Database Reference
In-Depth Information
It is important to realize the significance of another extension of the Sun Microsoft's
vision of
Network is Computer
, namely,
Network is Customer
; to explore the profound
implications of this statement is worth a topic in itself.
Most of the major manufacturers over the world have become to a large extent
systems integra-
tors
, providing only some of the specialized parts and final assembly of subsystems from a network
of suppliers (see Section 1.2.2.2.1 “Networks of Resources”). Their economic role has transformed
mainly into the basic planning, coordination, design, marketing, and service, but not complete
production per se. For the existence and growth of such virtual organizations, it is important that
the company be able to manage the complexities of managing such relationship on day-to-day
basis. A PRM system provides all the functionality and processes for managing and accounting
for such outsourced jobs. But, more significantly, only a PRM can make it possible for such a
collaborative enterprise to exist and grow to scales unimaginable with traditional organizational
architectures.
ENTERPRISE NETWORKS
It must be emphasized that contrary to the common perception, customer centricity
and responsiveness as an alternative logic of business (or management) has applica-
tions not only for services but also for production activities. The achievement of
CRM objectives like customer acquisition, retention, and value delivery requires enterprises
to develop and manage a business network comprising suppliers, partners, distributors, inves-
tors, and employees. An enterprise network is a coalition of enterprises that works collec-
tively and collaboratively to create value for the customers of a focal enterprise. Sometimes,
the coalition is loosely connected; at other times, it is tightly defined, as in the relationship
between Dell and its component suppliers. An enterprise network consists of a wide range
of companies—suppliers, joint venture (JV) partners, contractors, distributors, franchisees,
licensees, and so on—that contribute to the focal enterprise's creation and delivery of value
to its customers. Each of these enterprises in turn will have their own enterprise networks
focused around themselves. Thus, relationships between enterprises in the network both
enable and constrain focal companies in the achievement of their goals. Therefore, liberating
the potential value in customer relationships hinges on enterprises effectively managing their
noncustomer network relationships.
CRM performance is more assured when the resources of the network are aligned and
coordinated to contribute to the responsive creation and delivery of value to the focal com-
pany's customers. Consequently, CRM now includes applications for the extended enter-
prise encompassing relationships with the partners, suppliers, investors, employees, and, of
course, the ERP systems (see Chapter 2, Section 2.4.2 “Extended Collaborative Enterprise”).
1.3.8 The Agile Enterprise
Agile companies produce the right product, at the right place, at the right time, at the right price
for the right customer. In an agile enterprise, products will be built quickly and at a lower cost for
a customer because of the detailed data received at the point of sale.
