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A Business Model Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal,

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Presentation on theme: "A Business Model Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal,"— Presentation transcript:

1 A Business Model Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16

2 A Business Model A business can be considered to have five interdependent layers Assets Processes Process Management Process Improvement Strategy and Leadership Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 2

3 A Business Model Stakeholders Competitors Customers Suppliers Strategy
Assets Processes Process management improvement Strategy Suppliers Customers Competitors Stakeholders Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 3

4 A Business Model Stakeholders Competitors Customers Suppliers
Communication-Policy Deployment - Values Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 4

5 Layers of a Business Model
Assets Foundation of the business Employees and their skills and competencies, capital, equipment, facilities, intellectual prop. Processes Assets which are dynamically engaged by business processes Supplier inputs are transformed into outputs for customers Process includes: Sequence or network of work activities The organization, workgroup and individuals executing the process Equipment and information systems that enable the process Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 5

6 Layers of a Business Model
Process management Monitor process performance against objectives and standards To ensure that processes are meeting customer needs and internal performance objectives: Typical metrics used: Customer satisfaction Employee satisfaction Customer service Product quality Performance metrics internal to the process: Time, Quality, Cost Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 6

7 Layers of a Business Model
Process Improvement Provides institutionalized changes in the business To respond to: Industry environment shift Evolving customer needs Improving competitor performance Increasing stakeholder (e.g. Shareholders) expectations Complementary activity to process management Leadership and Strategy Provides direction for asset utilization, processes, process management and process improvement. Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 7

8 Continuum of Methodologies for Process Improvement
Operations Improvement Focus on changing a specific operation, such as a task Process Improvement Involves more than improving a single operation Involves restructuring, to meet a particular objective, all the operations of a process Breakthrough Improvement (Reengineering) Focus on major gains Radically rethink the process Leverage the possibilities of IT Customer-supplier Partnering Customer and supplier are involved in process changes Total Quality Management Covers both Process Improvement and Process Management Malcolm Baldrige National Quality Award Corporate Strategy and Development Enterprise transformation 8 Source: (Hsu, 1994)

9 Continuum of Methodologies for Process Improvement
9 Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16

10 Mission and Vision Unaligned Employees and Departments
Desired direction and speed Actual direction and speed 10

11 Mission and Vision Partially Aligned Desired direction and speed
Actual direction and speed 11

12 Mission and Vision Fully Aligned Desired direction and speed
Actual direction and speed 12

13 «It is a rare organisation that has fully aligned its change activities and focused them to ensure maximum leverage of its resources and ability to endure change.» Source: Hsu, J.C., Kent, R., Weinman, J.B., Enabling Technologies for World-Class Business Operations, AT & T Technical Journal, Jan/Feb 1994, vol. 73, number 1, p 6- 16 13


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