Find the Answers on pages 3 to 6.
* Describe the importance of business process.
A business process is a standardised set of activities that accomplish a specific task, such as processing a customer’s order. Business processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and tools. Without processes organisations would not be able to complete activities.
* Differentiate between customer facing processes and business facing processes. Customer facing processes result in a product or service that is received by an organisation’s external customer. Business facing processes are invisible to the external customer but essential to the effective management of the business and include goal setting, day-to-day planning, performance feedback, rewards, and resource allocation.
* Compare business process improvement and business process reengineering. Many organisations began business process improvement with a continuous improvement model. Business process improvement attempts to understand and measure the current process, and make performance improvements accordingly. Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises. BPR relies on a different school of thought than business process improvement. In the extreme, BPR assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratch. Such a clean slate enables business process designers to disassociate themselves from today’s process and focus on a new process. It is like the designers projecting themselves into the future and asking: What should the process look like? What do customers want it to look like? What do other employees want it to look like? How do best-in-class companies do it? How can new technology facilitate the process?
* Explain business process management along with the reason for its importance to an organisation. The latest area to discover the power of technology in automating and reengineering business process is business process management. Business process management (BPM) integrates all of an organisation’s business process to make individual processes more efficient. BPM can be used to solve a single glitch or to create one unifying system to consolidate a myriad of processes. Many organisations are unhappy with their current mix of software applications and dealing with business processes that are subject to constant change. These organisations are turning to BPM systems that can flexibly automate their processes and glue their enterprise applications together.
* List and describe each of the five forces in Porter’s Five Forces Model. Buyer power – high when buyers have many choices of whom to buy from and low when their choices are few Supplier power – high when buyers have few choices of whom to buy from and low when their choices are many Threat of substitute products or services – high when there are many alternatives to a product or service and low when there are few alternatives from which to choose Threat of new entrants – high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market Rivalry among existing competitors – high when competition is fierce in a market and low when competition is more complacent
Compare Porter’s three generic strategies.
Organisations typically follow one of Porter’s three generic strategies when entering a new market. (1) Broad cost leadership, (2) broad differentiation, (3) focused strategy. Broad strategies reach a large market segment. Focused strategies target a niche market. Focused strategies concentrate on either cost leadership or differentiation.
* Describe the relationship between business processes and value chain analysis. A business process is a standardised set of activities that accomplish a specific task, such as processing...
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