SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH PLANNED INFORMATION SYSTEMS AND NETWORKS

Dr. Jagathy Raj V. P. School of Management Studies, Cochin University of Science and Technology, Kochi-682022, Kerala, India Email: jagathy@cusat.ac.in

Competitive Advantage
Organizations must develop and deploy quality software efficiently, reliably and quickly to gain competitive advantage. Companies must create an environment in which there is a controlled sharing of business data and process. Need for Integrated Information Systems

Conceptual Framework
Industrial Clusters are Geographic Concentrations of Interconnected Companies, Specialized Suppliers, Service Providers, Firms in related Industries and associated Institutions in particular fields that Compete, but also Cooperate. Industrial Networks include all Industries within the Agglomeration having specific relationship and extend beyond cluster boundaries.

Strategic Networks and Clusters

Strategic networks and clusters for economic development By cooperating, large and small companies in similar or related industries will achieve and gain much more than they would, operating individually. Extended Supply Chains

Reasons for Success   close cooperation, coordination, & trust among clustered companies fierce competition among rival companies companies recruit from local skilled workers

Benefits of Clustering
Sharing of resources Better communication Control over activities Accelerated work flow

Strategic Networks and Clusters

Adding customer value Reducing cost Optimizing efforts Improving quality Collective efficiency

Business Scenario
Emergence of Globally Competitive Companies Garnering Huge Market Share. Small Scale Industries on the verge of Extinction. Loss of Employment Opportunities in the wake of driving out of Small Scale Industries.

Competitive Strategy focusing on Supply Chain to Supply Chain from Organization to Organization.

Clustering and Networking for Survival

Lack of Infrastructure, Technology and Capital for Small Scale Industries. Forging of Cooperative Relations through Clustering and Networking instead of Competing with each other.

Bargaining for Common Needs, Public, Private and Institutional Support. Economies of Scale, Common Labour Pool. Collective Efficiency, Mutual Trust and Communication.

Supply Chain Innovations in Clusters and Networks

The Benefits of Integrated Logistics can be shared by the Network Members Procurement and Sourcing Strategies could be finalized jointly Long Term Relations could be established with Ancillary Industries and Raw Material Suppliers thereby ensuring survival. Infrastructure and Communication facilities could be jointly developed and shared among members

ERP-The Supporting Platform

Integrated Information Systems enable Industries within the cluster to transfer and share Knowledge and Information and optimize cost.

Firms within the Cluster could utilize the same ERP System and operate as separate Clients with restricted Information access to Members. Business Transactions within the Cluster through ERP Systems optimize the Supply Chain.

Plan Information Systems

Conducting work sessions Defining a path forward Analyzing the profit potential Review and Presentation to the Management

Information Systems Implementation Steps

Project Preparation Phase Business Blue Print Phase Realization Phase Final preparation phase Go-Live and Support

Benefits
Lower sourcing cost of finished goods and raw materials Improves customer service Dramatically lower inventory levels and reduced working capital Respond faster to customer needs.

Obstacles
Frustration of employees during gestation period Change Management issues Datamining , data cleaning and reconciliation issues Redeployment issues Anticipate other issues during the initial stage of operations

Concluding Remarks
Industries need to Optimize their Supply Chain in order to Compete Efficiently. Small Scale Industries need to utilize their Collective Resources to Survive ERP is Growing as an Enabling Factor Competition has Transformed from Organization vs Organization to Supply Chain vs Supply Chain Clusters and Networks are Extended Supply Chains which help in Economic Growth and Development

Thank you