Friday, January 11, 2008

Innovative Process Management as Business Design

© BPTrends - - Click Image for Larger View

Although we have been emphasizing the importance of fostering a culture of social innovation, there is no excuse for neglecting the existing value creation capabilities of the organization. The BPTrends Pyramid is a very helpful model for keeping things in perspective, demonstrating the strategic placement of business processes.

Why is attention to business processes key to business success? Basically, they form the "design" layer of an organization. We are all familiar with the power of innovative product design. As I pointed out in a previous post, value-driven design creates a powerful overlap between opportunity and capability, envisioning a creative outcome that can be realized as a new or improved product.

In the same way, processes are the design bridge in an organization. This is where we creatively leverage corporate resources (capability) to achieve business vision and strategies (opportunity). The BPTrends pyramid visually portrays this principle.

Here is a quick table comparing the design realities of business and software production:

ContextSoftware ProductionBusiness Production
Value TargetsProduct UsersMarket/Customers
Value DriverPersona GoalsBusiness Value
OpportunityProblem DomainBusiness/Marketing Strategy
CapabilityTechnology/ExpertiseCorporate Workforce/Infrastructure
Value CreationProduct InnovationBusiness Innovation/Efficiency

Bottom Line: Companies that focus on value-driven process design and process management are poised for ongoing competitive growth and innovation.

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