Archive for July 2015

Home Archive for July 2015

Organizations can undertake high-profile strategic initiatives including

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Business Process Reengineering (BPR)

Enterprise Resource Planning (ERP)

Supply Chain Management - involves 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 supply chain management include :

Supply chain strategy - strategy for managing all the resources required to meet customer demand for all products and services

Supply chain partners - the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics

Supply chain operation - the schedule for production activities including testing, packaging, and preparation for delivery. Measurements for this component include productivity and quality

Supply chain logistics - the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing

Effective and efficient supply chain management systems can enable the organization to :

Decrease the buyer power

Increase supplier power

Increase switching costs

Create entry barriers

Increase efficiencies while seeking a competitive advantage through cost leadership

Effective and efficient supply chain managements effect on Porter's Five Forces

2. Customer Relationship Management - involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level

CRM can enable the organization to

identify types of customers

design individual customer marketing campaigns

treat each customer as an individual

understand customer buying behaviours

CRM overviews

3. Business Process Reenginering - analysis and redesign of workflow within and between the enterprise

The purpose of BPR is to make all business processes best-in-class

Finding opportunity using BPR

Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit

4. Enterprise Resource Planning - 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

ERP systems collect data from across an organization and correlates the data generating an enterprisewide view

	Efficiency IT Metrics
Throughput	The amount of information that can travel through a system at any point.
Transaction speed	The amount of time a system takes to perform a transaction.
System availability	The number of hours at system is available for users.
Information accuracy	The extent to which a system generates the correct results when executing the same transaction numerous times.
Web traffic	Includes a host of benchmarks such as the number of page views, the number of unique visitors, and the average time spent viewing a web page.
Response time	The time it takes to respond to user interactions such as a mouse click.

	Effectiveness IT Metrics
Usability	The ease with which people perform transactions and/or find information. A popular usability metric on the Internet is degrees of freedom, which measures the number of clicks required to find desired information.
Customers satisfaction	Measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer.
Conversion rates	The number of customers an organization “touches” for the first time and persuades to purchase its products or services. This is a popular metric for evaluating the effectiveness of banner, pop-up, and pop-under ads on the Internet.
Financial	Such as return on investment (the earning power of an organization’s assets), cost-benefit analysis (the comparison of projected revenues and costs including development, maintenance, fixed and variable), and break-even analysis (the point at which content revenues equal ongoing costs).