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Proses Bisnis dan Informasi

Suryo Widiantoro, ST, MMSI, M.Com(IS)

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Topics covered1. Importance of competitive advantage

2. Porter 5 forces model

3. Strategy for competitive advantage

4. IT in value chain analysis

5. SCM, CRM, and ERP

6. Business process reengineering

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To survive and thrive an organization must create a competitive advantage Competitive Advantage—A product or service

that an organization’s customers place a greater value on than similar offerings from a competitor

First-Mover Advantage—Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

Competitive Intelligence—The process of gathering information about the competitive environment to improve the company’s ability to succeed

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Organizations watch their competition through environmental scanning

Environmental scanning – the acquisition and analysis of events and trends in the environment external to an organization

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Three common tools used in industry to analyze and develop competitive advantages include:

Porter’s Five Forces Model

Porter’s three generic strategies

Value chains

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Pressures that can hurt potential sales: Knowledgeable customers can force down prices by

pitting rivals against each other

Influential supplies can drive down profits by charging higher prices for supplies

Competition can steal customers

New market entrants can steal potential investments capital

Substitute products can steal customers

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1# Buyer PowerBuyer Power—The ability of buyers to affect the price of

an item. It is high when buyers have many choices of whom to buy from and low when their choices are few. To reduce buyer power:

Switching Cost—Manipulating costs that make customers reluctant to switch to another product

Loyalty Program—Rewards customers based on the amount of business they do with a particular organization

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2# Supplier PowerSupplier Power—The suppliers’ ability to influence the

prices they charge for supplies. It is high when buyers have few choices of whom to buy from and low when their choices are many.

Supply Chain—Consists of all parties involved in the procurement of a product or raw material

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Organizations that are buying goods and services in the supply chain can create a competitive advantage by locating alternative supply sources (decreasing supplier power) through B2B marketplaces

Business-to-Business (B2B) marketplace – an Internet-based service that brings together many buyers and sellers

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Two types of business-to-business (B2B) marketplaces Private exchange – a single buyer posts its needs and

then opens the bidding to any supplier who would care to bid

Reverse auction – an auction format in which increasingly lower bids are solicited from organizations willing to supply the desired product or service at an increasingly lower price

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3# Threat of SubstituteThreat of Substitute Products or Services—High when

there are many alternatives to a product or service and low when there are few alternatives

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4# Threat of New EntrantsThreat of New Entrants—High when it is easy for new

competitors to enter a market and low when there are significant entry barriers

Entry Barrier—A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

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5# Rivalry among CompetitorsRivalry Among Existing Competitors—High when

competition is fierce in a market and low when competitors are more complacent.

Although competition is always more intense in some industries than in others, the overall trend is toward increased competition in just about every industry.

Product Differentiation—Occurs when a company develops unique differences in its products or services with the intent to influence demand

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THE FIVE FORCES MODEL:Evaluating Business SegmentsPorter’s Five Forces Model determines the relative

attractiveness of an industry

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Discussion Question:

Perform a porter 5 forces analysis for a company entering the commercial airline industry?

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Organizations typically follow one of Porter’s three generic strategies when entering a new market

Broad cost leadership: produce product or service at the lowest cost in the industry

Broad differentiation: offer different product service or feature

Focused strategy: offering a specialized service in a niche market

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Cost LeadershipCompanies that are successful in achieving Cost

Leadership usually have:

Access to the capital needed to invest in technology that will bring costs down.

Very efficient logistics.

A low-cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors.

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DifferentiationTo make a success of a Differentiation strategy,

organizations need:

Good research, development and innovation.

The ability to deliver high-quality products or services.

Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

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Focus Strategy Companies that use Focus strategies concentrate on

particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market. Because they serve customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. This makes their particular market segment less attractive to competitors.

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Other strategies Innovation: introduce a new product and service, add

new features

Operational effectiveness: improve the manner in which internal business process are executed

Customer orientation: concentrate on making customer happy

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Value CreationOnce an organization chooses its strategy, it

can use tools such as the value chain to determine the success or failure of its chosen strategy

Business Process—A standardized set of activities that accomplish a specific task, such as a specific process

Value Chain Analysis—Views a firm as a series of business processes that each add value to the product or service

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Primary Value Activities Inbound Logistics—Acquires raw materials and

resources, and distributes

Operations—Transforms raw materials or inputs into goods and services

Outbound Logistics—Distributes goods and services to customers

Marketing and Sales—Promotes, prices, and sells products to customers

Service—Provides customer support

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Support Value Activities Firm Infrastructure—Includes the company format or

departmental structures, environment, and systems.

Human Resource Management—Provides employee training, hiring, and compensation.

Technology Development—Applies MIS to processes to add value.

Procurement—Purchases inputs such as raw materials, resources, equipment, and supplies.

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Value Chain

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Value chain in 5 forces model

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Organizations can undertake high-profile strategic initiatives including:

Supply chain management (SCM)

Customer relationship management (CRM)

Business process reengineering (BPR)

Enterprise resource planning (ERP)

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Supply Chain Management Supply Chain Management (SCM)—Involves the

management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability

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The four basic components of supply chain management include:

1. Supply Chain Strategy—Strategy for managing all resources to meet customer demand

2. Supply Chain Partner—Partners throughout the supply chain that deliver finished products, raw materials, and services

3. Supply Chain Operation—Schedule for production activities

4. Supply Chain Logistics—Product delivery process

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Wal-Mart and Procter & Gamble (P&G) SCM

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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 efficiencies while seeking a competitive advantage through cost leadership

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Customer Relationship ManagementCustomer Relationship Management

(CRM)—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

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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 campaigns

Treat each customer as an individual

Understand customer buying behaviors

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Enterprise Resource PlanningEnterprise Resource Planning (ERP)—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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ERP Software ERP functions offered by all ERP vendors include:

Finance, accounting, sales, marketing, human resources, operations, and logistics

ERP vendors differentiate themselves by offering unique components including: CRM, SCM, and BI

According to Gartner, the average failure rate for an ERP project is 66 percent

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Successful ERP projects share 3 attributes1. Overall fit

Off the rack

Off the rack and tailored to fit

Custom made

2. Proper business analysis Successful companies spend up to 10 percent of the

project budget on a business analysis

3. Solid implementation plans A plan is needed to monitor the quality, objectives,

and timelines

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Business process—A standardized set of activities that accomplish a specific task, such as processing a customer’s order

Business process reengineering (BPR) —The analysis and redesign of workflow within and between enterprises The purpose of BPR is to make all business processes

best-in-class

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Reengineering the Corporation—Book written by Michael Hammer and James Champy that recommends seven principles for BPR

One hazard of BPR is that the 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

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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

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Konklusi

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