CHAPTER 3
STRATEGIC INITIATIVE FOR IMPLEMENTING COMPETITIVE ADVANTAGES
Supply chain management
Involves the management of information flows between and among stages in a supply chain to maximize
total supply chain effectiveness and profitability
4 basic components of supply chain management :
Ø Strategy for managing all resources to meet customer demand
Ø Partner throughout the supply chain that deliver finished products, raw materials, and services
Ø Operation schedule for production activities
Ø 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
customer relationship management
involves managing all aspect of a customer's relationship with an organization to increase customers loyalty and retention and an organization's profitability
CRM is not just technology, but a strategy process, and business goal that an organization must
embrace on an enterprisewide level
can enable an organization to :
- identify types of customers
- designed individual customer marketing campaign
- treat each customer as an individual
- understand customer buying behaviors
Business process reengineering
Business process is a standardized set of activities that accomplish a specific task, such as processing a
customer's order
Business process reengineering the analysis and redesign of workflow within and between enterprise
seven principles of business process reengineering :
- organize around outcomes, not tasks
- identify all the organization's process and prioritize in order of redesign urgency
- integrate information processing work into the real work that produces the information
- treat geographically dispersed resources as though they were centralized
- link parallel activities in the workflow instead of just integrating their results
- put the decision point where the work is performed and build control into the process
- capture information once and at the sources
Finding opportunity using BPR > a company can improve the way it travels the road by moving from foot to horse and then horse to car
> BPR looks at taking a different path, such as a airplane which ignore the road completely
-- types of change an organization can achieve along with the magnitudes of change and the potential business
benefits
pitfall of BPR
> fails to keep up with competitors
Enterprise resources planning
integrates all departments and functions throughout an organization into a single IT system so that employees can make decision by viewing enterprisewide information on all business operations.
the keyword in ERP is enterprise
In today's knowledge-based economy, what you earn depends on what you learn. Jobs in the information technology sector, for example, pay 85 percent more than the private sector average.
seven principles of business process reengineering :
- organize around outcomes, not tasks
- identify all the organization's process and prioritize in order of redesign urgency
- integrate information processing work into the real work that produces the information
- treat geographically dispersed resources as though they were centralized
- link parallel activities in the workflow instead of just integrating their results
- put the decision point where the work is performed and build control into the process
- capture information once and at the sources
Finding opportunity using BPR > a company can improve the way it travels the road by moving from foot to horse and then horse to car
> BPR looks at taking a different path, such as a airplane which ignore the road completely
-- types of change an organization can achieve along with the magnitudes of change and the potential business
benefits
pitfall of BPR
> fails to keep up with competitors
Enterprise resources planning
integrates all departments and functions throughout an organization into a single IT system so that employees can make decision by viewing enterprisewide information on all business operations.
the keyword in ERP is enterprise
In today's knowledge-based economy, what you earn depends on what you learn. Jobs in the information technology sector, for example, pay 85 percent more than the private sector average.
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