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Many businesses focus their innovative activities on product innovation, which can produce valuable company assets. In addition to product innovations, businesses should look for ways to streamline business operations by innovating business processes.
Here is an approach to business process innovation:
- Big Question: Is the process necessary? The first question to ask when evaluating a business process is whether the process is necessary. What is the purpose or end result of the process? Is it still needed – does it provide value to the business? If not, don’t spend time “optimizing” the process, just eliminate it.
- Identify the desired result of the process. Ask questions to determine the goal of the process. Why was the procedure originally developed and what are the desired results of the process?
- Eliminate steps. Once you identify the desired result of the process, look at each of the steps currently performed and see if any of them are unnecessary. Look for ways to achieve the same desired result with fewer steps – or by simplifying steps to be faster or cheaper to perform.
- Combine multiple steps. In addition to looking for steps that can be eliminated, find ways to combine multiple steps to improve the overall efficiency of the process. For example, can multiple steps be performed at the same time? Or, if several people are performing different steps, consider whether the process can be simplified by having one person perform all of those steps at the same time.
- Automate the process. Look for ways to automate some of the steps in the process. If several people are involved in the process, consider collaboration tools that allow those individuals to work together more efficiently – especially if they do not work in the same location. Consider document management tools, project scheduling tools and other resources to automate steps in the process.
Start looking for ways to streamline your own business procedures to boost your bottom line.
Well, it turns out that in the United States, thanks to are fracking technologies, is able to get at much more of our natural gas. This has been a windfall for the supply side of that equation, while it has been a rather tough time on the commodity price due to oversupply in light of demand. Luckily, for the gas industry more and more energy generation plants are going to gas because it is a lot cheaper than coal. Also it pollutes less, and allows electrical generation some leeway with regulators.
Right now, we have so much natural gas that the industry would like to export some of it to get rid of that oversupply, and to make money on the open market. Natural gas prices around the world are much higher, and not everyone is using fracking technology yet. In Europe, there are rules against it, as environmentalists are standing up and worried that it might pollute the groundwater.
Remember water is also very important for human life, more so than electrical energy actually, I guess that goes without saying – so even if this is a false argument, the people are concerned and who knows maybe the Russian propaganda is attempting to spoil the fracking concept in Europe, as they do have a lot to lose. Yes, I suppose we can talk about why.
Much of the natural gas in Europe comes from Russia and because Europe is beholden to Russia for natural gas for heating in the cold winters, the Europeans and NATO have to mellow out because Russia has that big bargaining card over their head.
Global Intelligence Magazine – Analyzing World Affairs, Autumn 2012 had an article (an Op-Ed) titled; “Russian Energy Supremacy Threatens NATO,” by Probir K Sarkar. Then there was another article in the same issue titled; “The Age of Gas – The Coming Energy Boom Will Be America’s Thanks to Shale Gas,” by John McNeil.
Indeed, many of the NATO nations which wish to put in missile defense shields are beholden to Russia for natural gas, and there are pipelines that Russia can shut off at any time if the negotiations on such issues become too tumultuous. Russia has already shut off the gas to more than one country during disputes, so you might say that’s a big ace card in international negotiations. What if the United States started selling natural gas to Europe and elsewhere, perhaps in Japan too, what if we sell our excess around the world?
This would drive the global price down giving Russia far less leverage than they’ve had in the past in many places and territories around the planet. It could even sink their economy. Thus, it could be one more way to play the economic hard ball to serve our political will. Do we dare? Many in the US do not want our natural gas industry to export our excess as they want to make sure we have plenty far off into the future.
While that is good energy policy, there is this other question; do we dare to export our natural gas excesses to the rest of the world for profits, and greater leverage in international negotiations? I say we might wish to, for many reasons, only a couple I’ve mentioned above. Please consider all this and think on it, because we are at our think tank. You have any comments or questions you may e-mail me.
The need for a company to expand internationally is typically derived from growth expectations or characteristics of the (niche) product itself but can also be a result of the pull-effects from a specific region.
Global markets have become tighter and competition ever so much fiercer which have
lead companies to carefully analyze and project intended launches. This has further triggered entry of new strategies like the Blue Ocean Strategy to provide tools for creating uncontested new market space that expand conventional markets. Young and small organizations may well find their best opportunities in such environments.
Taking a business international is, nevertheless, a major strategic action for any company. Such a decision must fit within the overall strategic intent of the company, its business idea and corporate structure as well as the ideology of the management and owners. It is politely argued that businesses carefully evaluate the following 6 Do’s of Strategic International Business Planning:
1. DEFINE – What is the overall strategic intent of the company and why has this been chosen? is it perhaps to Think Big / Think Big over time / Think low risk / Think Niche / Think Strategic Partnership / Think OEM / Think own organisation or something else.
2. DEFINE – Would specific markets offer a unique market opportunity? Explain why and in what way. Alternatively consider would generating a new market be the right thing to do?
3. DEFINE – Would you be able to reach out for an ideal strategic partner that could commit strongly or are you on our own?
4. DEFINE – Based on earlier experience, recommendations or market propositions are you prone to follow any given modus operandi? What is our ideal operational choice and why?
5. DEFINE – the cost structure of our business. What policies do you have regarding social media, production, customer service, product development or adjustment etc.
6. DEFINE – Does your business idea come with a proposition that can raise venture capital, private investment or other external financing for a more rapid market penetration? Alternatively, do you want to grow organically with a 100% control at this point of time?
An evaluation of the prevailing strategic intent and market propositions will offer alternative scenarios for you to work on. You may want to consider e.g.:
– A bridge-head strategy with strict roll-out plans on a larger market defined as lucrative for your purposes. Such strategy can be based on own corporate operations in addition to a strategic partnership.
– A smaller market that might offer a unique market opportunity (with a relaxed cost structure).
– A market that offer suitable conditions for market testing and obtaining of a proof of concept for further commercialization.
Analyzing our prevailing strategic event and market propositions will give us different scenarios including budget frameworks, cash flows and financial requirements to consider.