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The fundamental unit of value creation in an organization is
a process. A business process is a group of logically related
tasks that takes inputs and transforms them to create output
that delivers customer value.
There are many different ways to categorize business processes
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A business process
is composed of serial and parallel activities needed to deliver
value to an organization’s customers.
Business processes involve the flow of materials, information,
and business commitments within and outside of process
boundaries,
and are typically:
- Very dynamic, and
must respond to changing customer demands and market conditions
- Widely distributed, and span across boundaries within and
between businesses
- Long running, with a single process instance running
for months or even
years
- Difficult to make visible. In many companies the processes
are not documented or explicit, but undocumented and implicit,
imbedded in the history of the organization.
- Dependent on the
judgment of humans. People perform tasks that are too difficult
to delegate to a computer for automation, or tasks that
require personal
interaction with customers.
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