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.
- parties involve- supplier, manufacture and retailer.
- involves the management and transfer of information
- four basic components of supply chain management include :
- Supply chain strategy - strategy for managing all resources to meet customer demand.When it is able to order, records and find supplier
- Supply chain partner - partners throughout the supply chain that deliver finished products, raw materials and services. When selected suppliers, deal with suppliers, they will manage all of the raw materials.
- Supply chain operation - schedule for production activities. Transform the raw materials become products.
- Supply chain logistics - product delivery process.
- Wal-Mart and Procter & Gamble (P&G) SCM
- 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 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. For example Wall-Mart ( cheap and biggest of market.
- Effective and efficient SCM systems effect on Porter's Five Forces
- 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. for example, Kaiser Permanente focus on diabetes and do CRM system through the data.
- CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level.
- CRM can enable an organization to :
- identify types of customer. (sale of goods, the target age)
- design individual customer marketing campaigns
- treat each customer as an individual
- understand customer buying behaviors.
- CRM overview
- Business process - a standardized set of activities that accomplish a specific task, such as processing a customer's order. (when someone phones, only certain people can answer. if no one, no one will answer)
- Business process reengineering (BPR) - the analysis and redesign of workflow within and between enterprises.
- 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 an airplane which ignore the road completely.
- Progressive Insurance Mobile Claims Process.
- Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit.
- automate : answer the call, the first use of the service. now use the computer.
- streamline : first, the electricity must pay to Bank Islam. now only through the online.
- BPR : first ride, walk, car. now, plane.
- strategic reengineering : before this, any accidents, difficult to claim. now simple.
- 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.
- 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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