Business Functions as BUs

 

Business Functions Coordination

For conceptual purposes, Business Functions may be considered as virtual Business Units that have their specific roles and have the other Business Units as their customers or suppliers inside the organization.

  

- The Market Function is responsible for generating and delivering products (goods & services) that it virtually charges to the Capture Function,

- The Capture Function is responsible for acquiring supplies that it virtually resells to the other Business Functions, and for getting revenues from the products virtually acquired from the Market Function,

- The Industry Function is responsible for building and managing the (non-cash) resources and virtually selling their exploitation to the other Business Functions.

 

The balance of the BM "general direction" consists in:

  • the balance between the 3 Business Functions in terms of outputs,
  • the balance between the 3 Business Functions in terms of use of resources and supplies. 

 

Notice that the Business Functions can be deeply interconnected operationally: a given activity may be part of more than one Business Function. Therefore, associating activities with Business Functions may require sophisticated "value apportionment" methods according to the nature of the activities' outputs.

 

 

 

 

Bm2: Design, Analyse & Manage your Business