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You won t be able to follow all these principles without integrating delivery with other core business processes. For example, data management requires getting product-related data from the technology, product, and service development processes. Customizing supply chain processes as part of customer collaboration will require adjustments to the marketing and sales process so that customer contracts systematically take logistical aspects into account. Moreover, the marketing and sales process must provide deliver with information on pricing, customer-specific terms and conditions, and the clear guidelines on customer priorities needed to balance service and the cost to serve. To meet your customer delivery commitments consistently, you ll also have to integrate delivery with your company s other supply chain processes. Plan depends on the deliver process for information on demand based on order backlog and customer shipments for both resource and revenue planning. In addition, creating collaborative business models and tailoring deliver processes can have significant implications on plan, source, and make. For instance, the make and the plan processes provide deliver with the inventory and production scheduling data needed for customer order promising. Depending on the collaborative model chosen, the type of information needed and transaction frequency can change significantly. See Figure 2-12 for the metrics of top performance in deliver.

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training. If the internal communications are entertaining and engaging, as well as brief and to the point, the company will act like a more intelligent and informed whole. See Figure 3.5 for the trends in business streaming applications. In the language of Nobel Prize-winning Ronald H. Coase, who first described why companies exist, the result is that internal transaction costs are further minimized. The effect of this is to improve the firm s competitiveness, which translates into higher earn-

The return process ensures that previously sold products are supported, collected, and dispositioned according to business policies and customer

Our initial inputs for the ValuePro 2002 software relating to Cisco s short-term assets and liabilities are: Short-Term Assets ($mil) Short-Term Liabilities ($mil) $17,433 $8,375

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ings and profits. Although a full description of the economics of the lowering of internal transaction costs due to the increased richness and reach of internal streaming media communications is beyond the scope of this book, we can say with confidence that the effective use of streaming media can positively affect the bottom line. We will, therefore, watch streaming media when it makes us more money.

Streaming media s ability to help you find exactly what you need, without having to call or visit places in person before making a decision, means that search costs are minimized. In other words, because you can see the goods you want to buy or can videoconference with the service providers you are considering, you save both time and money. Conducting your survey of what s available can be done through the use of streaming digital media. Educating yourself about the details of the subject at hand can take place quite quickly, through the use of streaming multimedia guides. So, we will watch streaming media whenever we want to get what we need as cheaply and as quickly as possible. Sometimes getting what we need requires some privacy. Because streaming media is not censored or regulated, we will also watch streaming media when we need to get things that require some discretion (bearing in mind that information about what we view is relatively easily collected).

Best Performer Advantage Over Median/Average Discrete Process Discrete Process Discrete Process 4 times faster 4 times faster Spend 42% less Spend 31% less 43% less days 36% less days

EXHIBIT 6-6

One of the best times to access streaming media is when you want to learn some fact quickly. Because streaming media is so rich, you can access knowledge in a variety of ways. Not only could you read about something of interest or watch a video about it, the article could be read to you while you are driving, for example. A helpful assistant, as another example, could whisper pertinent information into your ear at a live meeting. Streaming media is both cheap enough and simple enough to make these applications easy to realize. If you visit a building you have never been to before, streaming media can deliver current views of the front of it, along with a helpful aerial photograph and street map, with your current location superimposed on them. Even with street maps and electronic guidance to your destination,

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Order Fulfillment Lead Time for Make to Stock Products Order Management Costs Days Sales Outstanding

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