Thursday 17th of January 2019

The Information Revolution

Business Efficiency
Written by Tony Gomez, Business Analyst.   
How well is your business performing? How can you be sure it is performing at its best?

We are all familiar with the word ‘efficiency’ but what are the key ingredients affecting business efficiency and what can you do to get the most benefit?  How can you tell if your business is running at its best?  Is technology the answer? Or is there something more profound?

Tony Goméz, founder of Fusight Technology Ltd

Tony Goméz, founder of Fusight Technology Ltd. unveils what is business efficiency and points out what you can do to get started.

Before we can drill down  into the topic of business efficiency, we need to understand the four key things that all businesses must do well to succeed.  Here they are:

  • Have a product to offer
  • Communicate and sell the product
  • Be able to deliver it
  • Be able to support it

And of course, MAKE A PROFIT.

To do each of the above,  we need  to consider three variables that ultimately make up the  base ingredients of any business. These are:

  • People
  • Process
  • Product

To avoid confusion, ‘product’ in this context means an output.  For instance the ultimate product of a Sales Process is ‘closure of a sale’.

If you stop and think, you’ll find that ’people’, ’process’ and ’product’ are interlinked.  A product requires people and a process.  A process requires people and people can not produce something consistently without a process.

This leaves us with the inescapable fact that it is ‘people’ and the ‘process’ that underpins any business.

This boils down to training people and engineering business processes.  Unbelievably, there is nothing else.  You cannot  throw money and expect things to work.  Yes, finance is necessary but the key is with the people and the processes. You may have a top  class service or product, but if you do not have the people with the skills working to a process  to market it, sale it, deliver  it, and supported it, then you do not have a viable business.  In fact for most businesses, failure in any of these  four  areas, leads to failure of the business as a whole.

We arrive at the  conclusion that  its people determine the efficiency of any business and the  processes to deliver the products.

In order to determine, how efficient your business is, you first need to define all your key business processes in terms of input, outputs and the process itself.  Doing this will force you to be clear not just on the process of doing something but also the cost and benefits of doing it.

Once you have a reference, you can monitor performance and make improvements.

When trying for improvements, you will need to understand the dynamics between business processes because improving one process may in fact give you a problem somewhere else.  Also decreasing the overall efficiency of one process, may benefit another in a greater proportion.  This is why process improvements need to be undertaken with a holistic view of the business.

Technology is often used to help and at times fully carry out a business process.  Of course, too much,  too little or the wrong technology is inefficient. Indeed, it is not uncommon to find the technology driving the business rather that the other way round., in  other words, the ‘tail wagging the dog’

Fortunately there are tried and tested methods and by using the right tools and techniques, we can examine how business processes run and how they may be improved.

If you have not defined you business processes and you have the people in your organisation with the skills and experience in business modelling,  then do not wait.  Start today. It is incredibly important that you fully understand the anatomy of your business.

If you do not have the skills or the time to do this work, then Contact Tony Gomez  to discuss your business modelling and technology requirements.


Important copyright notice 

About the author:  Tony Gomez is an accredited Business Analyst specialising in Business Modeling, Process Mapping and Root Cause Analysis. With over 30 years of experience in the ICT industry, Tony is an accomplished consultant in the application of Technology to improve  business performance.  

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