Wednesday, 11 December 2013

CHAPTER 3... Strategic Initiatives for Implementing Competitive Advantage



STRATEGIC INITIATIVES

# Organizations can undertake high-profile strategic initiatives including: 

  • Supply Chain Management (SCM)
  • Customer Relatiionship Management (CRM)
  • Business Process Reengineering (BPR)
  • Enterprise Resource Planning (ERP)


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.

4 BASIC COMPONENTS OF SUPPLY CHAIN MANAGEMENT :


* Wal-Mart and Procter & Gamble (P&G) SCM








SUPPLY CHAIN MANAGEMENT

  • Effectiveness and efficient SCM system can enable an organization to:











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 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 OVERVIEW









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 from horse to car. 
  • BPR looks at taking a different path, such as an airplane which ignore the road completely.




PROGRESS INSURANCE MOBILE CLAIMS PROCESS 







FINDING OPPORTUNITY USING BPR








ENTERPRISE RESOURCE PLANNING


  • Enterprise resource planning (ERP) - 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.

  • Keyword in ERP is "enterprise".

  • ERP systems collect data from across an organization and correlates the data generating an enterprisewide view.

















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