Suppose you are an IT organization dealing with software development. So in this case, the discovery of innovation is your domain. While you spend hours in delivering new solutions and products, the major chunk of your work and professionals are involved in the core process. Being a part of the core business is so important. But then wait! Does it mean that you can easily ignore the non-core business? Is this a part of your work reality?
No- it is not! The difference that makes a business successful or a failure is highly dependent on the attitude adopted by the business towards its core and non-core functioning. For that matter, a successful business will never commit the mistake of underrating the non-core business activities. They would rather strive for a fine balance between both the managerial functions. So what is that you need to know about the non-core business activities? Let’s first define the phenomena.
Non-core Business Activities:
The non-core business activities or assets of an organization are those assets that are not essential or have no direct influence on the business operations. Generally, companies outsource their non-core functions to some third party outsourcing firms who manage the task of handling diverse secondary functions for the organization. This means a company can strictly focus on the core functions, while at the same time; they can outsource the less important (yet purposeful) non-core activities to a third party interface.
- Strategic Development- The Art of Balance
The best way to balance both the business activities is by creating a strategic plan. First and foremost, introduce your business to a trusted outsourcing firm. Ask them to create a working strategic plan for you. By outsourcing your non-core business functions, you are exploring the fine merits of both generic and competitive business strategies.
- Defining the activities and roles
As a business, it becomes your responsibility to evaluate activities on the basis of their importance. Clearly distinguish activities under the broad categories of core and non-core specifications. The outcome has to be on the basis of value, profit statement and day-to-day routine. It is indeed the responsibility of a business to know the difference between company’s strategic growth and internal capacity. While strategic growth is simply evaluated on the basis of competitive advantage, internal capacity is assessed by the internal strength of the organization for conducting a task. Now this is the framework that can directly help your business in understanding the difference between core and non-core business functions.
The balance between both the activities lies in the art of decision making and taking. Be the driving force to bring this valid difference to business practice.