Core Processes PDF Print E-mail
Thoughts - on Strategy

Ever since I was introduced to the concept of "Order2Cash" processes, I have had that nagging feeling that there are several more processes that execute within a company. Well, here is my "process map".

There are 5 processes within a company:

Asset 2 Idea                
    Idea 2 Product            
        Product 2 Order        
            Order 2 Cash    
                Cash 2 Loyalty

Finance is an activity crossing across these processes, as is M&A. Mergers and Acquisition are actually trying to merge or displace existing instances of these processes in the combined companies.

People Development needs to keep in mind the particular strengths of participants. I venture to say that most folks cannot function in all five processes.

Let's take a closer look:

  • Asset2Idea is the application of financial, technological, human and knowledge assets to come up with ideas. This is R&D and Advanced Development.
    Focus: Conversion Quality
  • Ideas then get matured into products (a view including markets).
    Focus: Conversion Speed and Reliability
  • Such products need to then get marketed and sold by converting them into orders.
    Focus: Cost2Sell
  • After the transaction has been agreed upon, delivery of the order in exchange to cash is critical.
    Focus: Cost2Server
  • The last step is the conversion of the single transaction into something more lasting, usually through branding and loyalty marketing.
    Focus: Lifetime Value Potential

Since the five processes have different foci, they have different metrics. Hence, they need to be executed and managed differently.

Go ahead, shoot holes...
 
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