the proces approach small and medium enterprises [sme] development - nigeria

The proces approachSmall and Medium Enterprises [SME]

developmentJ a r o s ł a w Kopera

M a ł g o r z a t a MajorB a r t o s z Młodkowski

P i o t r Senkus

Presentation Plan

1. Process approach

2. Input

3. Action

4. Output

5. Summary

Process approach

1. Process approach 2. 3. 4. 5.

Process Definition

The process can be understood as a set of related activities to achieve apredetermined goal. This is done by converting the input in a pre-defined or specified with customer value for him at the output

As processes are not bounded by any organizational structure theirapplication to many organizations, sectors even countries is possible .

[Senkus, 2013].

ActionInput Output

The process Cross-sector operation of processes


The process approach in SME development - summary

ActionInput Output

Description of “as-is”reality:• Nigerian demography;• Nigerian innovation;• Nigerian “problems”• World economy;• Technological

revolution;• Etc.

Action based on borrowed ordesigned methodology:• Process framework;• Business models;• Available tools;• Etc.

• Elimination o theNigerian problems,

• Designing thesustainable societybased on SME;

• Getting along with theworld trends;

• Etc.


INPUT

ActionInput Output

2. Input 3. 4. 5.1.

Different situation… requires different action !!!!

2. Input 3. 4. 5.1.

Challenge 1- Nigerian demography

Poland is among “higher middle” innovative county but Polish people are working for the best innovative companies in the world.

2. Input 3. 4. 5.1.

Challenge 2 - Nigerian innovations

0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0

1 Switzerland2 Sweden

3 United Kingdom4 United States of America

5 Finland6 Singapore

7 Ireland8 Denmark

9 Netherlands10 Germany

39 Poland114 Nigeria

Global innovation index

https://www.globalinnovationindex.org/gii-2016-report

Holography by Mieczysław Wolfke

2. Input 3. 4. 5.1.


Top Polish innovations

Oil Industry by Jan Józef Ignacy Łukasiewicz

2. Input 3. 4. 5.1.



Mine detector „Mark I” by Jan Józef Ignacy Łukasiewicz

2. Input 3. 4. 5.1.



"... The private sector and the public sector have to be conformed toeach other in a certain degree, if they not have to strangle each other.

Today, the private sector is rushing forward at a supersonic speed. The

public sector has not even started to load the luggage on the plane. "Toffler A., The third wave, Bantam Book, William Morrow & Co., Inc., 1981

2. Input 3. 4. 5.1.


Alvin Toffler

Innovations should go along with private and public sector

Challenge 3 - Nigerian Problems

1. National identity problem2. Poverty3. Corruption4. Inequality5. Terrorism6. High level of child mortality7. Unemployment8. Poor education9. Tribalism10.Home violence

2. Input 3. 4. 5.1.

2. Input 3. 4. 5.1.

Challenge 4 – World Economy

According to many scientists the economic growth

has almost reached it’s limit

2. Input 3. 4. 5.1.


The World is more and more often struggled

with financial cresses

Dow Jones industrial average index 1900-2010

2. Input 3. 4. 5.1.


The SME are the least resistant for crisis that is why they should

be supported with specific business knowledge

2. Input 3. 4. 5.1.

Challenge 5 – Technological revolution

The Internet makes the economy faster than ever

2. Input 3. 4. 5.1.

Challenge 6 – Future

Future is in general terms predictable the lesson for Nigeria is to

avoid bad practices and faults of more developed countries

ACTION

ActionInput Output

3. Action2. 4. 5.1.

0

The success path of the organization

Identify the key goals

Design the meters

Determine the effectiveness

Initiate the improvement

Implementation and review

Source: From Quality to Excellence, Department for Business, Innovation and Skills, London. 2010.

3. Action2. 4. 5.1.

Either on the national level with creating the support for SME or

creating SME or start-up the process approach would be

desirable

The Business Process Canvas

0

VALUE

PROPOSITIONS

CHANNELS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEY

PARTNERS

KEY

RESOURCES

KEY

ACTIVITIES

<< insert your valueproposition here>>

<< Describe your cost structure here>>

<< list your partnershere>>

<< describe your revenue streams here>>

<< list the key resourcesavailable to you here>>

<< describe your keyactivities here>>

<describe how you plan toestablish and manage therelationship between thecustomer and your brandhere>>

<< describe 1) how youplan to acquire customers,2) how you plan to deliveryour value proposition tothem and 3) how you planto communicate with yourcustomers >>

<< describe yourtarget customersegment here>>

3. Action2. 4. 5.1.

The Business models are very useful tools to create any project

0

The Hierarchy of aims

Source: Senkus 2014

3. Action2. 4. 5.1.

Right hierarchy of aims should be issued.

0Source: Senkus 2014

• C01 Survival and development of the organization• C02 Mutually beneficial relationships with decision

makers• C03a Balanced market value

• C03b Balanced overall efficiency – for all of theother operations that have a non-profit character,

• C05a Sustainable budget management,• C04 Sustainable intangible assets,• Sustainability goals: C6 High economic efficiency, C7

High social efficiency, C8 High environmentalefficiency),

• C9 High organizational effectiveness,• C10 Mutually beneficial relationships with

beneficiaries/clients,• C11 Mutually beneficial relationships with staff

(employees or officers),• C12 mutually beneficial relationships with

management/leadership,


3. Action2. 4. 5.1.

0Source: Senkus 2014


3. Action2. 4. 5.1.

• C13 Mutually beneficial relationships withsuppliers,

• C14 Mutually beneficial relationships withlegislators,

• C15 Mutually beneficial relationships with thepublic,

• C16 Minimize the impact on the environment,• C17 Meeting standards and optional codes,• C18 Mutually beneficial relationships with

other stakeholders

Nutrient metabolisms. The basis for applying C2C principles & goals

&

The new “Cradle to Cradle” design paradigm

3. Action2. 4. 5.1.

The sustainable tools should be enabled.

Principles of the Cradle to Cradle® design paradigm

WASTE EQUALS FOOD Nutrients become nutrients again

orEverything is a resource for something else

USE CURRENT SOLAR INCOMERenewable sources powered by sun

CELEBRATE DIVERSITYBiodiversity

Cultural diversityConceptual diversity

3. Action2. 4. 5.1.

The sustainable tools should be enabled.

OUTPUT

ActionInput Output

4. Output2. 3. 5.1.

4. Output2. 3. 5.1.

The goal is to create happy society through encouraging citizens to

open self-sustainable family SMEs to provide job for the people, co-

cooperatives to provide god quality and proper amount product for

the market.

Happy Society Without Problems

4. Output2. 3. 5.1.

Growth National identity and changing Tribalism into competitive advantage through right

support for SME and encouraging them to set up cooperatives - everybody wants to be a

member of economically stable society


4. Output2. 3. 5.1.

Elimination of Poverty, Unemployment and Inequality – family based business model helps

to fight poverty and inequality because it encourages self-sufficiency, entrepreneurship

and innovation. That model also, unlike industrial model, helps to ensure more equal

income distribution in the society.


4. Output2. 3. 5.1.

Elimination of Corruption, Home violence, Terrorism and High level of child mortality – the

social pathologies often begins with poverty, unemployment and inequality, if one would

be able to fight above the rest would disappear automatically.


4. Output2. 3. 5.1.

One of the most important issues of building Nigerian welfare should be to develop

effective education also for SMEs that not always means to build special system but

sometimes, in the information era it means to give society the access to the knowledge

that is shared and created through Internet.


Medium

enterprises

Small enterprises

Micro enterprises

Survivalist enterprises

• Less than 200 employees• Turnover > R25m p.a.• Developed technical & business skills

• Less than 50 employees• Turnover < R25m p.a.• Developed technical /limited business skills

• Less than 5 employees• Turnover < R150k p.a.• Some technical /limited business skills

• Individual self employment• Turnover < R50k p.a.• Limited technical and business skills

Opportunity driven/Entrepreneurial

Necessity-driven / Survival

Mediumenterprises

Small enterprises

Micro enterprises

Survivalist enterprises

Characteristics

4. Output2. 3. 5.1.

Characteristics of SME model

4. Output2. 3. 5.1.

Small and medium enterprises (SMEs) could comprise from 90 to

over 99% of all registered business in the countries in the World and

employ 70 to 90% of the workforce.

Advantages of SME model

4. Output2. 3. 5.1.

Flexibility - Small and midsize companies have the ability to react

quickly to changes in the marketplace. There is no hierarchy in place

that slows down the decision-making process.


4. Output2. 3. 5.1.

Team Spirit - A smaller company encourages team camaraderie. The

owner recognizes that every employee is critical to the success of

the business. Cross training naturally happens as one employee

covers for another during vacations, illnesses and family leave.


http://yourbusiness.azcentral.com/advantages-smes-17194.html

4. Output2. 3. 5.1.

Community Involvement - SMEs often become actively involved in

the community, because they view themselves as members of the

community and care about the people who live there.



4. Output2. 3. 5.1.

Customer Interaction - Every customer is important to an SME. Big companies don't have to rely on

repeat business from any individual customer and don't necessarily get to know their customers as

individuals. A competitive advantage for the SME is that customer interaction with the management

team takes place on a regular basis. The business owner knows what her customers specifically want

through their emails, phone calls, reaction to her company's blog and social media platforms. She then

has the opportunity to fill the customers' needs with additional products, a change in pricing or

enhancements in customer service.



The program for developing Nigerian Agriculture should include

Developing the dominant SME model to provide jobs for people

Developing the co-cooperative model for proper quality and enable export opportunities

Building the broadband Internet infrastructure to spread specific knowledge

4. Output2. 3. 5.1.

The success of Nigeria and its Economy depends on:on:Developing the dominant SME model to provide jobs

for people

Developing the co-cooperative model for proper quality and enable export opportunities

Building the broadband Internet infrastructure to spread specific knowledge

4. Summary2. 3. 5.1.

Keeping small taxes under simple rules