Systematic Assessment of Strategic and Core Functions PPT

This PPT slide, part of the 23-slide Make-or-Buy Decision Analysis PowerPoint presentation, presents a systematic approach for assessing the strategic value of services and manufacturing processes, categorizing them into strategic, core, and outsourcing options. It begins with a decision-making process that asks whether a particular service or process provides future competitive advantage or involves emerging technology. If the answer is "yes," it leads to further evaluation of the core criticality ranking.

The flowchart indicates that if the core criticality is ranked high, the next step involves checking for preexisting commitments. If such commitments exist, the recommendation is to renegotiate. If not, the focus shifts to ensuring world-class capability for core activities. Conversely, if the core criticality is low, the process suggests considering outsourcing as a viable option, with an emphasis on unwinding or managing investments effectively.

For processes deemed strategic, the guidance is to ensure adequate investment to maintain their value. This structured method allows organizations to make informed decisions about which functions to retain in-house and which to consider for outsourcing, ultimately aligning operational capabilities with strategic objectives.

The slide underscores the importance of a systematic evaluation process in optimizing resource allocation. By categorizing services and processes, organizations can better navigate the complexities of outsourcing decisions. This approach not only helps in maximizing efficiency, but also ensures that critical capabilities are preserved and enhanced, thereby supporting long-term business goals.

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Make or Buy Competitive Advantage Decision Analysis Manufacturing