Business Process Redesign Methodology: Part 2

Last week it was noted that having a product diversification strategy is beneficial to organizations. It offers opportunity to grow the business, by either increasing sales to current consumers or introducing entirely new target demographics. The criticality is on the acceptance of an all hands understanding of the basic value chain processes. The BP Trends process was laid out. Several aspects of the strategy must be defined, vision and strategy, organizational goals, establish target/KPIs, business initiatives, and develop plans and assignments.

The economy will influence all businesses throughout all industries. Accepting this fact will lead to understanding business context. All firms need to be constantly expanding product lines that can potentially develop themselves into fresh, long-term sources of revenue.

A company can hurt growth by focusing its resources on the core product line that enabled its initial growth. This so-called protection of those products can lead to stagnant new product development. Companies focusing on the “core” as their key strategic directive presents an avoidable risk of stymied product image.

The life of the business is dependent on new products driving increased revenue. Too many companies fall into an “extend and defend” strategy that stymies any real innovation as all resources are focused on either minimal product extensions or trying to defend market share at the expense of reduced profit margins. The basic value chain processes the company supports and the strategic goals each value chain is responsible for achieving must be understood and agreed on by everyone.

If there is an interruption in the business model process it will require a review of the process and the impact of the interruption. The introduction of new processes or process review makes the process stronger if they are aligned with meeting the established KPIs or goals. The key here is the day-to-day management of the process, with or without interruptions.

Initially the defined process measures will be to provide product and service options to customers. This is completed within the established process governance as a business aligns its resources to meet those expectations. If something interrupts the process, such as the quality of the product was not to par, a review of the process is required. It is going to require a business process redesign approach. This is done through day-to-day management. The on-going execution of monitoring achievement of business initiatives, process, and process performance oversight as presented in Figure 2.

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A product diversification strategy is valuable to businesses. It offers opportunity to grow the business, by either increasing sales in the current market or presenting available markets. The cruciality is the understanding of the businesses value chain strategy by everyone in the value chain. The strategy must be defined, vision and strategy, organizational goals, establish target/KPIs, business initiatives, and develop plans and assignments. The methodology for the development, introduction, and implementation of the strategy. The process redesign must provide the methodology understand strategic goals each part of the value chain and its responsibility in the process.