The coming of entrep guest Buddy Silva, and his other business: software and the GPS system with telemetry supports the idea that business process innovation creates more wealth and value for the company:
1. The Dell model of direct to the customer, just by cutting two steps in the supply chain catapulted Dell from nowhere to leadership in the PC market;
2. The nautical highway and RORO disrupted the shipping business in the PHIL and this enabled companies:
1, reduce inventories warehousing, DCs
2. increase turn over - reduction of time to deliver. From factories end to end to retailer took at most two days.
3. reduction of back order; goods are fresher and reach the customer in time, reducing spoilage and old products/expiring products in retailers gondolas/warehouse.
3. A cellphone remanufacturing center reduced manufacturing time by 75 (made the process faster) thereby increasing # of outputs/production and reduced cost by 10% and this resulted in substantial profits amounting to million dollars a month.
4. A major retailer in US invested in satellite communication system to manage inventories and above all reduce the time to process credit card by mere 20 seconds. This doubled the number of transaction during the day and the sales as well. Ingenious eh.
5. BPO are BPI initiatives. They are here to stay:
1. Companies can focus on core competencies and leads to less complexities in management;
2. They can reject the output, which they cant do in house;
3. Costs are lower. albeit even better because the outsourcing has more competency and more learning experience on the processes outsourced to them
STRIVE TO IMPROVE PROCESS ALWAYS.
