An important business management skill is the ability to make effective decisions. Based upon survey responses of managers, a business model is the design of organizational structures to enact a commercial opportunity (1). If your employees cannot see the goals they need to attain, they will have no sense of achievement or of where their work is taking them.
The process approach used as a business management tool, is basically understanding your organization’s processes, their inputs, their outputs and how the processes interact with each other. Siebel (now Oracle Siebel CRM), market leader in customer relationship management (CRM) field, once defined CRM as a way to identify, acquire, and retain customers – a business’ greatest asset.
In the recent past this process was undertaken in April or later however in times of volatility and uncertainty it is important to have an early and clear perspective of your future direction to ensure the businesses key stakeholders understand where it is going and what will drive the financial performance.
The business model itself should outline the mission, strategies, infrastructure, organizational structure, operational processes and procedures that will be utilized to execute the business model. In a fast paced business world it is essential to develop a company culture that shares ideas and insights.
An example of this may be a sheet metal cutter that uses an industry specific tool for the nesting of cut jobs and an integration would be to prepare the quote in the business management system, send the measurements of the cuts to the nesting application and then after the cut has been performed to send back materials used and off-cut details back to the core stock control and accounting system.