STRATEGIC INITIATIVES
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Organizations can undertake high-profile
strategic initiatives including:
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Supply chain management (scm)
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Customer relationship management (crm)
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Business process reengineering (bpr)
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Enterprise resource planning (erp)
SUPPLY CHAIN MANAGEMENT (SCM)
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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:
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Supply chain strategy: strategy for managing all
resources to meet customer demand.
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Supply chain partner: partners throughout the
supply chain that deliver finished products, raw materials, and services.
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Supply chain operation: schedule for production
activities
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Supply chain logistics: product delivery process
.
SUPPLY CHAIN MANAGEMENT
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Effective and efficient SCM systems can enable
an organization to:
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Decrease the power of its buyers
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Increase its own supplier power
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Increase switching costs to reduce the threat of
substitute products or services.
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Create entry barriers thereby reducing the
threat of new entrants.
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Increase efficiencies while seeking a competitive
advantage through cost leadership.
·
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 goal that an organization
must embrace on an enterprise wide level.
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CRM can enable an organization to:
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Identify types of customers
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Design individual customer marketing campaigns
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Treat each customer as an individual
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Understand customer buying behavior.
BUSINESS PROCESS ENGINEERING
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Business process- a standardized set of activities that
accomplish a specific task, such as processing a customer’s order
·
Business process reengineering ( bpr)- analysis
and redesign of workflow within and between enterprises
-
The purposes of bpr is to make all business
processes best-in class
·
Reengineering the corporation- book witten by Michael
Hammer and James Champy that recommends seven principles for BPR.
1)
Organize around outcomes, not tasks.
2)
Identify the organizations processes and
priotize them in order of redesign urgency.
3)
Intergrate information processing work into the
real work that produces th information.
4)
Treat geographically dispersed resources as
though they were centralized.
5)
Link parallel activities in the workflow instead
of just intergrating their results.
6)
Put the decision point where the work is
performed, and build control into the process.
7)
Capture information once at the source.
FINDING OPPURTINITY USING BPR
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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
arplanes which ignore the road completely.
·
Types of change an organization can achieve,
along with the magnitudes of change and the potential business benefit.
ENTERPRISE RESOURCE PLANNING
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Enterprise resources planning (erp)- intergrates
all departments and functions throughout an organization into a single IT
system so that employees can make decisions by viewing enterprise wide
information an all business operations.
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Keyword in ERP is “enterprise”
·
ERP systems collect data from across an
organization and correlates the data generating an enterprise wide view.
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