BSC- internal business process perspective

For the internal business process perspective,

Management identify the processes that are most
Critical for achieving customer and shareholder
objectives
 Why internal
Processes

Improving Quality
Cycle Time
Increasing Yields
Lower costs
Maximize output
Improving distribution
Improving Service
Innovations
R&D
 The Internal Business Process Value Chain

Post
Innovation Operations Sale
Process Process Process
Customer Build Service Customer
Need Identify
Create
The Deliver
The Need
Product Product
Identified The Market
Service Product/ Service Customer Satisfied
Service
The Internal Business Process Value Chain

Post Sale
Innovation Operations
Services
 The Internal Business Process Value Chain

To identify the size

Market Of the market,
Innovation
Research nature of customers’
Process Preferences.
Price points
Searching
White
spaces

Organizations try finding answers

Innovation
Process
1 What range of benefits will customers
Customer Value in tomorrow's Products ?
Need Identify
Create
Product 2 How might we, through innovation, prompt
Identified The Market
Service
competitors in delivering those benefits
to the market place?
 The Internal Business Process Value Chain

Innovation Perform Research

Perform applied
To develop
Process New product
Research
to exploit existing
For
technology
Customers

Innovation
Process

Customer Make focused development effort

Need Identify
Create
Product to bring New products and
Identified The Market
Service Services to the market
The Internal Business Process Value Chain

Measures for Basic and Applied Research

Innovation
1 % of Sales from new products

2 % of sales from propriety products

3 New Product introduction vs

competitors
4 Manufacturing process capabilities

5 Time to develop new generation

of products
 The Internal Business Process Value Chain

Receipt of Order
Operations And
Delivery of
Product or
Service

Operations Scientific Management,

Process Improve customer order techniques
Improve customer delivery techniques
Customer Build Monitoring of orders
Need The Deliver Financial measures
Product Labour efficiency
Identified Product/ Service
Building inventory
Service
Total Quality Management
Speed, clarity, energy consumption
 The Internal Business Process Value Chain

Warranty
Bringing Down break down time
Repair
Rapid speed of service
Post Sale Defects
Reliable service
Returns
Services Minimize disruption
Payments
Using technology
Credit
Meeting customers expectations
Administration

Post
Sale
Process

Customer Customer
Service
Need Need
The
Identified Customer
Satisfied