ASSESSMENT OF THE BUSINESS PROCESSES EFFECTIVENESS IN THE CORPORATE COMPANY

Abstract

“Business processes” is a summarized term for all innovative, operational and focused towards client’s activities in the corporate company. Innovations are about exploring the real and future necessities of customers as well as developing the appropriate products after sales service. They are involved in building the extended value chain in the corporate company and determine the long-term financial effectiveness of the business. The criteria and indicators for effectiveness of innovations generalize in four groups: a) Identifying opportunities for creating new products; b) Management of the portfolio for operation and development; c) Operation and development of new products; d) Release of new products on the market. Key measures of the financial effects of innovative activities are the profitability of the investments in innovations, revenue growth from existing customers, revenue growth from new customers and the cost management of the product life cycle.The operations include a variety of activities for the acquisition of raw materials and materials, processing and recasting, as well as producing the resulting product into an exchangeable state. The operational activities compose the shortened chain of value in the corporate company. They condition the effectively, timely and rapidly delivery of already existing products to existing customers. The criteria and indicators for effectiveness of the operations can be classified into groups: a) Developing and maintaining relationships with suppliers; b) Production of products; c) Distribution of products to customers; d) Risk management. Traditional guidelines for evaluation of financial effects of operational activities are the level of costs, the degree of asset utilization, the success of expanding the proportion of customer purchases, and the increase in revenue from new customers.Customer relationships present a variety of activities aimed at maintaining and developing a consumer’s base. In them the loyalty and affection are reinforced of existing customers and attracting new ones. The criteria and indicators of effectiveness of the client relationships can be summarized in the following groups: a) Customer selection; b) Attracting new customers; c) Keeping the customer base; d) Development of customer relationships.Key measures of the financial effects of customer relationships are the creation of new sources of revenue, the increase in revenue from one customer, the growth of customer profitability, the increase in effectiveness of sales and others.Among the diversity of business processes a small number determine the specifics of the management strategy in the corporate company and form strategic topics.