Politecnico di Bari
Corso di Laurea Magistrale in Ingegneria Gestionale
Business Process Management
Business processes
Lecture 2
Learning goals
• To be able to classify processes
• To discuss the reasons why processes are
relevant for organizations
• To know the role carried out by process owners
• To know what is and how to implement a
process organization
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A processes typology (1)
• Core processes → processes that create value for the
external customer (e.g. new product development)
• Support process→ processes that are the back office of
core processes and have internal customers (e.g.
information system management)
• Managerial processes → processes by which the company
plans, organizes and controls its resourses (e.g. strategy
definition)
• Network → processes that involve suppliers and partners
(e.g. supply chain management)
EARL, M. KHAN, B., (1994) How New Is Business Process Redesign? European Management Journal, Vol. 12 No. 1, pp. 20–30
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A process typology (2)
Process structuredness
High Low
Primary processes
CORE processes Network processes
(how we do business;
Value external customers)
chain Secondary processes
target (how we manage the
Managerial
company, internal Support processes
customers) processes
EARL, M. KHAN, B., (1994) How New Is Business Process Redesign? European Management Journal, Vol. 12 No. 1, pp. 20–30
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Exercise
Use Ear and Khan’s typology to classify the
following processes:
• Manage logistics and warehousing
• Perform planning and management accounting
• Build investor relationships
• Manage customer service
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Value chain
Such a classification
is similar but the
approach is different!
Porter M.E., 1985, Competitive Advantage, Free Press (New York)
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Another classification
• Key processes → Impact on Critical Success
Factors (CSF), usually core processes
– If CSF is product innovativness → Key
processes?
– If FSC is the quality of services and
products?→ Key processes?
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Exercise
Choose a CSF and, based on it, identify one or
more key processes
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Process organizations
Why are processes important?
Processes mark the life of all companies. The
adoption of a process view allows to:
- Properly manage all the activities associated to
the creation of a product/service
- Focus on customers
A process organization works (should work) in an
effective and efficient way
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From functional structure…
Procurement R&D Production Sales …
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…to process organization
Set of horizontal activity chains aimed to
developing a product/service for a customer
Process
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Process organization
How implementing a process CEO
organization?
Procurement Production Sales
process 1 Role
• Alternative 1: Enhancement
Role
of coordination and adoption
process 2
of a process view process 3 Role
Process
1
• Alternative
Process
2: Real
2
Process
3
integration Process
...
Process
n
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Process owner
• Key role (in both
alternatives)
• Permanent role
• He/she deals with: analysis
and (re)design of the
process, training,
coordination, monitoring
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CEO
Enhancement of coordination and Procurement Production Sales
Role
adoption of a process view (1)
process 1
process 2 Role
process 3 Role
• Process identification and process owner
appointment
• Creation of interfunctional teams
• Use of Information and Communication
Technology (ICT) and Industry 4.0 (I4.0)
Technologies
• workflow automation
• innovative way to manage a process
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Enhancement of coordination and Procurement
CEO
Production Sales
adoption of a process view (2) process 1
process 2
Role
Role
process 3 Role
• Adoption of concurrent engineering techniques
• Identification and separation of core and
support activities
• Elimination of useless activities
• Identification and separation of simple and
complex activities
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Real integration (1)
• Process identification and process owner
appointment
• Horizontal grouping (20-30 employees +
process owner)
• All actors must know the entire process
• Empowerment
• Team working/shared responsibility
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Real integration (2)
Coordination tools
• Span of control → Span of support
• Shared responsibility
• Payment based on performance
• Control based on customer satisfaction
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Home assignment
• Create maps to sum up what we discussed
about processes so far
• Image you are a consultant. Create a short
presentation/video to explain to a manager
what a process organization is, why adopting it
would be benefit for his/her company and how
to implement it.
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Home assignment for next lesson
• Read and present:
– Hammer M., Stanton S., 1999, How process
enterprises really work, Harvard Business
Review, Nov.-Dec, 108-118.
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