New Business Process Management Structure

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Business Process Management Structure

The objective of showing you this diagram on the left is to give you an idea of what a modern business operations process management system looks like at the business power basics level and how to position the new market chain management, which is one of the main subjects of this book.  Somehow, I am trying to give you a perspective on the new business power chain process management concept in order to make it easier to understand this book and follow my reasoning.

The pragmatic and gradual introduction
of the different business process management chains started 50 years ago with the introduction of IT-supported administration and control process management.  The chain management expression was to my knowledge not used until after the introduction of supply chain management in the 1990’s.

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Business Process Management Integration and the Organization Rethink

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Business Process Management Integration

 

 

 

The New Organizational Structure

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The New Organizational Structure


The integration of new business power management and real-time interactive IT systems requires a radically new organizational structure, as it is close to impossible to integrate real-time interactive business process management into traditional organizations.

This is proven by the fact that more than three out of four customer relationship management system installations fail and CRM is only the starting point for the trans-enterprise Brand & Customer asset management process.  I will explain all this further in the “Brand & Customer Company” chapters.

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Three of the Major Challenges for Business-to-Consumer Enterprises

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THREE  OF  THE  MAJOR  CHALLENGES  FOR BUSINESS-TO-CONSUMER  ENTERPRISES

CUSTOMER  EMPOWERMENT  IS  AT  THE  HEART  OF THE  THREE  MAJOR  MANAGEMENT  CHALLENGES

NEW TECHNOLOGIES AND GLOBAL MARKETS HAVE CREATED A NEW MARKET SITUATION WITH AN ABUNDANCE OF QUALITY PRODUCTS AND SERVICES, WHICH ENABLES CUSTOMERS TO PICK AND CHOOSE FREELY WHAT TO BUY PLUS TO DRIVE THE MARKET.

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Three Major Challenges of the Future

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Three Major Challenges of the Future in the Brand & Customer Asset Management Company

Good morning Dr. Change. – How can you manage business-to-consumer companies?

Both markets and management methods have changed radically during the last few years and we need a new modified top management strategy to face these new management challenges.  Now, I would like to know what you think about managing business-to-consumer companies in today’s ruthlessly competitive business environment?

Good morning Mr. President. – You should focus on searching for the best solution in your company, as all companies are different!

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The First Major Challenge

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THE  FIRST  MAJOR  CHALLENGE IS  TO  UNDERSTAND  AND  MANAGE ENTERPRISE  NEW  BUSINESS  AND  ASSET  STRUCTURES

THE  BUSINESS  OPERATIONS  MANAGEMENT  STRUCTURE

MANAGEMENT STRUCTURE HAS CHANGED RADICALLY BOTH ON THE MANUFACTURING SIDE AND ON THE MARKETING AND SALES SIDE.

SUPPLY CHAIN MANAGEMENT (SCM) HAS NOW REPLACED BOTH THE MANUFACTURING COMPANY AND SUBCONTRACTORS.

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The First Major Challenge is to manage new Business and Asset Structures

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The First Major Challenge is to manage new Business and Asset Structures in a truly Customer and Market Focused Enterprise.

Enterprise asset structure has changed radically both on the manufacturing and marketing sides which will require a new top management approach.  Automobile manufacturing companies are for example outsourcing the major part of their production to equipment companies and only assemble the cars in their factories.

The main challenge has now become to optimize the market-driven supply chain management (SCM) system instead of the internal manufacturing processes.  This improved manufacturing strategy enables enterprises to adapt their products to the market faster, better and cheaper.  SCM is already well understood and integrated into most big manufacturing companies.

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The Second Major Challenge

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THE  SECOND  MAJOR  CHALLENGE IS  TO  MANAGE  CUSTOMERS  AS  INDIVIDUALS  AND  NOT  AS AVERAGES  AND / OR  AS  PARTS  OF  A  GROUP.

THE  ONE COMPANY  TO  ONE  CUSTOMER   POLICY

THE BUSINESS RELATIONSHIP IS A TWO-WAY STREET. THE ENTERPRISE MUST RESPECT (LIKE) THE CUSTOMER IN ORDER TO MAKE THE CUSTOMER RESPECT (CHOOSE) THE ENTERPRISE. BECAUSE, CUSTOMERS MOSTLY CHOOSE TO DO BUSINESS WITH PEOPLE AND COMPANIES THEY LIKE.

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The Brand & Customer Company is designed to manage a defined market space

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The Brand & Customer Company is designed to manage a defined market space strategically with the objective of optimizing and coordinating the use of the enterprise’s resources in order to maximize the profitable business with selected customers this year and in the future, as brand and customers are long term assets.  I will explain all this very thoroughly in great detail as we go along.

Top management must now drive for excellence in both external and internal asset management and this requires a totally new enterprise design.

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The Third Major Challenge

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THE  THIRD  MAJOR  CHALLENGE IS BUSINESS TIMING IN THE HIGH MARKET & BUSINESS  PACE

THE  BUSINESS  TIMING  MANAGEMENT  CHALLENGE

1) BUSINESS TIMING MANAGEMENT CAN BE DIVIDED INTO THE STRATEGIC SIDE; MARKET PACE MANAGEMENT AND THE OPERATIONAL SIDE; BUSINESS PACE MANAGEMENT.

2) JOINT MARKET AND BUSINESS PACE MANAGEMENT IS CALLED ON-TIME BUSINESS MANAGEMENT. THE OBJECTIVE IS TO MEET THE MARKET PROCESS AND BUSINESS PROCESS TIME WINDOWS.

3) TRADITIONAL ENTERPRISES WERE DESIGNED TO BE POWERFUL BUT NOT FLEXIBLE AND SHOULD BE REDESIGNED TO BE BOTH FLEXIBLE AND POWERFUL TO MEET BUSINESS TIME WINDOWS.

4) BUSINESS TIMING MANAGEMENT IN TURBULENT MARKETS REQUIRES A FUNDAMENTALLY DIFFERENT AND NEW IT-SUPPORTED ENTERPRISE STRUCTURE, WHICH IN FACT CORRESPONDS TO THE BRAND AND CUSTOMER COMPANY  STRATEGY.

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Manage Brand & Customer Assets

Manage Brand and Customer Assets“Dynamic-Tangible Brand-&-Customer Assets” are the major corporate assets, which require “Dynamic Profit Center Management” to cover both static and dynamic business models. Dynamic-Tangible market assets have direct impact on Profit-&-Loss Statements, which should be managed effectively.

Manage Corporate Power Chain

Bottom Promotion“Corp. Business Power Chain” bridges Static-Tangible and Dynamic-Tangible assets and is the kernel motor for creating cash flow and tangible business results. All departments and personnel are “Business Power Chain Contributors” and part of Corp. Performance Management, as explained in “Dynamic Balance Sheet and Profit-&-Loss Statements”.

Manage Business Timing and Change

Manage Business Timing and Change“Business Power Market Timing” and Corp. Change Management are critical in fast moving and ultra competitive global markets, which require “Dynamic Business-&-Profit Forward Management” with high management horizons in order to follow high market/business paces and secure future business.