CHAPTER 3 STRATGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES.

SUPPLY CHAIN MANAGEMENT

·         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 include:

                      i.        Supply chain strategy- strategy for managing all resources to meet customer demand.

                    ii.        Supply chain partner- partners throughout the supply chain that deliver finished products, raw materials, and services.

                   iii.        Supply chain operation- schedule for production activities.

                   iv.        Supply chain logistics- product delivery process.

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

-       Decrease the power of its buyers.

-       Increase its own supplier power

-       Increase switching costs to reduce the threat of substitute product or services

-       Create entry barriers thereby reducing the threat of new entrants

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

·         Effective and efficient SCM systems effect on Porter’s Five Forces

                                  

                                ORGANIZATION’S SUPPLY CHAIN

 

CUSTOMER RELATIONSHIP MANAGEMENT.

·         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

·         Many organization , 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 enterprisewide level.

·         CRM can enable an organization to:

-identify types of customer

- design individual customer marketing campaigns

-treat each customer as an individual

-Understand customer buying behaviors.

CRM overview

                             

 

BUSINESS PROCESS REENGINEEERING

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

·        Business process reengineering(BPR)- the analysis and redesign of workflow within and between enterprises

-make all business processes best in class.

·         Reengineering the corporation-written by Micheal Hammer and James Champy. Seven principles:

 

FINDING OPPORTUNITY USING BPR

- Progressive insurance mobile claims process

 

·         Types of change an organization can achieve along the magnitudes of change and the potential business benefits.

 

ENTERPRISE RESOURCE PLANNING

·        Enterprise resource planning(ERP)- integrates all department and functions throughout an organization into a single IT systems so that employees can make decisions by viewing enterprisewide information on all business operations.

·        ERP is enterprise.

                  

it can collect data from across an organization and correlates the data generating an enterprisewide view

                  

   END OF CHAPTER 3................. :)