Chapter 3: STRATEGIC INTIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Strategic Intiatives For Implementing Competitive Advantages
  • organizations can undertake high-profile strategic initiatives including:
    • supply chain management (SCM)
    • customer relationship management (CRM)
    • business process reengineering (BPR)
    • enterprise resource planning (ERP)
  • 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:
    • Supply chain strategy- strategy for managing all resources to meet customer demand
    • Supply chain partner- partner throughout the supply chain that deliver finished products, raw materials, and services.
    • Supply chain operation- schedule for production activities
    • Supply chain logistics- product delivery process
  • Effective and efficient SCM systems can enable an organizaion to:
    • decrease the power of its buyers
    • increase its own supplier power
    • increase switching costs to reduce the threat of substitute products 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
  • 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 organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through theimplementation 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 rganization to:
    • identify types of customers
    • design individual customer marketing campaigns
    • treat each customer as an individual 
    • understand customer buying behaviors
  • 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
    • the purpose of BPR is to make all business processes best-in-class
  • Reengineering the Corporation- book written by Michael Hammer and James Champy that recommends seven principles for BPR
  • 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 airplane which ignore the road completely
    • progressive insurance mobile claims process
    • type sof change an organization can achieve, along with the magnitudes of change and the potential business benefit
  • 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 enterprisewide information on all business operations.
    • keyword in ERP is "enterprise"
    • sample data from a sales database
    • sample data from an accounting database
    • ERP systems collect data from across an organization and correlates the data generating an enterprisewide view



5/10/2017
THURSDAY

















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