8/2/12

What is an Enterprise?

Enterprise By Design (Part 1)


Enterprise by Design is the theme this month.  Many businesses have features or functions that would be found in an enterprise but do not capture dollars that are available because they are not thinking like an enterprise.
So what is an enterprise?  Most definitions offered in dictionaries make the term synonymous with business, firm or company.  But then how do you differentiate the company that owns multiple companies and business interests under one umbrella?  For the purpose of this series, we will look at the enterprise as a business that is complex and may have multiple businesses, interests, transactions and customers that may or may not be shared with the core business, if there is one.
A few examples may be helpful.

There are many kinds of enterprises including:
  • Related customers
  • Related products
  • Related products and services
  • Related transactions
  • No Relationship – all stand-alone but common ownership
  • Affiliated services and relationships
  • Core business with ancillary services
  • Core business and tangential products or services
  • Sales to internal and external customers
  • Brand related
  • Related product lines

In essence, the business becomes an enterprise when it expands its sources of revenue.  This creates complexity and opportunity and in some cases “happened” rather than resulting from a plan.  

This series will explore types of enterprises, enterprise thinking, methods to expand your business into an enterprise and or expand an existing enterprise, case studies and more.  We hope you will enjoy following this series.

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