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Business Processes

B290 – ESMBA, Fall 2014. Business Processes. What is a business process?. A collection / sequence of activities or tasks involved in the delivery or production of a service or product Sometime called ‘standard operating procedures’ Often a flow chart of decision points and action steps.

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Business Processes

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  1. B290 – ESMBA, Fall 2014 Business Processes

  2. What is a business process? • A collection / sequence of activities or tasks involved in the delivery or production of a service or product • Sometime called ‘standard operating procedures’ • Often a flow chart of decision points and action steps

  3. Why use them? • Coordination • Many people involved; not everyone sees the big picture • Complexity • Reliability / reproducibility / quality • Accomplishing a task to specification without error or variation • Accountability

  4. Processes for… • Operations management • New product development • Regulatory compliance • Business development • Customer relationship management • Product delivery and installation • Service and support • External relations / compliance

  5. Operations Management • Supplier Relationships • Production of product or service • Outbound logistics / distribution • Risk management

  6. Operations Management • Supplier Relationships • Monitor / reduce input variability (quality) • Draw on suppliers knowledge for innovation • Reduce cost of ownership / parts • Production of product or service • Outbound logistics / distribution • Risk management

  7. Operations Management • Supplier Relationships • Production of product or service • Reduce production costs • Monitor reduce scrap / waste/ rework • Reduce manufacturing variability • Reduce cycle time • Minimize inventory and working capital • Outbound logistics / distribution • Risk management

  8. Operations Management • Supplier Relationships • Production of product or service • Outbound logistics / distribution • Optimize logistics • Speed up fulfillment • Risk management

  9. Operations Management • Supplier Relationships • Production of product or service • Outbound logistics / distribution • Risk management • Financial risk (e.g., currency) • Operational / business risk (order deadlines) • Technical risk

  10. New Product Development • Identify Customer Needs / Opportunities • Identify Develop Relevant Technologies • Design New Products • Bring Product to Market

  11. New Product Development • Identify Customer Needs / Opportunities • Customer roadmaps and projected future needs • Technology trajectories • Technology ‘scanning’ • In-house vs. outsource • Identify Develop Relevant Technologies • Design New Products • Bring Product to Market

  12. New Product Development • Identify Customer Needs / Opportunities • Identify Develop Relevant Technologies • Basic R&D (often expensive) • Applied R&D • Incremental / evolutionary • Radical / revolutionary • Design New Products • Bring Product to Market

  13. New Product Development • Identify Customer Needs / Opportunities • Identify Develop Relevant Technologies • Design New Products • Product development cycle • Stage gate / funnel • Bring Product to Market

  14. New Product Development • Identify Customer Needs / Opportunities • Identify Develop Relevant Technologies • Design New Products • Bring Product to Market • Introduction / launch; timing, geography, roll out • Channels • Production ramp-up

  15. Regulatory compliance • Environmental • Safety & Health • Employment Practices • Community • Governmental

  16. Regulatory compliance • Environmental • Energy consumption • Water pollution & usage • Atmospheric emissions • Other waste by-products • Toxic substances • Safety & Health • Employment Practices • Community • Governmental

  17. Regulatory compliance • Environmental • Safety & Health • Occupational Safety and Health (OSHA) • Procedures for: exposure to dangerous / toxic substances, avoiding / dealing with on the job injury, protective clothing, safe handling procedures… • Customer product use / liability • Employment Practices • Community • Governmental

  18. Regulatory compliance • Environmental • Safety & Health • Employment Practices • Hiring / diversity • Retention / dismissal • Development and training • Community • Governmental

  19. Regulatory compliance • Environmental • Safety & Health • Employment Practices • Community • Corporate Philanthropy • Community / public relations • Governmental

  20. Regulatory compliance • Environmental • Safety & Health • Employment Practices • Community • Governmental • Statutory Requirements • Domestics and international • Other Compliance • ???

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