Friday 13 July 2012

Explain about Primary and Support Business Process. Choose a business entity and give examples on each of the Primary and Support Business Process.

The Primary and Support Business Processes are viewed as part of the Business Process because these activities are related to the financial activities of the organization. Business Processes is an inter-related set of tasks that involving data, organizational units, and logical time sequence. Business Processes are always triggered by some economic event, and all have clearly defined starting and ending points.

       For example, the customer order the management process might be triggered by the receipt of the
       customer purchase order, the process might begin with the creation of a sales order, and it might
       end with the collection of the customer's payment on accounts receivable.  

Since most organizations experience similar types of economic events and activities, it is possible to define 9 general groups of basic business processes. These include of the following:


The first 5 of these processes can be classified as primary business processes while the last 4 processes can be classified as support business processes.
  • Primary Business Processes - involve activities that directly add value to the company's products.
  • Support Business Processes - involve the activities that indirectly add value and support the primary processes.
Collectively, the primary and supporting business processes comprise the entire value chain of activities. All in all, the value chain is simply a way of viewing the company's activities in a manner suited to analyzing its competitive advantages. The value chain breaks activities down into components that can be individually optimized in terms of the company's goals and strategies.

Both of the primary and supporting business processes can be further subdivided into many subprocesses. For example, outbound sales logistics can be divided into order entry, credit checking, and so on. 

Subdividing processes is a helpful tool for the systems person and the accountant because it makes it possible to focus on clearly defined, specific areas of the enormous set of the company's activities.

Enterprise Resource Planning ( ERP ) consists of the company-wide integration of business processes. ERP software packages are financially oriented information systems that support and automate business processes. ERP software packages are sold by several companies, including SAP, PeopleSoft, BaaN, and Oracle.



Based on the information above, we have decided to choose Jakel Trading as our chosen business entity.
The following example reasons are as below:

  • Primary Resources
    1. Inbound Sales Logistic - Most of the materials are imported from foreign countries; England, France, Italy, Turkey, Korea, India, and Japan. This is because Jakel Trading only will use the good quality kinds of colors and type of materials.
    2. Outbound Sales Logistic - Jakel Trading sells many types of fabrics such as;
                • Polyester & Washable silk
                • Silk & Cotton 
                • Window decorations & Accessories
                • Bridal Wear
                • Designer fabrics
                • Ready-to-wear Clothing
                • Fabrics for gentlemen
               3.  Operations - They also use the fabrics Malaysian designers concept. Besides, in case of
                                          relating with the other countries, Jakel Trading also plays along with European
                                          designers and promotes the design brands; Pierre Cardin, Valentino,etc.
               4.  Marketing - Jakel Trading do brochures, flyers, promotion ( which give discount price to the
                                         customers), lucky draw ( gifts = motor vehicles and amount of money ), runaway
                                         (Jakel Trading use modelling services for modelling the clothes and fabrics design;
                                         bridal wear, casual wear, traditional wear,etc.)
               5.  Services - Easy payment : Customers can make payment using their credit card, debit card 
                                                              also in cash.
                                   - Jakel Trading has own strategic to arrange and keep their fabrics and clothes which 
                                      is the fabrics will be analysed based on its quality, type, and price for sure. So that, 
                                     the customers will be easy to choose and find their needs.
                                   - Besides, they will prepare many options for customers which is they sell 2000 types 
                                      pattern and colorful of laces.


  • Support Business Processes.
    1. Firm Infrastructure - provides accountant, lawyers & well-administration. Besides, the company's accounting information system include for Jakel Trading.
    2. Organization and Human Resource Management - Jakel Trading recruits and hires employees through the interviews first. After that, they will give training to their new staffs for company's benefits
    3. Technology Development - They do surveys on the quality of fabrics for sales. Website also provided so that people will know more about Jakel Trading and new updates for the fabrics.
    4. Procurement & Purchasing - Company needs : motor vehicles, staff's uniforms, enough inventories and raw materials from the suppliers.  

                                                              



1 comment:

  1. Great post, thanks for sharing it! In my case, getting Microsoft Dynamics as my company's erp software and crm process support was the best choice I could possibly make. Especially with all the support from anegis consulting, it's a pure pleasure to use.

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