Core process

From CEOpedia | Management online

Core process - this is the main activity or set of activities that must be performed in an accurate manner to ensure that the company has a constant competitive advantage. This is due to the fact that this core process guarantees a constant flow of money and customers. It is also, above all, a distinguishing factor that gives the company great added value. Moreover, it also provides consumers with additional benefits in the form of better customer service or faster and more efficient execution of orders, deliveries or complaints. With this in mind, most national or international companies implement uniform processes in their structures to enable them to achieve these effects.

Implementing core process

The development of the main process should start with a thorough analysis, which will be carried out by an independent auditor. He will take into account the following factors:

  • A value that distinguishes a company from its competitors;
  • Strategic assets and how company uses them;
  • Ways of using human resources and maximizing intellectual potential;
  • Competitive environment and competitive methods of selling, increasing revenues or minimizing costs.

Considering the above, a given person will implement a set of reactions, which will have to be performed by persons or machines in a specific time and with specific events. Such action can be compared to the creation of algorithms. It consists in the fact that a scenario is written which foresees the fulfillment of specific events. In this way it automatically allows for a quick and automatic reaction. As a result, just like employees, customers are not put in uncomfortable situations, where the person responsible for the implementation of the process fails [1].

Using core process in international business

Most multinational corporations implement their own core processes to achieve cross-border synergies. This enables people working on the other side of the globe to serve customers located on another continent. All thanks to a properly applied core process [2].

It is particularly important in the case of call-center services. Usually, the main language spoken by the operators of such entities is English. However, it is very often the case that this language is not their native language. Therefore, especially for cost reduction, they were employed and implemented in the process. Thanks to this, they continue to provide services at a very good level, and at the same time their labor costs are significantly lower (so that the employer can spend more money on paying dividends or future investments) [3]. Nevertheless, it is often accused that process implementation deprives people of their independence and creativity. This is an approach based on mechanical and rigid rules of conduct. Therefore, thinking out of the box is very often undesirable and even punishable.

Examples of Core process

  • Manufacturing: A company's manufacturing process is the core process that is responsible for producing its products. This process involves a range of activities, such as design, development, production, testing, and packaging. The core process of manufacturing is essential for a business to remain competitive in its industry.
  • Sales: The sales process is a core process used by companies to generate revenue. This involves activities such as market research, lead generation, customer service, pricing, and marketing. Sales teams must be well-trained and experienced in order to maximize sales and optimize the customer experience.
  • Accounting: Accounting is a core process that is essential for businesses to keep track of their finances. This process includes activities such as invoicing, bookkeeping, financial reporting, and budgeting. Companies must ensure that their accounting process is robust and reliable to ensure financial accuracy.
  • Human Resources: Human Resources is a core process that is essential for managing a company's workforce. This process includes activities such as recruiting, onboarding, training & development, payroll, and performance management. Companies must ensure that their HR processes are up-to-date to ensure that their employees are well taken care of.

Advantages of Core process

The core process offers a number of advantages to companies, such as:

  • Improved efficiency - As the core process is uniform, it helps to streamline operations, allowing companies to do more tasks with fewer resources and completed faster.
  • Greater customer satisfaction - As the core process ensures a constant flow of money and customers, customers are more likely to be satisfied with the services provided by the company.
  • Increased competitiveness - By implementing a uniform core process, companies are able to gain a competitive advantage over their rivals.
  • Cost savings - As the core process is streamlined, it allows companies to save money on labor and other resources.
  • Improved communication - With a uniform core process, communication between departments of the company is improved, as everyone is working towards the same goal.

Limitations of Core process

The core process can have many limitations that can impede its effectiveness. These limitations can include:

  • Cost: Implementing core processes can be expensive as it requires resources, time and money to make them effective.
  • Lack of Flexibility: Core processes tend to be rigid and inflexible, making it difficult to accommodate changes in the market or to respond to customer needs.
  • Complexity: Core processes can often be complex and involve multiple steps, making them difficult to understand and implement.
  • Lack of Automation: Core processes are often manual and lack automation, making them more prone to errors and inefficiencies.
  • Lack of Adaptability: Core processes are often designed in a way that prevents them from easily adapting to different situations or contexts.
  • Lack of Scalability: Core processes are often designed for a specific size or type of company and may struggle to scale up or down depending on the size and needs of the business.

Other approaches related to Core process

A core process is a key factor in any company's success and involves creating a competitive advantage. There are other approaches related to core processes that can be implemented to ensure that a company maintains a competitive edge. These include:

  • Developing a customer-focused strategy: This involves identifying and understanding customer needs and creating strategies to meet those needs. It also involves creating customer loyalty and understanding customer preferences.
  • Enhancing the product portfolio: By continuously updating a company's product offerings, it ensures that customers are able to get the latest products in the market, which can lead to improved customer satisfaction.
  • Increasing efficiency: By streamlining processes and leveraging technology, a company can identify and eliminate any inefficiencies in their processes, thus leading to improved customer service.
  • Developing an innovation strategy: This involves developing a culture of innovation and encouraging employees to think outside the box in order to come up with new and innovative solutions to existing problems.

In conclusion, it is important to recognize that core processes are only one aspect of a company's success. There are other approaches related to core processes that can be implemented to ensure that a company maintains a competitive edge. These include developing a customer-focused strategy, enhancing the product portfolio, increasing efficiency and developing an innovation strategy.

Footnotes

  1. ↑ Ameer, R., Othman R., (2012) p.61-79
  2. ↑ Chalmers, S. E., Dückers M. L., Groenewegen1 P. P., Merode G. G., Vos L., Wagner C., (2011) p.1-14
  3. ↑ Babatunde Y., Bakare I. A. O., Mudashiru A., (2014) p.171-182


Core process — recommended articles
Development by restructurization — Business process reengineering — Importance of knowledge — Methods in management — Incremental innovation — Strategic business unit — Specialization — Smart organization — Innovation management

References

Author: Weronika Czarna

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