Database Reference
In-Depth Information
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Opportunities to learn, develop skills, and handle challenging roles
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Access to all relevant information and resources for making decisions and discharging their
responsibilities creditably
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Opportunities for recognition and rewards
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Opportunities for advancement
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Opportunities for training
The integrated, real-time, and transparent access to relevant data provided by SAP CRM empow-
ers the traditionally deprived members of the organization to make timely decisions and derive the
satisfaction of being involved meaningfully in ensuring the well-being of the company.
In many ways, the value for the employees is analogous to the value for the external customers.
Like the customers of the company, the effectiveness of employee value is gauged through employee
satisfaction surveys that are administered on a periodic basis.
15.2.5 Value to Vendors
In recent times, vendors are getting increased recognition for the value that they add not only to
the final output of an enterprise but also to its profitability. Vendors play a major role in enhanc-
ing the overall performance of the organization, be it in terms of quality, input costs, overheads,
responsiveness to the changes in the market, and so forth. Increasingly, they are perceived more
as enterprise partners, rather than as the traditional adversaries to be browbeaten to lower prices.
Vendors in turn look for the following values in the value-creating enterprise of a company:
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Steady order commitments
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Optimal lead times
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Immediate information on deliveries, rejects, returns, and so on in terms of the quantity and
control information (such as delivery note numbers and batch numbers)
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Systematic invoice verification
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Prompt payments for verified and accepted invoices
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Interfaces with an enterprise-wide, implemented system like SAP CRM
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Sharing changes in production schedules
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Sharing changes in the positions of inventories vis-à-vis the production orders and so on
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Sharing results and analysis of quality tests on supplied materials
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Participation in plans of new products, models, technologies, and production processes
As mentioned in Chapter 1, Section 1.3.7 “The Virtual Enterprise,” only mature Customer
Relationship Management (CRM) like SAP CRM can provide the backbone for holding together
the virtual value chain across such collaborative relationships with vendors.
15.3 economic Value Added (eVA)
Economic Value Added (EVA) is a new type of managerial accounting criterion that recognizes
that capital, whether equity or borrowed, is simply another resource used in the enterprise.
Traditional accounting methods, which are transaction based, take into account sales (i.e.,
revenue) and expenses (i.e., purchase and interest payments) for computing profitability that is
determined by the measure of the Return on Investment (ROI) defined by
