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1.5.2 Process View of Organizations
Оглавление[41] Processes can be defined as a sequence of activities leading from one or more types of input to an output (see Porter, 1985) (Figure 1-4). The foundation and primary process of every organization is value creation. An organization defines itself in terms of its services. This orientation toward the customer value of a service is represented by the business processes at the heart of the St. Gallen Management Model (SGMM).
A value creation process must increase value between input and output (Figure 1-11). This value can be material (i.e., monetarily calculable) because input and output are traded on markets and thus have a price. This value creation can be distributed to stakeholders or used to further develop the company (Bieger, 2019). Value, however, can also be intangible, for example, when volunteer work enables care services or cultural creation unavailable in this quality on the market. Value is then designated, for example, via the required input (i.e., the amount of work) (for a critical exploration of value concepts, see Mazzucato, 2018).
Figure 1-11: Illustrative Process Chain
Besides the necessary steering of process activities (coordinating capacity and quality, etc.), the following aspects of value creation processes are of interest from a management perspective:
– Value chains tend to be restructured on an ongoing basis. Environmental changes (e.g., new technology or changed prices for input factors) mean that activities need to be carried out differently or that value chains may even need to be reconfigured. For example, “print on demand” makes stocking spare parts unnecessary.
– [42] Value chains tend to become increasingly differentiated and specialized as a result of the underlying “economies” (e.g. economies of scale).
– Additional value (e.g., boosting the attractiveness of a region by creating jobs and paying taxes) is created beyond primary value creation (Figure 1-12).
Figure 1-12: Differentiation of an Organization’s Primary and Additional Value Creation.
A process view of a company helps to optimize interactions between individual processes across functions. Porter’s (1985) basic process model of a company distinguishes primary and supporting activities. The former focus on the value creation process, while the latter establish the prerequisites (Figure 1-13).
Figure 1-13: The Value Chain
Source: Porter (1985, p. 37)
[43] For complex projects (e.g., purchasing a subsidiary) but also for complex service processes (e.g., recruiting a new executive, installing manufacturing machinery), process planning models are developed with the help of different techniques.
So-called “service blueprints” are often used to represent to-be processes (ideal situation). This normative design instrument is used to show various levels as well as a so-called visibility line. At the top are the customers or the physical points of contact with them (Figure 1-14).
Figure 1-14: Illustrative Service Blueprint: The Example of a Public Trade Fair
Source: Wiedmann and Kirchgeorg (2018, p. 56)
[44] Process maps, for example, can be used to show as-is (i.e., real) processes. These descriptive recording instruments enable empirically recording processes (i.e., as existing in reality) and displaying them as a process diagram (Figure 1-15). These process maps provide the basis for continuously improving such sequences of activities, because they illustrate the interdependencies of these activities.
Figure 1-15: Illustrative Example of a Process Map (ITEM-HSG Project Documentation)
Source: Rüegg-Stürm and Grand (2020, p. 83)