Author Question: What is the criterion on which business processes should run? What will be an ideal ... (Read 38 times)

Chloeellawright · **on:** Jul 7, 2018

What is the criterion on which business processes should run?

What will be an ideal response?

Question 2

The potential loss of intellectual capital is a concern related to outsourcing.

Indicate whether the statement is true or false

mochi09 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

According to Porter, whether business processes are low-cost or high-service, these
processes and systems used must create sufficient value that they will more than cover their
costs. If not, the margin of those systems will be negative. If a value chain's margin is negative,
the company must make some change. Either the value must be increased, or the costs of the
value chain need to be reduced.

Answer to Question 2

TRUE