Today

Systems: manage the business processes

 What is a business process?

 What are specific activities in an organisation?
 Examples of process management for Flor’as & YSP

IGNORE HIDDEN SLIDES UNLESS YOU WANT TO UNDERSTAND MORE

Today
 Systems
Relevant aspects in this course:

 What is a company doing in terms of ITO (primary processes)?

 Can you make this more specific for Lineage, YSP & DOW?

 What are specific supportive activities – Lineage, YSP & DOW?

 What kind of data are required for process control?

 Can we make this more specific for (Flor’as &) YSP?

 What kind of (IT) tools are used?

 Can we make this more specific for Flor’as & YSP?
 LEARNING GOALS
After studying this lecture:

– You will be familiar with the problems that might occur while managing
organisations;
– You will be able to identify different types of business processes;
– You will be able to use the ITO-concept;
– You will have an understanding of the way business processes are carried
out and the impact they have on added value and quality;
– You will be aware of the relevance of continuous improvement, CSR &
Corporate Governance.
 Systems
The 5 Most Common Problems of Organizations
 Absence of clear direction. Lack of direction is one of the most
common organizational problems and it stems from two root
causes: ...
 Difficulty blending multiple personalities into a cohesive and
unified team. ...
 Failure to develop key competencies and behaviors. ...
 Poor communication and feedback. ...
 Lack of awareness.

For more details read this!

 Systems
In other words:

Systems is about coordination + control business processes

Why: what is the goal?

 To work effectively on a day-to-day basis

 To be better than the competition
 To improve ‘how you work’ – do things right, do the right things
 To be a trustworthy, clear and reliable partner - player
 ITO
Business process visualised with ITO:
A business process is a set of organised human activities that are linked to
the production of goods or services

Inputs Transformation Outputs

Relevant business process

Feedback loops: learn, improve, change

 ITO
Inputs are:
 Labour: people
 Natural resources: raw material, semi-manufactured goods, energy etc.
 Capital: money, plant, machinery. land
 Information: customer profiles, about competition, demographic data, a specific
client order etc.

What is a company doing in terms of ITO?

 ITO describes the so-called primary processes
 Primary processes contribute directly to organization’s profitability
 Explain ITO
What is a company doing in terms of ITO?

 ITO Flor’as:
 Input: specifically flowers, plants, orders from French florists, data from auctions about
available flowers and plants
 Throughput: loading trucks in their warehouse for (a) French florists; (b) direct
customers in France
 Output: (a) fresh flowers and plants, delivered in time, delivered what’s ordered; (b)
fresh flowers and plants, a variety of choice

 ITO YSP:
 Input: all kinds of items like mugs, bars, shirts; printing machines; items to personalize
gifts like ink; packaging material
 Transformation: for example a mug is engraved with your mother’s name, and in that
way a special item
 Output: for example a personalized mug with correct name, delivered at right time and
place
Theory Business processes
• A business process is a set of organised human activities that are
linked to the production of goods or services
– Examples: purchasing processes, production processes,
administrative processes and sales processes

• Three types of business processes

– primary processes: activities that contribute directly to the making
of the product or service and to the overall goals of the organisation
– secondary processes: all activities that support primary processes
– administrative processes: activities that direct primary and
secondary activities so that organisational goals are reached (Fayol)
Visualisation Business processes
 Systems
What are specific supportive activities – Flor’as and YSP?

Primary activities Flor’as: Inbound logistics, ‘Production’, Outbound logistics

(Distribution), Marketing & Sales, Customer Service
Main support activities: IT for order processing, communication betweem
office and warehouse

Primary activities YSP: Production, Marketing & E-commerce Sales, Customer

Service
Main support activities: IT for order processing, product designing, purchasing,
internal communication (SLACK)
 Systems
What kind of data are required for process control?

 Client orders as specific as possible

 Available flowers & plants
 Seasonal needs – Easter, Christmas, Mother’s day
 Availabily items like mugs, shirts etc.

What kind of (IT) tools are used? Good question, 

 Slack at YSP for internal communication

 I don’t know software used for order processing or purchasing
 Systems
In other words, relevant aspects in this course:

1. Know three types of business process within an organisation

2. Understand the primary process in terms of ITO
3. Understand how business processes have impact on:
a) Added value: Porter’s value chain - relevant for exam
b) Quality: continuous improvement - mentioned
c) Value creation & quality: lean management + six sigma - mentioned
d) CSR & Governance are only mentioned
 Systems
Relevant for IB but not explained in this course:
 Data management marketing processes
 Data management logistical processes
 Data management financial processes
 HRM instrument for recruitment & selection, rewarding, appraisal,
career development, knowledge management & outplacement

Train yourself:
 Describe a simple organisation in terms of input, transformation (or
throughput) and output - processes
 What are purpose and aim for each process?
 Who benefit from well-organised, pro-active process management?
a) Business processes & added value
Tool to create competitive advantage
Supply chain management
• Logistics management is the management and control of the
goods and / or services and the associated flow of
information in the supply chain
Human Resource Management
Quality: performance improvement

Process control should lead to competitive advantages:

– If you learn and improve continuously

– Your strategic intent is clear and SAFe
– You add value (Porter):
 Client’s interest is central focus
 You know what is your ‘reason for existence’ (raison d’être)
Visualisation improvement
• PDCA + continuous improvement:
c) Business processes and quality
• Lean Management system -> Toyota

• Goal: value creation, how?

• Six Sigma; perfomance method that is suitable for producers

of goods and services
– Constantly keep a close eye on clients
– Rigorous use of facts, data and statistical analysis
– A lot of attention is paid to management and constant innovative
improvement within business processes
 d) Corporate Social Responsibility (CSR)
& Corporate Governance
• CSR = sustainable business
– Find the balance between profit, environment (planet)
and people
– Different opinions about CSR
1. Minimum CSR
2. Social acceptance
3. Broad social responsibility
4. Social activism

• Corporate Governance; ‘proper’ management

– Key words; transparency and responsibility
– Dutch Tabaksblat code (comply or explain)