Strategic Management
Why strategic management is so important?
The answer to this question is the same as why some companies succeed and others fail. Strategic decision makers should examine all the important aspects in order to determine the most appropriate decisions and actions that should be done in order that their company succeed.
There are 4 attributes of a good strategic Plan:
- Goals should be critical to the survival and growth of your enterprise
- Link to daily projects
- Need to be reviewed regularly
- Support by the right technology
The Business Motivation Model (BMM) provides a structure for defining and developing a business plan. What are the major areas of the BMM?
- Ends: Things that the enterprise wishes to achieve like goals and objectives
- Means: Things the enterprise will employ to achieve those Ends like strategies, tactics, Business policies and rules.
- Influencers: Can be external or internal. They are concrete events that occurred at a specific time. Managers of organisations should analyze internal and external influencers.
- Assessments: When an influencer causes a significant change, the enterprise makes an assessment of its impact. BMM suggests SWOT (Strength, Weakness, Opportunity, Threat) as an example of an approach for making assessment.
What is a Next Generation Enterprise NGE?
It is an enterprise that responds in new market opportunities very fast. It sells products or services that create a real value for his customers. What solution that the customers want. Information and knowledge are the drivers of its growth and profitability. It has the ability to anticipate and absorb the impact of sudden changes.
New market forces are changing the way we do business whatever the size of the company:
- Rapid marketplace change
- Short market lifetimes
The managers have to ask, what forces are driving changes in my company?
In summary, it is mobile, social, collaborative, data-driven and her business strategy is flexible and adaptable.
What Oracle products can help the Next Generation Enterprise?
Oracle scorecard and strategy management extends Oracle BI suite Enterprise Edition (OBIEE) and can provide the necessary tools to define the strategic goals of the enterprise. After, it provides tools to measure and communicate progress towards goals.
The major feature is:
- The KPI builder allows customer to build Key Performance Indicators to be used in scorecards.
- SKPI can trigger actions like alerts or ERP workflows.
Many people do not know the difference between a scorecard and a dashboard: A scorecard is a type of report that displays a collection of key performance indicators (KPIs). A scorecard measures performance against goals. A dashboard contains a collection of other items such as scorecards, reports, and filters.
What is a CSF and what is the difference between a CSF and KPI?
CSF: Critical Success Factor
KPI: Key Performance Indicator
They are used in the context of the design of goal attainment of an enterprise. CSF are the critical factors or activities required for ensuring the success your business and have a major influence on achieving the goal of the enterprise. A KPI is quantifiable and it is used to measure the performance of the enterprise in terms of meeting its CSF.
Example of CSF:
Understanding of how and why customers buy - Innovative response to customer needs - Consumer loyalty
The SWOT analysis can help to provide a way to classify CSF, here is an example for the threats:
| CFS | KPI |
| Threats |
|
