Business systems at their simplest level are sequential frameworks of major functions that reinforce the competitive advantage and the value proposition of organizations. Initially, the notion of competitive advantage was linked to the success of a company, which means what your company can do, other companies cannot do easily.
A micro economic theory says - unless it's difficult, your competitors will surely imitate your competitive advantage and while competing with the same competitive advantage the profits go back to the customer. Thus, successful businesses constantly seek new forms of competitive advantage.
In a broad sense, it is the condition that enables a company to operate in a more efficient or higher-quality manner than the companies it competes with, which results in benefits accruing to that company.
When you try to reinforce the competitive advantage, you need to align all departments with the new strategy.
A business system is a way that allows you to be relatively systematic in how you lay out those choices to keep all departments aligned to your competitive advantage. Individual departments cannot make their choices in isolation from the others.
Since companies today participate in consortiums, outsource their pieces of the work or buy component parts from each other, it is becoming more and more difficult to optimize the entire system. In addition to this, with a faster pace of change, globalization and specialization, it is more difficult to optimize the system. The relevance of concepts behind the success of business systems have gained importance in the last 20 years and will surely become more important in the next 20 years.
Managing the framework of a business system is as important as ever because it helps us understand the more interconnected we are, the more important it is to manage the overall framework. One piece of framework with a flaw can cause disruptions up and down the entire system. The linkages in larger organizations are even more sublinked, a flaw in one piece causes widespread disruption.
The only way to prevail in the present competitive world is to constantly seek ways to gain competitive advantage by ensuring alignment of an organization as a whole.
We offer our services in facilitating your organization's alignment process. It all starts with establishing a cohesive team out of the people responsible for shaping the organization - the Core Team. Without leadership cohesion, any effort to build organizational culture may fall apart because of a weak foundation. As soon as the Core Team is ready, we can facilitate the crafting of the organization's strategies for alignment of all actions via review of strategies and cascading the newly stated direction for all employees.Contact CRM expert
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