Virtual Business Transparency

by Jay Deragon on 12/17/2007

Virtual Business TransparencyBusiness is a “system” of inter-connected elements each dependent on one another. The failure of one element effects all elements and the challenge for leaders and managers is to continuously insure optimum performance and connectivity of each element. These elements are:

  1. Capital
  2. People
  3. Products
  4. Processes
  5. Services
  6. Customers
  7. Profits

Technology is intertwined into each element and the historical problem has been the challenge of connecting diverse technology that communicates seamlessly with each element and provides businesses with effective data from which to manage the “system”.

Businesses spend billions globally on technology and the cycle of upgrading software and hardware to keep up with enhancements is a significant expense for corporations. Businesses have accepted this cycle but are constantly looking for better methods at less cost. The open source technological movement has helped business find solutions to common technological problems as less cost.

The web has created the means for advancements to business solutions aimed at connecting diverse databases designed around common business processes. Connecting and integrating data from multiple databases across all the elements that are common to any business has been and continues to be a major thrust for all businesses globally. After all, for business the data is king to making effective decisions.

Transactions produce meaningful data.

When each of the seven business elements are connected each produces transactions that provide meaningful data as to both the effectiveness and efficiency, throughput, of those transactions. People are the critical factor that determines success of each transaction between each element and collectively as a “system” of production, whether in service or product.

The quality of “business systems” to recruit, educate, train and retain people to facilitate the transactions of each business element has a direct correlation to job satisfaction, customer satisfaction and profitability. The job of management is to optimize the “system of business”. A leader’s job is to help the people effectively facilitate the connections between the business elements and the end customer. The relationship between a business, its people, its customers and its profit is what drives the quality of its transactions.

Transactions are the by-product of healthy relationships.

Transactions come in many different forms. They come from conversations and processes between people and things. A healthy relationship produces transactions both personally and professionally. Conversations produce transactions, processes produce transactional exchanges. A business converses with its customers through its people and processes.

The quality of these conversations directly correlate with profitability. If a business doesn’t deliver its promise to its employees who then can’t deliver the business promise to the customer then the relationships suffer. The employee is embarrassed and the customer is dissatisfied and the opportunity for future transactions is negatively impacted, both in retaining the customer and the employee. Business connectivity between its employees and its customers is vital to success.

The social web creates business transparency.

The social web has ignited conversations which in turn will create shifts in existing markets and creation of new markets. Employment recruiters and businesses alike are using the social web to verify the quality of employment candidates. People are exchanging conversations about company cultures, leaders, managers and the quality of their products and services. These conversations represent both negative and positive commentary which in turn will impact transactional economic value added relationships between businesses, the markets they serve and the businesses and the individuals who make purchase decisions.

Many businesses are wondering whether they should embrace the social web for business purposes. This perspective is wrong, the social web has already embraced your business. The real question for all businesses is whether the leaders and managers are prepared to adopt the transformation required to survive and prosper. The opportunities the social web offers businesses are centric to process improvements and subsequent enhancements to the reach and richness of relationships, both internally and externally.

Transparency tears down walls and exposes the quality of your relationships and subsequently the effectiveness and efficiency of your transactions. Transparency is no longer is a choice rather a reality created by the social web. Most corporations are naked and don’t even know it yet.

The media is your employees and your customers. How good is your advertising?

What say you?

{ 1 comment }

Julie Parker December 18, 2007 at 1:07 pm

Hi Jay,

I think you said that very well as usual. If you want to get your messages out you need to do online advertising and social networking online.

I like video networking aslo. StellarVision does it but there is also another company video company that does it globally.

TV advertising is going out as is news papers. People are getting what they want when they want it online.

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