The chapter studies the current tendencies of the Russian practice of decision-making in business systems by the example of a gas distribution company of the Russian…
The chapter studies the current tendencies of the Russian practice of decision-making in business systems by the example of a gas distribution company of the Russian Federation. In the modern Russian practice, the companies transform the system of decision-making to the process-oriented approach, which envisages decision-making and correction of decisions not according to functional responsibilities but according to consecutively performed procedures of conducted business processes.
The authors describe the procedure of formation of business processes in a gas distribution company by the example of the business process “Technological connection” and provide its characteristics.
As a result of studying foreign approaches to formation of the model of management and decision-making in companies, the authors develop a methodology of evaluation of economic effectiveness of implementation of a business process, based on the principles of management according to goals and KPI. This methodology allows evaluating the obtained results of a separate stage and of the business process on the whole.
By the example of the studied business process, a set of key indicators of effectiveness of a separate subprocess “Formation of technical condition” in a company is offered, and calculations of final results of effectiveness of this business process are provided. As a result of the final evaluation, practical recommendations for development of managerial decisions in a company are provided.
Presents a study which explored a relationship between productionprocess focus and performance at the business unit level using theprofit impact of marketing strategies…
Presents a study which explored a relationship between production process focus and performance at the business unit level using the profit impact of marketing strategies (PIMS) database. The relationship between production process focus and financial performance for business units was partially supported using return‐on‐sales (ROS), and was not supported with return‐on‐assets and return‐on‐income. Indicates that the degree of production process focus is not directly related to a business unit′s performance. The implication is that the degree of production process focus must be recognized as part of a manufacturing strategy that is consistent with an overall business strategy.
Crisis management and organizational continuity have become increasingly critical areas of competence for managers in organizations. The approach of typical business…
Crisis management and organizational continuity have become increasingly critical areas of competence for managers in organizations. The approach of typical business organizations to the problems of business area impact analysis (BAIA) has been fragmented. In particular, the potential problem is the lack of an analytical capability to identify business functions/processes. The research objective is to describe how business functions/processes can be identified to analyze business area impact for corporate crisis management. In order to conduct the BAIA efficiently, it is first necessary to identify business functions/processes according to a scientific approach such as that described in the Information Engineering methodology for systems development. Next, to investigate the financial impacts on business functions/processes, which level of function/process hierarchy decomposition is used as a basis must be determined.
Discusses the efforts of manufacturing enterprises to make themselves Internet‐ready, to cope with future e‐ business. Changes brought by the Internet will force…
Discusses the efforts of manufacturing enterprises to make themselves Internet‐ready, to cope with future e‐ business. Changes brought by the Internet will force enterprises to become more agile and responsive. However, the same changes force a need to deploy integrated information systems, and to have business processes in place to facilitate rapid decision‐making, and optimize the extended supply chain by integrating internal business processes with those of business partners. Concludes that e‐business has not yet caused the revolutionary changes in asset‐intensive process industries that it has in information‐based industries.
In recent years there has been considerable focus on business processes which has created a debate on their definition. One school of thought believes that a standard set of business processes can be applied fairly universally to most businesses; others believe that business processes are individual and specific to organizations. Reviews this debate and presents a view based on a technique developed to define business processes using a bottom‐up approach. This technique focuses first on the business activities and goes on to quantify the relationships between business activities. The hypothesis behind the work described is that the closely coupled activities could be grouped together to form a natural business process. Describes the technique developed for bottom‐up identification of business processes in some detail and presents a case study which has been designed as a controlled experiment.
The chapter starts with an observation from a selection of contemporary business situations indicating that B2B sales episodes are frequently quite complicated…
The chapter starts with an observation from a selection of contemporary business situations indicating that B2B sales episodes are frequently quite complicated, multidimensional and long term. At the same time, models and theorizing about sales still tend to be highly inspired by the old seven steps of selling framework.
A grounded theory is reported where a broader view was taken. The study resulted in a conceptual framework where the core process was named “business maneuvering.” Complementary processes were also identified. These are judiciously managed and balanced a little differently each time during the process of doing business. In other words, these other activities are “maneuvered” (i.e., managed with dexterity and skill).
Four complementary processes were extracted. They all represented interrelated categories that describe various selling activities:
probationary business rationalization.
probationary business rationalization.
Those processes are described along with their relations and implications for the understanding of sales processes are drawn.
While the importance of SAP software in business applications and in process redesigning may have received attention recently, its effects on fostering process thinking…
While the importance of SAP software in business applications and in process redesigning may have received attention recently, its effects on fostering process thinking have not been fully recognised. For example, SAP technology has facilitated a process‐oriented approach to system development because an SAP database can be shared by several functions in different functional units participating in the same business process. The SAP system has been built around business processes that cross functional units. In addition SAP technologies provide opportunities for improving collaboration among personnel from different functional units in their efforts to accomplish a common business process. The analysis reveals that while both computing and communication technology generate an undercurrent of process thinking, it is important to realise that SAP is a facilitator for process improvement and re‐engineering. This paper presents an overview of the role of SAP software as an enabler in business process re‐engineering. The paper also discusses the impact of the SAP system on organisations’ information and business integration strategies.
Sustaining business performance in an ever changing economic and technical environment is a challenge to be addressed with relevant management implements. This goal can be…
Sustaining business performance in an ever changing economic and technical environment is a challenge to be addressed with relevant management implements. This goal can be achieved by using business modelling by processes allowing for costing deliverables, controlling operations and designing information sytems aligned with business procedures and organisation. It has to be stressed that the same process model can fulfill the three purposes above mentioned so that coherent views are secured for the various business stakeholders. In addition, adequate descriptions of business processes can “scavenge” the features of business assets such as organisation, personnel qualification, information systems to be taken into account in strategic decisions.
Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business…
Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business systems and to determine the directions of managing the organizational culture depending on the set criteria of decision making.
Methodology: A proprietary classification of the types of organizational culture of modern business systems according to the criterion of employees' involvement into decision making is offered. This classification uses two dimensions of employees' involvement into decision making for classification of the types of organizational culture of modern business systems. First dimension: interest of business manager in involvement of employees into the process of decision making. Second dimension: employees' inclination for participation in the process of making of managerial decisions. The factors that influence these dimensions are determined.
Conclusions: Connection between organizational culture and specifics of decision making in modern business systems according to the criterion of employees' involvement in decision making is determined. The minimal level of involvement envisages independent decision making by business manager without participation of employees. In this case, a lot of problems of the business system remain unsolved and possibilities remain unused. Resource intensity of decision making is the highest, and their practical implementation is complicated by employees' dissatisfaction, but this process is conducted very quickly. The medium level of involvement envisages either collective discussion, but decision making by business manager, or collection of feedback by business manager with low interest in it from employees. In this case, resource intensity of decision making is lower, and decisions could be made and implemented faster. The highest level of involvement is connected to collective decision making by employees and business manager. This allows determining problems and using possibilities of the business system with minimal resources. Though the duration of the process of decision making is the highest, solutions are implemented quickly due to employees' support.
Originality/value: The determined specifics show the necessity for considering the influence of the organizational culture on specifics of the process of decision making in modern business systems. It is substantiated that no type of organizational culture of modern business systems according to the criterion of employees' involvement in decision making can provide a guarantee of decisions' optimality. The directions of managing the organizational culture depending on the set criteria (completeness, speed, resource intensity) of decision making are recommended.