necessary to use CRM in order to function. While this is a key system to use and does in fact change one’s business to be much more efficient, the CRM cannot answer all questions to every issue a company may face. Unfortunately, many think this. The importance is more so about the way information travels throughout a company. This allows many people to learn about an issue, brainstorm, and respond when appropriate.
I chose the article, “18 Surprising CRM Statistics” because it was one of my favorite articles of the semester. The 18 stats they had laid out are all very interesting but the one i found the most appalling was, “78% of customers have bailed on a transaction or not made an intended purchase because of a poor service experience.” I found this most interesting because it shows that CRM can be very effective and beneficial to a company in identifying flaws. Companies can use this data to try and improve the overall buying experience and keep customers happy. It should be considered a win if a company improves this 78% just by one sale of a customer who would have canceled their transaction.
In the article, “18 Surprising CRM Statistics” I thought that fact #3 was most interesting and not to be overlooked in comparison to the other facts. The statistic was that, “15% of organizations have replaced all or most of their on-premise customer service applications with software-as-service solutions, while 24% use SaaS to compliment their existing solutions.” This statistic means that 39% of all organizations use SaaS to some degree, which is actually a very high percentage in business. This realization now makes me want to know how well business succeed with SaaS as a compliment to their existing system vs those who use only SaaS and in addition I want to know how well the 39% of businesses with SaaS succeed vs the 61% that don’t have them.
In the article, “What is RFID,” it explains that RFID stands for Radio Frequency Identification and it is a wireless technology that lets companies keep track of items that are marked with RF identification tags. There are many benefits to RFID, one main benefit is that it is good for companies to track items that are constantly on the move and being loaded and re-loaded often. There are multiple used for RFID, such as in libraries, RFID medical applications, fast payment, inventory control and RFID seals.
“Choosing CRM Software: A Buyer’s Guide”
Three things to consider when selecting for business 1) How much are you willing to pay? 2) Why does your business need a CRM software? 3) What features does your business require in a CRM software?
CRM software has evolved from a simple contact management system into a robust tool that lets you manage sales, marketing, POS, accounting, vendor and other types of operational data, all in one easily accessible solution. CRM is to used to find leads, follow up with prospects and maintain customer loyalty by storing key information to boost sales.
Your business needs CRM software if 1) you need a robust contact management system 2) you’re looking for an automated way to boost sales 3) You want to deliver better customer support
Key features of CRM 1) Easy to use 2) Customizable 3) Third-party integration 4) Niche-based 5) Cloud-based 6) Mobile access 7) Security
Benefits to use CRM 1) Save time 2) Save money 3) Better email marketing 4) Extra functionalities 5) Helps sales teams reach their goals
The article I chose for this week is, “Why does my business need a CRM system?”. I thought this article went into a great explanation of what CRM is and what CRM Software is. The article describes CRM as a “mix of strategic processes and procedures – the essence and foundation of how a business operates”, it then goes into detail saying, “A formal CRM tool provides a central platform for the evolution of internal processes that ensure the business operates at optimum efficiency”. It then provides reasoning as to why a business needs a CRM Software saying, “Reasons to invest in CRM software will vary depending on the specific needs, size and type of business. Not having a single “hub of data” for all team members to tap into will result in time being wasted trying to locate essential decision-support information”. Overall I found the article to be very informative and offered a lot of information as to what a CRM is and why it is useful to have CRM Software.
I chose the article “CRM and ERP: What’s The Difference?”. ERP and CRM are similar in many ways, they are both used to increase the overall profitability of a business, but as a core their functionalities are completely different. CRM is a system for recording and storing all the info relating costumer interactions. ERP on the other hand, is a system for improving the efficiency of business processes. Both of these Allow sharing of information among all departments of a business.They are both essential to a business like an “engine and steering wheel are to a car”. The important thing to remember is that if a business uses both CRM and ERP they will increase their sales while lowering their expenses making it maximize its growth.
According to the article, “CRM & ERP: What’s the Difference,” Customer Relationship Management is like Enterprise Resource Planning in like both are both are software implemented by companies to increase their profitability. CRMS traces every transaction with clients and customers. However, the software differ in that CRM manages relationships with customers and clients and pushes to increase sales, while ERP software focuses on reducing costs with the planning of the resource enterprise.
I really enjoyed the “Zynga tries to reinvent itself with a new smartphone strategy game”. It was interesting to see how a software game company responds to the challenge of the twenty first century. Particularly for Zynga the ways in which users access it’s platform significantly shape it’s success or lack there of. The company had a relatively unique dependency on Facebook which transitioned poorly with the large shift to the mobile devices over the last few years. It should be interesting to see how this latest shift however late pays off for Zynga.
The article that I thought was interesting was the Supply Chain Management definition and solutions. One part that stood out to me is the extended supply chain and what it does. The extended supply chain is basically a way of showing who contributed to a specific product. So for example, if a company makes cell phones, the factory provides the tools and the places that cell the phone will the company’s extended supply chain. The supply chain management is important for a company to keep track of because of an impact it might cause the company to have in the future.
On the Wikipedia page “Supply Chain Management” it gives a basic definition and understanding of what Supply Chain Management, or SCM, means to a business. At its most simplest form SCM is the management of the flow of goods and services. More specifically, it is a cross-functional approach includes the movement and storage or raw materials, work-in-process inventory, and finished goods from where they are produced to where they are consumed. Finely tuned SCM systems have become increasingly more important within organizations to compete in the global market and networked economy.
In the article “What is RFID?”, Radio Frequency Identification applications were listed, and some of them were very useful to business. I found the use of RFID to manage assets and for inventory control especially interesting from a business sense but also realized that EZ Pass and passports use this technology as well. The use of RFID technology to keep track of inventory and ease transactions is a great benefit, but may become even more beneficial if sensors are added to the technology as the article suggests may eventually happen.
I liked this article because reading these facts are interesting to me. The statistic that stood out the most was the one about sales reps found a 15% increase when they had mobile access. I want to go into sales so I find it very interesting that it increased so much. Shows how much technology has grown and how vital it is in our society.
The article, “Why does my business need a CRM System?” The author discusses what exactly a CRM System is and how it can positively impact businesses. While many misinterpret CRM as a software tool, it is in actuality a system of processes and procedures that essentially manages the flow of information regarding customers and products. Many companies have their employees simply store all of their data in Microsoft Word or Excel, when in reality it is critical for a company to have a central hub to store all of their data in order to eliminate efficiencies. CRM System implementation varies based on the company and their line of business, but ultimately CRM Systems are a critical component to streamlining most companies’ operations and information management.
The article that I found most helpful was CRM and ERP: What’s the difference?
In the article, the author explains that CRMs usually are the first systems implemented within a company. A CRM stores and analyzed customer data. Once the business grows, the company may decide to implement a system called an ERP. This system is a real time screenshot of all of the process within a company. This system connects all of the systems of the business.
In the article, “Vendor-Managed Inventory (VMI): What is it and When Does it Make Sense to Use it” the key points are the definition of VMI and why to use VMI. “Vendor-managed inventory (VMI) is inventory that is managed by the vendor (supplier).” VMI basically means that the vendor decides when to replenish the inventory and how much to replenish. There are many reasons why customers choose to use VMI, some for the right reasons and some for not so good reasons. According to the author’s perspective, the best case for VMI is when the vendor can do a better job of managing the inventory than the customer. However, in reality, “customers tend to choose to use VMI because it relieves them of the burden and responsibility of managing the inventory. ” While vendors often choose to offer VMI because they believe it will give them a marketing advantage or because VMI is expected in their industry.
I enjoyed the article “Why does my business need a CRM?” it really picked up and highlighted the benefits of needing a CRM for your own personal business.
CRM combines strategic processes and strategic procedures which is critical to how a business functions. The analogy the article uses for a CRM is water pipeline which was funny to me because the CRM at first glance reminded me of the old school game super Mario and the tunnels that were used to move around.
Throughout to the article “Supply Chain Management Definition and Solutions,” I have a good understanding of Supply Chain” and how company process it. I believe 5 components of Supply chain are the most important since I make understand the most about how company process Supply Chain. it includes plan, source, make, deliver and return.