MGT300 CHAPTER 15

MGT 300  CHAPTER 3 : Strategic Initiatives For Implementing Competitive Advantages

STRATEGIC INITIATIVES

Strategic initiatives : Organizations can undertake high-profile strategic initiatives including business process reengineering (BPR), supply chain management (SCM), customer relationship management (CRM), enterprise resource planning (ERP).

SUPPLY CHAIN MANAGMENT (SCM)

Supply chain management : The management of information flows between and among activities in a supply chains to maximize total supply chain effectiveness and profitability.

The effective and efficient  of supply chain management system can enable an organization is

1. Decrease the power of its buyers
2. Increase its own supplier power
3. Increase switching costs
4. Create entry barriers
5. Increase efficient while seeking a competitive advantage through cost leadership

How effective and efficient  of supply chain management system can be effects on Porter's Five Forces

CUSTOMERS RELATIONSHIP MANAGEMENT

Customers Relationship Management (CRM) : a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer life cycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.

CRM systems are designed to compile information on customers across different channels or points of contact between the customer and the company that which could include the company's website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns.

Phases for CRM :

1. Reporting
2. Analyzing
3. Predicting

 BUSINESS PROCESS REENGINEERING

Business process : A collection of linked tasks which find their end in the delivery of a service or product to a client. A business process has also been defined as a set of activities and tasks that, once completed, will accomplish an organizational goal.

Business Process Reengineering (BPR) : The analysis and redesign of workflows within and between enterprises in order to optimize end-to-end processes and automate non-value-added tasks.

Book that written by Hammer and Champy suggested seven reengineering principles to streamline the work process and thereby achieve significant levels of improvement in quality, time management, speed and profitability:

1. Organize around outcomes, not tasks.

2. Identify all the processes in an organization and prioritize them in order of redesign urgency.

3. Integrate information processing work into the real work that produces the information.

4. Treat geographically dispersed resources as though they were centralized.

5. Link parallel activities in the workflow instead of just integrating their results.

6. Put the decision point where the work is performed, and build control into the process.

7. Capture information once and at the source.

ENTERPRISE RESOURCES PLANNING

Enterprise Resources Planning (ERP) : Business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

Enterprise Resources Planning software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.