Database Reference
In-Depth Information
Although all companies focus on creating value for all constituencies, these efforts do not or
are not able to address all the constituencies simultaneously. An enterprise does not usually have
the capabilities to track the information that is essential for maintaining a cross-functional view
of the impact of efforts for
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Improving value addition activities at local activity centers
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Minimizing the non-value-addition activities at local activity centers
The apparent improvement in value addition or non-value-addition activities needs to be tracked
enterprise-wide across all functions and constituencies. This is because value addition or non-
value addition at a local level may not be so for the company as a whole. It has been well accepted
by now that output of the organization as a whole cannot be maximized only by maximizing the
output of each constituting organizational unit or activity. For overall efficiency and effective-
ness, a unit may often have to undertake activities that are essentially non-value added at the
operational level of the unit. SAP CRM provides such a system that generates, retains, analyzes,
and reports on parameters that can track activity-level measures of performance, revenues, and
expenditures. More importantly, SAP CRM highlights cross-functional dependencies of activities
across the enterprise.
15.2.1 Value to Customers
Value to customers is one of the most important values that are created by the company. Customers
value the product and services not only in terms of its innate use but also in terms of its price
relative to the competition. This in turn leads to other satellite criteria that ultimately lead to
customers' continued patronage of the company's products. Customers look for
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Responsiveness
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Price
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Quality
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Flexibility
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Utility
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Variability or the range of options
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Reliability
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Standardized interfaces and auxiliary systems
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Durability
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Maintainability
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Upgradability
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Support
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Service
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Innovation
Some of these properties characterizing a product/service may be in opposition to each other; the
constellation of values that become applicable may vary from one product to another. Moreover,
over the course of time, even the values for one particular product or closely related products may
undergo changes. As we have seen in Chapter 7, Section 7.1.1 “Value-Added View of Business
Processes,” the value shifts may happen because of competitive products, changes in technology,
or changes in the regulatory conditions. In fact, in the absence of other causes, value shifts may
