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

Business process analysis

Accenture Delivery Methods

Operating model design

Phased implementation

Business process requirements

Rollout schedule

Localization requirements

Go-live

Master process list

Milestone

Process and gap analysis

Data migration

Process and data standardization

Key performance indicators

Modeling scenarios

Risk analysis

Change impact assessment

Mitigate project risks

Change management

Risk of disruption

Integration

Shared services

Configurations

Validation workflow

Provisioning

Service-oriented architecture (SOA)

Pilot

End users vs. super users

Priority support metrics

Stakeholders

Business intelligence

Software as a service (SaaS)

Real-time access to information

Center of Excellence

Compliance

Bottleneck

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)