Business Process in Shariah VS Conventional

In every activity of business management process, there are aspects that Shariah is concerned about. These activities which includes: Financial, Marketing, Human Resources, and Operations Management, should follow the Shariah rules, called Fiqh Muamalah. Fiqh Muamalah is the Islamic laws that regulate the relations among humans being and all their acts and interconnections. (Anything is permitted up to there are some provisions that forbid it). The scope of fiqh muamalah includes, among others, the law related to all aspects of human life as well as the law related to financial acrtivities.

REVIEW ON PRINCIPLES AND CHARACTRISTICS OF BUSINESS IN ISLAM

According to Shariah law, wealth is defined as everything that can be used, legally, to Shariah law, such as business, debt, consumption, and gift. Based on this definition, we can say that everything, whether they are goods or services, that can be used by men in life is basically wealth.

Shariah law in Islam is a core value that becomes guidance, strategically as well as tactically, for business organization. With the guidance of Shariah, business is to get four main things (Yusanto and Widjajakusuma, 2002):

·        target result: profit-material and benefit-nonmaterial,

·        growth,

·        continuity,

·        Allah blessing.

Target Result: Profit-Material And Benefit-Nonmaterial.

The company goals should not just to gain highest profit, but also should have to get and give benefit nonmaterial to the internal company organization as well as external (environment), such as brotherhood working condition, social careness and so on.

What we mean by benefit is not just to give value to material, but also to give value to something nonmaterial. The management of the company can give benefit in terms of humanity action through working opportunity, social aid and other kind of aid. The values of noble attitude is a must that should appear in all kind of company activities, so it can create Islamic brotherhood relationship, not just functional or professional relationship. All those actions were meant as part of worship to Allah.

Growth

While profit material and benefit nonmaterial has been achieved according to company target, company will try to achieve growth or constant development from those profit as well as the benefit. The outcome of the company should always growing and developing every year. This process of growing should be in line with the corridor of Shariah. Such as, in increasing the amount of production to be balance with market expansion, innovation development, to create new product and so on.

Continuity

The management of a company is not yet perfect if it‟s stop in just achieving target result and growth. That is why, it always need to increase the target result that has been achieved, so that it can maintain the continuity in long term. All activities to maintain that continuity should be in line with the corridor of Shariah.

Allah Blessing

The factor or orientation to gain Allah blessing is the highest contentment for every Muslim. If they achieved this, it remarks the accomplishment of two condition for every men action, which are the element of sincerity and the way or the process that in line with the corridor of Shariah. That is why all business managers should consistently put this orientation of blessingness, so that the achievement of all orientations will always be in line with Shariah that guarantee the blessingness from Allah.

  

Here the difference business process Islamic and Conventional

Islamic	Business Process	Conventional
Vision and mission of the organization are interconnected with the mission of men‟s creation in the world	Strategic Management	Vision and mission of the organization are based on material interest only
Halal guarantee for every input, process and output. Prioritize productivity in Shariah corridor	Operation Management	There is no Halal guarantee for every input, process and output. Prioritize productivity in benefit corridor only
Halal guarantee for every financial input, process and output	Financial Management	There is no Halal guarantee for every financial input, process and output
Marketing in corridor of Halal guarantee	Marketing Management	There is no Halal guarantee in marketing
Professional Human Resource and have Islamic personality. Responsible to himself, employer and Allah.	Human Resource Management	Professional Human Resource. Responsible to himself and employer

Source: adaptation of Yusanto, M.Ismail and Widjajakusuma, M. Karebet. (2002). Menggagas Bisnis Islami. Jakarta: Gema Insani Press.

·          Lahsasna, Ahcene (2010). Shariah Aspects in Business and Finance. Kuala Lumpur: CIFP Textbook. INCEIF.

·         Ahmad, Khaliq. (2007). Management from Islamic Perspective: Principles and Practices. Malaysia: Research Center International Islamic University Malaysia.

HOW IMPORTANT THAT PROCESS BUSINESS ..?

Business process is one of the most important aspects of new business planning.

Usually a need or an idea lights the new business fire but it is process that keeps the business alive and enables it to grow. Facebook’s latest IPO is an excellent example of a company that has yet to fully understand (or at least announce) what its process for generating income will be. 

This is a typical example of why business process and business planning are so important.

A business process is a set of logically related business activities that combine to deliver something of value (e.g. products, goods, services or information) to a customer.

Process composition
A business process is made up of a hierarchy of activity levels. These levels are typically given labels such as “subprocess,” “activity” and “task”. (Unfortunately, these terms are used inconsistently at different organisations, although the underlying concepts are the same.) For example, the “Sell to customer” process might contain three sub-processes: “Find the customer”, “Take the order” and “Invoice the customer”. Each of these, in turn, is composed of lower-level activities and tasks that further define the work that needs to be performed in order to “Sell to customer”.

What is business process design?
“In the current economic climate, business process flexibility is key to  organisational survival.”
Business process design is the method by which an organisation understands and defines the business activities that enable it to function. Process design is concerned with designing a business’ processes to ensure that they are optimised, effective, meet customer requirements, and support and sustain organisational development and growth. A well-designed process will improve efficiency and deliver greater productivity.
The most common initiatives behind business process design projects are:
• customer and supply chain management
• operational performance improvement
• business process integration and automation
• cost reduction
• new business opportunities.
Business process design typically occurs as an early, critical phase in these projects, rather than as an end in itself. The goal of the overall project is to implement business change, whether that change is primarily organisational (improve the business’ operating processes), technical (implement or integrate software systems), or a combination of the two.
In a process improvement project, the focus of the business process design phase
is to streamline the process: to understand and measure the requirements, and to eliminate the risk of losing value through inefficient or inappropriate activities.
In a technology implementation project, the focus is on understanding the processes that are being automated, and ensuring that the appropriate technology is selected, configured and implemented to support them.
In both cases, the process design activities can range from modest (e.g. tweak existing processes and look for some quick wins) to aggressive (e.g. identify major opportunities to increase value or drive down costs through radical process improvement or outsourcing).
In short, business process design is a tool that can serve many different kinds of projects.

Good Business Process= Entrepreneurial Sanity

Entrepreneurs are usually trying to do too much with too little money in too little time. Investing additional time in learning business process seems difficult but it is even more critical for an entrepreneur than it is for any other type of company. Good process enables incredible productivity; entrepreneurs do not have time not to focus on process.

Apply Business Process Focus to Your Entrepreneurial Work Week

One of the best ways to start focusing on business process is to incorporate it into your own entrepreneurial lifestyle. Excellent books have been written about entrepreneurial process and ways to get more done in less time. A personal favorite at the moment in Stever Robbins’ “9 Steps to Work Less and Do More.” Business process focus is an excellent habit for success. Please contribute additional favorite ideas and resources concerning business process.

search:

 http://upandrunning.bplans.com/2012/08/28/starting-a-new-business-focus-on-business-process/ by:cheryll calvin

http://en.allexperts.com/q/Management-Consulting-2802/2012/8/business-process-analysis.htm