The Art of Business in the 21st Century Essay Example | Topics and Well Written Essays - 1250 words

The Art of Business in the 21st Century - Essay ExampleRecognizing the value of information to the 21st century business line, the paper recommends the role of ERP software for business. Every enterprise strives to be profitable and dominant in its industry, but it is only those firms that continually strive to understand their areas of operation through screening of industry research and innovation that eventually register signifi sesst success. Michael Porter a professor at the Harvard Business School suggests a model that can enable business to understand the key drivers or factors, which can contribute to business success and competitive advantage. Porters value-chain model represents a mannequin that can enable a business analyze specific activities, which will create value and guarantee competitive advantage. First and foremost, the business has to analyze its inward logistics and processes that include the processes of receiving goods and raw materials, storage and invento ry control as well as transportation scheduling. The business must(prenominal) aim at bringing efficiency and effectiveness by changing and improving inbound logistic processes. It therefore calls for innovation and creativity on the part of everybody within the organization. Inbound logistics represent iodin side of the coin, outbound logistics, which entails all the activities necessary to get the completed product to the clients, such as warehousing, order fulfillment, transportation and distribution counseling, must also be looked into. Streamlining inbound and outbound processes will guarantee efficiency. Another area that the business must seek to improve on a continually basis is its operations. This includes machining, packaging, assembly, equipment maintenance, scrutiny and any other value-creating activities that seek to transform the inputs into the finished product (Porter 3). Customers need to be aware of the existing products that the firm produces. Therefore, mar keting and sales department is an necessary part any business that wants to be profitable. Sales and marketing entails all activities related with getting buyers to buy the product including pricing, channel selection, retail management advertising, marketing and promotion. The business must also look into its service delivery. Service delivery involves all activities that aim at enhancing and maintaining a products value. This also includes customer support, repair services, management of spare parts and upgrading. In addition to service delivery, the enterprise must streamline its procurement processes. These processes include the procurement of raw materials, servicing, spare parts, buildings and machines. A favored business also takes advantage of technology. Therefore, the business must be able to budget for technology phylogeny to support the value chain activities. Technology development initiatives may include research and development, process, automation as well as desi gn and redesign. Lastly, the general management, legal, planning management, finance, accounting, quality management, public affairs, which form the firms infrastructure must be aligned in a way so as to provide for efficient business operation. Porter also continues to argue that a business is usually affected by a number of forces that will either act positively to ensure business success or if