Organizations can undertake high-profile strategic initiatives including :
- Supply chain management (SCM)
- Customer relationship management (CRM)
- Business process reengineering (BPR)
- Enterprise resource planning (ERP)
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 SCM include :-
- Supply chain strategy - strategy for managing all resources to meet customer demand.
- Supply chain partner - partners 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 system can enable an organization to :-
- Decrease the power of its buyers.
- Increase its own supplier power.
- Increase switching coasts 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.
Customer Relationship Management.
Involves managing all aspects of a customers relationship with an organization to increase customer loyalty and retention and an organizations profitability.
Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems.
4 CRM can enable an organization to :-
- Identify types of customers.
- Design individual customer marketing campaigns.
- Treat each customer as an individual.
- Understand customer buying behaviors.
Business Process Reengineering (BPR)
Business process - a standardized set of activities that accomplish a specific task, such as processing a customers order.
Business process reengineering (BPR) - the analysis and redesign of workflow within and between enterprises.
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.
Enterprise Resource Planning (ERP).
Integrates all departments and functions throughout an organization into single IT system so that employees can make decisions by viewing enterprisewide information on all business operations.
Keyword in ERP is "enterprise".
ERP systems collect data from across an organization and correlates the data generating an enterprisewide view.
Integrates all departments and functions throughout an organization into single IT system so that employees can make decisions by viewing enterprisewide information on all business operations.
Keyword in ERP is "enterprise".
ERP systems collect data from across an organization and correlates the data generating an enterprisewide view.
