Strategic Initiatives for Implementing Competitive Advantage ( Chapter 3 )

STRATEGIC INITIATIVES

• Gain competitive advantages and Business efficiencies.
• Supply chain management.
• Customer relationship management.
• Business process reengineering.
• Enterprise resources planning. 

SUPPLY CHAIN MANAGEMENT ( SCM )

Involve the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Four Basic Components of SCM 

Effective and Efficient SCM system 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 product of service.
• Create entry barriers thereby reducing the threat of new entrants.
• Increase efficiencies while seeking a competitive advantages through cost leadership.

Effective and Efficient Supply Chain Management ( SCM ) Effect on Porter's Five Force

CUSTOMER RELATIONSHIP MANAGEMENT ( CRM )

Involve managing all aspects of a customer's relationship with organization to increase customer loyalty and retention and an organization's profitability. CRM allows an organization to gain insight into customer's shopping and buying behaviours in order to develop an implement enterprise-wide strategies.

CRM Overview

BUSINESS PROCESS REENGINEERING ( BPR )

The analysis and redesign of workflow within and between enterprise.The concept of BPR traces its origins to management theories developed as early as the 19th century. The purpose of BPR is to make all business process the best-in-class.

Seven Principles of Business Process Reengeneering.

• Organize around outcomes, not tasks.
• Identify all the organization's process and prioritize them in order of redesign urgency.
• Integrate information processing work into the real work that produce the information.
• Treat geographically dispersed resources as though they were centralized.
• Link parallel activities in the workflow instead of just integrating their result.
• Put the decision point where the work is performed, and built into the process.
• Capture information once and the source.  

ENTERPRISE RESOURCE PLANNING ( ERP )

Integrate all department and function throughout an organization into a single IT system ( or integrate set of IT system ) so that employees can make decision by using enterprise-wide information on all business operations.

Enterprise Resource Planning System