how to understand business

8/2/2019 How to Understand Business

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By Tahar [email protected]

Some tools and techniques to get a general idea about any business


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A business (also known as enterprise or firm) is an organization designed to provide goods, services,

or both to consumers

Business policyThe mission is the representation of the enterprise's purpose for existence

The vision reflects its aspirations and specifies its intended direction or future destination.

The objectives of the business refers to the ends or activity at which a certain task is

aimed.The business's policy is a guide that stipulates rules, regulations and objectives.

The business's strategy refers to the coordinated plan of action that it is going to take.

Industry classifications Agriculture and mining

Financial businesses

Manufacturing

Real estate

Retailers and Distributors

Service businesses

Transportation businesses

Utilities

What is business


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"To make the world's information universally accessible and useful

To develop a perfect search engine

"To experience the joy of advancing and applying technology for the benefit of thepublic."

"We should always be the pioneers with our products--out front leading themarket. We believe in leading the public with new products rather than askingthem what kind of products they want.

Vision Vs Mission


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General Business Concepts

Management

Terminology & Abbreviation

Business Analysis

How can we?


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Goods Vs Services

Projects Vs Operations

General Business Concepts


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a good is a tangible physical product. Ex:

A service is type of economic activity that is intangible, is not stored and does notresult in ownership. EX: Consulting, education, cleaning, Financial services

Differences between service and product :

Tangible vs. intangible

Consumers' concept based

It is pretty easy to compare the quality of different products. However, it is muchmore difficult to compare the quality of similar services that are provided.

Products are returnable. However, services are not returnable.

Note: Most products fall between these two extremes

Goods Vs Services


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Project : consists of a temporary endeavor undertaken to create a uniqueproduct, service or resultOperations ( process discrete- Flow Manufacturing )Discrete manufacturing finished products that are distinct items. Examplesinclude toys, medical equipment, computers and cars.

Process manufacturing is distinguished by a production approach that hasminimal interruptions in actual processing in any one production run. Typicalexamples are Food, pharmaceutical and other batched-basedmanufacturers such as refineries, etc

Flow manufacturing or JIT(Just-In-Time) and uses the principles ofdemand flow manufacturing to produce product is required, for customerorders, quickly and to meet the demand exactly on-time.

Project Vs Operation


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Difference between Projects and Operations are:

ProjectsOperations

* Temporary * Ongoing

* Output: Unique* Output: Repetitive

* Purpose: Attain its objective* Purpose: Sustain the business

and then terminate* Concludes when its specific* Adopt a new set of objectives

objectives have been attainedand the work continues

Similarities between Projects and Operation

Performed by people

Constrained by limited resources

Planned, executed, and controlled



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What is Management

Function

Processes

Stakeholders

Management


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Management in all business and organizational activities is the act of using available resources

efficiently and effectively to accomplish desired goals and objectivesWhy the management process?

Plan

To know what need to be done

To know how to organize and coordinate tasks

To know what facilitation are needed

To enable effective communication

Do

To implement the plan

See

To monitor progress and results

Adjust

To adjust actions according to development during implementation

Management operates through various functions, processes and activities

Management


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Function is composed of a logical set of ongoing processes that sustain the organization's

business objectives. A function can be managed but cannot be performed.

Corporate finance & Accounting

Human Resource

Marketing & Sale

Business operations

Management as Functions


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A business process is a distinct activity described by its inputs and outputs. A process

describes a unique behavior that has a beginning and an end. A process is performed

repeatedly.

A business process may be:

manual,

automated,

There are three types of business processes:

Management processes,

Operational processes,

Supporting processes,

Business Process


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Stakeholder: a person, group, organization, or system who affects or can be affected

by an organization's actions

Stakeholders


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What is terminology?Terms are words and phrases which describe products, services or industry jargon.

Type:

Function terminology

back pay is the money earned between the original filing of a claim and the final judgment.(HR)A by-product is a secondary or incidental product deriving from a manufacturing process

(manufacturing)A joint venture is a business agreement in which parties agree to develop, for a finite time,a new entity and new assets by contributing equityEquity is the residual claim or interest of the most junior class of investors in assets, afterall liabilities are paid.

Industrial terminology

Overdraft. Deficit in a bank account caused by withdrawing more money than is paid inAir Waybill (AWB) note refers to a receipt issued by an international airline for goods andan evidence of the contract of carriage.Actuary. a person who calculates risks for insurance companiesBug A defect or fault in a computer program that prevents it from working correctly.

BusinessVocabulary.Org

Terminology


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An abbreviation is a shortened form of a word or phrase.

Examples:

ABC - Activity Based Costing ( cost accounting )CIF - Cost, Insurance, and Freight (shipping)

RFQ - Request for Quotation (purchasing)ADTV- Average Daily Trading Volume (stock market)LLC- Limited Liability Company (business Law)F/X - Foreign Exchange( banking)

http://www.abbreviations.com

Terminology
http://www.abbreviations.com/http://www.abbreviations.com/


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What is Business Analysis

Business Analysis Method

Business Analysis


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The International Institute of Business Analysis (IIBA) defines business

analysis as the set of tasks and techniques used to work as a liaison among

stakeholders in order to understand the structure, policies, and operations of anorganization, and recommend solutions that enable the organization to achieve

its goals (www.theiiba.org).

Examples of business analysis include:

Requirement gathering

Analysis and investigationBusiness process modeling

What is Business analysis?
http://www.theiiba.org/http://www.theiiba.org/


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The word requirement is one of the most important words in business analysis.

definition of requirement:A requirement is a condition or capability needed by a stakeholder to solve a

problem or achieve an objective.

Information gathering can be done in three main ways:

Using existing documents.

Running strategic interviews.

Running modeling workshops.

In Strategic Interviews you should know:

Who to Interview

What to Ask

How to ask

Requirement gathering


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There are a number of generic business techniques that a Business Analyst willuse some of these techniques include

Brainstorming Document Analysis

Focus Group Interviews Workshops Surveys User Task Analysis

Analysis and Investigation


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Business process modeling (BPM) is the activity of representing processes of an

enterprise, so that the current process may be analyzed and improved.

Flowchartingis a tool that helps us define a business problem and analyzing and

documenting various processes.

Why we do Mapping and Modeling

Understand and analyze the current way of working (as-is model)

Redesign and improve a business process (to-be model)

Determine roles and responsibilities for the task in process

Use the model as a communication tool

Business Process Modeling


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An Event is represented with a circle and denotes something that happens

An Activity is represented with a rounded-corner rectangle and describes the kind of workwhich must be done.A task represents a single unit of work that cannot be broken down to a further level ofbusiness process

A Gateway is represented with a diamond shape and will determine forking and merging of

paths depending on the conditions expressed.

A Sequence Flow is represented with a solid line and arrowhead and shows in whichorder the activities will be performed.A Message Flow is represented with a dashed line, an open circle at the start, and anopen arrowhead at the end.

An Association is represented with a dotted line.


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d


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Lets take any business, and apply to it the previous techniques

I- Base Concepts:

1- define the business ( what industry is it, what are their Mission and vision)

2- do they produce Goods or Services ( define deliverable, customer,..)

3- is that a project or process oriented

II- Management

1- what is their Management system2- define the function, process

3- define the stockholders

III- Terminology & abbreviation

1- Industry

2- Company

IV- Business Analysis

1- Requirement Gathering

2- Analysis

3- Modeling

Case Study


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Q U E S T I O N S

A N S W E R S

how to understand business

Documents