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Chapter3 - Strategic Initiatives For Implementing Competitive Advantages
Chapter3 - Strategic Initiatives For Implementing Competitive Advantages
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Learning Outcomes
3.3 Summarize the importance of enterprise
resource planning systems
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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)
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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
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Supply Chain Management
Four basic components of supply chain
management include:
1. Supply chain strategy strategy for managing all
resources to meet customer demand
2. Supply chain partner partners throughout the
supply chain that deliver finished products, raw
materials, and services.
3. Supply chain operation schedule for production
activities
4. Supply chain logistics product delivery process
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Supply Chain Management
Wal-Mart and Procter & Gamble (P&G) SCM
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Supply Chain Management
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 3-8
Supply Chain Management
Effective and efficient SCM systems effect
on Porters Five Forces
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Customer Relationship
Management
Customer relationship management
(CRM) involves managing all aspects of a
customers relationship with an organization
to increase customer loyalty and retention
and an organization's profitability
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Customer Relationship
Management
CRM overview
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Business Process Reengineering
Business process a standardized set of
activities that accomplish a specific task, such
as processing a customers order
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Business Process Reengineering
Reengineering the Corporation book written
by Michael Hammer and James Champy that
recommends seven principles for BPR
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Finding Opportunity Using BPR
A company can improve the
way it travels the road by
moving from foot to horse and
then horse to car
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Finding Opportunity Using BPR
Types of change
an organization
can achieve,
along with the
magnitudes of
change and the
potential
business benefit
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Enterprise Resource Planning
Enterprise resource planning (ERP)
integrates all departments and functions
throughout an organization into a single IT
system so that employees can make
decisions by viewing enterprisewide
information on all business operations
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Enterprise Resource Planning
Sample data from a sales database
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Enterprise Resource Planning
Sample data from an accounting database
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Enterprise Resource Planning
ERP systems collect data from across an
organization and correlates the data
generating an enterprisewide view
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OPENING CASE STUDY QUESTIONS
Apple Merging Technology, Business, and
Entertainment
1. Evaluate how Apple can gain business
intelligence through the implementation of a
customer relationship management system
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Chapter Three Case Questions
1. Explain how implementing a CRM system
enabled Saab to gain a competitive advantage
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