Tuesday, July 30, 2013

Chapter Three

Strategic Initiatives for Implementing Competitive Advantages.


1. The four basic components of 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.

a)Supply chain strategy – strategy for managing all resources to meet customer demand.
b)Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials, and services.
c)Supply chain operation – schedule for production activities.
d)Supply chain logistics – product delivery process.

2. Customer relationship management systems and how they can help organizations understand their customers.

a)Involves managing all aspects of a customer's relationship with an organization to increase customer royalty and retention and an organization's profitability.

b)Allows an organization to gain insights into customers' shopping and buying behaviors in order to develop and implement enterprise-wide strategies.

3.Business process Reengineering.

a)Business Process


-A standardized set of activities that accomplish a specific task, such as processing a customer's order.

b)Business Process Reengineering (BPR)

-The analysis and redesign of workflow within and between enterprises.
-The purpose of BPR is to make all business process the best-in-class.

c)Seven Principles Of BPR

-Organize around outcomes, not tasks.
-Identify all the organization's processes and prioritize them in order of redesign urgency.
-Integrate information processing work into the real work that produces the information.
-Treat geographically dispersed resources as though they were centralized.
-Link parallel activities in the workflow instead of just integrating their results.
-Put the decision point where the work is performed, and build control into the process.
-Capture information once and at the source.

d)Enterprise Resource Planning (ERP)

-Integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make desicions by viewing enterprise wide information on all business operations.

e)How can ERP improve an organization business?


-Many organizations fail to maintain consistency across business operations.
-If a single department decides to implement a new system without considering the other departments, inconsistencies can occur throughout the company.
-Not all systems are built to talk to each other and share data, and if sales suddenly implements a new system that marketing and accounting cannot use or is inconsistent in the way it handles information, the company's operations becomes siloed.
-The issue ERP intends to solve is that knowledge within a majority of organization currently in silos that are maintained by a select few, without the ability to be shared across the organization, causing inconsistency across business operations..

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