Process-based business

development

Welcome!

Lund University, autumn 2011

Ph D Anders Ljungberg

Secure understanding of

“the beauty of an idea”

Every approach/method is characterized of a

1. value dimension

(conceptions, standpoints, management philosophy)

2. technical dimension (concrete methods and tools)

The four areas of the course

3. Process

management

1. Process

thinking

2. Process

development

4. Process

orientation

Understand and

apply the process

view

Enable the right

performance level

Secure the

performance level

Adapting the

enterprise to a

process paradigm

Process?

Process!

Describe an organisation's view

on processes and how a process

is defined

- and you can tell what results that have been achieved

The word ”process” (noun) • Used in multiple contexts, e. g.

– Daily life

– Law

– Biology

– Business

• All applications have the same linguistic origin

• Development from Latin processus and procedo

– to go ahead, proceed, advance, continue

Value- adding activities

A process embraces a totality

– from customer need to customer satisfaction

Customer need

Customer satisfaction

Conflicting views on processes

Hungry

(need)

Full

(satisfied need)

Corn

(origin)

Bread

(destination)

BPM view – focus on value creation

SCM view – focus on material flow

NEED

VILLE

SATISFACTION

VILLE

A process is like a road – from customer need to customer satisfaction

SATISFACTION

VILLE

A process developed from a holistic point of view

NEED

VILLE

Characteristics defining a

process

• Clear purpose

• Clear starting point/trigger – customer need

• Clear final point – satisfied customer need

• Logical network of activities linking the starting and final

points – objects between the sub processes/activities

ensure logic

• Rule of thumb: a logical lead-time exists

• Observe: process ≠ material flow

SATISFACTION

VILLE

Integrated processes in fragmented

organisations gives limited benefits

NEED

VILLE

”What it’s all about”

• Being effective - Creating value

• Seeing your business outside-in

• Being efficient

• Being different - Integrating why, what

and how (top-down)

Why

What

How

”Outside-in”

”Top

-down”

Historical perspectives

“The greatest improvement in the

productive powers of labour,...,

seem to have been the effects

of division of labour.”

- Adam Smith, 1776

Assumptions and conditions

founding the function-oriented

organization

• It is possible to identify small, specialized work assignments

• Improvement of each assignment leads to improvement of the

whole

• There is always one best way to perform each assignment

• Employees lack or have very little education

• Thinking is a task for management

The customer was not the starting point

for the function-oriented organization

Functional structures - fosters traditional attitudes

They can´t produce

what we design

They don´t sell what

we can produce

They can´t

produce what the

customers want

- We are doing our best, why aren´t they?

”…walls equals costs. And the higher the wall,

the higher the costs. The walls between

companies are much higher than the walls

inside companies. ”

Quinn, F. J. (2001), “A new agenda for the decade: an interview with

Michael Hammer”, Supply Chain Management Review, 01-NOV-01.