CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

LEARNING OUTCOMES

3.1 List and describe the four basic components of supply chain management.

3.2 Explain customer relationship management systems and how they can help organizations           understand their customers.

3.3 Summarize the importance of enterprise resource planning systems.

3.4 Identify how an organization can use business process reengineering to improve its business.

*Organizations can undertake high-profile strategic initiatives including :

a.i)Supply chain management (SCM) -Management of information flows between& among stages in supply chain to maximize total supply chain effectiveness & profitability.

ii)SCM have their own supplier where as more than one supplier.

iii)Link each other with supplier ,so that supplier will know if stock less so they will top-up the products.No need to call supplier only update the systems (for users SCM)

iv)4 basic components of SCM include :

a)Supply chain strategy :managing all resources to fulfill customer demand .

b)Supply chain partner :deliver finished products ,raw materials and services.

c)Supply chain operation :schedule for production activities.

d)Supply chain logistics :product delivery process.

v)Effective and efficient SCM systems can enable an organization to :

-Decrease the power of its buyers.

-Increase its own supplier power.

-Increase switching costs to reduce threat of substitute products/services.

b.i)Customer relationship management (CRM) -managing all aspects to fulfill demands of customers to increase customer loyalty.

ii)CRM is not technology ,but a STRATEGY  ,process and business goal that an organization must embrace .

iii)CRM can enable an organization to :

-Identify types of customers.

-Design individual customer marketing campaigns.

-Treat each customer as an individual .

iv)Systems that link customers will link to CRM.

c.i)Business Process Reengineering (BPR) -Redesign ,restructure ,and reengineering .Not only improves but totally changes.The purpose to make all business processes best-in-class.

ii)Business process- set of activities that accomplish a specific tasks, such as processing a customers order.

iii)Reengineering the Corporation -book written by Michael Hammer & James Champy that recommends 7 principles for BPR.

iv)Finding opportunity using BPR

-Transform or improve the way of work from traditional to technology.

-For example in traditional we have to find our own solution to solve the problems. But in modern they find solution for us to solve our problems.

-Nowadays, to do passport only takes 1 hour 30 minutes because exist technology and systems.

-The more you do changes ,the more you gets benefits.

-Put benchmark(people the most best we want to be like them)

v)Pitfalls of BPR -fails to keep up with competitors because have benchmark,you always number two, and same business process to others.

d.i)Enterprise Resource Planning (ERP) -integrates all departments and functions into a single IT system so employees can make decisions .

ii)Keyword in ERP is "enterprise"

iii)To make upper level easy especially customer service because can link to all.

iv)ERP systems collect data from across an organization & correlates the data generating an enterprisewide view.