1. What are core business processes?
2. Compare and contrast the core and support activities of a value chain.
3. Give an example of upstream and down-stream information flows in a value system.
1) Core Business processes are the processes which involves using raw materials to making some good products. Any organization must have a set of core business processes to function properly. Set of core business processes can vary from organization to organization. Small organizations will have a small set of Core Business Processes.
Few Core Business Processes that small organizations will have are
1. Sales and Marketing
2. Accounting and Technology
3. Quality and Product or Service Delivery
4. Management, HR and Finance
5. Product Development.
All organizations need a Sales and Marketing function. Once the company is in good finance state, then accounting process will be required. Next is Product or Service delivery process.
Let us list down Ten Core Business Processes applicable for many organizations:
1. Customer Strategy & Relationships
2. Employee Development & Satisfaction
3. Quality, Process Improvement & Change Management
4. Financial Analysis, Reporting, & Capital Management
5. Management Responsibility
6. Customer Acquisition
7. Product Development
8. Product/Service Delivery
9. Accounting Management
10. Technology Management
The defined tasks while developing Core Business Processes must be implemented.
Core Processes will have two units: Business Drivers and Business Operations.
Business Drivers drive Business Operations. The listed core processes, first 4 processes will come under Business Drivers and remaining 6 processes are Business Operations. It is Management Responsibility to make them to function properly.
2) Core activities can be listed as:
1. Inbound Logistics: Activities of receiving and storing inputs from suppliers.
2. Operations: Activities to transfer data from inputs to outputs.
3. Outbound Logistics: Activities involving to store and distribute outputs.
4. Marketing and Sales: Informing customers about products and services.
5. Services: Activities involving making sure products and services deliver to customers.
Support Activities are:
1. Procurement: Obtaining inputs, resources etc.
2. Human Resource Management: Activities involved in hiring and training employees.
3. Technological Development: Activities involved in training employees to improve technical skills.
4. Infrastructure: Environment of the company.
3) Information received from customers based on their interests is an example for upstream information. Information passed to organizations from suppliers is an example for downstream information.