Friday, December 20, 2013

Chapter 3: Strategic Initiatives For Implementing Competitive Advantages

STRATEGIC INITIATIVES.
  Organizations can undertake high-profile strategic initiatives including:
  •  Supply chain management (SCM)
  • Customer relationship management (CRM)
  • Business process reengineering (BPR)
  • Enterprise resource planning (ERP)

SUPPLY CHAIN MANAGEMENT.
Involve 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:
  •   Supply chain strategy- strategy for managing all resources to meet customer demand.
  •  Supply chain partner- partner 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.

CUSTOMER RELATIONSHIP MANAGEMENT.
 Involve managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.
CRM is not just technology, but also a strategy, process and business goal that an organization must embrace on an enterprisewide level.
 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.
  • A standardized set of activities that accomplish a specific task, such as processing a customer’s order.
  • The analysis and redesign of workflow within and between enterprises.

ENTERPRISE RESOURCE PLANNING.
  • Intergrates all departments and functions troughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations..
  • ERP systems collect data from across an organization and correlates the data generating an enterprisewide view..
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