MANAGEMENT

INFORMATION

SYSTEMS

Chapter 3: Strategic Initiatives for Implementing Competitive Advantages + BP3

Business

process

reengineering

Learning Outcomes

Explain supply chain management and its role in business.

Explain customer relationship management systems and how they can help organizations understand their customers.

Summarize the importance of enterprise resource planning systems.

Identify how an organization can use business process reengineering to improve its business.

Accenture Cases

Login to elearn and go to Accenture cases for Session 4

Open the case with the same number as the number of the

laptop you are using; save the file on your desktop

You have 10min to read the case; highlight important parts

Be ready to share with the rest of the class (~1min):

Client profile (name, country, type of business)

Business challenge (brief summary of main issue)

How Accenture helped (solution proposed/implemented)

High performance delivered (key positive outcomes)

SAP, Oracle

Accenture Delivery Methods

Phased implementation

Rollout schedule

Go-live

Milestone

Data migration

Key performance indicators

Risk analysis

Mitigate project risks

Risk of disruption

Shared services

Validation workflow

Service-oriented architecture (SOA)

End users vs. super users

Stakeholders

Software as a service (SaaS)

Center of Excellence

Bottleneck

Business process analysis

Operating model design

Business process requirements

Localization requirements

Master process list

Process and gap analysis

Process and data standardization

Modeling scenarios

Change impact assessment

Change management

Integration

Configurations

Provisioning

Pilot

Priority support metrics

Business intelligence

Real-time access to information

Compliance

Flexible vs. scalable

Strategic Initiatives

Supply chain management (SCM)

Customer relationship management (CRM)

Enterprise resource planning (ERP)

Business process reengineering (BPR)

Supply Chain Management (SCM)

Management of information flows between and among

stages in a supply chain to maximize total supply chain

effectiveness and profitability

Basic components of SCM:

Supply Chain Strategy = Strategy for managing all

resources to meet customer 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

Supply Chain Management (SCM)

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 efficiencies while seeking a competitive

advantage through cost leadership

Supply Chain Management (SCM)

Supply Chain Management (SCM)

Supply Chain Management (SCM)

http://www.supplychainmovement.com/wp-content/uploads/Mindmap-Pharma-Supply-Chains-2.0-Supply-Chain-Movement-2013.pdf

Supply Chain Management (SCM) Wal-Mart and Procter & Gamble SCM

Customer Relationship Management (CRM)

Managing all aspects of customers relationship with organization to increase customer loyalty and retention and organization's profitability

CRM - not just technology, but strategy, process, and

business goal that organization must embrace on

enterprise-wide level

CRM can enable organization to:

Identify types of customers

Design individual customer marketing campaigns

Treat each customer as an individual

Understand customer buying behaviors

Customer Relationship Management (CRM)

Charles Schwab

Recouped cost of multimillion-dollar CRM system in less

than 2 years

Allowed Schwab to segment its customers in terms of

serious and non-serious investors

Looked for customers that had automatic withdrawal from

bank account as sign of serious investor

Looked for stagnant balances as sign of non-serious

investor

Focus efforts on selling to serious investors, and spend

less time attempting to sell to non-serious investors

Customer Relationship Management (CRM)

Enterprise Resource Planning (ERP)

Integrates all departments and functions throughout

organization into single IT system so that employees

can make decisions by viewing enterprise-wide

information on all business operations

Enterprise Resource Planning (ERP) Sample data from a sales database

Enterprise Resource Planning (ERP) Sample data from an accounting database

Business Process Reengineering (BPR)

Business process = Standardized set of activities that accomplish specific task, such as processing customers order

Business process reengineering (BPR) = Analysis and redesign of workflow within and between enterprises

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

One hazard of BPR is that company becomes so wrapped up in fighting its own issues that it fails to keep up with its competitors in offering new products or services

Business Process Reengineering (BPR)

Business Process Reengineering (BPR)

Company can improve

the way it travels the

road by moving from foot

to horse and then horse

to car

BPR looks at taking

different path, such as

airplane which ignores

the road completely

Business Process Reengineering (BPR)