Understanding core business capabilities

Due recognition of strengths and weaknesses, ability to focus on primary directions and outsource side activities are crucial for efficient development of any business. It is manifestation of universal principle of separation of labor, which dominates economical development for past centuries.

Further deepening of specialization became even more essential with formation of global market and rapid digitization of economy, which progressively eliminates few yet existing boundaries. The ability to optimally delegate secondary tasks becomes a key in achieving business efficiency.

However, this established global trend also bears substantial dangers. A company may easily loose competitive advantage and even corporate identity by improperly outsourcing its core technologies and know-how. Proper recognition of relevant delegation scope is a crucial factor for survival and balanced development of an organization.

BPM plays especially important role in evaluation and planning of outsourcing strategies because it provides clear and detailed vision of all business aspects and facilitates management decisions on potential segregation of business functions for external operations. Without an established business model a company is not capable to determine what is the core of its business.

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