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

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

6. Agility The ability of a company to prosper in rapidly changing market
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. Agile Company Definition:
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. Mass Customization Definition:
Definition:
Providing individualized products while maintaining high volumes of production

10. Value Chain Definition:
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.

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

14. Virtual Company

15. 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. 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 company can have the information and power of a large conglomerate

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