Technology and Competitive Advantage Research
EssayChat / Dec 26, 2016
Introduction
Increasing use of technology as a source of competitive advantage has seen several firms increase their sales and production capacities in various sectors. Having an efficient marketing system is no longer the foolproof answer to achieving long term profitability. Every organization must strive to achieve sustainable competitive advantage. The quest for a sustainable competitive advantage demands that all departments of any given organization be synchronized and all operations managed and optimized using the latest production and supply chain management techniques. In this paper, we present an elaborate implementation of an integrated TQM and e-SCM system in a manufacturing business segment for the sake of achieving a synergetic combination of competitive advantages.
The business scenario
Our organization is experiencing a drop-off in business due to the opening of a newer, more technologically advanced, and better capitalized organization down the street. This organization is owned by one of our former "star" producers, and while they are definitely not hostile on a personal level, this individual still wants to take your part of the manufacturing segment of business. Aside from marketing, which is important but is not a part of this problem, I will discuss how we will achieve greater efficiency/effectiveness through implementing better project planning (TQM) and supply chain management (e-SCM) system to minimize the impact of this new challenger for your business.
Sustainable competitive advantage
Well, the concept of competitive advantage in layman's term refers to the advantage which is gained by a company over its competitors by offering clients greater value through price reduction, use of technology or adding some other benefits that in the end would lead to great reductions in price. Porter says "competitive advantage is at the heart of a firm's performance in competitive markets" and goes on to say that purpose of his book on the subject is to show "how a firm can actually create and sustain a competitive advantage in an industry "how it can implement the broad generic strategies." Thus, competitive advantage means having low costs, differentiation advantage, or a successful focus strategy. In addition, Porter argues that "competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it."
e-SCM for achieving a sustainable advantage
Supply chain management (SCM) is a concept involving the collaboration of enterprises within the logistics domain by bringing about connection, alignment as well as coordination of processes in supply chain and the flow of information and materials. Over the years, businesses have realized the key role of strategic supply management system in the realization of business objectives as well as overall business success. This has led to a general increase of interest of the top management in this concept at a strategic level. The need for the alignment of an organization's key objectives and its strategic supply management goals is stressed by many authors. In this paper, we explore ways in which strategic supply chain management contribute to the success of an organization.
Definition of SCM
Before delving into ways in which strategic supply chain management contribute to the success of an organization, it is crucial for us to explore the existing definitions of strategic chain management with a view of coining a working definition to be adopted in this text. The work of Schnsleben defined supply chain management as the collaboration of both long-term and strategic cooperation among organizational co-makers in the overall logistics network for the production and development of products and services. However, within the domain of management, SCM is used to guide managers of a given enterprise in deciding how to set up as well as utilize resources and establish priorities. In regard to strategic SCM, the concept of "strategic" as well as "strategy" is employed incoherently in literature. For instance, a look at Seurig's reveals that several versions of the term are used but strategy is ultimately used to imply the "endsways-means".
The work of Hayes described SCM as a balanced set of suitable measures used for the exploitation and development of logistic competitive competencies and improvement of potential supply chain management methods so as to realize both the set logistics and supply chain objectives. These objectives often include areas such as flexibility, costs, lad times, innovations, transformability, coordination and collaboration as noted by Hieber.
Ways in which strategic e-SCM would contribute to the success of our organization
According to Schnetzler et al., strategic SCM can contribute to the success of a given organization by allowing organization to achieve strategic focus, value-based focus, and performance focus. In this section, we shall explore these three main focuses that strategic SCM can help organization to realize.
Strategy focus
A review of literature indicates that strategic SCM can help organizations to emphasize on the key objectives and decisions affecting the daily operations of a given establishment. This involves an emphasis on the optimization of organizational processes such as inventory management and order processing as pointed out by Ross. The emphasis on key objectives and decisions is also noted to mainly involve the alignment of key business or organizational SCM strategic with the business or corporate-level strategies. As a consequence, SCM strategy must support a organization's business and corporate strategies while also enabling the organization to achieve its strategic fit (business and corporate objectives).
Value-based focus
Value base focus in SCM is aimed at aligning all the organizational management activities in order to improve the value of a give company. The adoption of a value based focus in strategic SCM at quite an early stage is crucial to the success of any given organization. The used of a value based SCM system involves a focus on ways of deriving ways and means from the set objectives in order to create strategic value to any given organization. Ways in which these measures contribute to the creation of value are also explored.
Performance focus
According to Nienhaus et al, the importance of supply chain performance has gained a lot of attention over the last couple of years. Several concepts in the domain of performance management are in existence in this regard. Strategic SCM can be used together with key performance indicators like the balanced scorecards as crucial tools in the communication of strategy, strategy implementation as well as performance management as indicated in the work of Kaplan and Norton. These strategies are increasingly being adapted for specific strategic SCM requirements. In order for any company to realize a successful level of performance management, it must use strategic SCM to strike an optimal balance between the financial and non-financial performance indicators. This would further help in regulating the cause-and-effect relationships between key performance drivers and performance outcomes as noted by Ittner and Larcker.
A review of ways in which strategic supply chain management contribute to the success of an organization indicates that the key factor regulating the level of success achieved in the degree of alignment of the set supply chain management strategies with the overarching business and corporate strategies. However, a further review of literature has shown us that a value-based focus is the best option in ensuring that this alignment of supply chain management strategies with the overarching business and corporate strategies is optimal. However, other options such as performance management metrics must also be taken on consideration in order to ensure that the chosen strategic SCM objectives are accurately captures in all business processes at an enterprise-wide level. Every organization must ensure that its goods and services are delivered to the clients in good quality and time and for this to be achieved; strategic and measurable strategic supply management strategies must be set and adhered to. In a nutshell, the ways in which strategic SCM can contribute to the success of a given must be related to the need to achieve strategic focus, value-based focus, and performance focus.
Increasing use of technology as a source of competitive advantage has seen several firms increase their sales and production capacities in various sectors. Having an efficient marketing system is no longer the foolproof answer to achieving long term profitability. Every organization must strive to achieve sustainable competitive advantage. The quest for a sustainable competitive advantage demands that all departments of any given organization be synchronized and all operations managed and optimized using the latest production and supply chain management techniques. In this paper, we present an elaborate implementation of an integrated TQM and e-SCM system in a manufacturing business segment for the sake of achieving a synergetic combination of competitive advantages.
The business scenario
Our organization is experiencing a drop-off in business due to the opening of a newer, more technologically advanced, and better capitalized organization down the street. This organization is owned by one of our former "star" producers, and while they are definitely not hostile on a personal level, this individual still wants to take your part of the manufacturing segment of business. Aside from marketing, which is important but is not a part of this problem, I will discuss how we will achieve greater efficiency/effectiveness through implementing better project planning (TQM) and supply chain management (e-SCM) system to minimize the impact of this new challenger for your business.Sustainable competitive advantage
Well, the concept of competitive advantage in layman's term refers to the advantage which is gained by a company over its competitors by offering clients greater value through price reduction, use of technology or adding some other benefits that in the end would lead to great reductions in price. Porter says "competitive advantage is at the heart of a firm's performance in competitive markets" and goes on to say that purpose of his book on the subject is to show "how a firm can actually create and sustain a competitive advantage in an industry "how it can implement the broad generic strategies." Thus, competitive advantage means having low costs, differentiation advantage, or a successful focus strategy. In addition, Porter argues that "competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it."
e-SCM for achieving a sustainable advantage
Supply chain management (SCM) is a concept involving the collaboration of enterprises within the logistics domain by bringing about connection, alignment as well as coordination of processes in supply chain and the flow of information and materials. Over the years, businesses have realized the key role of strategic supply management system in the realization of business objectives as well as overall business success. This has led to a general increase of interest of the top management in this concept at a strategic level. The need for the alignment of an organization's key objectives and its strategic supply management goals is stressed by many authors. In this paper, we explore ways in which strategic supply chain management contribute to the success of an organization.
Definition of SCM
Before delving into ways in which strategic supply chain management contribute to the success of an organization, it is crucial for us to explore the existing definitions of strategic chain management with a view of coining a working definition to be adopted in this text. The work of Schnsleben defined supply chain management as the collaboration of both long-term and strategic cooperation among organizational co-makers in the overall logistics network for the production and development of products and services. However, within the domain of management, SCM is used to guide managers of a given enterprise in deciding how to set up as well as utilize resources and establish priorities. In regard to strategic SCM, the concept of "strategic" as well as "strategy" is employed incoherently in literature. For instance, a look at Seurig's reveals that several versions of the term are used but strategy is ultimately used to imply the "endsways-means".
The work of Hayes described SCM as a balanced set of suitable measures used for the exploitation and development of logistic competitive competencies and improvement of potential supply chain management methods so as to realize both the set logistics and supply chain objectives. These objectives often include areas such as flexibility, costs, lad times, innovations, transformability, coordination and collaboration as noted by Hieber.
Ways in which strategic e-SCM would contribute to the success of our organization
According to Schnetzler et al., strategic SCM can contribute to the success of a given organization by allowing organization to achieve strategic focus, value-based focus, and performance focus. In this section, we shall explore these three main focuses that strategic SCM can help organization to realize.
Strategy focus
A review of literature indicates that strategic SCM can help organizations to emphasize on the key objectives and decisions affecting the daily operations of a given establishment. This involves an emphasis on the optimization of organizational processes such as inventory management and order processing as pointed out by Ross. The emphasis on key objectives and decisions is also noted to mainly involve the alignment of key business or organizational SCM strategic with the business or corporate-level strategies. As a consequence, SCM strategy must support a organization's business and corporate strategies while also enabling the organization to achieve its strategic fit (business and corporate objectives).
Value-based focus
Value base focus in SCM is aimed at aligning all the organizational management activities in order to improve the value of a give company. The adoption of a value based focus in strategic SCM at quite an early stage is crucial to the success of any given organization. The used of a value based SCM system involves a focus on ways of deriving ways and means from the set objectives in order to create strategic value to any given organization. Ways in which these measures contribute to the creation of value are also explored.
Performance focus
According to Nienhaus et al, the importance of supply chain performance has gained a lot of attention over the last couple of years. Several concepts in the domain of performance management are in existence in this regard. Strategic SCM can be used together with key performance indicators like the balanced scorecards as crucial tools in the communication of strategy, strategy implementation as well as performance management as indicated in the work of Kaplan and Norton. These strategies are increasingly being adapted for specific strategic SCM requirements. In order for any company to realize a successful level of performance management, it must use strategic SCM to strike an optimal balance between the financial and non-financial performance indicators. This would further help in regulating the cause-and-effect relationships between key performance drivers and performance outcomes as noted by Ittner and Larcker.
A review of ways in which strategic supply chain management contribute to the success of an organization indicates that the key factor regulating the level of success achieved in the degree of alignment of the set supply chain management strategies with the overarching business and corporate strategies. However, a further review of literature has shown us that a value-based focus is the best option in ensuring that this alignment of supply chain management strategies with the overarching business and corporate strategies is optimal. However, other options such as performance management metrics must also be taken on consideration in order to ensure that the chosen strategic SCM objectives are accurately captures in all business processes at an enterprise-wide level. Every organization must ensure that its goods and services are delivered to the clients in good quality and time and for this to be achieved; strategic and measurable strategic supply management strategies must be set and adhered to. In a nutshell, the ways in which strategic SCM can contribute to the success of a given must be related to the need to achieve strategic focus, value-based focus, and performance focus.