chapter3 instructor ppt

7/28/2019 Chapter3 Instructor PPT

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McGraw-Hill/Irwin 2008 The McGraw-H il l Companies, Al l Rights Reserved

Chapter 3

Strategic Initiatives for

Implementing Competitive

Advantages


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Learning Outcomes

3.1 List and describe the four basic

components of supply chain

management

3.2 Explain customer relationship

management systems and how they can

help organizations understand their

customers


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3-3

Learning Outcomes

3.3 Summarize the importance of enterprise

resource planning systems

3.4 Identify how an organization can use

business process reengineering to

improve its business


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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

Supp ly Chain Management(SCM)

involves the management of information

flows between and among stages in a

supply chain to maximize total supplychain effectiveness and profitability


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Four basic components of supply chain

management include:

1. Supply chain strategy strategy for managing all

resources to meet customer demand2. Supply chain partner partners throughout the

supply chain that deliver finished products, raw

materials, and services.

3. Supply chain operation schedule for productionactivities

4. Supply chain logistics product delivery process


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


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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 threatof new entrants

Increase efficiencies while seeking a competitive

advantage through cost leadership


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Effective and efficient SCM systems effect

on Porters Five Forces


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Customer Relationship

Management

Customer relat ionsh ip management(CRM) involves managing all aspects of acustomers relationship with an organization

to increase customer loyalty and retentionand an organization's profitability

Many organizations, such as CharlesSchwab and Kaiser Permanente, haveobtained great success through theimplementation of CRM systems


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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


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Management CRM overview


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Business Process Reengineering

Bus iness p rocess a standardized set of

activities that accomplish a specific task, such

as processing a customers order

Business p rocess reengineer ing (BPR) the

analysis and redesign of workflow within and

between enterprises

The purpose of BPR is to make all business

processes best-in-class


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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

BPR looks at taking a

different path, such as anairplane which ignore the

road completely


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Progressive Insurance Mobile Claims Process


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Types of change

an organization

can achieve,

along with themagnitudes of

change and the

potentialbusiness benefit


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Enterprise Resource Planning

Enterpr ise resou rce p lann ing (ERP)

integrates all departments and functions

throughout an organization into a single IT

system so that employees can makedecisions by viewing enterprisewide

information on all business operations

Keyword in ERP is enterprise


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Sample data from a sales database


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Sample data from an accounting database


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ERP systems collect data from across an

organization and correlates the data

generating an enterprisewide view

OPENING CASE STUDY QUESTIONS


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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

2. Create an argument against the following

statement: Apple should not invest any

resources to build a supply chain

management system

3. Why would a company like Apple invest in

BPR?


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CHAPTER THREE CASEConsolidating Touchpoints for Saab

Saab required a consolidated customer

view among its three primary channels:

Dealer network

Customer assistance center

Lead management center


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Chapter Three Case Questions

1. Explain how implementing a CRM system

enabled Saab to gain a competitive advantage

2. Estimate the potential impact to Saabsbusiness if it had not implemented a CRM

system

3. What additional benefits could Saab receive

from implementing a supply chain

management system?


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Chapter Three Case Questions

4. Create a model of Saabs potential

supply chain

5. How is Saabs CRM implementation

going to influence its SCM practices?

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