Question

What are the challenges to creating future state business activity models?

Answer 1

Firms engaged in production and service fields has to cope with many business challenges such as continuous product and process development to enhance the cost efficiency and corporate strategy to fulfill the dynamic market demands and others. Merely adopting a particular business activity model does not eliminate challenges of firms as many changes take place with the passage of time such as government laws, entry of new competitors, new innovations and changing tastes and preferences of consumers. Therefore, challenges of creating future business activity models encompass all areas of business enterprise such as public relations, organizational structure, organization policy, products and services and infrastructure.

Training and deployment of new employees is a tough job for many organizations as future productivity and performance of organization depends on its employee efficiency. Proper study of consumer market and costs of research must be made by company before developing and launching new products otherwise it will lower the market revenue of firms. Change in the organization structure, processes and products also become necessary in view of changes in consumer behaviors, business processes and technologies. Business firms must analyze the change factors and also identify the changes that are required in enterprise. However, identifying the change requirements in organization is a difficult task as there are many hidden factors that affect the performance of organizations. Many organizations also face communication gap among different management levels i.e., top, middle and operational. This communication gap slows down employee productivity and overall productivity of organizations. It also results delay in product delivery to customers that affects the company's business.

Enterprise modelling (EM) is the most effective tool to address all present and future business challenges of firms. The EM identify the changes needed in an organization, inputs required to implement the changes in organization, involvement of stakeholders in the change process, analysis of outcomes of organization change management and establish the relationship between organization dependencies and pertinent problem of organization.