Topic: Management
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Business Process Management - ARIS Value Engineering Concept
It appears that the economy has come through its recent trough, and companies are once again turning their attention increasingly to their markets and their customers. However, there is little doubt that the tight cost management of recent years will remain in place and, as though the magic triangle of time, quality and costs were not enough of a challenge, companies now need to develop substantial innovation and growth potential and gain their customers' enthusiasm. The quotation "Value creation benefits not only the company that creates the value but also the customer" is an accurate summary of this trend.
Changing markets and technological innovations will bring about further strategic refocusing by companies. Companies of various sizes and from different industries will be concentrating their efforts on improving their proximity to the market and their customers and increasing their flexibility and response speed. A willingness and ability to bring about fundamental changes to processes, structures and behavioral patterns in the socio-political corporate environment - in parallel to further possible cost reductions - will be the critical success factors in the economic recovery following the abortive dotcom economy.
The general strategic conditions for shaping the internal organization have also changed drastically in recent times. More often than not, traditional job-shop or functionally-based organizational concepts fail to meet today's requirements:
- Traditional functional corporate organization only has a limited ability to adapt itself to dynamically changing market demands, in particular in terms of speed and flexibility.
- The functional structures and processes are poorly suited to achieving the highest possible degree of efficiency and effectiveness in the use of modern information and communication technology.
- In traditional concepts, management responsibility is being worn away, thus preventing any reserves of motivation from being tapped.
Despite this enormous pressure to adapt, many companies limit their efforts to adapting only their structures, neglecting the crucial step of strategically refocusing their internal processes. As a result, the internal organization often becomes a constraint on taking advantage of market opportunities that present themselves.
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