Business drivers are factors that help achieve business goals, including internal factors such as staff and departments, and external factors such as customers and regulatory agencies. Identifying and ranking drivers can help companies direct attention and avoid being left behind in the market. Failure to respond to drivers can lead to reduced productivity and efficiency, and hurt a company’s bottom line.
Business drivers are factors that orient business goals and help achieve business goals. These can cover a wide range, from customers creating demand for certain products to the shipping department responsible for fulfilling orders. Identifying business drivers can be an important part of business planning and coordination, as this can help companies determine where to direct their attention. Drivers may work within a specific company or within an industry as a whole, depending on their nature.
Some business drivers are internal. They are the staff and departments within a company that contribute to product development, marketing, manufacturing and sales. Sales forces, for example, create a market for a product and work to ensure that products and services are delivered in a timely manner. These internal drivers support a company’s work and may have a common goal in mind, such as a desire to limit a certain percentage of the market for a specific product.
External drivers include factors such as customers and regulatory agencies. Customers can dictate behavior not just in a company, but in an industry, with demands for specific products and services. They may expect certain features, for example, which industry members will need to enable to build and maintain customer relationships. Regulators can influence industries and companies with rules that force them to adapt and change business practices to stay within the law.
Companies with clearly identified goals can also find their business drivers, the factors that shape and achieve those goals. They can also rank drivers by influence level, which can help them find groups slipping through the cracks. For example, a little-known department might actually play a key role in delivering a company’s products or services. Investing in that department could result in better returns for the entire business. Similarly, a previously unrecognized customer group could emerge as a more important demographic and business driver, with careful analysis.
Failure to respond to business drivers can put a company at a disadvantage. Management may not be able to anticipate market changes, which would leave them with outdated products and services and no interested customers. Within a business, drivers may become frustrated with working conditions, resulting in reduced productivity and efficiency. This could lead to delays in product quality and a drop in customer demand which could hurt a company’s bottom line.
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