STRATEGIC INITIATIVES
- Organization can undertake high-profits strategic initiatives including:
SUPPLE CHAIN MANAGEMENT
- It 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;
o Supply chain strategy – strategy for managing all resources to meet customers demand.
o Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials and services.
o Supply chain operation – schedule for production activities.
o Supply chain logistics – product delivery process.
- Effective and efficient SCM systems can enable an organization to:
o Decrease the power of its buyers.
o Increase its own supplier power.
o Increase switching costs to reduce the threat of substitute products or services.
o Create entry barriers thereby reducing the threat of new entrants.
o Increase efficiency while seeking a competitive advantages through cost leadership.
- Wal-Mart and Procter & Gambler (P&G) SCM
CUSTOMER RELATIONSHIP MANAGEMENT
- 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 goals that an organization must embrace on an enterprisewide level.
- CRM can enable an organization to:
o Identify types of customers.
o Design individual customer marketing campaign.
o Treat each customer as a individual.
o Understand customer buying behaviors.
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| CRM Overview. |
BUSINESS PROCESS REENGINEERING
- BUSINESS PROCESS - A standardized set of activities that accomplish a specific tasks, such as processing a customer's order.
- BPR - The analysis and redesign of workflow within and between enterprises.
- The purpose of BPR is to make all business processes best-in-class.
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| Reengeneering the Cooperation - book written by Micheal Hammer and James Champy |
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| The process of Re-engeneering |
FINDING OPPORTUNITY USING BPR
- A company can improve the ways it travels the road by moving from foot to horse and the horse to the car.
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| BPR looks at taking a different path, such as an airplane which ignore the road completely. |
- Progressive Insurance Mobile Claims Process.
- The Benefits and Magnitude of Change.
ENTERPRISE RESOURCE PLANNING
- 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
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