Saturday, November 5, 2011

What's more important in an enterprise; the process or the result?





“In any enterprise, the process of making or doing something is ultimately more important than the final product.”

An enterprise has a perpetual existence. It involves an ongoing process that involves many processes and procedures to produce or manufacture products or services for marketing, selling or consumption purposes. The final product goes through a rigorous process of transformation with varied degrees of time and effort.  A process of value addition takes place at each step to produce the final product right from the inception of idea to transformation of raw material and semi finished goods into a final product. Thus the author’s statement that the process of making or doing something in an enterprise is ultimately more important than the final product holds good in my opinion.

The primary reason why I believe process is more important than the final product is because the opportunity to gain a cost advantage or design leadership can be exploited during the various processed and procedures involved in the production process. Innovation if any can be introduced and core competencies developed during the process of making or doing something. The result of such efforts and competencies will reflect in the final result which the final product we are talking about. An example of this process preference can be found in the development of the cheapest car in the world – the Tata Nano; manufactured by Tata Motors. The company gave more importance to the process of designing and production of the car and obtained patents for the processes and production procedures used to manufacture the car. The end product, the world’s cheapest was not only possible through a product centric approach alone. A system led approach made the dream of producing the cheapest car in the world possible.



Another reason why I give more weight to the process than final product is because a systematic approach and streamlined procedures is required for the successful production, marketing and sales of a product. In the systems approach to management the focus of attention is on the processes of doing or making something. Two companies making identical products can be differentiated by the process and procedures each company is following. A well thought out and professionally structured process reflects in the DNA of the final product. One of the biggest examples of a systems led approach is the Apple. The company has introduced blockbuster consumer electronic goods which had caught the fancy of people. Although the company focused on making a cutting edge final product, it obtained its objective by prioritizing the processed and procedures for the same.


However it needs to be acknowledged that the final product is the ultimate destination an enterprises is aiming to reach. All efforts and resources of the company are thus directed towards achieving the objective of a superior final product. But the efforts and resources thus used are channelized through systems and procedures which if used otherwise will prove counterproductive in giving an edge to the company.

Thus I agree with the author’s statement that in any enterprise, the process of making or doing something is ultimately more important than the final product. This is especially true if we take a system led approach to management. An interplay of final product and strong systems and procedures in a coordinated fashion will ensure overall success of an enterprise.


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