Advantage vs. Necessity

1. 0 Advantage vs. Necessity • Competitive Advantage – developing products, services, processes, or capabilities that give a company a superior business position relative to its competitors and other competitive forces • Competitive Necessity – products, services, processes, or capabilities that are necessary simply to compete and do business in an industry

2. 0 Customer-Focused Business A business that: • can anticipate customers’ future needs. • responds to customer concerns. • provides top-quality customer service.

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4. 0 Business Process Reengineering Definition: • Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service.

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6. 0 Agility • The ability of a company to prosper in rapidly changing market • continually fragmenting global markets • market demands high-quality, high performance, customer-configured products and services.

7. 0 Agile Company Definition: • A company that can make a profit in markets with • broad product ranges • short model lifetimes • can produce orders individually and in arbitrary lot sizes.

8. 0 Mass Customization Definition: • Providing individualized products while maintaining high volumes of production

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10. 0 Value Chain Definition: • View of a firm as a series, chain, or network of basic activities that add value to its products and services, • and thus add a margin of value both to the firm and its customers.

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12. 0 Enterprise Information Systems Definition: • Information systems implemented on an extranet among a company and its • suppliers, • customers, • subcontractors, and • competitors • with whom it has formed alliances.

13. 0 Virtual Company Definition: • An organization that uses information technology to link people, organizations, assets, and ideas.

14. 0 Virtual Company

15. 0 Virtual Company Strategies • Share infrastructure and risk with alliance partners. • Reduce concept-to-cash time through sharing. • Increase facilities and market coverage. • Gain access to new markets and share market or customer loyalty. • Migrate from selling products to selling solutions.

16. 0 Knowledge-Creating Companies Definition: • Consistently creating new business knowledge, disseminating it widely throughout the company, and quickly building the new knowledge into their products and services.

17. Types of Knowledge • Explicit Knowledge – data, documents, things written down or stored on computers • Tacit Knowledge – the “how-to’s” of knowledge, which reside in workers

18. Knowledge Management Definition: • Techniques, technologies, systems, and rewards for getting employees to share what they know and to make better use of accumulated workplace and enterprise knowledge. • Knowledge Management Systems – manage organizational learning and business know-how

19. Levels of Knowledge Management

20. Enterprise Systems • Integrate/”Bring together” the value chain in multiple Companies Mattel Toys Amazon.com GE Plastics

21. Enterprise Systems • The Umbrella the covers a virtual company. ERP System monitors the integrated value-chains of all these connected firms A Small companycan have theinformation andpower of a largeconglomerate

22. Customer Relationship Management (CRM) Definition: • enterprise system that integrates and automates many of the customer-serving processes in • sales, • marketing, and • customer services • that interact with a company’s customers

23. CRM Application Clusters

24. CRM to ERP • Firms themselves are customers of other firms. • Shared interests leads to... • Shared information • which leads to • Shared information systems

25. Enterprise Resource Planning (ERP) Definition: • A cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company • Company may be virtual • Value chain may cross-over to multiple partner firms

26. ERP Benefits • Quality and Efficiency – ERP creates a framework for integrating and improving a company’s internal business processes that results in significant improvements in the quality and efficiency of customer service, production, and distribution • Decreased Costs – Significant reductions in transaction processing costs and hardware, software, and IT support staff

27. ERP Benefits • Decision Support – Provides vital cross-functional information on business performance quickly to managers to significantly improve their ability to make better decisions in a timely manner • Enterprise Agility – ERP breaks down many former departmental and functional walls of business processes, information systems, and information resources