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Business outcomes are produced by business processes governed by objectives, policies and constraints. The processes are supported by resources including people, knowledge, applications and infrastructure. Workflow coordinates the execution of tasks and flow of control between resources, and intervening action to ensure adequate performance and desired outcomes. Business processes are particularly important from a service management perspective. They apply the organization’s cumulative knowledge and experience to the achievement of a particular outcome (Figure 2.4).
Figure 2.4 Business processes apply experience, know-how and resources
Processes are strategic assets when they create competitive advantage and market differentiation. As a result, business processes define many of the challenges faced by service management. The nature and dynamics of the relationship between business processes and IT best explains this.
The workflow of business processes is a factor of business productivity. Business processes can span organizational and geographic boundaries, often in complex variants creating unique designs and patterns of execution (Figure 2.5). As the importance of business process has emerged, businesses have realized they must consider not only internal practices, but also their interactions with suppliers and customers. These fundamental needs form the basic motivation for the management of business processes as valuable assets.
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Value composition | | | Specialization and coordination |