CHAPTER 3 - STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Learning outcomes
3.1 List and describes the four basic components of supply chain management 
3.2 Explain customer relationship management system and how they can help organizations     understand their customers
3.3 Summarize the importance of enterprise resources planning systems
3.4 Identify how an organizations can use business process reengineering to improve  its business

STRATEGIES INITIATIVES

Organizations can undertake high-profile strategies initiatives including :

• Supply chain management (SCM)
• Customer relationship management  (CRM)
• Business process reengineering  (BPR)
• Enterprise resources planning (ERP) 

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

FOUR BAIC COMPONENTS

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 product , raw materials and service
3. Supply chain operations - schedule for production activities
4. Supply chain logistic - product delivery process

Wel-Mart and Procter & Gamble (P&G) SCM

Effective and efficient SCM system ccan enable an organizations to :

• Decrease the power of its buyers 
• Increase its own supplier power 
• Increase switching costs to reduce the threat of substitute products or service
• Create entry barriers thereby reducing the threat of new entrance 
• Increase efficiencies while seeking a competitive advantages through cost leadership  

Effective and efficient SCM system effect on Porter's Five Forces

Customer Relationship Management (CRM)

- involves managing all aspects of a customer's relationship with an organizations to increase customers loyalty and retention and an organization's profitability.

• not just technology but a strategy ,process and business goal that an organization must embrace on an enterprisewide level
• can enable an organization to :

          - identify types of customers

          - Design individual customer marketing campaigns

          - Treat each customers as an individuals

          - 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

Business Process Reengineering (BPR)

- the analysis and redesign of workflow within and between enterprises

• to make all business processes best-in-class
• Reengineering the corporation - book written by Micheal Hammer and James Champy  that recommends seven principles for BPR

Finding opportunity using BPR

• can improve the way it travels the road by moving from foot to horse and then the horse to car
• BPR looks at taking a different path , such as an airplane which ignore the road completely

Progressive Insurance Mobiles Claims Process

• types of changes an organizations can achieve along with the magnitudes of changes and the potential business benefit
• fails to keep up with compertitors

Enterprise Resources 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 opertantions

- keywords in ERP is "enterprise"

• ERP system collect data from across an organizations and correlates the data generating an enterprisewide  view

Done ! hope your guys can learnt and understand this chapter .. THANK  YOU :)