. RESULTS PROPEL A FIRM AND ITS BUSINESS

In what becomes a co-managed value chain, the overarching focus is brought
to value propositions for the business customer and end consumers that cannot
be matched by competitors. Seamless electronic linkages are pervasive, carrying

the kind of data and knowledge that cannot be garnered from any other business
network. Business process management (BPM) initiatives are present here, as
they become a high-priority item for those companies that desire to use BPM
to share vital business information, particularly from their enterprise resource
planning (ERP) systems, and find the next level of improvement. The dual
purposes are to increase operational performance and maximize the return on
the total assets employed in the extended enterprise. Businesses that have learned
the value of trust between a few carefully selected business allies use BPM tools
here, to evaluate and optimize their joint business processes and to eventually
create and nurture their competitive advantage against slower and less able
networks.
An example of the kind of progress that can be made is given by beer and
alcohol manufacturer Diageo plc. In a move aimed at increasing revenues, this
firm determined that North American network partners should not run out of
its popular Guinness beer. The firm decided to go through a supply chain
improvement effort that would include sharing of �real-time sales and replenishment
data with distributors.� The motive was to encourage these distributors
to work harder at sales and less at generating redundant analyses and worrying
over missing inventories. With the help of Manugistics Group, Inc. and that
company�s collaborative planning, forecasting, and replenishment software, the
firm linked its distributors into manufacturing sites in Ireland, the Caribbean,
and Africa. The system helps Diageo �combine weekly data from sales, on-hand
inventory, and distributors� receipts with promotional information to generate
detailed forecasts that are automatically sent via a Web application to 120
distributors, which represent 80% of Guinness� business.� (Bacheldor, 2003, p.
57).
With this information delivered on a timely basis, a real form of collaboration
can take place. Differences resulting from interpretation of the forecasts
can be resolved electronically, and when agreement is reached, the accepted
numbers can be loaded into a replenishment system that creates inventory levels
and sales. Diageo �expects to save up to $1.1 million in inventory reduction,
and reap some $600,000 in logistics benefits, with sales being boosted by 1%�
(Bacheldor, 2003, p. 57).
The ultimate objective of BPM and business process management systems
(BPMS) in this level becomes the capability to connect business firms and
important functions within those firms in order to gain a distinctive advantage
in the eyes of the most important customers and consumers. From sourcing to
customer care, BPM is used by multiple organizations to transfer crucial business
knowledge and enhance those processes of greatest importance first to the
supply chain constituents involved and then to the intended customer base.
Better coordination, shorter cycle times, errorless transactions, and optimized
process conditions become the metrics of importance in this level of progress.
Ultimately, the business allies find the means to increase operational performance
and further develop their competitive advantage