15 December, 2013

1-5 finance

The fifth and the last core business process

It is not exactly a step or a process in the cycle. It is more like an overall way to analyze what/how you are doing through each of the 4 processes on the financial level

-          Basically, you are spending money in all the 4 processes: value creation, marketing, sales, value delivery. The only part where you are gaining money is in the sales process
The "Finance" part answers very important questions like:

-          Where are you spending money?
-          When are you spending money?
-          How much money you are spending?
-          How much money is enough?
-          What has to be changed to continue what you are doing?

It is the part at which you figure out what if you can keep doing that & continue to operate that business cycle or not.