Process Analysis & Strategy

Process Analysis

Process Analysis is the documentation and detailed understanding of how processes are preformed and how it can be improved. Companies keep this data in order to optimize all aspects of a customer’s experience. The process we decided to focus on was a customer who decided to come in to buy paint. The diagram shows all the steps needed to be taken by the customers, the decisions needed to make, and wait times.

Process Strategy

Process Strategy is the pattern of decisions made in managing processes so that they will achieve their competitive priorities. There are four sectors where companies must choose how they want to operate as a business. The four segments include process structure, customer involvement, Resource flexibility, and capital intensity.

Process structure: Establish how the company interacts with the customers. Companies can either have a front, back or hybrid office. With a front office there is contact with customers through sales associates, a back office does not include contact with customers operating more like a manufacturing plant. Hybrid combines both back and front office processes.

Customers involvement: Establishes how involved the customer will be in the day to day activities. The advantages of having high customer involvement include things such as a higher net value from the customer, coordination across the supply chain, and reduction in inventory, shipping and product cost.

Resource Flexibility: Determines how well employees and equipment can manage a wide range of tasks. Retailers like The Home Depot try to keep general-purpose tools and employees who are cross-trained to be able to handle a wide variety of tasks.

Capital Intensity: Dictates whether the company invests heavily on automation. Retailers can’t be fully automated just yet, so that makes The Home Depot moderately capital intensive, because they invest in expensive machinery to assist in everyday tasks.