Business Operations - Revision history

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User: /* Definition of Business OperationsDefining Business Operations CFI */

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Definition of Business OperationsDefining Business Operations CFI

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 == See Also ==
-[[Business_Strategy|Business Strategy]]<br />
+Business Operations encompass the day-to-day activities and tasks necessary for a business to function effectively and achieve its goals. These operations can vary widely depending on the industry, size, and type of business but generally include areas such as production, purchasing, inventory management, human resources, finance, and customer service. Efficient business operations are crucial for optimizing resources, improving profitability, enhancing customer satisfaction, and maintaining a competitive edge in the market. Implementing best practices in operations management, leveraging technology, and continuously improving processes are key strategies for achieving operational excellence.
-[[IT Strategy (Information Technology Strategy)|IT Strategy]]<br />
-[[Business Operations]]<br />
+*[[Supply Chain Management (SCM)]]: the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, crucial for smooth business operations.
-[[Business Model]]<br />
+*[[Operations Management]]: the administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.
-[[Business Reference Model (BRM)]]<br />
+*[[Lean Manufacturing]]: a systematic method for waste minimization within a manufacturing system without sacrificing productivity, enhancing operational efficiency.
-[[Business Process Model]]<br />
+*[[Six Sigma]]: a set of techniques and tools for process improvement, aiming to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.
-[[Business Model Innovation (BMI)]]<br />
+*[[Inventory Management]]: the supervision of non-capitalized assets (inventory) and stock items, a crucial part of operations management that oversees the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
-[[Business Capability]]<br />
+*[[Human Resource Management (HRM)]]: Discussing the strategic approach to the effective management of people in an organization so that they help the business gain a competitive advantage, designed to maximize employee performance in service of an employer's strategic objectives.
-[[Business Architecture]]<br />
+*[[Financial Management and Control]]: Explaining the strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institute, including procurement and utilization of funds of the enterprise.
-[[Business Capability Modeling]]<br />
+*[[Customer Service]]: Covering the provision of service to customers before, during, and after a purchase, vital for customer satisfaction and loyalty, which are essential for business success.
-[[Business Application]]<br />
+*[[Project Management]]: Discussing the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at the specified time.
-[[Business Activity]]<br />
+*[[Business Process Reengineering (BPR)]]: Explaining the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs.
-[[Business Objective]]<br />
+*[[Quality Management]]: Covering the act of overseeing all activities and tasks needed to maintain a desired level of excellence, including the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.
-[[Business Mission]]<br />
+*[[Digital Transformation (DX)]]: Discussing the use of digital technology to solve traditional problems, which enables new types of innovation and creativity in a particular domain, rather than simply enhancing and supporting traditional methods.
 == References ==

@@ Line 1: / Line 1: @@
 == Definition of Business Operations<ref>Defining Business Operations [https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-operations/ CFI]</ref> ==
-'''Business operations''' refer to activities that businesses engage in on a daily basis to [[Business Value|increase the value of the enterprise]] and earn a [[profit]]. The activities can be optimized to generate sufficient [[Revenue|revenues]] to cover the [[Expense|expenses]] and earn a [[Profit|profit]] for the owners of the business. [[Employee|Employees]] help accomplish the [[Business Goals|business goals]] by performing certain functions such as [[Marketing|marketing]], [[Accounting|accounting]], [[Manufacturing|manufacturing]], etc.
+'''[[Business]] operations''' refer to activities that businesses engage in on a daily basis to [[Business Value|increase the value of the enterprise]] and earn a [[profit]]. The activities can be optimized to generate sufficient [[Revenue|revenues]] to cover the [[Expense|expenses]] and earn a [[Profit|profit]] for the owners of the business. [[Employee|Employees]] help accomplish the [[Business Goals|business goals]] by performing certain functions such as [[Marketing|marketing]], [[Accounting|accounting]], [[Manufacturing|manufacturing]], etc.
 [[IT Operations (Information Technology Operations)|IT Operations]] are a part of the business operations of a company or organization.

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 == Definition of Business Operations<ref>Defining Business Operations [https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-operations/ CFI]</ref> ==
-'''Business operations''' refer to activities that businesses engage in on a daily basis to [[Business Value|increase the value of the enterprise]] and earn a [[profit]]. The activities can be optimized to generate sufficient [[Revenue|revenues]] to cover the [[Expense|expenses]] and earn a [[Profit|profit]] for the owners of the [[Business|business]]. [[Employee|Employees]] help accomplish the [[Business Goals|business goals]] by performing certain functions such as [[Marketing|marketing]], [[Accounting|accounting]], [[Manufacturing|manufacturing]], etc.
+'''Business operations''' refer to activities that businesses engage in on a daily basis to [[Business Value|increase the value of the enterprise]] and earn a [[profit]]. The activities can be optimized to generate sufficient [[Revenue|revenues]] to cover the [[Expense|expenses]] and earn a [[Profit|profit]] for the owners of the business. [[Employee|Employees]] help accomplish the [[Business Goals|business goals]] by performing certain functions such as [[Marketing|marketing]], [[Accounting|accounting]], [[Manufacturing|manufacturing]], etc.
 [[IT Operations (Information Technology Operations)|IT Operations]] are a part of the business operations of a company or organization.

@@ Line 60: / Line 60: @@
 *Process: Process is important because of its impact on [[productivity]] and efficiency. Processes done manually that can be done quicker with software or that duplicate work done by other departments can cost a business time and money. Business operations processes should be documented department by department so that operations managers can study them to find areas for [[improvement]], consolidation, or cost-savings. Documentation also helps companies train new employees.
 *Staffing: Staffing is determined by the processes. Who needs to do the work outlined in the work processes and how many of them are needed? A small business might need a few people who are generalists while a large company will need many more people who are specialists.
-*Location: Location is more important to certain types of businesses than to others – and the reason for the location will vary. A solopreneur [[consultant]] might only need room for a desk at home, a pet groomer will need a location with parking, and a software developer will need to be located in a region with access to appropriate talent.
+*Location: Location is more important to certain types of businesses than to others – and the reason for the location will vary. A solopreneur consultant might only need room for a desk at home, a pet groomer will need a location with parking, and a software developer will need to be located in a region with access to appropriate talent.
 *Equipment or technology: The equipment or technology needed for optimum business operations will often have an impact on location. The pet groomer with a staff and several grooming bays will need more space and different equipment from the mobile groomer who offers services provided at the pet’s home. A carpet cleaning business won’t need a storefront, but it will need a garage to store its trucks plus office space for business operations management.

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 '''Business operations''' refer to activities that businesses engage in on a daily basis to [[Business Value|increase the value of the enterprise]] and earn a [[profit]]. The activities can be optimized to generate sufficient [[Revenue|revenues]] to cover the [[Expense|expenses]] and earn a [[Profit|profit]] for the owners of the [[Business|business]]. [[Employee|Employees]] help accomplish the [[Business Goals|business goals]] by performing certain functions such as [[Marketing|marketing]], [[Accounting|accounting]], [[Manufacturing|manufacturing]], etc.
 __TOC__
 == Role of Business Operations<ref>Role of Business Operations [https://www.upcounsel.com/business-operations-definition UpCounsel]</ref> ==

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-== Definition of Business Operations<ref>Defining Business Operations [https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-operations/ CFI]</ref> ==
+__TOC__
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 Essentially, business operations serve two purposes within your [[organization]].
 *First, they serve as a guide for your company.
-*Second, they are a fail-safe, limiting your risks and helping your operation to avoid problems.
+*Second, they are a fail-safe, limiting your [[Risk|risks]] and helping your operation to avoid problems.
-For example, effective business operations can facilitate cooperation between the different departments in your company and can also make it easier for your organization to stick to its [[budget]]. When you're putting your business operations as defined in your business plan into practice, there are numerous variables to consider.
+For example, effective business operations can facilitate cooperation between the different departments in your company and can also make it easier for your [[Organization|organization]] to stick to its [[budget]]. When you're putting your business operations as defined in your business plan into practice, there are numerous variables to consider.
-Let's assume, for example, that your company is focused on [[manufacturing]] products. The length of your company's [[supply]] chain will depend on the type of [[product]] that your company manufacturers, and the number of employees you hire will depend on the automation of your manufacturing [[process]]. If you intend to sell your products in physical stores, you will need to be sure to choose the right location for your business so that you can avoid onerous regulations while optimizing sales. On the other hand, if you plan to offer your products solely online, you will need to invest in the right [[software]]. The decision where to sell your products is one of many factors that will [[impact]] your organization's business operations.
+Let's assume, for example, that your company is focused on manufacturing products. The length of your company's [[Supply Chain|supply chain]] will depend on the type of [[product]] that your company manufacturers, and the number of employees you hire will depend on the automation of your manufacturing [[process]]. If you intend to sell your products in physical stores, you will need to be sure to choose the right location for your business so that you can avoid onerous regulations while optimizing sales. On the other hand, if you plan to offer your products solely online, you will need to invest in the right [[software]]. The decision where to sell your products is one of many factors that will [[impact]] your organization's business operations.
 As your business expands, it's likely that your business operations will undergo several changes. For example, in small companies, one [[employee]] may be responsible for a range of duties, but in a larger organization, this simply isn't practical. Ideally, your organization's business operations will evolve with your company. If your business operations are static, you will typically experience issues that will negatively impact the long-term success of your organization. If one person in your company has too many responsibilities, for example, they will inevitably make mistakes that will influence the entire organization.
-When mistakes occur in an organization due to ineffective business operations, there tends to be a domino effect that can be disastrous for your company. Every department in your company should be continually adjusting business operations to account for the growth of the organization. Your operations' [[efficiency]], or lack thereof, will be the determining factor when it comes to your business's success. The main point of the processes you use in your company is to increase the [[value]] of your organization. To increase your company's value, you need to consistently make a profit. If the income that your company generates is more than the money that has been invested into your business, you have turned a profit and your value will increase.
+When mistakes occur in an organization due to ineffective business operations, there tends to be a domino effect that can be disastrous for your company. Every department in your company should be continually adjusting business operations to account for the growth of the organization. Your [[Operational Efficiency|operations' efficiency]], or lack thereof, will be the determining factor when it comes to your business's success. The main point of the processes you use in your company is to increase the [[value]] of your organization. To increase your company's value, you need to consistently make a profit. If the income that your company generates is more than the money that has been invested into your business, you have turned a profit and your value will increase.
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 [[File:Business_Operations_Functions.png|300px|Key Functions of Business Operations]]<br />
 source: Danille Middle
 *'''[[Accounting]]''': The primary role of accounting consists of:
@@ Line 36: / Line 39: @@
 **Tax [[Compliance]]
 **Safeguarding Company Assets
-*'''Production & Operations''': The production and operations function of a business has one overarching goal - to use company resources to efficiently produce goods and services that their customers want. Production management handles the process of incoming materials, to the production process, what’s going out the door, and the [[feedback]] from the [[customer]]. This helps them make the necessary adjustments to fit the customers needs.
+*'''Production & Operations''': The production and operations function of a business has one overarching goal - to use company resources to efficiently produce goods and services that their customers want. Production management handles the process of incoming materials, to the production process, what’s going out the door, and the [[feedback]] from the [[customer]]. This helps them make the necessary adjustments to fit the [[Customer Needs|customers needs]].
 *'''[[Marketing]]''': The marketing function is two-fold:
 **Help the business identify potentially successful products, and then
 **Promote those products
 *Tasks would include:
-**Creating a marketing plan
+**Creating a [[Marketing Plan|marketing plan]]
 **[[Advertising]]
-**Customer [[Service]]
+**[[Customer Service]]
 **[[Public Relations]]
 *'''Sales''': While the function of sales may seem obvious, there is more to it than just handing over a product and receiving its [[price]]. The sales function requires:
@@ Line 101: / Line 104: @@
 [[Business Operations]]<br />
 [[Business Model]]<br />
-[[Business_Reference_Model_(BRM)|Business Reference Model (BRM)]]<br />
+[[Business Reference Model (BRM)]]<br />
-[[Business_Process_Model|Business Process Model]]<br />
+[[Business Process Model]]<br />
-[[Business_Model_Innovation_(BMI)|Business Model Innovation]]<br />
+[[Business Model Innovation (BMI)]]<br />
 [[Business Capability]]<br />
 [[Business Architecture]]<br />

← Older revision		Revision as of 15:53, 5 November 2019
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	== Further Reading ==		== Further Reading ==
		+	*Basic Business Operations [https://www.citigroup.com/citi/citizen/community/data/guide6_eng.pdf Citi Group]
		+	*Business Operations Strategy [https://undg.org/wp-content/uploads/2017/04/Lao-PDR-Business-Operations-Strategy-1.pdf United Nations]
		+	*Running a Food Hub: A Business Operations Guide [https://www.rd.usda.gov/files/SR_77_Running_A_Food_Hub_Vol_2.pdf USDA]

← Older revision		Revision as of 15:49, 5 November 2019
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	When mistakes occur in an organization due to ineffective business operations, there tends to be a domino effect that can be disastrous for your company. Every department in your company should be continually adjusting business operations to account for the growth of the organization. Your operations' efficiency, or lack thereof, will be the determining factor when it comes to your business's success. The main point of the processes you use in your company is to increase the value of your organization. To increase your company's value, you need to consistently make a profit. If the income that your company generates is more than the money that has been invested into your business, you have turned a profit and your value will increase.		When mistakes occur in an organization due to ineffective business operations, there tends to be a domino effect that can be disastrous for your company. Every department in your company should be continually adjusting business operations to account for the growth of the organization. Your operations' efficiency, or lack thereof, will be the determining factor when it comes to your business's success. The main point of the processes you use in your company is to increase the value of your organization. To increase your company's value, you need to consistently make a profit. If the income that your company generates is more than the money that has been invested into your business, you have turned a profit and your value will increase.
		+
		+
		+	== Business Operations Functions<ref>Key Functions of Business Operations [https://daniellmiddle.typepad.com/files/key_functions_of_business_operations.pdf Danille Middle]</ref> ==
		+	When you first think of business operations, you might think of the simple items or tasks that are completed on a day to day basis by the employees of the company. While these items are general business operations, there is a bigger picture and understanding the key functions to that are
		+	critical to the stability and profitability of the business. While these items are general business operations, there is a bigger picture and
		+	understanding the key functions to that are critical to the stability and profitability of the business. All functional areas must link together to
		+	achieve the overall aims and objectives. This means cooperation and good communications.
		+
		+
		+	[[File:Business_Operations_Functions.png\|300px\|Key Functions of Business Operations]]<br />
		+	source: Danille Middle
		+
		+	*'''Accounting''': The primary role of accounting consists of:
		+	**Measuring and summarizing business activities,
		+	**Interpreting financial information, and
		+	**Communicating the results to management and other decision makers.
		+	*'''Finance''': Often overlapping with accounting, the finance function of a business helps to provide resources and planning for resources to help operate and expand the business. Tasks include:
		+	**Budgeting
		+	**Raising Financial Capital
		+	**Tax Compliance
		+	**Safeguarding Company Assets
		+	*'''Production & Operations''': The production and operations function of a business has one overarching goal - to use company resources to efficiently produce goods and services that their customers want. Production management handles the process of incoming materials, to the production process, what’s going out the door, and the feedback from the customer. This helps them make the necessary adjustments to fit the customers needs.
		+	*'''Marketing''': The marketing function is two-fold:
		+	**Help the business identify potentially successful products, and then
		+	**Promote those products
		+	*Tasks would include:
		+	**Creating a marketing plan
		+	**Advertising
		+	**Customer Service
		+	**Public Relations
		+	*'''Sales''': While the function of sales may seem obvious, there is more to it than just handing over a product and receiving its price. The sales function requires:
		+	**Identification of customers and potential customers
		+	**Product promotion
		+	**The actual selling
		+	**Follow-up
		+	*'''Management''': Using people and other organizational resources, the management function seeks to reach organizational goals through planning, organizing, directing, and controlling. Management assures that the employees have the proper tools to accomplish the responsibilities that they are assigned.