Business Processes and Philosophy

process

A process is always triggered by an event, the event is always triggered by an activity on a customer who has some requirements that the company wish to satisfy. A process terminates with the satisfaction of customer’s requirements.

Customer requirements analysis, identification of response mode, processing, production, response to those requirements: all are all examples of process activities (task).

The approach allows the implementation of a customer-centric organization in its essence and brings together all the tasks of the company in a coordinated way.

Business macro-processes: acquiring new customers; order management, invoicing and payments; product production or assembly; product delivery; customer service; maintenance and development of the customers relationship.

Internal functional processes: product development; materials and components procurement and warehouse; personnel recruitment and maintenance; capital raising; capital monitoring and management; risks management.

The process itself is what holds together the distributed cellular organization. The event triggers (engagement) a process of tasks coordination that should lead to the satisfaction of customer’s requirement by finding the solution (the service and/or the product), by packaging, and by delivering.

The organization is therefore an association of different organizational styles and postures that play different roles.

All processes have in common the need and the ability to manage changes

The result is a more flexible company: modular and capable of effectively managing the need to continuously change skin depending on market changes and its customers (continuous change management, adaptation).

Event-Driven Architecture

In times of chaos and complexity, the only possible equilibrium (the company poise) can be provided by an instant, targeted and interactive information. V. Ranadivè at the beginning of the century has proposed a new mindset.

The sense and respond logic:

the company perceives events from the market (sense),
responds to those pertinent to their business (respond),
uses the information to drive the development of new products and services.

It is an ancient idea, since the beginning of the market. Today the challenge is implementing this mindset in a multi-corporate organization (eco-system). Companies in the eco-system share relevant information as if they were operated by a single brain: the event-driven business architecture. This logic can be also applied to the regional cluster and in most of the cases.

Event-driven companies achieve a competitive advantage by creating a virtual, integrated and real-time network for their clients.

Focus on Customers

In an event-driven architecture events are triggered by the market, by the customers. The only perceivable, competitive advantage is to be close to the customer, creating value for the customer and thereby increase the perceived value of the company. Profit is a consequence of the creation of value for customers: the profit is a by-product.

Reversal of a project-production-sales model to a sale-project-production template: the products become solutions for customer problems and there is always time to standardize a solution in a product.
Event-Driven Behaviour

The event-driven behaviour is characterized by maximum flexibility.

The processes structure themself for the immediate response to the event by the involvement of the various ecosystem components relevant to the completion of the process; the organisation and operations adapt real-time to give the customers what they ask rapidly.

Advantages and benefits of the integration of organisational processes are significant and impact both efficiency and effectiveness:

Almost zero-cycle product customization;
Nearly zero-lag ‘ cash to cash ‘ (the cycle between investment and income related to the single product);
Zero-latency.

Planning

In a chaotic and complex environment, long-term planning is impossible. What companies can do to achieve success is

to remove barriers to learning,
to focus on the perception of anomalies (feedback),
to use the intuition to develop responses to the environmental changes (feedback).

The success must be the result of the discovery of patterns that emerge through the actions that the company does in response to changes that identifies.

Knowledge

The information is knowledge. The active information that flows through the event-driven organization, is continuously refined by knowledge, that is accumulated, event by event, classified and made available to anyone.

The information is what allows the company to evolve in a positive sense by enlarging their boundaries and their relations.