Business Process Analysis

Topics: Management, Productivity, Process management Pages: 6 (1891 words) Published: May 5, 2009

Business Process Analysis and Measurement Paper

Business Process Analysis and Measurement Paper
Within the successful planning and execution of every prominent business today is the underlying factor of operational management. Although in the early terms most companies that focused on this area were manufacturing companies, this innovative idea has struck cords into service and retail. From creating software to computers Dell has risen in the last 20 plus years to become one of the worlds leading technological innovators. In 2006 Dell achieved a pivotal goal and was named on the list of the Fortune 500 a coveted seat among all businesses.

How does Dell achieve such staying power? “Direct relationships with our customers give us an advantage of seeing changing customer requirements and needs earlier than companies who do not have the same breadth of direct relationships” (Dell, 2009). Customer satisfaction is just one of the many areas Dell focuses on; from developing new and effective processes to extensive performance measurements Dell strives to excel in every field. Four Processes

In the year of 1994 Dell was a struggling PC maker like all the other PC makers. Dell ordered components in advance and carried a large amount of component inventory; it was then when Dell started to invent a new business model (Byrnes, 2003). The new business model circumvented the idea of build-to-order process with direct sales to customers. This change drew in a large sum of cash that dell used to fuel the growth of the company. Today in Dell’s daily business the organization uses multiple processes to perform to the best daily. Account selection is a process that Dell implemented deliberately to select customers with relatively conventional purchasing patterns and low service costs. The demand management process that Dell incorporated into its daily business cycle was the motto “Sell what you have.” Dell developed this motto for the critical function of matching inward bound demand to forecast the supply. Another important daily business process that Dell incorporated into the business is the product lifecycle management. Since Dell’s customers were largely high-end replicated buyers that were sympathetic towards new technology, Dell’s marketing focused on product managing product lifecycle transitions. The supplier management is also a key component in the daily business process for Dell. Dell’s manufacturing systems featured multiple combinations of build-product-to-order and buy components to plan processes. This way the company worked closely with the suppliers to introduce more flexibility into the system. By utilizing forecasting into the daily process Dell has contained accuracy from 70-75 percent due to the companied careful account selection. As far as daily transactions are concerned Dell’s daily business process is processed via credit cards. Direct sales for Dell were explicitly inundated at high-end customers who pay with credit cards (Jonathan, 2003). Through the use of profitability management in the daily business process, Dell matched the supply and demand on a daily, weekly, and monthly basis. In many companies today the managers face a choice between profitability and inventory management and with that come new daily processes into invention. Four Stakeholders

Every business has stakeholders who are affected in one manner or another by the actions that the company takes. Each of those stakeholders also affects those decisions in one manner or another. This section will look at some of those stakeholders, both internal and external and analyze how they and the actions that they take affect the business processes and Operational Management (OM). Internal

Executive Leadership
As the head turns, so the body turns. When an executive decision is made, the entire company will feel the affects of that change. Dell Computer’s...

References: Byrnes, J. (2003). Dell Manages Profitability, Not Inventory. Working Knowledge for
Business Leaders
Advantage (11th Ed.). McGraw Hill: New York, NY. [University of Phoenix Custom Edition e-text]. Retrieved April 15, 2009, from University of Phoenix, ISCOM/471 --- Operations Management Course Web site.
Davenport, T. H., & Short, J. E. (1990, Summer). The New Industrial Engineering: Information
Technology and Business Process Re-design
Dell (2009). Form 10-K for Fiscal Year 2009. Retrieved April 20, 2009
Pearce, J., & Robinson, R. (2005). Strategic Management (9th ed.). Boston , MA: McGraw Hill.
Byrnes, J. (2003). Dell Manages Profitability, Not Inventory. Retrieved April 20, 2009, from
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