What is a Business..?

Business : An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.economic systemgoods and services moneyworthform investmentcustomersoutputprofit consistent

A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers.organization tradegoodsservices consumers Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning.not-for-profit state-ownedcompany

What is a business Enterprise… Irrespective to industry domain – Retail, banking, manufacturing, transport, energy, etc there are similarities in their organizational structure. In General organizations serve their customers with either product or services.

This creates a need for functions such as product/service research, manufacture, sales,purchase etc. Most business design standard enterprise level processes for their core functions. In any organization there exists a common set of core business processes that must exist for the organization to function properly. The Idea behind creating standard pocess is to ensure repeatable, scalable and predictable customer experience.

What is a business process? A business process is a set of logically related business activities that combine to deliver something of value (e.g. products, goods, services or information) to a customer.

A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.tasks

Well designed process make customer experience independent of people and location. Example Mc Donalds, Pizza Hut.

Core Business Processes Sales and Marketing Product Delivery Service Delivery Quality Product Develpoment Accounting Technology HRM Supplier Management Legal and Compliance Corporate Planning Purchase

A typical high-level business process, such as "Develop market" or "Sell to customer", describes the means by which the organization provides value to its customers, without regard to the individual functional departments (e.g. the accounting department) that might be involved. As a result, business processes represent an alternative – and in many ways more powerful – way of looking at an organization and what it does beyond the traditional departmental or functional view.

There are three types of business processes: Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".Management processesCorporate GovernanceStrategic Management Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Advertising and Marketing, and Sales.Operational processes core businessPurchasing ManufacturingAdvertisingMarketingSales Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Call center, Technical support, Legal and compliance.Supporting processesAccountingRecruitment Call centerTechnical support

Malcolm Baldrige Criteria for Performance Excellence The Baldrige performance excellence criteria is a framework that any organization can use to improve overall performance. It a US national program designed for business performance excellence It is accepted and used world wide.

Enterprise Excellence Successful enterprises have a great leadership team. They focus on strategic planning. They study markets and customers intensely whom they serve. They set target, measures achievements. They are highly focused on human capital management. They deploy process and achieve planned business results. They repeat these steps every time consistently as well as constantly improve each of these components.

Baldrige Criteria Leadership — Examines how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship. Strategic planning — Examines how the organization sets strategic directions and how it determines key action plans. Customer and market focus — Examines how the organization determines requirements and expectations of customers and markets; builds relationships with customers; and acquires, satisfies, and retains customers. Measurement, analysis, and knowledge management — Examines the management, effective use, analysis, and improvement of data and information to support key organization processes and the organization’s performance management system.

Workforce focus — Examines how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives. Process management — Examines aspects of how key production/delivery and support processes are designed, managed, and improved. Results — Examines the organization’s performance and improvement in its key business areas: customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, operational performance, and governance and social responsibility. The category also examines how the organization performs relative to competitors.

Baldrige Preformance Criteria 1. Leadership 1.1 Senior Leadership 1.2 Governance and Social Responsibilities Senior Leadership –Guide the organization –Create a sustainable environment –Communicate and Motivate employee (Tata Ex) –Focus on organizational performance Governance and Social responsibility –Transparency in operations (Google, BlackBerry RIM) –Accountability for managements actions –Promoting Legal and ethical behaviour (Megaupload) –Support of key communities (Philanthropy )

2. Strategic Planning 2.1 Strategy Development 2.2 Strategy Deployment Determination of key strategic objectives Balancing the need of all stakeholders Identify Strength, Weakness, opportunities and threats Risk assessment Changes in technology trends, markets, competition and regulatory environment (eg Packing Info, Cigarette Warnings, paper Tobacco packings)

3. Customer and Market Focus 3.1 Customer and Market Knowledge 3.2 Customer Relationships and Satisfaction Identification and determination of target customers and market segments Using feedback to become more focused and satisfy customer needs. Acquire new customers Implement processes for managing customer complaints effectively and efficiently.

4. Measurement, Analysis, and Knowledge Management It determines how the organization selects, gathers, analyzes, and improves its data, information, and knowledge assets and how it manages its information technology. Providing H/w and S/w in tune with business needs and technological changes.

5. Human Resource Focus 5.1 Work Systems 5.2 Employee Learning and Motivation 5.3 Employee Well-Being and Satisfaction Maintaining a good working environment. Recruiting and retaining new employees. Improving workplace health, safety and security. Focusing on training and education support

6. Process Management 6.1 Value Creation Processes 6.2 Support Processes and Operational Planning This criteria examines how the organization manages and improves its work systems and work processes to deliver customer satisfaction.

7. Business Results This criteria examines the organizations performance and improvements in all the key areas such as : 7.1 Product and Service Outcomes 7.2 Customer-Focused Results 7.3 Financial and Market Results 7.4 Human Resource Results 7.5 Organizational Effectiveness Results 7.6 Leadership and Social Responsibility Results