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CHAPTER 3 STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES …
CHAPTER 3
STRATEGIC INITIATIVES FOR IMPLEMENTING
COMPETITIVE ADVANTAGES
Supply Chain Management (SCM)
Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
Four basic components of supply chain management
Supply chain operation
Supply chain logistic
Supply chain partner
Supply Chain strategy
Effective and efficient SCM systems can enable an organization to
Decrease
Threat of substitute product or services
Threat of new entrants
Buyer power
Increase
Supplier power
Customer Relationship
Management (CRM)
Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability
CRM can enable an organization to
Identify types of customers
Design individual customer marketing campaigns
Treat each customer as an individual
Understand customer buying behaviors
Enterprise Resource
Planning (ERP)
Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations
ERP systems collect data from across an organization and correlates the data generating an enterprise wide
BUSINESS PROCESS REENGINEERING (BPR)
The analysis and redesign of workflow within and between enterprises. The purpose of BPR is to make all business processes best-in-class
Seven Principles of Business Process Reengineering
1 Organize around outcomes, not tasks.
2 Identify all the organization's processes and prioritize them in order of redesign urgency.
3 Integrate information processing work into the real work that produces the information.
4 Treat geographically dispersed resources as though they were centralized.
5 Link parallel activities in the workflow instead of just integrating their results.
6 Put the decision point where the work is performed, and build control into the process.
7 Capture information once and at the source.