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How do Business Processes Generate Value?

How do Business Processes Generate Value?. Business Process. One of the first people to describe processes was Adam Smith in his famous (1776) example of a pin factory. Business Process.

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How do Business Processes Generate Value?

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  1. How do Business Processes Generate Value?

  2. Business Process • One of the first people to describe processes was Adam Smith in his famous (1776) example of a pin factory.

  3. Business Process • A business process is a network of activities that generate value by transforming input resources into output resources • The cost of the business process is the cost of inputs plus the cost of activities. • The margin of the business process is the value of the outputs minus the cost.

  4. Business Process • Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).

  5. Business Process • A Business Process can be broken down into several sub phases. , which have their own attributes, but also contribute to achieving the goal of the super-process. • A Business Process can be viewed as a flow chart.

  6. Business Plan

  7. 3 Types of Business Processes • Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". • Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing and Sales. • Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support.

  8. Business Process in Conclusion • A business process begins with a customer’s need and ends with a customer’s need fulfillment. • The objective is to make the customer happy while cutting the company cost. In the end both sides are happy.

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