Strategies initiatives
Organizations can undertake high-profile strategic initiatives including:
- Supply chain management (SCM)
- Customers relationship management (CRM)
- Business process re engineering (BPR)
- Enterprise resources planning (ERP)
➤Supply Chain Management (SCM)
It 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 resources to meet customers demand
- Supply chain partner – partners throughout the supply chain that deliver finished products,raw materials and services
- Supply chain operation – schedule for production activities
- Supply chain logistics – product delivery process
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 efficiency while seeking a competitive advantages through cost leadership
➤Customers Relationship Management (CRM)
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-Its 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.
-CRM is not just technology, but a strategy, process and business goal that an organization must embrace on an enterprise wide level.
CRM can enable an organization to:
- Identify types of customers
- Design individual customer marketing campaign
- Treat each customer as a individual
- Understand customer buying behavior
➤Business Process Reengineering (BPR)
![Image result for BUSINESS PROCESS REENGINEERING](https://www.edrawsoft.com/images/chart/bprdiagram.png)
- It is a standardized set of activities that accomplish a specific task, such as processing a customer’s order.
-The analysis and redesign of workflow within and between enterprises.
- The purpose of BPR is to make all business processes best in class
- Reengineering the Corporation – book written by Michael Hammer and James Champy that recommends seven principles for BPR
- 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 an airplane which ignore the road completely
- Types
➤Enterprises Resource Planning (ERP)
![Image result for ENTERPRISE RESOURCES PLANNING](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_u_1UwFVd3KrJZS9km94bICu_teQ4WRQw1xyxm9RrILck2VMi5uiuUy9RumUX_Aqh7mFcqf8hix6jhYsiYcGkIsyQHLPI5KD2c_h51dQ3R43VGqUzMb=s0-d)
-It integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.
-Keyword in ERP is “enterprise”.
-ERP systems collect data from across an organization and correlates the data generating an enterprise wide view.
-It integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.
-Keyword in ERP is “enterprise”.
-ERP systems collect data from across an organization and correlates the data generating an enterprise wide view.
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