Business Function - Revision history

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 == See Also ==
-#[[Business Function Model]]
+A Business Function is a key activity or group of activities carried out within a company in order to deliver its products or services to the market. These functions represent the essential tasks that a business undertakes to operate successfully, manage resources, meet customer needs, and achieve its objectives. Business functions typically include core areas such as finance, operations, marketing, sales, human resources, and IT, among others. Each function has specific roles and responsibilities that contribute to the overall effectiveness and efficiency of the business. Understanding and managing business functions effectively is crucial for strategic planning, operational excellence, and competitive advantage.
-#[[Organizational Structure]]
-#Functional Area
+*[[Operations Management]]: Discussing the administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.
-#Business Unit
+*[[Marketing]]: Covering the strategies and tactics used to identify, communicate, and deliver offerings that have value for customers, clients, partners, and society at large.
-#[[Value Chain]]
+*[[Financial Management and Control]]: Explaining the strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institute, including procurement and utilization of funds of the enterprise.
-#[[Functional Strategy]]
+*[[Human Resource Management (HRM)]]: Discussing the strategic approach to the effective management of people in an organization so that they help the business gain a competitive advantage, designed to maximize employee performance.
-#[[Business Model]]
+*[[Information Technology (IT)]]: Covering the use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.
-#[[Enterprise Architecture]]
+*[[Supply Chain Management (SCM)]]: Explaining the management of the flow of goods and services, including all processes that transform raw materials into final products.

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−	'''Business Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>	+	'''[[Business]] Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>

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← Older revision		Revision as of 21:01, 28 February 2024
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−	'''[[Business]] Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>	+	'''Business Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>

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 == See Also ==
 #[[Organizational Structure]]
 #Functional Area

← Older revision		Revision as of 10:48, 25 August 2023
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−	'''Business Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>	+	'''[[Business]] Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>

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← Older revision		Revision as of 10:47, 25 August 2023
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	== See Also ==		== See Also ==
		+	#[[Organizational Structure]]
		+	#Functional Area
		+	#Business Unit
		+	#[[Value Chain]]
		+	#[[Functional Strategy]]
		+	#[[Business Model]]
		+	#[[Enterprise Architecture]]
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		+
		+
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-Business Directory defines '''Business Function''' as "a process or operation that is performed routinely to carry out a part of the mission of an organization."<ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>
+'''Business Function''' is a process or operation performed routinely to carry out a part of the mission of an organization. <ref>Definition of Business Function [http://www.businessdictionary.com/definition/business-function.html Business Directory]</ref>
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 **distribution and logistics: transportation activities, warehousing and order processing;
 **marketing, sales and after-sales services: market research, advertising, direct marketing services (telemarketing), exhibitions, fairs and other marketing or sales services; also included are call center services and after-sales services such as help-desks and other customer support services;
-**[[Information and Communications Technology (ICT)|information and communication technology (ICT)]] services: [[Information Technology (IT)|information technology (IT)]] services and telecommunication (IT services including hardware and software consultancy, customized
+**information and communication technology (ICT) services: [[Information Technology (IT)|information technology (IT)]] services and telecommunication (IT services including hardware and software consultancy, customized
 **software data processing and database services, maintenance and repair, web-hosting, as well as other computer-related and information services, but excluding packaged software and hardware);
 **administrative and management functions: legal services, accounting, book-keeping and auditing, business management and consultancy, [[Human Resource Management (HRM)|human resources management (HRM]] (e.g. training and education, staff recruitment, provision of temporary personnel, payroll management as well as health and medical services), corporate financial and insurance services; also included are procurement functions.
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 == Business Function Vs. Capability<ref>How do you differentiate between a Business Function and a Capability?[https://ingenia.wordpress.com/2009/04/29/how-do-you-differentiate-between-a-business-function-and-a-capability/ ingenia.wordpress.com]</ref> ==
-The concepts of a Business Function and a Capability often tend to be blended together and often people confuse Function and Capability. Many [[Enterprise Architecture]] efforts don’t really focus much on either of these concepts and instead just focus on modelling business processes, applications and infrastructure. However since ArchiMate includes the concept of a Business Function and now [[The Open Group Architecture Framework (TOGAF)|TOGAF9]] Capability-Based Planning includes the concept of a Capability it would seem more Enterprise Architects are using both these concepts more than they have previously.
+The concepts of a Business Function and a Capability often tend to be blended together and often people confuse Function and Capability. Many Enterprise Architecture efforts don’t really focus much on either of these concepts and instead just focus on modelling business processes, applications and infrastructure. However since ArchiMate includes the concept of a Business Function and now [[The Open Group Architecture Framework (TOGAF)|TOGAF9]] Capability-Based Planning includes the concept of a Capability it would seem more Enterprise Architects are using both these concepts more than they have previously.
 *A Business Function is a concept used in the Organization Architecture domain and represents what work is done by that organization, organization unit or business role.  An organization can be designed as a set of Business Functions and usually the structure of the organization units within an organization is closely based on the business functions. Those Business Functions are more stable than the organization structure itself and often an Organization Unit or Business Role may be responsible for multiple business functions.  A Business Function is only ever carried out by a single Business Role/Organization Unit within an organization. Examples of Business Functions include: Sales, Mаrketing, Supply Chаin Management, Finаnciаl Mаnаgement, Operations,
 *A Capability is a description of an ability to do something in terms of expertise and capacity.  It is associated with strategic planning and not the Organization Architecture or Business Architecture domains. A Capability is delivered through the establishment of a number of different changes usually at together as a group of changes delivered in an iteration. These changes are likely to include new or changed organization units, business functions, business processes, business services, application services, application components, infrastructure services, infrastructure components (Nodes etc.), business objects, data objects etc. A Capability is used as the unit of change in strategic portfolios and Capability Increments (TOGAF9) are used in program and project portfolios. Examples of Capabilities include: Capability to sell a new Product, Capability for eCommerce, Capability for rapid merger and acquisition activities, Capability to survive the credit crunch, Capability to conduct research, Capability to achieve delivery objectives and be ready for future unknown challenges.
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 == See Also ==
-*[[Business Strategy]]

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 *Operations: The operations function is the key function of the business, it concern about producing goods and services. Goods are something tangible (physical) which created form raw materials and parts such as motherboard that is part of the computers, as well as phone and, cars and TV. Services are something intangible (not physical) that provide some sort of psychological value or mixture of time or location value such as education and healthcare. There are so many examples of goods and services that surround our day to day life that remind us about operations function, every time we use the phone to call someone, read a book, or watch a video it remind us about operations function of one or more of firms. The aim of the business is to equalize between the supply of the materials and achieving the customer demand. Having a lot of the supply consider a waste for the firm resources and having a little of the supply might lead into customer dissatisfaction. The business through the operations function needs to manage and control the supply chains, work with sales and marketing to make sure they meet the customer demand. Although the operations function is accountable for producing goods and services, the operations function needs the help and support from other parts or function areas of the organization such as finance and marketing (Fortlewis, 2015).
 *Finance: The finance function of a business concern about securing the financial resources and allocating those resources to different part of the organization. Also, finance function concern about budgeting and providing the required funds to the other functions of the organization such as operations and marketing. The finance function is responsible of providing all the required materials by operations and marketing to make them able to complete the activities related to their function. Finance needs to perform so many critical tasks to make sure the success of organization such as managing the cash flows, budgeting, assets management and financial statements. Finance has a major role in success of the business, for instance in Amazon.com the company stated first making their money not from selling books only but from sales revenue short-term investment. The company utilized the time between purchasing the book to the time the actual payment happen to the seller, and use that time which was between a month or two to make a return from short-term investment (Youngfinanceguy & Fortlewis 2015). Heizer & Render (2011) commented that finance/accounting, which tracks how well the organization is doing, pays the bills, and collects the money.
-*Marketing: The marketing function of a business concern about promoting goods and services and ensuring the availability of the customers for the business. The marketing function have so many roles, one of this role is understanding the needs and requirement of the customer and making sure that the organization’s goods and services meets the customer needs. Making the organization’s goods and services well-known in the target market as well as meeting the required standard of the target market is another role of marketing function. Also, the marketing function has to come up with a [[strategy]] to increases the awareness of the organization’s product to the community such as promoting the products during community events, advertising the products using advertising media, printing T-shits, sponsoring charity or sponsoring sport team (Youngfinanceguy & Fortlewis 2015).
+*Marketing: The marketing function of a business concern about promoting goods and services and ensuring the availability of the customers for the business. The marketing function have so many roles, one of this role is understanding the needs and requirement of the customer and making sure that the organization’s goods and services meets the customer needs. Making the organization’s goods and services well-known in the target market as well as meeting the required standard of the target market is another role of marketing function. Also, the marketing function has to come up with a strategy to increases the awareness of the organization’s product to the community such as promoting the products during community events, advertising the products using advertising media, printing T-shits, sponsoring charity or sponsoring sport team (Youngfinanceguy & Fortlewis 2015).
 == Business Function Vs. Business Process<ref>Business Function Vs. Business Process [^https://masteringarchimate.com/2011/07/23/business-process-versus-business-function/ Mastering ArchiMate]</ref> ==
-Whereas a Business Function is a major organizational unit of a business which has specific responsibilities and performs activities on a regular basis to enable the business to carry out its [[mission]] (the function refers to both the organizational unit and the types of activities it performs); a [[Business Process]] is a set of activities, which draw on one or more business functions to help carrying out the organization’s mission. The business process often cuts across organization and functional lines. It may involve multiple organizations and business functions.<ref>What is the difference between Business Process and Business Function? [https://www.quora.com/What-is-the-difference-between-business-function-and-business-process Quora]</ref>
+Whereas a Business Function is a major organizational unit of a business which has specific responsibilities and performs activities on a regular basis to enable the business to carry out its mission (the function refers to both the organizational unit and the types of activities it performs); a [[Business Process]] is a set of activities, which draw on one or more business functions to help carrying out the organization’s mission. The business process often cuts across organization and functional lines. It may involve multiple organizations and business functions.<ref>What is the difference between Business Process and Business Function? [https://www.quora.com/What-is-the-difference-between-business-function-and-business-process Quora]</ref>
 In ArchiMate the difference between Business Process and Business Function. Both stand for behavior at the Business Level. Both generally encapsulate in the end the same activities. Choosing between a Business Function and a Business Process is sometimes difficult. Business Process in ArchiMate is seen as something that is directed at producing a result (service, product) and Business Function as a grouping of behavior based on resources. A direct composition of Business Functions and Business Processes as composite parts of each other would make this distinction less meaningful. So, what can be said is that the Business Process uses the Business Functions in some way (instead of both being aggregates of each other). In ArchiMate, how does a process use a function? It could be said that a Business Process can use a Business Service provided by the Business Function.  But since a Business Service should be best modeled as the result of a Business Process and given that ArchiMate’s definition of Business Process (it is a process that leads to a result, not a function), it must then be asked: what process realizes the service? The answer to that would then be the internal process of the Business Function. The result is something like in Figure 2. below: