strategic initiative for implementing competitive advantage


  •  Organizations can undertake high-profile strategic initiatives including
    • Supply Chain Management (SCM)
    • Customer Relationship Management (CRM)
    • Business Process Reengineering (BPR)
    • Enterprise Resource Planning (ERP)

  1. 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

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