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An article to understand SaaS business architecture: value streams, business capabilities, business processes, business objects, organizational structure

Popularity:965 ℃/2024-10-10 15:56:05
1 Objectives and Steps
2 Value Stream Analysis
2.1 From Value Proposition to Value Stream
2.2 The Concept of Value Streams
2.2 How are Value Streams Identified?
2.3 How are Value Stream Stages Identified?
3 Business Process
3.1 The Concept of Business Processes
3.2 End-to-End Processes
3.3 Functional Processes
3.4 Example: Business Processes in a Retail Organization
4 Business Capabilities
4.1 The concept of business capability
4.2 Components of Business Capability
4.3 Difference between Business Process and Business Capability
4.4 How are Business Capabilities Identified?
4.5 Example: Business Capabilities in a Retail Organization
5 Business Objects
5.1 The Concept of Business Objects
5.2 How to Identify Business Objects?
5.3 Attributes of Business Objects
6 Organizational Architecture
6.1 Core elements of organizational structure
6.2 Common Types of Organizational Architecture
6.3 Example: Organizational Structure of a Retail Enterprise

This paper provides readers with a systematic framework for SaaS business architecture, discusses the core elements of business architecture analysis, and helps SaaS organizations to deeply analyze the business models of their target customers and fully understand their business architecture.

Whether you are a SaaS entrepreneur, product manager or architect, the content in this article will help you in your system design and decision making.

1 Objectives and steps

SaaS business architecture needs to distinguish between two perspectives: the business architecture of the SaaS organization itself, and the business architecture of the SaaS service customer.

The former focuses on how the SaaS company itself develops, sells, and delivers its software services, covering business activities such as product development, customer acquisition, product delivery, and technical support.

The latter focuses on how customers use SaaS offerings to support and improve their business, and requires analysis of the customer's value streams, business processes, business capabilities, and organizational structure. Understanding the difference between these two perspectives is critical for SaaS organizations, which not only need to ensure that they operate efficiently, but also need to provide valuable, flexible and scalable solutions to their customers.

This chapter mainly focuses on the second perspective, i.e. the business architecture of SaaS service customers. If readers want to understand how SaaS companies' own business architecture is designed, they can refer to Mr. Wu Hao's SaaS Startup Roadmap.

At this stage, our core objective is to deeply analyze the business models of our client groups and fully understand their business architecture. To achieve this goal, it is necessary to systematically sort out the various core elements of the business architecture.

There are many business architecture analysis systems on the market, each with its own focus. Some of them contain too many obscure concepts and terms.

For the business architecture analysis methodology, the core objective is twofold: first, to deconstruct the complex business into a series of clear and reasonable abstract models, so that the various departments of the SaaS enterprise can quickly understand and implement the business objectives; and second, to ensure that these abstract models have strong reusability and flexible scalability.

This chapter mainly refers to BIZBOK's Business Architecture system, mainly because of its conceptual clarity, logical simplicity, and ease of understanding and application. The core elements of business architecture include: value streams, business capabilities, business processes, business objects, and organizational structure.

We will unfold the analysis of the business architecture through the following steps:

  • Value Stream Analysis: Identify key processes and segments that create value for customers
  • Operational capability analysis: assessing and identifying key capabilities that the organization needs to have in place
  • Business process analysis: specific workflows to refine business capabilities
  • Business object analysis: identifying and managing key business entities and relationships in business processes
  • Organizational structure analysis: identification of organizational units and relationships required to support operational capabilities

2 Value stream analysis

Value streams play a key role in business architecture, serving as the link between corporate strategy and day-to-day operations.

Through value stream analysis, companies are able to gain a clear understanding of how to continuously create value for their customers. This analysis not only helps companies realize their value proposition, but also provides a solid foundation for subsequent business capability assessments, process improvements and organizational optimization.

2.1 From value proposition to value stream

The value proposition takes center stage in the business model.

Every enterprise basically emphasizes "customer-centricity", and before deciding to invest in a product or service, the enterprise first needs to clarify three key questions: Which "customer group" does it serve? What value does it provide? Can the target "customer group" accept its price?

A value proposition is simply a "wish list" of customers or other stakeholders that a company needs to fulfill through its products or services.

Stakeholders don't care how strong you are, they only care that you can solve their real problems.

So how can these "aspirations" be realized? The answer is through the enterprise value stream. The introduction of the concept of value streams is crucial to the focus on "customer centricity".

Without sorting out the value stream, companies may face the following problems:

  • Misallocation of resources: the inability to accurately identify which activities truly create value for the customer, resulting in resources being wasted on non-critical aspects.
  • Inadequate satisfaction of customer needs: Lack of a clear understanding of customer value may result in products or services that do not effectively meet customer needs.
  • Ineffective internal collaboration: Lack of common goals and clear paths to value creation between departments results in communication barriers and loss of efficiency.
  • Innovation direction deviation: The inability to accurately grasp market demand and value creation opportunities may lead to a disconnect between the direction of innovation and actual demand.

2.2 The concept of value streams

In BIZBOK, value streams are one of the core business architecture elements that are primarily used to depict how an organization creates and delivers value to its customers and other stakeholders.

A value stream is a collection of end-to-end activities that create value for the customer, covering everything from the customer's needs to the final delivery of value. The customer here may be the end consumer or an internal user of the organization. There are two key characteristics of value streams:

1. Designed for the needs of specific stakeholders.

This means that each value stream has a target group that it serves, and we need to keep an eye on these groups to meet their specific needs.

2. Closed-loop value delivery for these specific needs.

The value stream will be further refined into value stream stages, specific business processes, solutions, products or services. We need to ensure that these elements are effectively linked so that the final value delivered truly meets the needs of the stakeholders.

This avoids a "silo" situation, where everyone is working hard but ultimately delivering no real value.

So what are the stakeholders? For retailers, stakeholders can be broadly categorized into two main groups:

1. End consumers.

They are the direct consumers of the enterprise's products and services, and their needs, preferences and experiences directly determine the enterprise's market position and long-term development. Therefore, companies must put the needs of end consumers at the center of their strategic decisions and daily operations. This is the key to driving business growth.

2. Other stakeholders.

This includes suppliers, employees, shareholders, partners, etc., who are not direct consumers but play a vital role in the operation and development of the company.

2.2 How are value streams identified?

In the retail industry, the value stream encompasses everything from product development to customer service and reflects how retail merchants differentiate themselves in a competitive marketplace.

There are typically two types of value streams in a retail business: operational value streams, and support and management value streams.

1. Operational value streams

This type of value stream is the main way in which an organization creates and delivers value to its customers, and is directly related to the core business operations of the organization, including product development, sales, and customer service, and has a direct impact on the day-to-day operations and revenues of the organization. This type of core value stream includes:

  • Product management value stream (from idea to product): The whole process of transforming an idea into an actual product. Includes steps such as market research, product design, R&D, production and launch.
  • Marketing value stream (from opportunity to prospect): The process of capitalizing on marketing opportunities and attracting potential customers through marketing techniques designed to reach a wider audience of people who are aware of and interested in the process.
  • Transaction value stream (from lead to order delivery): The process of converting interested potential customers into actual purchasers and completing the delivery of goods. Involves sales, order processing, logistics and distribution.
  • Customer Service Value Stream (from Closed Customers to Loyal Customers): The process of cultivating one-time purchasers into loyal customers with long-term support through quality after-sales service, customer care, and customer rights.

2. Support and managed value streams

These are value streams that are not directly customer-facing, but fulfill the needs of other stakeholders and play a critical role in the overall operation of the business. Examples include human resource management, financial management, IT support, legal compliance, and supply chain management.

These value streams provide the necessary support and security for the core business, ensuring that the organization can operate efficiently and compliantly.

The following example of a cake merchant shows several common value streams and illustrates the relationship between stakeholders, value propositions and value streams.

2.3 How are value stream stages identified?

The value stream often consists of multiple value stream stages, each with its own specific value increment, which together ensure the delivery of complete value to the customer.

How are value stream stages delineated? The stages of the value stream should match the stages of the customer journey as closely as possible to establish a clear correspondence. Sorting out the customer journey is a critical step in enhancing the customer experience. Ensure that all important stages are covered by analyzing the customer journey end-to-end.

Taking a cake company as an example, for a consumer of a cake product, his customer journey can be divided into the following stages:

  • Wants to buy a cake: the client realizes that he or she wants to buy a cake, perhaps for a special occasion (e.g., a birthday, wedding, or celebration), or simply wants to taste the dessert.
  • Finding stores and comparing them: Customers begin to look for and compare different cake brands or stores to find options that meet their specific needs (e.g., style, flavor, budget, customized service).
  • Deciding where to buy: the customer decides which cake store to buy from and determines the type of cake needed, the flavor, the decoration and the delivery method.
  • Formal Purchase: The customer formally places the order and pays the fee, confirming the delivery time and method (e.g., in-store pickup or delivery service).
  • Receiving: The customer receives the cake and experiences the merchant's delivery service.

Based on the key activities of the customer journey, we identify the various value stream stages, each with a corresponding value. Theoretically, if a stage does not add or meet the value required by the customer, it can be considered to be discarded.

Let's take the marketing value stream as an example, which can be divided into 4 value stream stages:

  • Customer Insight: Understand customer needs, pain points and behavioral patterns through market research and customer data analysis. This helps companies gain a deeper understanding of their customers, making it easier for brands to reach their target customers and design targeted marketing programs.
  • Branding: Show your customers the unique selling points of your product or service and help them pay more attention to your brand at the consideration stage.
  • Scenario marketing: At this point, the customer has screened out several possible brands and is making a final purchase decision. Personalized marketing for specific customer scenarios (e.g., birthdays, weddings, anniversaries, etc.) increases the attractiveness of the product and prompts the customer to make a purchase decision.
  • Reach Conversion: Before the customer purchases, through the traffic channel, enterprise WeChat, SMS and other channels to issue benefits, multiple reminders, incentivize the customer to ultimately complete the transaction.

3 Business processes

3.1 Business process concepts

A business process is a systematic set of work methods developed by an enterprise to achieve its goals. It consists of a series of sequential business activities that transform resources (inputs) into valuable results (outputs) according to established rules.

Business processes play a key role in the business architecture analysis phase:

  • Clarify how the business operates: Business processes describe in detail the various business activities of an organization and their sequencing and linkages, helping to provide a deeper understanding of how an organization transforms its resources into products or services.
  • Identify Improvement Opportunities: By analyzing existing business processes, bottlenecks, duplications and inefficiencies in the processes can be identified, providing a basis for process optimization and business improvement.
  • Support strategic alignment: Business process analysis ensures that business operations are aligned with the strategic goals of the organization, facilitating the effective implementation and landing of the strategy.
  • Support system architecture design: Business processes provide clear business requirements for information system design and development, ensuring that technical solutions closely match business requirements.

Business processes usually have 2 main core perspectives:

  • End-to-end process: emphasizes cross-departmental collaboration and overall efficiency throughout the entire business chain, from the beginning of customer demand to the end of final satisfaction.
  • Functional Processes: Focuses on the specialized division of labor within each department to ensure the efficient operation of each functional area.

These two processes complement each other and together they build the complete business system of an organization.

3.2 End-to-end process

1. Definition of end-to-end process

Simply put, the end-to-end process is the entire process from the initiation of the customer's need to the final customer's need being fulfilled.

Comparisons are often made between "value streams" and "end-to-end processes". So what is the difference between the two?

The "value stream" is the strategic blueprint for the business, providing a macro view that summarizes the overall value creation process. The "end-to-end process" is the implementation of this blueprint, depicting the operational details of each step.

As mentioned in the previous article, by combing the value stream, we can focus on customer needs and discover which links create value for customers and which links are wasteful. Then, based on these links, an efficient end-to-end process is formed.

The relationship between them is shown in Fig.

Moving from value streams to end-to-end processes is about refining the process of enterprise value creation. The role of the end-to-end process includes:

  • Comprehensive understanding of the business: By sorting out the complete process from requirement initiation to fulfillment, it shows how the various links are connected and the potential problems. This is like a clear roadmap that points the way for the business to work.
  • Focus on the core objective: The end-to-end process starts with the customer's real needs. By ensuring that all teams and departments in the process work around these needs, we are able to deliver real value to our customers while avoiding wasted resources.
  • Enhance enterprise responsiveness: In the face of rapidly changing market and customer needs, clear processes enable organizations to quickly adjust their strategies. When new needs arise, organizations can quickly combine existing process modules to respond to market opportunities in a timely manner.

2. Granularity of the end-to-end process

The granularity of the end-to-end process is closely related to the typical needs of the end customer. Therefore, the core of segmenting the end-to-end process is to pinpoint the end customer and their typical needs.

The end-to-end process for a cake merchant, for example, might include:

  • Online booking, delivery to home process: the customer online booking cake, choose the delivery time, the merchant according to the agreed time delivery to home.
  • Customers to the store, the store service process: for customers who visit the physical store, the whole process of store sales and service.

3.3 Functional processes

1. Definition of functional processes

Functional processes are job specifications developed by various departments of an organization to accomplish specific tasks.

By organizing and refining the functional processes, the workflow of each department becomes clear and well-defined. This provides a reliable foundation module for building end-to-end processes. The core roles of functional processes include:

  • Examining the integrity of enterprise management: Since enterprise organizational structures are usually based on a functional division of labor, combing through the processes of each function is like conducting a complete physical examination of the enterprise to identify areas that need improvement.
  • Build end-to-end processes: With functional processes, end-to-end processes can be built like building blocks. Lacking a functional process architecture, end-to-end processes need to be iteratively sorted out, leading to a lot of wasted resources.

2. Granularity of functional processes

How are functional processes sliced and diced? A more intuitive way is to divide them according to the organizational structure of the enterprise. For example, a cake business has a research and development department, production department, brand department, direct store department, distribution department and other departments, the corresponding design of the research and development process, production process, brand promotion process and other functional processes.

However, this approach directly ties the organizational structure to the functional processes. If the organizational structure is not well-designed, the functional processes will not be well-designed. More importantly, this approach cannot identify organizational problems through functional processes, making it difficult to break down organizational barriers.

The key to segmenting functional processes is to do so with "business objects" at the center.

Business objects refer to the people, things, and objects that are of central concern in business operations. Examples include customers, products, orders, contracts, suppliers, etc.

Slicing and dicing functional processes with a business object management closure at the center ensures:

  • Clear delineation criteria: Enterprises can standardize the granularity of functional processes to avoid excessive splitting or vague definitions.
  • Avoid duplication: Functional processes cover the complete range of matters and information related to a business object. If two functional processes operate around the same or similar business objects, it is likely that they can be merged.

Take the cake processing workflow as an example, starting from the submission of processing orders, through the material, ingredients, production, laminating, until the processing is completed. The whole process revolves around the core business object of "processing order". It should not be split into independent processes such as material collection and ingredients, which may lead to the process not being closed-loop and increase the complexity of management.

3.4 Example: Business processes in a retail business

The figure below shows a typical end-to-end process of booking a cake online and delivering it to your home, which includes functional processes from multiple departments. For example, the customer service department is responsible for receiving, confirming cake details, and dispatching orders. The centralized kitchen is responsible for cake production, while the logistics department is responsible for delivery.

The workflow of each of these departments reflects the specific implementation of the functional process. The sequence of activities within each department's swim lane accurately reflects that department's responsibilities and specific operational steps within the overall business process.

Taking a holistic view, we can clearly observe how each function works together to accomplish the entire process from order receipt to final delivery.

4 Operational capacity

4.1 Concept of operational capacity

Simply put, business capability is the "ability to do something".

Business capabilities describe the ability of an organization to meet current and future challenges, i.e., what the organization can do or needs to do. The key to business capability modeling is that it defines what the enterprise does, not how it does it (described by business processes).

Take Talent Acquisition for example, most companies need the business capability of "Recruiting Talent". Recruiting Talent" defines what is to be done, but does not detail how it is to be executed. This could be recruiting HR attracting candidates through job boards or outsourcing the task to headhunters.

Precisely defined business competencies are usually highly stable. The core business competency of "recruiting talent" has remained constant over the past few decades, despite radical changes in recruiting processes, technologies and models.

It is due to these characteristics of business capabilities that it provides crucial assistance in building IT system architecture. IT systems built around business capabilities not only have a more stable structure, they are also easier to scale.

When a new product or service needs to be launched, rational reuse of existing capabilities is the most efficient solution.

4.2 Components of operational capacity

Business capabilities are independent of an organization's people, processes, information, and resources. To be precise, these business elements exist to support the business capability. Similarly, in the case of "recruiting talent", for example, the business elements included in "recruiting talent" may be:

  • People: Human resources team.
  • Business process: attract, screen, interview, hire.
  • Information: job descriptions, hiring needs, candidate resumes, interview evaluation forms, and onboarding documents.
  • Resources: Recruitment system, personnel system.

4.3 Distinction between business processes and business capabilities

  • Business Capabilities: Focuses on the capabilities and results of an organization's core business and does not involve specific process breakdowns.
  • Business Process: Focusing on the process itself, oriented to specific scenarios and solving specific problems through a combination of activities, it is the key action in the daily operation of the enterprise.
operational capacity business process
focus What to do How
Business objectives Functional specialization Smooth collaboration
form of expression Abstract, modular Specific, end-to-end
common interest Support for processes Demand for capacity

Different parts of a business process need to be supported by corresponding business capabilities, which can be reused by multiple business processes. The more times a business capability is reused, the more the enterprise gains in business capability building.

As shown in the figure, taking the business process of order dispatching as an example, the order receiving and dispatching process relies on order fulfillment capabilities, and the confirmation of cake order details process relies on customer service capabilities.

4.4 How are operational capabilities identified?

Enterprises can use a variety of methods to effectively identify business capabilities. Each method has its own characteristics, and enterprises should choose flexibly according to their actual situation and needs. Below we will introduce several common and effective identification methods.

1. Identification around business objects.

This method is the most basic and recommended way of combing in business capability identification. Business objects, as the basic elements of business operations, not only effectively help organizations identify key business capabilities, but also ensure the comprehensiveness and stability of these capabilities.

For example, through in-depth analysis of "customers", "goods", "inventory", "channels" and other core business objects, enterprises can accordingly identify "customer service", "merchandising management", "inventory management", "channel operations" and other key business capabilities.

2. Identify business capabilities based on functional processes

For companies that already have a well-established process foundation, by analyzing the business processes of each function, companies can quickly identify the corresponding business competencies. This ensures that business competencies are closely linked to the actual operations of the organization, and also helps to identify key competencies that may have been overlooked.

3. Reference to industry maturity model

Mature industry models can help organizations identify and define their business capabilities. These models provide good starting points. However, companies need to adapt and customize these models to their own realities.

Here are some commonly used industry models:

  • APQC Process Classification Framework: Provides a standardized classification of business processes and competencies across industries.
  • IBM Industry Models: Provides detailed business capability models for specific industries, covering retail, banking, insurance, telecommunication and many other areas.
  • SAP Retail Business Capability Framework: A business capability framework specifically for the retail industry, covering everything from purchasing to sales.

4、Refer to the mature B-side software to identify the

Mature B-side software can be an important source of reference when identifying business capabilities. These software are usually developed based on industry best practices and broad market needs, and therefore reflect the business capabilities that are commonly needed in a given domain.

For example, ERP systems usually contain modules for financial management, supply chain management, human resource management, etc., which can directly correspond to the relevant business capabilities.

Similarly, the sales management, customer service, and marketing functions of a CRM (Customer Relationship Management) system can help organizations identify key business capabilities in these areas.

By analyzing the functional modules and features of these software, companies can gain a comprehensive understanding of industry standards and best practices, so they can more accurately define and refine their own business capability systems.

4.5 Example: operational capabilities of a retail enterprise

As shown in the figure, we demonstrate in detail the business capability system of a typical retail enterprise, covering both L1 and L2 levels.

Core operational capabilities are directly oriented to end customers, including procurement management, supply chain management and merchandising management. These capabilities have a direct impact on market performance and customer satisfaction, and are the core expression of an enterprise's competitiveness.

The second is the enterprise operation support capability. Although this part of the ability is not directly customer-oriented, but provides important support for the daily operation of the enterprise. This includes financial management, IT deployment and management, and employee management. These capabilities ensure the efficiency and stability of an organization's internal operations.

5 Business objects

5.1 Concept of business objects

Business object refers to the core concern of the enterprise in the business operation of people, things, things, carrying the important information involved in business operations and management decisions. For example, customers, products, orders, contracts, suppliers and so on.

5.2 How to identify business objects?

1. Physically perceivable entities

One is physically perceptible entities, such as customers, goods, people, equipment, etc., which are real and mostly visible and tangible in a given time and space.

2. Management records

The other is "management records", i.e., traceable evidence of an enterprise's business activities. These information carriers usually exist in the form of documents, forms, etc., which record key data and status information in business processes, also known as "forms and documents".

"Forms and documents" play an indispensable role in enterprise information management and process control. They not only help companies to standardize and standardize the transmission of information, but also ensure the transparency and traceability of business processes.

Let's take the process of booking a cake online and having it delivered to your home as an example:

A consumer booked a cake online for the following day and waited with anticipation. However, the agreed time slipped by and the cake was late in arriving. A birthday full of anticipation was ruined and the consumer's anticipation turned into an angry complaint.

After receiving the complaint, the administrator first checked the order status and found that the order was in the "pending shipment" status. From this judgment, the order has been transferred to the central kitchen, the order flow link is correct.

Next, the status of the corresponding processing order was checked and it was found that the processing order had been completed. This indicates that there is also no problem with the processing.

Finally, we checked the status of the delivery order and found that the delivery order was still in the state of "pending delivery". Further understanding, it turns out to be the assigned delivery staff for personal emergency reasons, unable to complete the delivery.

Through this traceability process, managers determined that the problem was in the distribution chain. This finding provided the basis for subsequent process improvements to prevent a similar situation from recurring.

In the absence of these clear and accurate management records, managers may be confused and unable to assign responsibility.

5.3 Attributes of business objects

Business objects contain several details of information which are called attributes. Attributes are specific data items that describe the characteristics and state of a business object, and together they form a complete definition of the business object.

Each attribute represents a specific dimension of the business object, such as name, date, quantity, or status.

These attributes enable us to comprehensively describe and understand business objects so that we can effectively manage and utilize this information to support business operations and decision making.

Let's take the example of a customer order from a retail merchant, which needs to contain at least the following attributes:

  • What retail items did the store sell during a given time period?
  • At what point is the retail item sold?
  • Where in the store was the item sold?
  • Who sold these retail goods?
  • What is the selling price of the item?
  • What fees are earned on the transaction?
  • What special discounts, price adjustments, price reductions, etc. were applied to the merchandise?
  • How much cash was collected to settle this transaction?
  • Which payment method was used to pay?

6 Organizational structure

Organizational structure is to set and arrange departments and positions according to the enterprise strategy to form a stable and scientific management system. This system ensures that the enterprise can adapt to business needs and support its development.

Organizational structure is crucial to business structure. When sorting out business processes, it is necessary to arrange appropriate personnel at each node according to the operating rules and processing logic of the process, so as to ensure organizational flexibility and clear responsibilities.

At the same time, the business architecture also needs to take into account the organization's business development and demand for departmental job setup, staffing, role definition, authority and responsibility, as well as the assessment mechanism for clear planning to ensure that each link in the business process can operate smoothly.

6.1 Core elements of the organizational structure

  • Hierarchical structure: clarifies the hierarchical relationships within the organization, i.e. who is responsible for whom and who reports to whom. Usually categorized into top management, middle management and junior staff.
  • Segmentation: The division into different departments based on factors such as function, product, region or customer, with each department being responsible for specific business activities. For example, common functional departments include marketing, finance and production.
  • Duties and authority: Clarify the specific duties and scope of authority of each position to ensure that employees in each position understand their job content and authority. This helps to avoid overlapping duties or unclear authority and responsibility, thus improving work efficiency.
  • Communication and collaboration: Develop communication methods and channels between different levels and departments to ensure a smooth flow of information. Effective communication and coordination mechanisms can facilitate problem solving, decision making and work advancement.
  • Chain of command: Establishing a clear chain of command from the top leadership to the junior staff to ensure that decisions and instructions are effectively communicated and implemented. The chain of command is usually vertical and helps to maintain organizational unity and coordination.

6.2 Common types of organizational structures

  • Functional Organizational Structure: Departments are divided according to major functions, such as production, sales, finance, etc., and each department is responsible for a specific function.
  • Product-based organizational structure: Divisions are divided according to products or services, and each division is responsible for the full range of activities of one or more product lines.
  • Regional organizational structure: divisions are based on geographic regions, and each regional division is responsible for operational activities in that region.
  • Matrix organization structure: Combining functional and project structure, employees belong to both functional departments and project teams, suitable for complex project management.
  • Flat Organizational Structure: Reduces management levels, shortens management chain, enhances flexibility and innovation.

6.3 Example: Organizational structure of a retail business

Typically, a retailer will start with a single store operation, expand its business, open more stores, and reach the size of a small or medium-sized chain with dozens or hundreds of employees.

The departments under the small and medium-sized chain enterprises usually include: Research and Development Department, Production Department, Brand Department, Direct Store Department, Distribution Department, Quality Control Department, Warehousing Department, Purchasing Department, Key Accounts Department, Administration and Personnel Department, and Information Technology Department.

  • R&D department: responsible for new product research and development, product upgrading and flavor improvement to ensure that the products continue to maintain market competitiveness.
  • Production Department: Manage manufacturing, quality control and production planning to ensure a balance between product quality and output.
  • Brand department: Execute brand planning, marketing and image promotion to enhance brand awareness and reputation.
  • Direct Store Department: Responsible for the daily operation, sales performance and customer service of the direct store, optimizing store operation efficiency and customer satisfaction.
  • Distribution department: Handle product distribution, logistics management and warehouse management to ensure the timeliness and accuracy of distribution.
  • Quality control department: carry out product quality inspection and quality control, maintain the stability of product quality.
  • Warehousing Department: Manages the warehousing of raw materials, semi-finished and finished products, as well as the purchasing of materials to ensure the smooth flow of production and sales.
  • Purchasing Department: Procurement of raw materials, semi-finished products and packaging materials from suppliers to ensure timely supply of raw materials and reasonable pricing.
  • Key Accounts Department: Explore key accounts and provide customized services to improve key account satisfaction and loyalty.
  • Administration and Personnel Department: Responsible for the recruitment, personnel management and administration of the enterprise to ensure the legal compliance of the enterprise's operation and the stability of human resources.
  • Information Technology Department: Responsible for the transformation, implementation and maintenance of the enterprise IT system to ensure the stable operation of the system, server and network.

The following figure shows the organization chart of a small and medium-sized chain of companies.

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