Business Case 700 words + 300 words reflection + 10 min presentation pptx
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Week03StrategicInitiativesforImplementingCompetitiveAdvantages.pptxCHAPTER THREE
STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES
LEARNING OUTCOMES
Identify how an organization can use business process reengineering to improve its business
Explain supply chain management and its role in business
Explain customer relationship management systems and how they can help organizations understand their customers
Summarize the importance of enterprise resource planning systems
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)
BUSINESS PROCESS REENGINEERING
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
USING MIS TO IMPROVE BUSINESS PROCESSES
Workflow – Includes the tasks, activities, and responsibilities required to execute each step in a business process
MANAGING BUSINESS PROCESSES
Businesses gain a competitive edge when they minimize costs and streamline business processes
MANAGING BUSINESS PROCESSES
Customer facing process - Results in a product or service that is received by an organization’s external customer
Business facing process - Invisible to the external customer but essential to the effective management of the business
MANAGING BUSINESS PROCESSES
The Order-to-Delivery Process
BUSINESS PROCESS MODELING
Business process modeling (or mapping) - The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence
Business process model - A graphic description of a process, showing the sequence of process tasks, which is developed for a specific
As-Is process model
To-Be process model
BUSINESS PROCESS MODELING
BUSINESS PROCESS MODELING
BUSINESS PROCESS MODELING
BUSINESS PROCESS MODELING
BUSINESS PROCESS MODELING
BUSINESS PROCESS MODELING
USING MIS TO IMPROVE BUSINESS PROCESSES
USING MIS TO IMPROVE BUSINESS PROCESSES
SUPPLY CHAIN MANAGEMENT
Supply Chain Management (SCM) – The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and profitability
BASICS OF SUPPLY CHAIN
The supply chain has three main links:
Materials flow from suppliers and their “upstream” suppliers at all levels
Transformation of materials into semifinished and finished products through the organization’s own production process
Distribution of products to customers and their “downstream” customers at all levels
BASICS OF SUPPLY CHAIN
Organizations must embrace technologies that can effectively manage supply chains
SUPPLY CHAIN MANAGEMENT
Five basic supply chain activities
SUPPLY CHAIN MANAGEMENT
Supply Chain Example
SUPPLY CHAIN MANAGEMENT
Walmart and Procter & Gamble SCM Example
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
SUPPLY CHAIN MANAGEMENT
Effective and Efficient SCM Systems Effect on Porter’s Five Forces
CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability
Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems
CUSTOMER RELATIONSHIP MANAGEMENT
CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level
CRM can enable an organization to:
Identify types of customers
Design individual customer marketing campaigns
Treat each customer as an individual
Understand customer buying behaviors
CUSTOMER RELATIONSHIP MANAGEMENT
EVOLUTION OF CRM
CRM reporting technology – Help organizations identify their customers across other applications
CRM analysis technologies – Help organization segment their customers into categories such as best and worst customers
CRM predicting technologies – Help organizations make predictions regarding customer behavior such as which customers are at risk of leaving
EVOLUTION OF CRM
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
Keyword in ERP is
“enterprise”
ENTERPRISE RESOURCE PLANNING
Sample data from a sales database
| A | B | C | D | E | F | G | |
| 1 | OrderDate | ProductName | Quantity | Unit Price | Unit Cost | Customer ID | SalesRepID |
| 2 | Monday, January 04, 2010 | Mozzarella cheese | 41 5 | $ 24.15 | S15.35 | AC45 | EX-107 |
| 3 | Monday, January 04 2010 | Romaine lettuce | 90.65 | $15.06 | $14.04 | AC45 | EX-109 |
| 4 | Tuesday, January 05 2010 | Red onions | 27.15 | $12.08 | $10.32 | ACS7 | EX-104 |
| 5 | Wednesday January 06 2010 | Romaine lettuce | 67.25 | $15.16 | $10.54 | A096 | EX-109 |
| 6 | Thursday, January 07 2010 | Black olives | 79.26 | $12.18 | $9.56 | A044 | EX-104 |
| 7 | Thursday. January 07 2010 | Romaine lettuce | 46.52 | $15.24 | $11.54 | AC32 | EX-104 |
| 8 | Thursday January 07 2010 | Romaine lettuce | 52.5 | $15.26 | $11.12 | AC84 | EX-109 |
| 9 | Friday January 03 2010 | Red onions | 39.5 | $12.55 | $9.54 | A0103 | EX-104 |
| 10 | Saturday January 09 2010 | Romaine lettuce | 66.5 | $15.98 | $9.56 | AC4 | EX-104 |
| 11 | Sunday, January 10, 2010 | Romaine lettuce | 58.26 | $15.97 | $9.50 | A0174 | EX-104 |
| 12 | Sunday January 10 2010 | Pineapple | 40.15 | $33.54 | $22.12 | AC45 | EX-I04 |
ENTERPRISE RESOURCE PLANNING
Sample data from an accounting database
| A | B | C | D | E | F | G | H | I | J | |
| 1 | OrderDate | ProductName | Quantity | Unit Price | Total Sales | Unit Cost | Total Cost | Profit | Customer | SalesRep |
| 2 | 04-Jan-10 | Mozzarella cheese | 41 | 24 | 984 | 18 | 738 | 246 | The Station | Debbie Fernandez |
| 3 | 04-Jan-10 | Romaine lettuce | 90 | 15 | 1,350 | 14 | 1,260 | The Station | Roberta Cross | |
| 4 | 05 Jan-10 | Red onions | 27 | 12 | 324 | 8 | 216 | 108 | Bert’s Bistro | Loraine Schultz |
| 5 | 06-Jan-10 | Romaine lettuce | 67 | 15 | 1,005 | 14 | 938 | 67 | Smoke House | Roberta Cross |
| 6 | 07-Jan-10 | Black olives | 79 | 12 | 948 | 6 | 474 | 474 | Flagstaff House | Loraine Schultz |
| 7 | 07-Jan-10 | Romaine lettuce | 46 | 15 | 690 | 14 | 644 | 46 | Two Bitts | Loraine Schultz |
| 8 | 07-Jan-10 | Romaine lettuce | 52 | 15 | 780 | 14 | 728 | 52 | Pierce Arrow | Roberta Cross |
| 9 | 08-Jan-10 | Red onions | 39 | 12 | 468 | 8 | 312 | 156 | Mamma’s Pasta Place | Loraine Schultz |
| 10 | 09-Jan-10 | Romaine lettuce | 66 | 15 | 990 | 14 | 924 | 66 | The Dandelion | Loraine Schultz |
| 11 | 10-Jan-10 | Romaine lettuce | 58 | 15 | 870 | 14 | 812 | 58 | Carmens | Loraine Schultz |
ENTERPRISE RESOURCE PLANNING
ERP systems collect data from across an organization and correlates the data generating an enterprisewide view
LEARNING OUTCOME REVIEW
Now that you have finished the chapter please review the learning outcomes in your text
