CREATING THE INTELLIGENT VALUE NETWORK:

To reap the most benefit from level 5 efforts, the linked businesses should apply
their efforts toward specific customers and consumer groups, such that the
perception these groups have of the network is one of superior capabilities and
the one that renders the greatest satisfaction � or, more importantly, the greatest
overall value. Attaining such a condition requires the features of supply
chain maturity to be matched with a �customer intelligence progression.� That
is, the network allies will be using the knowledge being shared, as well as the
process improvements, to distinguish the final results in the eyes of the most
important buyers.
Using the maturity model, which is repeated as Figure 8.1, to describe the
progression of supply chain efforts, we are reminded that the first two levels
are internal only, where focus is brought to functional improvement and operational
excellence to internal operations. The cultural wall standing between
levels 2 and 3 represents all of the collective inhibitions and obstacles to accepting
an external view of the processing and working collaboratively with
willing business allies to build network improvements, which distinguish the
value chain in the eyes of the most important customers. Levels 3 and 4 rep resent the
positions achieved by market leaders, while level 5 is intended to
indicate the presence of total network connectivity with the highest processing
capabilities.Beginning in the mid-1990s, most firms progressed through the first levels
of the supply chain evolution, moving from enterprise integration, where early
savings were made through concentrated sourcing and logistics efforts, to corporate
excellence, where internal obstacles were conquered and planning, order
management, manufacturing skills, and inventory management became serious
parts of the effort. During this time, many companies also progressed into a
form of operational CRM. Sales force automation became a factor, as companies
learned they could use customer data to enhance the ability of sales representatives
to help customers find extra values and build more revenues. Call
centers came into vogue as contact centers were established to match the services
needed with what would truly help the key customers and to guide responses
to customer needs through multichannel customer service hubs. Toward
the end of that period, while in the second phase of the effort, campaign management
became a factor, as firms learned they could ally themselves with key
suppliers and customers to improve the results of special sales efforts.
At the beginning of the new century, those firms that maintained a dedication
to the supply chain effort moved into level 3, and began collaborating in
earnest with their key business partners, to find the hidden values in the supply
chain linkage that eluded those firms bogged down in an internal-only focus.
During this period, these firms typically advanced to a form of collaborative
CRM, applying technology to increase the knowledge available to business
allies having the same purposes. Using the Internet as the major tool of communication,
these companies began to share valuable customer and consumer
information with selected and trusted business allies, so they could further
improve their abilities to create and sustain new revenues. Partner relationship
management became the tool of choice, as these allies learned they could share.