The Architecture of Enterprise: A Leader’s Guide to Core and Essential Business Functions
By Bode Thomas Adeyemi
Introduction
After working in different capacities, I have learned there are nine pillars that define any business. An organized and functioning business is a system of parts that all work together. Each of these parts supports the other parts, helping the business to run smoother and more efficiently. Grouping how a business functions into categories allows us to identify the needs of a business.
Core Business Functions
1. Strategy and Leadership: The "Navigation System"
This would be considered the “brain” of your business. This includes such things as analyzing your market and positioning yourself in it. Setting objectives and charting the course your company will take.
2. Operations: The "Value Engine"
This would be the “engine” of your business. Where value is created. Everything to do with manufacturing your product or providing your service. How you get your product to the customer. Operations include production management, supply chain, quality control etc.
3. Finance and Accounting: The "Economic Nervous System"
Often called the “financial nervous system” of a business. This would include all functions that deal with money. Finance deals with the planning of acquiring and spending money. Budgeting and investing would fall under this category. Accounting records and keep track of every financial transaction within the business. Reporting that information for businesses to use and for legal reasons.
4. Marketing and Sales: The "Market Interface"
Consistently referred to as the “voice and face” of your business. Marketing and sales work together to bring in revenue. Marketing brings awareness to your business. Sales convert that awareness into dollars.
Essential Supporting Functions
5. Human Resources (HR): The "Human Capital Guardian"
Focuses on the “people” side of business. Recruiting and training employees. Managing employee issues, benefits, payroll and compliance with labor laws and regulations.
6. Information Technology (IT): The "Digital Backbone"
The “technology backbone” of any business. Every other function in your business requires hardware, software, support, and data. Information Technology will help you manage these assets.
7. Customer Service & Client Relations: The "Experience Manager"
Think of Customer Service as the 'relationship manager' you have with customers. It deals primarily with repeat business and how you take care of your existing customers. Customers may have questions, problems that need solving, or perhaps feedback on your product/service. You use this information to make your product better. Customer Service is about managing the customer's experience.
8. Legal and Compliance: The "Risk Mitigator"
Think of this as the “guardian angel” of your business. There are laws that govern how your business can operate. Legal will help you maintain your business within these guidelines. Ensuring you do not put your business at risk by breaking the law or acting unethically.
9. Research and Development (R&D): The "Innovation Catalyst"
If you are in the business of inventing new products, improving existing ones, and planning for your company's future competitiveness, then R&D is the 'creator' of your business.
Conclusion
The exception to this is if you’re a small business owner. At first, you may do all these things yourself. But as you grow you will begin to hire people/outsource certain functions to other people. You’ll eventually elevate your role to strategic oversight as specific functions are delegated to specialists. That’s why I call these the architecture of enterprise. You can outsource any of them, but you can’t build a business without them.