Business Process
It is important to begin this Chapter by introducing in a brief way how a company works in order to make business, and how the company or organization is structured into connected organizational units that operate as a whole to form the organization or en
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Business Process
Goals. In this Chapter the following questions and themes are explored: – The meaning of business – Type of businesses – Functional organization of a company – Functional areas and their roles within an organization – What is a business function – Understanding a process-oriented view of an organization – The meaning of a business process – Structure of a business process – The role of a business in the functioning of an organization – What is a work process – What is an activity and a task – Understanding the functioning of the company as a whole
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Business
It is important to begin this Chapter by introducing in a brief way how a company works in order to make business, and how the company or organization is structured into connected organizational units that operate as a whole to form the organization or enterprise. The purpose of this introduction is to enable readers, particularly students, to understand what business is, how to look at a company or organization from a business process point of view, and what role the business process plays within the company or other kinds of organization. The term business is understood by many authors as the performance of some kind of work that brings profit to its owners. It is also accepted that by the term business we usually understand a company, firm, or enterprise. Business covers all activities within an organization, such as planning, organizing, and producing marketable products or services at a required level of N. Damij and T. Damij, Process Management, Progress in IS, DOI 10.1007/978-3-642-36639-0_2, # Springer-Verlag Berlin Heidelberg 2014
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Business Process
quality, and selling at competitive prices. All these factors contribute a great deal to creating a better climate and possibilities for bringing profit to the company. Since the reason for doing business is normally earning a profit, which is essential for the owners to extend their working area, improve their existing products, and increase their wealth. Business is defined by Burlton (2001) as: “A business is any organization whose aim is to create results of value for someone who cares about those results”. The author explains that the purpose of any business entity is to act as a transformation mechanism. When an appropriate event and conditions trigger action, customer requirements and consumable resources – such as raw materials, money and information are transformed into goods, services, and business outcomes for the customers’ benefit. These results can have a physical component, such as a tangible product, as well as an informational or knowledge-based one, such as a report, book, or expertise provided. Therefore, from Burlton’s definition, we may conclude that the term business covers the work carried out by the company including the work performed within the framework of the company to produce the desired product or service, as well as the work of the company that is aimed at building good relationships with customers and suppliers. In addition to companies, ther
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