Business Management Process – Entity-Level Business Model

Description

• The Entity-Level Business Model  framework is a comprehensive approach to gathering strategic information about an organization. Typically completed by the project team, it brings together key information that is also useful to a BPI Program.
• A standardised Entity-Level Business Model is established as the starting point for business modeling. It is a high-level profile of the client entity and the environment in which it operates. The purpose of gathering information about the business at the entity level is to identify sources of business risk, the entity’s position in the industry and the key business processes of the entity.
• Key business processes are any of the business processes (the strategic management process, a core business process or a resource management process) considered critical to attain the entity’s objectives. Below is a synopsis of the Entity-Level Business Model.

• Additionally, the framework calls for a comprehensive business and organization overview, which is consulted during the BPI exercise and during the creation of the Holistic Business Model .
• Each process identified in the Entity-Level Business Model, has the following descriptions:
• Purpose of the process
• Diagram of the process in terms of inputs, outputs, activities and information systems
• Business objectives
• Critical success factors
• Key Performance Indicators
• Business risks
• Responses to business risks
• Internal control
• Classes of transactions
• Audit objectives.

When to Use

• The Entity-Level Business Model is the starting point for business modeling (Holistic Business Model).Approach

Approach

1. Gain understanding of what information exists, from the Organisations own documentation, strategic plans, market analyses, process maps, Consultant benchmarks, industry knowledge and market assessments.
2. Identify the client individuals to be involved (e.g. functional managers and process owners).
3. Engage the organisation in interviews that are well-prepared and focused on the elements of the Entity-Level Business Model.
4. Complete the Entity-Level Business Model
5. Develop a skeleton value chain (Value Chain Analysis).
6. Educate, review and modify results with the client.

Examples