Traceability – Transform Your Business Process Using Distributed Ledger Technology

A business process is a collection of related, structured activities or tasks by people or equipment which, in a specific sequence, produce a service or product (serves a particular business goal) for a particular customer. Business processes occur at all organizational levels and may or may not be visible to the customers.

A business process begins with a mission objective (an external event) and ends with the achievement of the business objective to provide a result that provides customer value. Additionally, a process may be divided into sub-processes (process decomposition), the particular inner functions of the process. Business processes may also have a process owner, a responsible party for ensuring the process runs smoothly from start to finish.

Broadly speaking, business processes can be organized into three types, according to Von Rosing et al.:

1. Operational processes, which constitute the core business and create the primary value stream, e.g., taking orders from customers, opening an account, and manufacturing a component.
2. Management processes, the processes that oversee operational processes, including corporate governance, budgetary oversight, and employee oversight.
3. Supporting processes, which support the core operational processes, e.g., accounting, recruitment, call center, technical support, and safety training.

A slightly different approach to these three types is offered by Kirchmer:

1. Operational processes, which focus on properly executing the operational tasks of an entity; this is where personnel “get the things done”.
2. Management processes, which ensure that the operational processes are conducted appropriately; this is where managers “ensure efficient and effective work processes”.
3. Governance processes, which ensure the entity is operating in full compliance with necessary legal regulations, guidelines, and shareholder expectations; this is where executives ensure the “rules and guidelines for business success” are followed.

A complex business process may be decomposed into several sub-processes, which have their own attributes but also contribute to achieving the overall goal of the business. The analysis of business processes typically includes the mapping or modeling of processes and sub-processes down to the activity/task level. Processes can be modeled through a large number of methods and techniques. For instance, the Business Process Modeling Notation is a business process modeling technique that can be used for drawing business processes in a visualized workflow. While decomposing processes into process types and categories can be useful, care must be taken in doing so as there may be a crossover. In the end, all processes are part of a largely unified outcome, one of “customer value creation.” This goal is expedited with business process management, which aims to analyze, improve, and enact business processes. (Reference: Wikipedia)