Business Process Management and corporate governance
Business Process Management and corporate governance Linkedin Youtube Facebook Instagram A company is a group of people with a common
luis.chicaiza
2023-05-05
Dexon BPM
There is not always clarity on what a business model is and what is the difference between it and the organizational structure, or the sector in which it works. However, to identify what is a business model and what is the specific business model our company has, is essential for making all kinds of decisions, internally as well as in relation to customers, stakeholders and competitors, because the business model is what lines up the mission and vision of the company with concrete actions.
The business model is “the basic, underlying logic of a company which describes what benefits are provided to customers and partners”; for that reason, it generates a value that “enables a differentiation from competitors, the consolidation of customer relationships, and the formation of competitive advantage” (Schallmo y Williams, 2018). A business model is singular for each corporation and if managers have no clarity on the model they are using, the most likely is that they are not delivering a differential value to customers.
Currently there are proven tools that help to establish the business model and find out those elements that differentiate the activity in a business form the activity in another, even if it is in the same sector. Maybe the most known one and also the most effective, for its simplicity and clarity, is Canvas, designed by Alexander Osterwalder in 2004 and then present in more detail in 2010 by himself (Osterwalder & Pigneur, 2010).
This methodology is a complete map, with the ability to help managers see with clarity the characteristics of the organization and see in them the business model they are using. Once this is done, clarity gained can be used as a base for any improvement attempt that might be done on the processes
One of the main characteristics of Canvas methodology is that it is based in the balance between the logical and structured part of it and its creativity and innovation, adaptation and risk aspect, balance sought in organizations:
The Canvas distinguishes between two perspectives. The left side of the canvas – like the left side of the human brain – is responsible for creating logical and efficient connections within the internal processes. The right side of the canvas as well as the right side of the brain is responsible for creativity. In terms of the model, this means that the added value of the company’s range of products and services is taken into account in order to create added value for the customer (Blome, 2019).
What has been found with this method is that the more stability the logic and concrete aspect has, the one used for routine, repetitive and mechanical tasks, the more freedom there is for creating in other aspects of the business, as seeking new clients or creating new product lines. When someone has achieved the creation of some basic habits that assure health and efficiency in time management, they can have more freedom for learning new abilities or deepening the ones already in place. Similarly, a company that has automated a huge amount of processes can afford taking the time to give it to its creative practices for finding new ways of interacting with clients or generating new products.
What is important from this is that beginning this present year, with its challenges and radical transformations, many of them brought by the coronavirus pandemic, creativity is going to be essential in every company in the planet. The game rules are changing and the velocity is the feature ruling the rhythm of businesses.
For this reason, Canvas is actually showing that the left part of the map in organizations is ceasing to have effect and a lot of creative energy is needed in businesses today to make them survive in the new dynamics of the market being born.
Many managers are discovering that their business models are no longer useful for customer satisfaction, because they are now used to digitality and velocity coming from social media. Thus, many directors are making changes on their creativity and are taking huge risks and in most cases failing, as surveys on digital transformation attempts show (Zobell, 2018). What has to be done, then, to bring these new doses of creativity without a loss the stability gained, is to assure the functioning of the processes and the automation of the tasks that don’t require too much imagination.
BPM solutions are, for these reasons, a key for making an effective leap towards the new dynamic of market and towards the creation of new business models that can respond appropriately to this rhythm. Business Process Management is the software solution that automates all the processes in the organization in an integrated system that assures the effective coordination of all the activities.
It also includes all the participants in the operation, from employees to the highest director, in a unified productive chain that has as its single goal the complete satisfaction of the customers in the company. With this, the creative elements will get the time for giving a try to find the new models and the new logics that will give to the business an added value in the demanding conditions of the world that is emerging today in 2020.
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