Business Process

Business process

A business process or business method is a collection of interrelated tasks, which solve a particular issue.

3 types of business processes

Management processes

the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management

Operational processes

processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.

Supporting processes

which support the core processes. Examples include Accounting, Recruitment, IT-support.

A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level.

Business Process Modeling Notation can be used for drawing business processes in a workflow

A key characteristic of Business Process Reengineering (BPR) is the focus on business processes. Davenport (1993) defines a (business) process as

”a structured, measured set of activities designed to produce a specific output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus’s emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action. ... Taking a process approach implies adopting the customer’s point of view. Processes are the structure by which an organization does what is necessary to produce value for its customers.”

This definition contains certain characteristics a process must possess.

These characteristics are achieved by a focus on the

business logic of the process (how work is done), instead of taking a product perspective (what is done).

Following Davenport's definition of a process

we can conclude that a process must have clearly defined boundaries, input and output, that it consists of smaller parts, activities, which are ordered in time and space, that there must be a receiver of the process outcome- a customer - and that the transformation taking place within the process must add customer value

Hammer & Champy’s (1993) definition can be considered as a subset of Davenport’s. They define a process as

”a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.”

As we can note, Hammer & Champy have a more transformation oriented perception, and put less emphasis on the structural component–process boundaries and the order of activities in time and space.

Rummler & Brache (1995) use a definition that clearly encompasses a focus on the organization’s external customers, when stating that

”a business process is a series of steps designed to produce a product or service. Most processes (...) are cross-functional, spanning the �white space’ between the boxes on the organization chart. Some processes result in a product or service that is received by an organization's external customer. We call these primary processes. Other processes produce products that are invisible to the external customer but essential to the effective management of the business. We call these support processes.”

The above definition distinguishes two types of processes, primary and support processes, depending on whether a process is directly involved in the creation of customer value, or concerned with the organization’s internal activities.

In this sense, Rummler and Brache's definition follows Porter's value chain model, which also builds on a division of primary and secondary activities. According to Rummler and Brache,

a typical characteristic of a successful process-based organization is the absence of secondary activities in the primary value flow that is created in the customer oriented primary processes.

The characteristic of processes as spanning the white space on the organization chart indicates that processes are embedded in