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rocesses deliver value to external customers. ?Support processes provide vital inputs for the core processes. 169。 2020 Pearson Education Core Processes 1. Customer relationship processes ? Identify, attract, and build relationships with external customers and facilitate the placement of orders. 2. New service/product development processes ? Design and develop new services or products from inputs received from external customer specifications. 3. Order fulfillment processes ? The activities required to produce and deliver the service or product to the external customers. 4. Supplier relationship processes ? Select suppliers of services, materials and information and facilitate the timely and efficient flow of these items into the firm. 169。 2020 Pearson Education Ratatouille 169。 2020 Pearson Education 169。 2020 Pearson Education 169。 2020 Pearson Education The New Dog (personalization) 169。 2020 Pearson Education 169。 2020 Pearson Education Support Processes Internal ValueChain Linkages ? Firms have many processes that support the core processes. External suppliers External customers Support processes Supplier relationship process Order fulfillment process New service/ product development process Customer relationship process 169。 2020 Pearson Education Case: Progressive Insurance ? Grew from $ billion to $11 in 13 years. ? How did they do it? ? Operational Innovation (Designing new processes) ? Immediate Response Claims Handling (24 hours a day). ? Streamlined claims processing, from 710 days to 9 hours. ? Web site for agents only. ? Web site for customer information, inquiries and routine processing. ? Agents quickly go to scene of accident. 169。 2020 Pearson Education Cases: Operations improvement ?Buy subway ticket: Shanghai vs Japan ?Product maintenance: repairperson 169。