Thursday, July 4, 2013

LET'S ROCK CHAPTER 3 : STRATERGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES.

STARTEGIC INITIATIVES


1. SUPPLY CHAIN MANAGEMENT (SCM)

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 component of supply chain management.

1. Supply chain strategy – strategy for managing all resources to meet customer demand

2. Supply chain partner – partners throughout the supply chain that deliver finished products raw material and services.

3. Supply chain operation – schedule for production activities

4. Supply chain logistics – product delivery process


Effective and efficient SCM systems can enable an organization to :-

1. Decrease the power of its buyers.

2. Increase its own supplier power.

3. Increase switching costs to reduce the threat of substitute products or  services.

4. Create entry barriers thereby reducing the threat of new entrants.

5. Increase efficiencies while seeking a competitive advantage through cost leadership.



2. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability. Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems. CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level.

CRM can enable an organization to:
1. Identify types of customers


2. Design individual customer marketing campaigns


3. Treat each customer as an individual


4. Understand customer buying behaviours



3. BUSINESS PROCESS REENGINERING (BPR)


Business process.


Business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order.



Business process reengineering (BPR).


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 BPR:-
1. Organize around outcomes, not task.


2. Identify all 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.




4.ENTERPRISE RESOURCES PLANNING

ERP is 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 view. The true benefit of an ERP system is its ability takes the many different forms of data from across the different organizational systems and correlate, aggregate, and provide an enterprise wide view of organizational information.

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