Business Systems are comprised of a collection of contiguous business processes connecting workflow together to provide a value proposition that delivers the broader purpose of the Business System itself. System is comprised of a collection of contiguous business processes connecting workflow together to provide a value proposition that delivers the broader purpose of the Business System itself. Business Systems are frequently identified by their department names, such as Procurement or Finance. We have found that twelve standard business systems can be used to define any enterprise regardless of size, shape, or industry. The breadth and depth of each business system may vary by company, but the fundamental workflow, connectivity and relationships remain largely the same. The twelve standard enterprise Business Systems are briefly introduced below.
The Twelve Business Systems
- The Enterprise Management System delivers company strategy, establishes the company scorecard, executes M&A activities and monitors organization performance through structured management review.
- The Financial Management System manages and monitors the flow of capital through the enterprise, including financial transactions, accounting and financial metrics.
- The Facilities Management System acquires, develops, constructs and maintains enterprise facilities to provide a suitable working environment.
- The Equipment Management System specifies, installs, calibrates and maintains equipment utilized to deliver the firm’s value proposition.
- The Employee Management System qualifies, hires, monitors, develops and terminates employees to provide capable personnel that deliver their assigned organization responsibilities.
- The Information Management System controls information, security and data related to the business requirements, including hardcopy, electronic and web.
- The Customer Development System manages the customer experience, from first contact with the new prospect or lead through the first order for product or services, with ongoing account management and maintenance.
- The Product Development System conceives, plans, develops, tests and delivers new products and services, as well as obsoleting previously active products and services.
- The Supplier Development System manages and monitors suppliers of materials and services to the enterprise, covering the complete supplier life cycle, from qualifying, setup, contact, development, and management through disqualification.
- The Operations Management System executes, delivers and manages the enterprise creation of customer value, including products and services quality, responsiveness, and economic value.
- The Service Management System manages postproduction services, including installation, maintenance and service management, and customer follow-up, complaint handling and resolution.
- The Improvement Management System organizes, manages, and monitors enterprise performance improvement, including products, services and processes, customer feedback and response, opportunity analysis, and corrective action.
The Twelve Business Systems and Best Practices
At Business Enterprise Mapping, we have worked with over 300 enterprises from 60 different industries on 6 continents and every type of organization function. We have continued to use this organizing workflow definition with these many different situations. This gives us the distinct advantage of being able to compare business systems across all industries and look for common principles for best practices. New clients often ask us about our experience within their industry. While we more likely than not have experience in their industry, we always caution new clients that the experience we’ve gained from other industries will likely be far more valuable to their business improvement efforts than any experience we might gain from their competitors
Further Reading: THE PERIGON METHOD