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50 Cards in this Set
- Front
- Back
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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 |
customer relationship management -allows organizations to gain insights into customers shopping/buying behaviors |
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When was the last time you purchased from the company? -The more recent, the more valuable you are as a customer |
Recency |
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How often do you purchase the product? -The more frequent, the more valuable you are as a customer
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Frequency |
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Creating incentives to get your customer to spend more money -A customer who goes to the gas station everyday for a drink starts buying a drink and breakfast combo |
Monetary Value |
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At a bank: 50% of customers produced $0 profits 30% of customers produced 90% profits 20% of customers produced 10% profits -What do you about the customers who generate $0 profits |
Focus efforts on 30% Find similar customers to this group |
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Supply Chain -The price increases through the chain to make a profit |
supplier manufacturer wholesale retail customer -There can be secondary suppliers and customers |
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5 steps of supply chain management process |
1. Plan 2. Source 3. Make 4. Deliver 5. Return |
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Have everyone involved in every step, have a meeting |
plan |
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When planning how much to make/build, also plan for the future |
make |
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Wal-Mart and P&G |
-You go to Wal-Mart for P&G products which is one of their biggest suppliers -This relationship will last until one company goes out: I will order a lot from you and you sell to me at the lowest price -Goal of Wal-Mart is go always have the same product you want each time you go
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Visibility |
-Bull whip effect (lack of visibility): Every year we sell 1mil. barbies, but this year we get distorted info. and we think we can sell 2mil. barbies. -What can we do since we are not prepared? -temp work, over time, more raw materials, another factory, outsourcing of production -Set requirements for suppliers: deadline, price -May run in to a decrease in quality or increase in cost -Everyone has excess and prices go out |
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Competition |
If our competitors are concerned with their supply chain, then we need to be concerned with our supply chain as well |
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Speed |
In a well managed supply chain, changes can be made before something is produced that will not sell |
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What controls the supply chain? |
Consumer Demand
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Forecasting/Consumer Behavior |
-decision made by previous sales, depends on the product -produce a weighted average forecast |
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Digital Divide: Today and Historically |
-Exists everywhere, the gap of those who have and don't have internet capabilities -Today: Digital divide focuses on the quality of service -Historically: Haves and have nots, those who do not have internet are isolated |
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4 Digital Divide Aspects |
Age: older generation doesn’t use nearly as much internet as the younger generation Region: rural vs. urban different countries schools can’t afford the IT skills Without the equipment making them unable to compete at international level Economic Levels: the more money the better the connections; more chance of having wifi Race: Latinos are more uncomfortable with using computer than the other races. |
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Digital Age Influence |
-social inequality -makes it difficult for developing countries to improve education and change their future -more interactivity to help kids |
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One Laptop Per Child |
* helps build a strong base for a under developed country to possibly help with existing problems.
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Cloud Computing |
refers to resourced (data) and applications hosted remotely as a shared service over the internet, can access from anywhere, can be customized 1:M |
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SaaS - Software as a service |
-You pay for how much you use the software (this is your “rent”) -The supplier wants to keep the program updated to keep customers -Amazon is a big cloud server in which Pinterest and Netflix rely on -Allows us to be “green” by using OTHER servers opposed to making new servers |
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Grid Computing |
a collection of computers, often geographically dispersed, that are coordinated to solve a common problem. With grid computing a problem is broken down into pieces and distributed to many machines, allowing faster processing than could occur with a single system. |
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What does grid computing maximize?
How does it allow us to be more green? |
efficiency
uses fewer servers and less power |
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RFID |
Needs: tag, reader, computer network |
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Cross-training workers/employee |
More efficient -Bottle neck effect: Having one person do the job that can potential hold up the rest of production
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U-shaped production design |
Doing multiple steps in a smaller area with cross-trained employees |
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Integrates all departments and functions in to a single I.T. system, the behind the scenes work -cost millions of dollars -all areas of business
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ERP: enterprise resource planning |
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Disadvantage of ERP |
-Cannot be bought off the shelf and installed -Industry specific packages for ERP are made but then must be customized -Every department is different |
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Legacy system |
existing systems |
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Oracle |
world's premiere database company |
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Pre-computer (1990) |
-Orders taken over the phone and hand written, hand delivered to the warehouse for orders, orders could be shipped at any time (could take a long time)
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Post-computer |
-Can be more detailed with orders: when the customer will be billed and when they will receive their order -Be customer service |
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3 Common core of ERP |
Accounting and Finance HR Production |
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ERP timeline |
1-3 years |
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ERP cost |
$15 million average total cost ownership Vendor software x 6 |
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ERP hidden cost (Why does it cost so much) |
1. Training: staff get trained but students don't -Changes the process, therefore you have to change the way you do business (your job changes) 2. Integration and Testing: does it work/have bugs? 3. Customization of the system (they are only industry specific) to make it fit, comes with extra costs if it's not the generic form 4. Data conversion 5. Consultants help a company implement a system 6. Replacing employees who don't want to learn the new system 7. Waiting for Return on Investment "when are we going to start making money?" 8. Post ERP depression: life goes on after the hard work of implementing the system |
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What does ERP fix? |
1. Integrated financial info: finance, accounting, marketing sales 2. Integrated customer information: Pitt students are in many different files on campus 3. Standardized production process 4. Reduce inventory: better look at all aspects of the customer order process 5. Standardized HR info: giving raises on a more equal basis |
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The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call |
Crowdsourcing |
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website gathers a large group opinions and judgement on a topic |
crowdvoting |
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funding your projects by a multitude of people contributing a small amount in order to attain a certain monetary goal |
crowdfunding |
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users do small tasks for which computers lack aptitude |
microwork |
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advantages of crowdsourcing |
-cheap labor -more value for your money -marketing tool |
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disadvantages of crowdsourcing |
-no copyright laws -ideas are open -wrong marketing -disputes |
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When crowdsourcing
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-Be specific -Don't be too cheap -Verify results -Weigh your options/other sources |
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Ex. of Crowdsourcing |
Trip Advisor: get advice, post reviews Doritos: fans make their own commercials Starbucks: fans post ideas
Unless otherwise stated, winners do not get paid |
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Social Media: Brand |
communicating who you are as a company
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Social Media: Engage |
-interaction with peers, employees, customers, the younger generation -shows commitment to the company - |
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Social Media: Learn |
-instant information and straightforward communication -learn about new trends, issues, and potential partners |
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Operational CRM |
Supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the customers |
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Analytical CRM |
supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers -beer and diapers
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