#TheStrategicProcess #CompetitiveAdvantage

A company has different types of processes but I would highlight basically three:

1.) Strategic Processes are those intended to define and control the organisation's goals, policies and strategies. Also we call them Management Processes.

2.)   Operational Processes are these which are able to generate the product or the service being delivered to the customer. Are those that generate and deliver value to the customer.

3.)   Support Processes are those that cover and allow the necessary activities for the proper functioning of the Operational and Management Processes. We can highlight the processes for Finance, Control, Human Resources, Information Technology, etc.

What is important is to note that the origin of all processes should be the requirements set by the customers and the end of the process should be implemented in compliance with customer's expectations. Michael Porter introduced a tool called "Value Chain Analysis" where the sequence of the processes that enable to deliver products and services generated by a company to customers is identified. This tool can help companies to identify activities within the processes that we can make different or in a different manner as our competitors do. In this way, we will identify sustainable competitive advantages that allow us to define a Differential Competitive Strategy that makes our company more competitive. The processes in a company should be simple, designed with and for customers and this is the way and the shortest path for success and reward in a satisfactory manner for the shareholders.

A company that defines its strategy based on winning markets with very competitive prices should attend and maximise the industrialisation of its entire value chain, from product design, process and product industrialisation, production, logistics chain service, promotional marketing, sales strategy process up to the distribution of the products. The entire value chain must be refined and the costs adjusted to the maximum for the company to implement a competitive pricing strategy. On the opposite, a company that defines its strategy based on products and services with high added value and determine to follow all the technological changes in the industry, should primarily attend to the process of technological and product innovation, continuous training of its employees, development of patents, etc.

Both companies have very different concepts, different missions, processes and also fully differentiated employees. Any beginning of changing in corporate strategy and of #TheStrategicProcess development (SPd) will have to be addressed from a different perspective that will be analysed in our blog.