What Does it Take for an Organization to become known as a Vanguard or a Sustainable Company?

When people think of a sustainable or vanguard company, often times they fail to mention the different ways that management can affect long-term sustainability planning within an organization. According to (Kanter, 2009) “a vanguard company is only as good as leaders’ ability to attract, motivate, and retain skilled people and enable them to self-organize and collaborate” (p. 28). Partnering with Boston Consulting (Hopkins, et al., 2009) adds a manger(s) sustainability practices within an organization are often based on the assumption of the more you know, the more you do within an organization. Thus, the more experience a manager has dealing with long-term sustainability issues, the more equipped they will be for future endeavors through social, economic, or environmental planning that directly affects a company’s long-term bottom-line results.

Hopkins et al., (2009) clearly point out that it is obvious that the more managers know about things that affect long-term sustainability planning the more they could/will help in shaping future business plans of an organization. However, the fact is many business managers or owners do not give much thought to long-term sustainability and this is why sustainability planning within many companies exists in a limited capacity or not at all. (Senge, Kruschwitz, Laur, & Schley, 2008) also mentioned that millions of people “including managers” are/will continue to search for ways to educate more people about sustainability issues. Like Hopkins et al., (2009) discussing the importance of managers uniting suppliers across that value chain Senge et al., (2008) recommended that more people need to learn how to “see the larger systems” in which they belong such as the supply chain, industry, or a region. This philosophy will not only provide additional insights for managers but also help educate more people with different perspectives, which will continue to help shape long-term sustainability plans of an organization.

According to (Wüstenhagen, Hamschmidt, Sharma, & Starik, 2008) another concept that can/is helping managers see the big picture is sustainable entrepreneurship, which has characteristics that carry with it high social benefits for the private, along with the public sector(s) of business. Sustainable entrepreneurship is dependent on innovation and stakeholders in order to succeed long-term. (Schlange, 2009) defines this concept as a process of identifying opportunities by being creative, while defining stakeholders as people or companies that are associated with certain organizations, which can help minimize risks, while maximizing benefits. In addition, Schlange (2009) identified three types of sustainable entrepreneurship (1) socially, (2) economically, and (3) ecologically driven. From a stakeholders perspective the key to effective sustainable entrepreneurship is to develop all three types of sustainability in order to create value and venture relationships that are likely to mature overtime.

However, business models that carry high social, economic, or ecological benefits may not always be suitable for the mass market, as in some instances they are actually detrimental to society. Expanding on the concept of sustainable entrepreneurship (Carter & Rogers, 2008) use conceptual theory building of sustainability to introduce readers to the concept of sustainability across the supply chain, which they explained helped shape the social, economic and environmental environments of this business segment. Using past research theories based on Transaction Cost Economics (TCE), ecology, and views within several organizations Carter and Rogers (2008) developed a framework driven by entrepreneurs that represented the middle ground of “Sustainable Supply Chain Management (SSCM),” which would ultimately connect social supply chain responsibility with environmental and political programs (p. 360).

Carter and Rogers (2008) were also able to determine that sustainable entrepreneurship within an organization can also affect the societal, economic, and environmental performance of a manager and/or company much like (Hopkins, et al., 2009; Kanter, 2009). In fact, the societal, economic, and environmental processes analysis showed improved results in the overall economic performance of an individual or the entire supply chain. Four main factors supported the claims (1) the overall business strategy, (2) culture, (3) transparency, and (4) risk management. Carter and Rogers’s combination of processes with the identified four factors are a good starting point for those managers that are actually looking to learn more about and develop long-term sustainability practices within their organization(s) or the old adage of the more you know, the more you learn.

There are many ways people, managers, and executives looking at sustainable development in their personal and professional lives. In fact, as previously mentioned, sustainable management and entrepreneurship are two ways of creating long-term sustainability within an organization. However, can we meet the needs of the present with these sustainability processes without compromising future generation’s abilities to meet their own needs? Kanter (2009) says yes, as a sustainable or Vanguard Company is “able to change internally with fewer stumbles and less resistance because they empower people to change themselves,” by collaborating, forging new relationships, and developing new networks for future generations (p. 258). Wüstenhagen et al. (2008) also identified several strategies, which can help create a more sustainable future such as collaborating to improve the triple bottom line. (Markley & Davis, 2007) also looked at and examined collaboration as a way of improving the triple bottom line (socially, ethically, environmentally, and financially) through the creation and development of a sustainable supply chain. The purpose of this discussion was to outline appropriate future directions for management in order to improve a company’s overall organizational performance, while working with manufacturers, distributors, and customers to decrease the environmental effects of a supply chain manager’s decisions over the long run.

The concept of triple bottom line is not only important to the continued development of social, environmental, and financial sustainability but it is also important because it can enhance purchasing decisions, inventory management practices, employee training, material handling and material disposal. In other words, the triple bottom line can help managers address sustainability affects socially, environmentally, and financially throughout an organization. Although most of the time financial sustainability is at the top of most managers’ priority lists, it is also important that managers also recognize the importance of sustainability from a social and environmental viewpoint if they want to continue providing ideas that help an organization maintain a competitive advantage.

The fact is that many factors can contribute to an organizations long-term sustainability development planning. As a result, looking ahead it becomes even more of a challenge for managers that are searching for answers and additional ways to remain competitive, which in turn may become more of a challenge for even the most experienced managers or executives. Therefore, it is important that employees, managers, executives, and other individuals continue to work together to help solve problems or “creating futures they truly desire,” which sequentially will help improve an organization’s 21st century social, economic, and environmental performance and sustainability (Senge, et al., 2008).

In many organizations across the globe, stakeholders are becoming an important part of a company’s innovative strategies, other business development processes, and additional corporate initiatives. Senge, et al., (2008) stated, “trying to get people committed to a sustainability initiative is a bit like trying to be happy: The harder you try, the less successful you’re likely to be” (p. 267). Consequently (Wüstenhagen, et al., 2008) suggested a way of integrating social, economic, and environmental factor planning with an organizations management’s efforts and stakeholders concerns in order to further improve sustainability initiatives such as “customer value” (p. 241). This blog post has explained several important factors that are helping shape the social, economic, environmental, and financial sustainability efforts of executives, managers, and employees throughout many companies. A common theme throughout this work was that the more people know and understand sustainable business practices, the more they are doing to improve sustainability practices in management, thus helping their organizations become a vanguard company. As a result, this improvement within organizations will continue to help leaders find additional ways to reduce costs, while becoming more efficient and yielding solid social, economic, environmental, and financial results. As technological advancements lead to new systems, regulations will continue to force companies to rethink their long-term sustainability practices if they want to increase their global reputation. There is no doubt moving forward that companies will continue to grow more dependent on sustainability practices over the next 20+ years. For that reason, decision makers need to consider these factors along with others if they want to continue sustainable development thus moving to a vanguard company.


References
Carter, C., R. , & Rogers, D., S. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360.
Hopkins, M., Townend, A., Khayat, Z., Balagopal, B., Reeves, M., & Berns, M. (2009). The business of sustainability: What it means to managers now. MIT Sloan Management Review, 51(1), 20.
Kanter, R. M. (2009). SuperCorp: How vanguard companies create innovation, profits, growth, and social good. New York Crown Publishing Group.
Markley, M. J., & Davis, L. (2007). Exploring future competitive advantage through sustainable supply chains. International Journal of Physical Distribution & Logistics Management, 37(9), 763.
Schlange, L. E. (2009). Stakeholder identification in sustainability entrepreneurship. Greener Management International(55), 13-32.
Senge, P., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: How individuals and organizations are working together to create a sustainable world. New York: Doubleday.
Wüstenhagen, R., Hamschmidt, J., Sharma, S., & Starik, M. (2008). Sustainable innovation and entrepreneurship. Cheltenhem, UK: Edward Elgar.

How Does/Can Social Media Impact Your Supply Chain and/or Business Strategy?

Of late there has been a lot of talk about the influences that social media plays in almost all the things we do in our daily lives. In fact, many people have argued that this new median for reaching larger audiences is now starting to affect the ways organizations conduct business, build relationships, and increase sales throughout the world while enhancing supply chain operations. Or is it?

As customer wants and the business landscape continues to change, we must also continue to look for ways to integrate social media into our daily business activities if we want to continue achieving the type of long-term growth most of us are looking for, or the old adage “innovate or die.” In a recent blog post (Cunha, 2011) discussed some of the ways that we can connect customers with things they want to buy in it what he terms “the Connected Experience” by discussing four important concepts (1) ERP, (2) Real-Time, (3) China, and (4) Software, while offering several detailed explanations of each.

(1)Enterprise Resource Planning (ERP)- the corner stone of the supply chain, which offers a company the ability to plan, analyze, and/or implement new strategies in a timely manner in order to produce enough product in real-time. That is if the organization realizes the strengths and weaknesses in what their system(s) can do such as integrating your ERP system with a reputable Customer Relationship Management (CRM) system in order to track customer issues with product quality, other opinions, and reviews or through other medians such as Social Media.
(2)Real-Time- what many purchasing decisions are based on, especially now with social media, as these medians offer leaders the ability to track potential purchase decisions simply by tracking the number of likes, dislikes, comments, and/or discussions through almost any social media site, which is extremely important in small and large purchases alike.
(3)China- the research continues to show China a leader in retail marketing by their continued success in online trading platforms such as Alibaba, Made in China, Global Sources, etc. It is no secret that these as well as other social media sites such as Twitter and Facebook have and will continue to allow China and others the ability to reach mass audiences while streaming the way the products are purchased, distributed, and consumed all over the world. Either organizations will have to get on board or be left behind.
(4)Software- with a number of different enterprise systems available to organizations (ERP, VMI, APS, etc) obviously the key here is to understand what system can offer you the best ways to analyze data in order to make additional long-term strategic decisions. If you use one if not more of these systems with a mix of social media sites, you should be able to segment, create benchmarks, and correlations between your software solutions and your bottom-line results.

(Cunha, 2011) identified four important and relevant items that can help you and/or your organization collect, analyze, and assemble new ways to reach more people, hence streamlining your supply chain functionality. Regardless of the reasons, you use social media, it is becoming more important now a days to use it, and if you don’t then later you will more than likely end up asking yourself why you didn’t. As more and more companies continue to build their online presence, more and more people and businesses will continue to make purchases, while influencing others within their network to make the same purchases, which should indicate that your social networks can not only grow your business but also encourage new strategies for those involved in making strategic supply chain decisions. Ultimately, social media will never replace personal relationships but it should allow companies to build leaner supply chains, while connecting more brands with more consumers for any organization that competes in the market today.

Lastly, (Cunha, 2011) analysis like many of the others that I have continued to review over the course of my Doctoral work provides yet a few more reasons why this subject matter is extremely important not only to the continued evolution of supply chains systems but any system that social media has/will impact in the years ahead. Of course, other opinions, ideas, and suggestions are what will ultimately decide who, what, when or where consumers make a purchase but this subject should continue to drive business and purchasing decisions in some fashion in the foreseeable future, hence why this is such as important piece of the work that I continue to report and conduct. Of course, I am always up for your opinions and you can also contact Mr Cunha through my references at the bottom of this page.

Until, next time continuing smiling, achieving, and dedicated, as we all look for answers to the social media maze-- Cheers

References
Cunha, L. (2011). What does social media mean to your supply chain? Warehouse Management Systems Guide, retrieved on May 6, 2011 from: http://www.warehousemanagementsystemsguide.com/blog/social-media-supply-chain-042711/

Advanced Planning Systems (APS) as a Supply Chain Optimization Tool?

Throughout the last decade, organizational leaders have continued to look for the best solutions to help solve many organizational procurement, production, marketing, administration, sales, etc. problems. As a result of such exploration, many technological systems have been developed to help organizational leaders plan strategically for many unknown future occurrences. In a recent article (Jonsson, Kjellsdotter, & Rudberg, 2007) discussed one such process termed “Advanced Planning Systems (APS)” (i.e. often referred to as supply chain optimization software, as it helps create near optimal organizational plans); which, in turn, helps solve some of the organizational problems and supply chain issues mentioned earlier and in previous posts. By explaining the importance of advanced planning systems and/or software (Jonsson, et al., 2007) focused their analysis on five specific variables (1) Complex planning environment, (2) Design and planning model, (3) Data planning, (4) Organizational planning, and (5) Effective planning. From the five identified variables, a framework developed and a conclusion followed, which highlighted the effects these variables played on the long-term functionality of an organization and different supply chain channels. From the empirical evidence gathered, the identified variables, their relation to supply chain optimization, and the model, (Jonsson, et al., 2007) recommended, several further directions researchers could take in expanding upon their work in order to fill any potential gaps, which are as follows. (1) What possibilities do advanced planning systems play in different organizational planning activities? (2) How does the developed model optimize organizational performance? (3) Can the data collection process effect advance planning systems, what other methods might be implemented? (4) How can an organization achieve positive planning throughout the supply chain and integrate these positive approaches into their daily structures?

It is no secret that in today’s rapidly changing business environment, organizations are continuing to examine different ways that they can grow relationships and improve efficiency with suppliers, their customers, and employees. (Jonsson, et al., 2007) purposed Advanced Planning Systems as a concept and analyzed its effects in three model companies. Although the study focused mainly on supply chain effectiveness and procurement, after the research the authors were able to conclude that this concept is easily transferable and can be used as a support tool, or help solve other issues in other parts of most organizations. Therefore, it only makes sense that when leaders discuss the different ways to enhance organizational systems (i.e. SCM, CRM, ERP, EDI, etc) that they should consider tactical or strategic systems such as APS. In turn, those researchers that are interested in a model that will help develop strategic and/or tactical planning processes in software implementation throughout an organization they should also consider APS.

APS is yet another important tool available to organizational leaders in order to make better purchasing decisions, or forecasts, while developing better ways to plan and schedule throughout the supply chain. This is my first report on APS but like the other concepts (i.e. SCM, ERP, CRM, and EDI) that I have been discussing is an important topic for me to expand upon, as I continue to seek the most effective methods for supply chain optimization through technological innovations. Therefore, in the weeks and months ahead I will continue to dive into this topic more, well reporting my findings in hopes of other expert opinions. Nevertheless, if you have some please share, as this is the best way to learn! Until then and as usual keep smiling!

Reference
Jonsson, P., Kjellsdotter, L., & Rudberg, M. (2007). Applying advanced planning systems for supply chain planning: three case studies. International Journal of Physical Distribution & Logistics Management, 37(10), 816.

Electronic Data Interchange (EDI) as a Complement for Enterprise Resource Planning (ERP) and Supply Chain Management (SCM)

Although many of the technological advancements occurring within Supply Chain Management (SCM) are still considered by many to be in their infant stage(s) (Bendoly, Bachrach, Wang, & Zhang, 2006) discuss how Enterprise Resource Planning (ERP) advancements could lead to additional technological advancements in systems such as online ecommerce medians. As a result of this analysis, a new way could then help an organization secure additional vendors and system advancements in a process termed “e-procurement.” Describing e-procurement as a form of Electronic Data Interchange (EDI), Bendoly et al (2006) created a framework for those individuals that are involved in international purchasing decisions of their firms through online medians. Three benefits of EDI systems described were (1) the elimination of domestic market boundaries, (2) the introduction of new international suppliers, and (3) the ability to conduct transactions that are more efficient.

In order to substantiate the data proposed within past theories and concepts, Bendoly et al (2006) conducted a study by examining the different components of EDI systems, which they also found helped reduce material costs, while streamlining other organizational processes such as those found in ERP systems of many international supply chains. Bendoly et al (2006) examined 72 cases, which claimed e-procurement activities conducted online increased profit margins while decreasing overall costs. The results of this analysis combined with the previous literature showed a potential link between the benefits of implementing an ERP system and other emerging technological advancements. In addition, Bendoly et al (2006) showed that those organizations that utilized online e-procurement, EDI, or ERP systems and practices were the ones that could compete with like businesses regardless of the market or location.

The rapidly changing and evolving world of business technologies are giving way to additional technological advancements that are allowing many small businesses now to compete directly with their larger counterparts. Bendoly et al (2006) showed several of the evolving systems (ERP, EDI, and e-procurement) which are helping organizations compete on a global scale. Regardless of the system that an organization utilizes to build relationships and grow their business it is important to understand the tools available to them. As e-commerce becomes a normal part of any businesses long-term strategy, ERP, EDI, and e-procurement will become even more important to organizations. Since Small-to-Medium Enterprises (SMEs) are usually late adopters, of most technological advancements, it then becomes even more important for these organizational leaders to understand how these systems or others (i.e. those discussed in previous posts such as CRM, SCM, etc) operate. This is where I come in, in each post, I have been discussing not only the benefits of such technological systems, but some of the drawbacks leaders’ face, as they decide which system is right for their organization. EDI is yet another spoke in a complex wheel of technological advances that leaders need to be aware of. With the help of many scholarly pieces, over the days and weeks ahead I will continue to report my findings in search of the best systems adoption for not only SMEs but also Multi-National Corporations (MNCs), as I get ready to conduct real world research into some, if not all of these discussed systems. In the meantime, any comments, suggestions, or real world experiences you can offer please take the time to comment, as this is the best advice we can give leaders faced with a major purchase decision or implementation such as ERP, CRM, EDI, etc.

Of course make sure to keep smiling, as this truly breeds success, as we all look to achieve more!

Reference
Bendoly, E., Bachrach, D. G., Wang, H., & Zhang, S. (2006). ERP in the minds of supervisors. International Journal of Operations & Production Management, 26(5), 558.

Supply Chain Management (SCM) and other Technological System Relationships (i.e. CRM, ERP, eCommerce, etc)

Over the last decade, organizations and researchers have been looking at and evaluating the entire supply chain network in hopes of being able to predict future trends within the industry. As such,(Giunipero, Hooker, Joseph-Matthews, Yoon, & Brudvig, 2008) are part of those researchers that have chosen to evaluate past literature in hopes of determining what future development(s) may occur within the network. In fact, in their latest study they offer readers an extensive review of 405 articles, focused around current and/or existing trends along with the identification of any gaps in the literature. From this analysis, the authors hoped too later conceptualize the most studied categories, along with the identification of any relationships or links for later researchers to expand upon.

From the research Giunipero, et al. (2008) were able to identify a five year peek period from 2002-2006 that contained the most frameworks, challenges, and trends within the supply chain. From these identified frameworks, challenges, and trends the authors were then able to draw a correlation between two other variables (1) information technology and (2) e-commerce. It is this correlation between the (frameworks, challenges, and trends) and (information technology and e-commerce) that then becomes that much more important in helping solve global supply chain issues heading into the future.

Additionally, the conducted research also offered Giunipero, et al. (2008) a historical analysis of some of the shortcomings within the evolution of the supply chain network. The identified shortcomings or “gaps” and recommendation(s) for future studies fell into the following five categories

(1) Most of the reviewed research sample sizes were too small- the authors were able to determine that most of the studies had small sample size(s) and recommend that future studies examine multi-tier relationships, which then will increase future sample sizes.
(2) Most of the research studies were one-tie investigations- like small sample sizes, one-tier investigations between multiple suppliers, was not completely addressed, which means that future studies could place additional emphasis on examining internal and external multi-tier relationships to fully understand supply chain efficiencies and inefficiencies.
(3) There were limited methodologies used- several of the evaluated studies limited their data analysis through qualitative research and non-descriptive analysis, when perhaps a more practical approach would have been to use multiple regression or ANOVA, thus the authors recommend quantitative studies in future research.
(4) There was a lack of longitudinal research studies- several of the studies were conducted at a specific point in time, where it might have been more beneficial to spread the research out over different industries. The authors noted that although this type of research was more expensive it could help develop megatrends throughout the supply chain.
(5) Most of the studies were limited in International reach- upon review the authors were able to determine that most authors lacked the element of globalization. As companies in different countries continue to operate with one another this area will be one of the major avenues for future supply chain studies.

Giunipero, et al. (2008) extensive review of literature combined with several conceptual maps and a study showed several potential relationships that might exist between different variables throughout the supply chain network, which are invaluable for those researchers interested in this subject matter. In addition, Giunipero, et al. (2008) were able to clearly point out in this article any “gaps” in the literature and give recommendations and advice for the identification of feature trends, research, and analysis, which are of particular interest to me in my continued analysis of the supply chain and technological systems. Of which, several possible combinations and correlations were identified that would help contribute to additional work of past-future frameworks, challenges, and trends along with the continued advancement of information technology with e-commerce (some of the same variables of interest for my Dissertation). Finally, Giunipero, et al. (2008) stated that this topic should continue to “receive increased attention from academics” now and later, as information technology and e-commerce continue to revolutionize the supply chain. This is exactly the type of opinion; I seek, as I continue to examine the supply chain, along with other technological systems (i.e. CRM, ERP, etc) that I have/am continuing to report on in my BLOG, as well as in my other Doctoral work.

This is my first report on SCM but a very important one as CRM, ERP, and other information technology systems are key drivers in long-term growth and management of the supply chain. Of course, I am always seeking other opinions and advice, so if you got any, please drop me a line and let me know your thoughts, until then keep smiling.

Reference
Giunipero, L. C., Hooker, R. E., Joseph-Matthews, S., Yoon, T. E., & Brudvig, S. (2008). A decade of SCM literature: Past, present, and future implications. Journal of Supply Chain Management: A Global Review of Purchasing & Supply, 44(4), 66-86.

Do the Ends Justify the Means for an ERP Implementation?

Yesterday I discussed some of the reasons why Enterprise Resource Planning (ERP) has helped many organizations achieve some of their International Strategies. Today, I am looking at how a company’s culture can affect Enterprise Resource Planning (ERP) initiatives within an organization. Using a previous model that consisted of cultural and linguistic concepts developed by Antonio Gramsci, (Willis and Chiasson 2007) provide some helpful insights into why negotiations and debates that occur across organizational sub-groups can make it difficult to achieve technical or cultural change based on democratic participation. Since ERP implementation provides an organization with the opportunity to enhance their business and management processes and/or strategies through technical change, Willis and Chiasson implemented a case study that examined the positive and negative effects of normative and spontaneous grammars. In other words, since ERP, implementation is affected by an organizations culture, then the organization’s culture must change first before any type of software implementation takes place, which was the objective of the research.

By analyzing the different ways that groups within a company interact with one another during a major software implementation effort, (Willis and Chiasson 2007) found three normative phrases present in an ERP implementation project (1) a new way to manage, (2) best practice, and (3) professionalism.

(1) A new way to manage- an opportunity that surfaces as a result of the restructuring of an organizations systems (i.e. software implementation)
(2) Best practices- the unification of management interests with local practices or in this case ERP system implementation and employee satisfaction
(3) Professionalism- to move up the corporate ladder while maintaining ones personal interests with that of the company or threatening the sub-cultures of the organization through the implementation of an ERP initiative

Using these three narrative phrases (Willis and Chiasson 2007) were able to determine managers that expect change and prepare for change, while using best practices and professionalism would be the ones “organizations” that develop key negotiation strategies, which unite software implementation “ERP” with that of the corporation. Because of this strategy, ongoing negotiations taking place between management and sub-groups would be minimized and ERP implementers “management” would recognize the need to prepare their company culture(s) better before making such a software purchase.

As I continue to review different scholarly articles that deal with ERP systems (Willis and Chiasson 2007) describe yet another viewpoint of how ERP system implementation can have both positive and negative effects on a corporation’s employee culture, which makes this another important piece in the puzzle that I have and will continue to examine over the next several weeks.

And, as usual, any comments, questions, or suggestions are always welcome and remember to Keep Smiling!

Reference
Willis, R. and M. Chiasson (2007). Do the ends justify the means? A Gramscian critique of the processes of consent during an ERP implementation. Information Technology & People 20(3): 212.

Why Companies are Aligning Enterprise Resource Planning (ERP) Systems with their International Strategies

With the continued globalization of economies and organizations throughout the world, many companies have or are turning to Enterprise Resource Planning (ERP) to meet organizational goals, or are they? (Madapusi and D'Souza 2005) agree, but caution managers to be careful and not to mis-align the organizational ERP systems with their international strategies, as this more often than not will result in poor business performance. For that reason, the authors identify three important areas that executives should address when using these systems (1) “systems configuration, (2) information architecture, and (3) systems roll-out to reap the benefits of ERP systems alignment.”

In fact and according to (Madapusi and D'Souza 2005) those executives that correctly align new or developing ERP systems with their international strategies were found to outperform their competition, which ultimately lead to additional organizational growth. Therefore, once executives decide on an ERP alignment strategy, they must chalk out a future configuration for the system that touches on all three of the previously identified problems, while making sure that they will align properly with their international strategy and future growth plans. Based on this premise the authors recommend five strategies that managers should need to be aware of when implementing or advancing an ERP system.

(1) Make sure to appoint a senior level executive before rolling out any type(s) of program
(2) As much as people pretend to think that ERP systems are “magical” the fact is that benefits derived from ERP systems come from carefully configured system(s) that should be well planned out and implemented throughout the entire organization, plan, plan, plan
(3) Make strategic, tactical, and operational plans to fully leverage an international ERP system
(4) Any international organization that utilizes an ERP system needs to remember that successful alignment of systems will also require flexibility to allow for newly evolving systems
(5) Make sure that the company has the correct personal in the correct positions in order to leverage the entire ERP system on an international level

Madapusi and D. D’Souza, help readers understand the complex nature of international enterprise resource planning. As more and more companies, continue to compete on an international basis, these same companies will be forced to re-think the ways they conduct business. The fact is that conducting business on an international level requires most organizations to use these types of systems, as these systems help companies streamline their operations while providing real-time data. Companies that have a global business enterprise strategy in place before implementing a new system will be the ones to operate more efficiently. Enterprise resource management is not just a technological challenge it is an important change to almost all components of a business, so executives need to also make sure to ask what will be enhanced if we implement an ERP system? What will be diminished if we implement an ERP system? Etc. Over the last two years, I have continued to mine information on ERP systems along with the different ways these systems are helping Small-to-Medium Enterprises (SMEs) procure vendors while competing with larger organizations on a global scale. (Madapusi and D'Souza 2005) provide another view of some of the benefits and drawbacks that company leaders face with ERP implementation and this viewpoint is another good find into my continued analysis of the supply chain and technological systems (i.e. SCM, CRM, ERP, etc).

Of course, any comments, questions, or suggestions are always welcome and remember to Keep Smiling!

Reference
Madapusi, A., and D. D'Souza (2005). Aligning ERP systems with international strategies. Information Systems Management 22(1): 7.

Customer Relationship Management (CRM) as an Important Business Process in Supply Chain Management (SCM)

As mentioned in my previous post on Feb. 12th, 2011 (Wu, 2010) described some of the ways CRM has/is becoming a critical part of organizational and/or strategic planning, as competitive pressures increase and customers continue to defect from large and small organizations alike. Expanding on some of these same principles (Lambert, 2010) also examined some of the reasons why some organizations succeed while others continue to fail at managing this business process, especially in regards to Supply Chain Management (SCM). In fact, (Lambert, 2010) explains that CRM and SCM provide four important linkages (See Figure 1.3) within and throughout the supply chain, which all result in increased profitability of one or multiple customers over any given time.

(Figure is Omitted from this post but available at http://www.image.seventimesseven.com/CRM-and-Supplier-Relationship-Management.jpg) Figure 1.3. CRM and Supplier Relationship Management

As noted in Figure 1.3, the success or failure of a CRM process is growth and/or profitability and if harnessed correctly then CRM software could provide managers within a company the ability to gather more data from more customers, while providing customized products and/or services that should increase customer relationships and loyalty. On the other hand, (Lambert, 2010) also explains that there are also four main reason that CRM implementation could fail or decrease growth and/or profitability. The first is implementing a CRM system before a clear strategy is created. The second is implementing a CRM system before preparing and/or embracing the organization for such an advancement. The third is assuming that a CRM system is the answer (i.e. the more is better approach) and finally not understanding how to build relationships correctly or with the wrong clients. As far as creating a strategy for CRM implementation success (Lambert, 2010) identified five strategic sub-processes that are extremely valuable.

(1) Review corporate and marketing strategies- The CRM team should consistently review the corporate and/or marketing strategies to make sure that the company now and later continues to target the correct markets.
(2) Identify criteria for segmenting customers- This sub-process of CRM should help identify the criterion that is used to segment different customers in different markets.
(3) Provide a clear set of guidelines for product and/or service agreements- In this sub-process the CRM team should develop a set of guidelines that identify the revenue and/or costs associated with certain product or services.
(4) Develop a set of frameworks or metrics- This sub-process involves identifying the main areas of interest in regards to specific customers on the company’s profitability.
(5) Develop a set of guidelines to share- The CRM team should use this sub-process to develop specific processes that are being ignored, which could create win-win solutions for both the company and customer if solved.
In addition, to the five sub-processes (Lambert, 2010) also discusses seven operational sub-processes that closely relate to the first five discussed strategic processes, however Lambert adds (1) the need to continue monitoring customer accounts internally for any abnormal trends and (2) the additional need to measure performance by generating profitability reports for both internal and external analysis.

If an organization prepares properly by following some if not all of these strategic and operational steps described by Lambert in a CRM system implementation, then the chances of growing profits, relationships, and effectiveness in a Business-to-Business (B2B) or Business-to-Customer (B2C) setting are greatly increased. However, the ultimate measure of success in a CRM implementation across the enterprise and throughout the supply chain is the financial growth of the entire network as CRM systems should be a more effective way to migrate everyone to the most successful and efficient structures.

As discussed by (Lambert, 2010) there are many reasons that CRM implementation succeeds as well as many reasons why CRM implementation fails. Although the main people responsible for a success (i.e. information technology, sales, marketing, etc), there is no reason to suggest or believe that other organizational leaders in finance, logistics, research, administration, etc should not contribute to a successful launch or re-invention. As with any successful process, usually it is not only one person responsible for success but also the entire team as a whole. If more companies embrace this frame of thinking, then more companies will likely benefit from a CRM implementation or any technological advancement that an organization is considering in order to build, grow, and cultivate relationships that will last a lifetime. Relying on technology alone is not enough and those who embrace this frame of thinking will ultimately end up looking at the project in the end as what went wrong. Therefore, in order to avoid that thinking later, remember to strategically plan the work and work the plan. This is what I am doing now, as I continue to research and analyze the best and most efficient ways or systems such as CRM that organizations can utilize in order to create better Return on Investment (ROI), enhanced business performance, or additional long-term growth as I prepare to enter the applied research phase of my Doctoral work. This is my second report on CRM analysis, which is in agreement with the findings of (Wu, 2010), thus making this another important piece of my Dissertation, and as always I warmly welcome any comments, questions, or suggestions


References
Lambert, D., M. (2010). Customer relationship management as a business process. The Journal of Business & Industrial Marketing, 25(1), 4.
Wu, Y. (2010). Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation (Online), 2(3), 186.