Outsourcing & Firms

Business Process is an activity that accomplish organizational goal & outsourcing enables a firm to be efficient & effective. Business Process Outsourcing - BPO (Outsourcing) enables firms to have business processes efficiently. 

What is a firm, departments & outsourcing of business processes ?

In the 1st part a firm will be defined, in the second part example of departments will be listed. In the 3rd part, it will be about using outsourcing to have departments & finally; the 4th part, will be about business process outsourcing & encryption. 

 

I- Firm

​

Business organize economic production of goods or services that result in revenue & profit. Firms are organization for profit, it makes profit from business activities done through its various business processes, an organization  for-profit makes a firm an organization that works. A business process is an activity that accomplish an organizational goal. Business processes includes interpretation & analysis of financial statements (analysis of the firm). 

 

II- Firms & Processes

 

Various processes are made in a firm, including business processes which are activities that accomplish a organizational goals. They are done in departments, divisions etc. 

 

Some departments, divisions & process are: 

 

- Department of Finance which is deals with the management of money and include Financial Planning & Analysis - FP&A (Analysis (financial data), planning (ex. new product introduction, geographical expansion, or acquisition of a firm) & budgeting. This is capturing revenue using financial data (assessment)); treasury (cash management, financing, risk management & treasury system) or accounting (the firm in monetary terms). 

 

- Department of Marketing which involve marketing, a process aimed at capturing revenue & areas such as digital marketing & marcom which can be used in the process. 

 

- Information Technology (IT) – deals with computers, networking, storage, infrastructure … in order to use all forms of electronic data. 

 

- Department of Artificial Intelligence (Within the Department of Information  Technology) -  AI (software application/program) is about utilizing technology and implementing Artificial Intelligence – AI to business processes & products (including digital products). AI can be used by the Department of Research & Development in research & development with the book(s).

 

- Department of Cyber Security  (Within the Department of Information  Technology): Deals with cyber attacks. Other related processes may include network security, hardware security, cryptography.

 

- Office of Transformation - A transformation office orchestrates business transformations, the office manages large-scale business change (ex. 4.0 industrial revolution). 

 

- Department of Business Economics: The Department of Business economics assesses factors impacting firms: management, business organization, expansion & strategy; using economic theory and quantitative methods. 

 

 

- Department of Business development. The department of business development plan for future growth by forming partnerships, identifying new opportunities. The impact of business development is on every department.

 

- Department of Operations, Production, Manufacturing and Department of Supply Chain.

1)Department of Operations, 2) Department of Production & 3) Department of Manufacturing which are 1)  planning, organizing & controlling the conversion process (input into output – conversion process); 2) production system & scheduling (input into output – production system) & 3) the process of turning raw materials or parts into finished goods (input into output – manufacturing process) respectively. With the level of closeness to input into output being closer for manufacturing than production & closer for production than operations.

4)Department of Supply chain - Which deals with every step that's involved getting a finished product or service to the customer. The steps may include sourcing (raw materials),  intralogistics (in-house logistics, internal logistics, logistics within the firm) during input into output , then transporting the finished products to the customer. The Departments of Operations, Production, manufacturing & supply chain are all involved during the process of turning input into output. This is shown in Figure 1: Operations, Production, Manufacturing & Supply Chain. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1: Operations, Production, Manufacturing & Supply Chain. 

​​

​

- Mechanical Engineering: deals with tasks such CAD modelling, product design, and prototyping. Enabling the firm to focus on core activities. 

​

Firms will select some departments or divisions (processes) to outsource in order to gain efficiency & focus on core competencies.

 

III- Outsourcing & Firms

​

An organization can use outsourcing such as business process outsourcing (BPO) (method of outsourcing business related processes to another firm) for efficiency & have all the departments desired. With efficiency, profit is increased, this profit is then allocated to research & development, reinvestment, savings or investment. Profit makes a firm work forever; with departments, the firm has the business processes it desired to attain goals & increase profit. 

​

IV- Business Process Outsourcing (BPO) & Encryption

​

Business Process Outsourcing (BPO) enable outsourcing business processes while using cryptography, 
channels used may be email (encrypted) or USB Flash Drive (encrypted). Encryption is the process of converting data & information into an unreadable, encoded version. It will take billions of years for a supercomputer to test every possible key & will require a quantum computer with 6000 logical, error-corrected qubits to impact AES-256.

​​

To conclude, using outsourcing strategy in a firm (such as Business Process Outsourcing - BPO) can enable a firm to have the processes desired & the reduced cost.  An outsourcing firm can provide services with less individuals in the outsourcing firm while being effective, this makes the outsourcing firm able to provide those service less costly (with the reduction in number) & making the customer (firm) profitable.