Explaining the Process of Defining Process Levels and Architecture

Objective

After completing this lesson, you will be able to explain the process of defining process levels and architecture.

Process Architecture Example

High-level value chains are quite common today as a starting point for organizations.

They help to structure, organize and control the business processes of the whole company and allow to drill-down into separate business areas to determine the final processes.

Note

Value chains are just one concept to provide an entry point to processes. Sometimes, companies also use modern navigation maps, traditional organizational charts or customer journey maps in order to link to respective processes.
This image depicts a four-level pyramid diagram representing different levels of business processes. Level 1 (top of the pyramid): Value Chain. Level 2: Process Areas. Level 3: End-to-End Processes. Level 4 (bottom of the pyramid): Sub Processes. The pyramid structure suggests a hierarchical relationship, with the Value Chain at the highest level, followed by Process Areas, End-to-End Processes, and Sub Processes at the base.

Value Chain

This value chain (Level 1) outlines business processes in three sections: Management Processes, Core Processes, and Support Processes. The flow moves from Customer Request to Customer Satisfaction.

Value Chain models represent the process architecture of an organization from the highest standing point. A level 1 process landscape normally visualizes the process groups of management, core, and support processes, which are aligned to the overall company goals and strategy. An example would be the high-level overview of a company's business areas.

Process Areas

This value chain (Level 2) depicts a product development process. The steps include: Define product, Design product, Prepare production, Procure parts, Produce and test, Introduce product, and Implement further development. There is a continuous process labeled Integrate changes running parallel to the steps.

A particular process area focuses on a functional part of the organization, e.g. Human Resource, Finance, or Sales Department, and provides an insight into the corresponding business processes. It consists of a logical grouping of related process areas of a certain business unit.

End-to-End Processes

This process model (Level 3) depicts a procured parts process. It includes steps for requesting parts, checking stock, compiling purchase orders, verifying vendors, creating orders, approving orders, and handling delivery issues. The process involves departments, central purchasing, and approvers, with interactions with ERP systems.

The third level of the process architecture is distinguished by existing and conceptual end-to-end processes of a dedicated process area. The BPMN is used for the graphical representation of all business processes. It contains the tasks, branches, and decisions to complete the process.

Sub-Processes

This process model (Level 4) depicts the process of ordering and receiving parts from a supplier. It includes steps such as receiving an inquiry from the supplier, clarifying questions, checking quantity and quality, and requesting replacements if needed.

Further level of details and outsourced process information can be covered by sub-processes in the form of BPMN models that are linked to a single or even multiple main processes on the upper level of the process hierarchy.

Number of Levels in the Architecture

The actual number of levels depends on the complexity of the business areas. Sometimes it's useful to create an additional level if a further grouping of related processes is required.  Some companies also create intermediate layers that represent process variants from different locations or entities of a business. A recommended (and also often found) number of levels in a value chain is between 3 and 5.

Creating a High-level Entry Point (to Processes and Business Areas)

High level value chains can show the business related services across different areas. Here is an example of what such a value chain could look like.

Value chain of an insurance company's processes, divided into three sections: Management, Core, and Support Processes. Management Processes: Strategy Development, Business Monitoring, Project Management, Risk Management, Distribution Management. Core Processes: Life Insurance, Non-life Insurance, Non-insurance Services (Product Development, Distribution, Underwriting, Customer Support, Policy Management, Damage Management). Support Processes: HR, Accounting & Finance, Re-insurance, IT Services, Legal Affairs.

Subject-related Navigation

An entry point to processes and business areas can also be provided by a specific navigation map including clickable icons. Such an entry point can be aligned to product lifecycles, company / customer journeys or any other company specific journeys.

Navigation map with four sections: Customer Experience, Governance, Operations, and Support. Each section contains icons representing different processes, which you can click to navigate through the different levels.

Customer Journeys (for Customer-related Processes)

Dedicated journeys allow linking to affected business processes, coming from the customer perspective. Behind each step, the corresponding business process could be linked.

A customer journey map for buying baking supplies online, detailing stages from exploration to support. It includes customer goals, touchpoints, thoughts, sentiment, moments of pain, business goals, and linked processes.

Note

To learn how to create a high-level entry point with a value chain or navigation map, please refer to the eLearning Introduction to SAP Signavio Process Manager. For customer journey maps please check out the eLearning Customer Journey Modeling.

Learning

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