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"SAP SCM can help transform a linear, sequential supply chain into a responsive supply network – in which communities of customer-centric, demand-driven companies share knowledge, intelligently adapt to
changing market conditions, and proactively respond to shorter, less predictable life cycles."
Source : SAP
Anticipate, Adapt, Excel: How to Respond Quickly to Changing Markets
Changing Markets is also known as :
Changing Markets,
Changing Market Conditions,
Fastest-changing Markets,
Markets Changing Strategies,
Seasons Changing Markets,
Market Change Relentless,
Performance Changing Markets,
Changing Markets Anticipate,
Agility Changing Markets,
Changing Market Dynamics,
Responds Changing Markets,
Markets Changing Mandates,
Adapting Changing Markets,
Technology Changing Markets,
Changing Standards,
Structurally Changing Markets,
Strong Changing Markets,
Changing Markets Focuses,
Investing Changing Markets,
Understanding Changing Markets,
Data Changing Markets,
Local Markets Change,
Changing Markets Community,
Strategies Changing Markets,
Changing Markets Computers,
Management Market Change,
Changing Markets Creative,
Impacts Changing Markets,
Adjusting Changing Markets,
Changing Markets Uncertain,
Changing Markets Joint,
Face Changing Markets,
Entitled Changing Markets,
Markets Changing Deals,
Integration Changing Markets.
Economies Of Speed
Market change is relentless: ever-higher customer expectations, shrinking
product life cycles, and new rivals on the scene all accelerate the pace. But
small businesses and midsize companies have one distinct advantage over
larger competitors: agility. With fewer organizational layers and
less-rigid processes, smaller businesses can act much faster than the big-gun
competition. When your business is poised to handle challenges with agility and
speed, market changes become opportunities to excel.
This paper examines how to tap into the potential in your nimbler
organization by instituting efficient operations. By helping you predict and
respond quickly to changing market trends and customer demands, efficient
operations give you:
- Visibility ' to anticipate change and support long- and short-term
competitive strategy
- Speed ' to develop and deliver innovative products and services and
stake out an early-to-market position
- Flexibility ' to make rapid adjustments in response to changes in market
demand
- Scalability ' to expand and contract projects, workforce, and workload
as needed
Flexible, integrated information technology makes it easy to adapt the way
you do business in response to changing needs. It also helps you outperform the
competition.
Market Dynamics: Fast And Getting Faster
Gone are the days when a company could settle into a predictable niche,
perfect a process that would never change, and expect a stable business. In a
global economy increasingly connected by the Web, no aspect of the marketplace
stands still long enough for that degree of comfort. Unpredictable economic
shocks and market events, around town or across the ocean, can cause demand
fluctuations far greater than seasonal cycles.
Customers looking for the greatest value for their money ' and routinely
demanding lower prices, new product features, extended services, and faster
deliveries ' may turn to competitors offering cutthroat deals. Constant shifts
of suppliers and employees keep you on the edge, while accelerated product life
cycles squeeze development, making time to market a linchpin to success. You
have to respond quickly to the changing market dynamics or risk losing your
business to competition.
"Many of today's small and midsize businesses are successfully
competing against larger firms by exploiting ‘economies of speed.' By creatively
combining the Internet and enterprise information technologies, these companies
can expand their geographic reach, partner in complex transactions, and respond
quickly to dynamic market opportunities."
Dr. John Jordan, Executive
Director, Center for Digital Transformation, Smeal College of Business,
Pennsylvania State University
"SAP software has been ' and continues to be ' an effective
change agent for us, facilitating business transformation and helping us to
prepare for the challenges and opportunities associated with the globalization
of the Indian economy."
Sanjay Mittal, CIO, Navin Fluorine International
Limited
Obstacles: What's Slowing You Down?
The fastest way to respond to change is to anticipate it. Many companies
can't predict changes simply because they can't see "the big picture" within
their own organization. With critical business information locked in different
departments and systems, it's hard to have enough accurate insight, let alone
foresight, to anticipate rising demands.
Furthermore, a company lacking cohesive and streamlined internal operations
is ill prepared to respond quickly to change. Disconnected functional areas
can't work together smoothly and swiftly. When a manufacturer relies on an
assortment of spreadsheets, disparate databases, and manual processes, order
spikes or downturns could result in materials shortfalls or excess inventory.
Why? The impact of changing demand can't work its way through the organization
fast enough to make appropriate shifts in supply and safety stock levels.
Moreover, as small businesses and midsize companies grow, they often struggle
with outdated and inflexible infrastructure. Even the slightest market
fluctuation creates ebbs and flows in workload. Successful businesses scale to
meet growing demands. When bottlenecks form around organizational structures and
technologies, companies become too rigid to adapt quickly.
The Fast Lane To Responsive Enterprise
How can small businesses and midsize companies avoid these pitfalls, using
nimble responsiveness to their advantage? By overhauling disconnected, manual,
and redundant processes, and replacing them with flexible and efficient
integrated business processes. Information technology such as integrated
business management systems can also help provide you with the insight to
accurately forecast, and flexible processes can help you adapt quickly in
response to changes.
Anticipate and Be Prepared for Changing Customer Needs
While customers have ever-increasing and often unpredictable expectations,
you can anticipate their needs and plan ahead by collecting and analyzing
complete information about their buying patterns. Integrated business management
systems provide such critical information to help you accurately assess and
forecast what customers will buy, and then recommend balanced stock levels to
keep pace with customers' changing tastes.
Streamline Operations to Accelerate Innovation and Delivery
Efficient, automated systems are simply faster ' and that can mean shorter
cycle times, an earlier and stronger competitive position in the market, and
quicker turnarounds when market change calls for a course correction. Efficient
operations accelerate both product innovation and time to market. With flexible
software systems you can adapt business processes to meet your customers'
unique, frequently changing product or service specifications. You can also
better accommodate customers with new products and innovative ways of doing
business. For example, for customers who routinely request flexible ship dates,
integrated business systems can help you streamline and automatically adjust
order-to-ship process cycle times to meet delivery deadlines with cost-effective
production.
Build and Scale Infrastructure to Respond to Fluctuating Markets
For a small business or midsize company, the ability to flexibly scale
operations is critical. If the markets you serve are cyclical or seasonal, this
only adds to the demand swings affecting your business. You can quickly hire and
train new employees to scale up customer call centers, but your production
system and supply chain processes must be equally scalable to support sudden
spikes in sales volume. When you need to switch course quickly ' at the first
hint of an emerging trend ' integrated business systems adjust accordingly, and
quickly, from human resources staffing to production capacity.
Adopt Technologies That Are as Adaptable as Your Business
"Nimble and adaptable" describe the essence of your business and should apply
as well to your processes and IT systems. IT systems that are difficult to
modify, time-consuming to adapt, and cumbersome to analyze can't help you create
flexible operations. Rather, an adaptable IT system must be easy to modify and
configure to fit shifting needs, and readily extensible to grow with your
business. When you start expanding your business to the overseas markets, for
example, your existing IT system should be "intelligent" enough to natively and
instantly accommodate new business requirements, from new languages and
currencies to taxations and other local customary practices.
Summary: Responsiveness Sharpens Your Competitive Edge
Your success is determined by how quickly you respond to changing market
dynamics ' but not just by offering the new products or services that the market
demands at a cheaper price. You need to be able to consistently bring products
and services to market faster than your competitors. By excelling in product and
service innovation, you can build differentiation and carve out a competitive
advantage. Your operations need to be flexible and scale effectively '
maintaining operational efficiencies while you meet growth goals, respond to an
economic downswing, or weather an unforeseen market shock. You need to throttle
operations up or down to rapidly meet changing and unpredictable customer
delivery requirements.
By implementing integrated, efficient business processes, your company can
gain the flexibility to respond quickly to market changes. Whether a new
supplier is offering better prices, an important client sees an expanded role
for your services, or an aggressive competitor moves into a region you long
dominated, you need flexible processes and systems in place to respond quickly
and efficiently.
The SAP portfolio of comprehensive, integrated business solutions, designed
specifically for small businesses and midsize companies, provides the
visibility, speed, and flexibility to heighten your responsiveness to both
opportunities and challenges ' so you can outmaneuver the competition.
SAP Speeds Your Response to Market Changes
SAP® Solutions for Small Businesses and Midsize Companies
When it comes to the widely varying needs of small and midsize businesses,
one solution certainly doesn't fit all. SAP offers a portfolio of flexible and
affordable business management solutions designed specifically for the
fast-changing requirements of small and midsize companies.
By seamlessly integrating sales, customers, financials, and operations, SAP®
solutions give you the cross-company flexibility you need to react quickly to
market changes and demands. SAP supports you with:
- Up-to-the-minute, accurate business information across all aspects of
the business
- Easy-to-adapt business processes as you expand into new markets,
products, and lines of business
- Robust, proven technology that can rapidly scale and seamlessly grow
with your business
You can see where and how your company is growing with a single, integrated
view of operations ' and quickly identify and respond to both threats and
opportunities in the market. With a standardized, proven solution platform from
SAP at predictable costs, small and midsize businesses can streamline
operations, act on instant and complete information, and accelerate profitable
growth.
For more information, please visit
www.sap.com/solutions/sme/index.epx.