Imagine that you are a business manager for a mid-sized company. Propose one (1) overall strategy to build an effective business model in order to both monitor / control changes in business process and predict future business performance for your company. Provide a rationale (e.g., verification process) for your response.
A business strategy that many companies use in order to predict the future is considering momentum of the company. They use a lot of analytics and use tons of algorithms to predict the future of the business. I would recommend finding out what algorithms would best help determine the success and growth or production of a company in order to measure the momentum of the company. By keeping these statistics the company would be able to predict the companies future just like how people can predict the stock market.
A continued evaluation of the turn around of getting deals funded is something I can use for this discussion. Some “why” questions that could be asked are “why are the deals being sent without the stipulation already in the package?” “Why are we printing contracts offline knowing they are offline and waiting to re-contract customers?” “Why are we spotting car deals knowing the circumstances and obstacles needed to overcome when we should obtain approvals before the customer leaves the store?” These questions mainly are making sure that we have all of the problems solved before we send the deals to the bank that way once they get there is no turn around of having a deal funded and there is no need to chase down any additional paperwork when the package gets to the bank.
There are many different strategies available to help build an effective business model in order to both monitor/control changes in business process and predict future business performance for your company. According to Hoerl and Snee (2012), “there are two basic strategies for developing process models: analyzing existing process data and proactively experimenting with the process” (p. 232). These different strategies will help a manager be able to run a mid-sized company successful. These different strategies will show different statistical correlations in this business. A business manager would be able to study “correlations between variables” (p. 232). Also, the textbook mentions using these models to
- Predict future process performance
- Measure the effects of process changes
- Control, manage, and improve the process
- Deepen understanding of the process