Naslov
Business Resource Planning Model: a Framework for the Optimal Sourcing Decision

Autori
Žiković, Saša ; Rupčić, Nataša

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
2nd International Conference: An Enterprise Odyssey: Building Competitive Advantage / Galetić, Lovorka - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2004, 1575-1592

Skup
2nd International Conference: An Enterprise Odyssey: Building Competitive Advantage

Mjesto i datum
Zagreb, Hrvatska, 17.07.2004. - 19.07.2004

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
outsourcing; core competency; value chain analysis; flexibility

Sažetak
Outsourcing can offer numerous benefits including increased corporate flexibility, the ability to focus on core business and as a result build sustainable competitive advantages. To harness the benefits of outsourcing to its fullest potential and avoid common errors and failures it is of a vital importance to follow a strategic planning and decision-making process involving careful analysis of a wide range of internal and external factors, which results in a proper sourcing decision. For that purpose the authors have developed a business resourceplanning model (BRP) - a comprehensive sourcing framework and analytical tool for sourcing analysis and implementation. The proposed model integrates the key elements of the sourcing decision-making process consisting of the value chain perspective, core competency appraisal and the impact of the company’ s supply base. To meet the successful sourcing decision it is an imperative to analyze the process from the activity perspective within the company's value chain. Looking from a value chain perspective it is possible to recognize the activities that add value to the company and in that manner fortify the company's competitive position. In order to adapt to the shifting basis of competition it is in a company’ s interest to engage in the process of strategic flexibility and adaptability based on the value chain reengineering. The Business Resource Planning model (BRP) is a generic model that commences with the analysis of the company’ s business including the analysis of the market the company is in. It is worth noting that this phase determines the criteria upon which a sourcing decision for the non-core activities is made. The derivation of the initial stage is the value-chain activity benchmarking that implies the analysis of the company’ s core competencies vs. the wide spectrum of external sources. To maintain the long-term competitive advantage it is of major importance to reorganize the company’ s value chain and focus on core activities. Core activity is benchmarked against the capabilities of all potential providers of that activity but they need not necessarily come from the same industry. Benchmarking enables a company to look beyond the basic product line and focus on management and operating skills. Core activities C/B analysis as the following stage measures all costs involved in the sourcing decision be it outsourcing or keeping in-house confronting them with the outsourcing benefits.Vendor analysis should supplement the decision-making process to reach the final choice on the sourcing strategy. The results of the model implementation can vary between outsourcing or further internal investment in the company’ s processes and activities. When outsourcing is the selected strategic decision arrangement with vendors can vary from shared services to partnerships. The model involves the philosophy of strategic flexibility and adaptability in order to monitor trends, identify the drivers of change, develop possible scenarios, assess current business arrangements and create strategy alternatives.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA