Internal processes perspective
In this perspective managers identify internal processes and activities which are key to implementation of objectives that are formulated in client and finance perspectives. Managers specify goals and indicators in this perspective after formulating them first in the other two perspectives. It is recommended to assess full internal value chain ranging from innovation processes through operational processes, up to the after-sales service processes.
Nowadays enterprises complement financial indicators with the measures relating to the quality, performance, and speed of sale and the duration of the operating cycle. The latest trends are encouraging for measuring the efficiency of processes such as drafting contracts, supplies, planning and control. Enterprise must be better than competitors for all key business processes.
In this perspective goal and measures are derived from a strategy focused on fulfilling the expectations of shareholders and customers. Every business has its own unique process chain of value creation for the customer which determine its financial results. However, there is a general value chain model, which companies can customize to suit own needs.
Elements of model
It includes 3 major groups of processes:
- innovative processes - managers examine the emerging and hidden customer needs, and then creates a product or service that cater to these needs
- operational processes - rely on the manufacture of the product (services) and providing it to the customer
- After-sales service processes
Innovative processes have two main stages. In the first stage market research is conducted in order to determine the size of the market, the needs of buyers and price ranges for products and services. The second stage is to create a product (service). Operational processes start with the order from the customer and ends with the delivery of the product or service.
After-sales service includes guarantees and warranty repair, repair of faults and receiving payment. After-sales processes let managers analyze opinions and needs of customer after delivery of the product or service.
- Jemison, D. B., & Sitkin, S. B. (1986). Corporate acquisitions: A process perspective. Academy of Management Review, 11(1), 145-163.
Author: Małgorzata Dróżdż