Business Process Management (BPM)
There are a lot of moving parts in a business. Sales management, purchase orders, shipping labels, etc. And the thing that binds them all together into a manageable group is this: Business Process Management (BPM). Note that this is not the study of individual functions in the effort to improve, however BPM seeks to encapsulate the entire string of actions into groups called processes. Typical examples of individual actions are: reducing prices, increasing customer satisfaction, reducing error rates, etc. The goal of BPM is to analyze entire processes. By knowing different business processes and their names, it allows for greater efficiency and productivity in your business plan.
An example of a business process is the Order-to-Cash process. This process begins when a customer agrees to pay x amount of dollars for a good or service, and ends when the product has been delivered and the payment made. An order-to-cash process encompasses things that have to do with the customer-vendor interaction. The receipts, the shipping, the fees, etc. This process is important for obvious reasons: businesses need money. Without the barter system, the whole idea of business just falls apart.
Another example of a business process is the Quote-to-Order process. This process generally precedes the Order-to-Cash process. It begins when the vendor responds to the RFQ (Request for Quote), given by the customer, and ends when the customer places a purchase order for the product or service. A combination of these two processes can be called the Quote to Cash process. By knowing the ramifications of these different processes with BPM, businesses can map out their processes and see exactly what will happen to a customer's order fro the moment it is placed to the moment it is received, and in some cases, even after that.
The final business process that will be discussed here is the Issue-to-Resolution process. Although there are many other Business Processes that are equally as important, this process is important for the satisfaction and loyalty of your customer. This process begins when a customer rises a problem with your product or service and is requesting either A.a refund, or b. a compensation for the fault. Whoever is at fault for the issue is then requested to solve it. This process is complete when either the customer or the company, (preferably both), agree that the issue has been solved. This could entail a refund, a replacement, or a compensation of some other kind for the faulty product.
Business Process Management is about seeing the big picture in business, not necessarily the nitty-gritty details. By knowing the names and functions of different Business Processes, businesses can better plan their spending, sales, and marketing. In business, the more you know, the better you can plan.
There are a lot of moving parts in a business. Sales management, purchase orders, shipping labels, etc. And the thing that binds them all together into a manageable group is this: Business Process Management (BPM). Note that this is not the study of individual functions in the effort to improve, however BPM seeks to encapsulate the entire string of actions into groups called processes. Typical examples of individual actions are: reducing prices, increasing customer satisfaction, reducing error rates, etc. The goal of BPM is to analyze entire processes. By knowing different business processes and their names, it allows for greater efficiency and productivity in your business plan.
An example of a business process is the Order-to-Cash process. This process begins when a customer agrees to pay x amount of dollars for a good or service, and ends when the product has been delivered and the payment made. An order-to-cash process encompasses things that have to do with the customer-vendor interaction. The receipts, the shipping, the fees, etc. This process is important for obvious reasons: businesses need money. Without the barter system, the whole idea of business just falls apart.
Another example of a business process is the Quote-to-Order process. This process generally precedes the Order-to-Cash process. It begins when the vendor responds to the RFQ (Request for Quote), given by the customer, and ends when the customer places a purchase order for the product or service. A combination of these two processes can be called the Quote to Cash process. By knowing the ramifications of these different processes with BPM, businesses can map out their processes and see exactly what will happen to a customer's order fro the moment it is placed to the moment it is received, and in some cases, even after that.
The final business process that will be discussed here is the Issue-to-Resolution process. Although there are many other Business Processes that are equally as important, this process is important for the satisfaction and loyalty of your customer. This process begins when a customer rises a problem with your product or service and is requesting either A.a refund, or b. a compensation for the fault. Whoever is at fault for the issue is then requested to solve it. This process is complete when either the customer or the company, (preferably both), agree that the issue has been solved. This could entail a refund, a replacement, or a compensation of some other kind for the faulty product.
Business Process Management is about seeing the big picture in business, not necessarily the nitty-gritty details. By knowing the names and functions of different Business Processes, businesses can better plan their spending, sales, and marketing. In business, the more you know, the better you can plan.
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