Process Oriented

Architecture

Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

Process Oriented Architecture Introduction

Individual process and process areas within an organisational vertical

hierarchy represent competencies and associated organisational
operational functions and structures designed to handle units of
work
These competencies are utilised or invoked in response to requests
or events
Competencies/process areas can be shared
A Process Oriented Architecture is a way of linking process areas to
actual (desired) interactions customer (external interacting party)
service journeys through the organisation
Allows two views of any process to be maintained and operated
External view that experienced by user
Internal view that worked on by the organisational competency

There will always be two views of any process

August 17, 2016

Process Oriented Architecture Maps Actual External

Interaction Paths To Organisational Operational Process
Competencies
External Interaction Paths Experience Journeys

Organisational Operational
Process Competency Grouping

August 17, 2016

External Interacting Parties

An organisation will interact will multiple external parties

Each external party will have a number of interaction paths

or journeys

These journeys are the routes of experience of external

parties

These routes of experience need to be mapped (as)

seamlessly (as possible) to internal organisational
operational process competency groupings

August 17, 2016

Process Oriented Architecture Maps Actual External

Interaction Paths To Organisational Operational Process
Competencies

External Interaction Paths the natural real life way a

customer (external party) interacts with the organisation
and avails of the organisations products and services

Organisational Operational Process Competency

Grouping the way the organisation structures itself to
perform work

There are discontinuities and disconnections between the

natural interaction sequence and the way the organisation
responds to these interactions

Leads to differences between customer (external party)

expectations and what actually happens
August 17, 2016

External Interaction Paths

These represent the Straight Through Processing that the

customer (external party) wants to experience

The complexity of internal organisational operational

process competency groupings needs to be masked from
the customer (external party)

August 17, 2016

Process Oriented Architecture

External interaction paths represent how external parties

actually (want to) interact with the organisation
External interaction paths are effectively meta-processes that
aggregate individual processes/sub-processes

Process Oriented Architecture links organisation

competencies to these contact sequences
Enables end-to-end view, across cross functional and operational
areas
It is the glue that bonds customer (external party) interaction
sequences with operational processes and structures
Enables straight through processing

August 17, 2016

Three Pillars Of Any Organisation

Organisation

Strategy, Infrastructure and Product and Service Development

August 17, 2016

Develop strategy, implement governance and management, commit to the enterprise, build
technology, communication and resource infrastructure that supports products and services and
support functional processes, develop and manage new products and services, manage mergers,
acquisitions and divestments, develop and manage strategic business partners and business
relationships and the supply chain

Operations
Implement and operate organisation competencies and associated processes that support the
customer operations and management including both day-to-day and operations support and
readiness processes and sales management and supplier/partner relationship management
including customer acquisition, product and service sales, product and service delivery and billing

Organisation Management
Basic organisation competencies and associated business processes required to run any
organisation - facilities, information technology, financial management, legal management, HR,
regulatory management, process, cost and quality management, strategy development and
planning, improvement and change and knowledge management

Three Pillars Of Any Organisation

Exact organisation profile depends on many factors such

as:
The type and mix of products and services the organisation
provides
The nature of the customer relationship known or anonymous
The number of different types of customer
The number and type of external parties interacted with

August 17, 2016

Sample Enterprise Business Process Groups

Generalised Structure
Vision, Strategy,
Business
Management

Core Operational Processes With Cross Functional Linkages

External Party Facing

Processes
Management and Support Processes

Supporting Processes

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10

Interactions Between Organisation Processes

External Interacting Parties and Experience Journeys

What They
Interact With
Defines Strategy and Approach
for Implementing and Operating
Core Operational Processes

Core
Processes

Management
Processes
Defines Strategy and Approach
for Implementing and Operating
Core Operational Processes

Supporting
Processes
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11

Interactions Between Organisation Processes

Business
Retail
Customer Customer

Regulator

Supplier

Public

Dealer
Service
Provider

SubContractor

Agent

Core
Processes

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12

Taking A Process Oriented Architecture Approach

This enables the mapping of external straight through

processing to internal organisational operational process
competency groupings

Maps the desired customer (external party) experiences to

competencies that may cross organisational functional
boundaries

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13

Sample Organisation Business Process Models

Generalised Structure

Core Operational Processes drive and operate the

organisation, deliver value, support external party
interactions

Management and Support Processes internal processes

and associated business functions that enable the
operation and delivery of the core operational processes

Vision, Strategy, Business Management processes that

measure, control and optimise the operational and
support processes and set the direction of the organisation

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14

Sample Organisation Business Process Models

Generalised Structure
Vision, Strategy,
Business
Management

Core Operational Processes With Cross Functional Linkages

Market and Sell
Products and
Services

Deliver Products
and Services

Manage
Customer Service

Vision and Strategy

Management and Support Processes

Business Planning,
Merger, Acquisition

Governance and
Compliance

Develop and Manage

Products and Services

August 17, 2016

Human Resource
Management
and
Development

Information
Technology
Management

Legal, Regulatory,
Environment,
Health and
Safety
Management

Financial
Management

External
Relationship and
Partner
Management

Facilities
Management

Service,
Knowledge,
Improvement
and Change
Management

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Core And Supporting Processes And Interactions

External parties interact with the organisations core

business processes

Core business processes may be logical, cross-functional

representations of multiple, internal operational processes
that may or may not be connected to present a seamless
logical view

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Achieving A Process Oriented Architecture

Organisation Competency
And Process Definition

Customer Experience
Journey Definitions

Process
Oriented
Architecture

Mappings From
Experience Journeys To
Organisation Competency
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Achieving A Process Oriented Architecture

This requires:
1. Structured approach to identifying, categorising and
structuring internal organisational operational process
competency groupings use sample process breakdowns as a
starting point
2. Customer (external party) experiences journeys identification
and definition take a use case approach
3. Mapping of experiences journeys to internal operational
competencies

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18

Sample Organisational Process Breakdowns

APQC (American Productivity and Quality Center)

Publish the Process Classification Framework (PCF) defined
generic and domain-specific organisation process breakdown
https://www.apqc.org/pcf

TMForum
Publish the enhanced Telecommunications Operating Breakdown
(eTOM) business process framework aimed at
telecommunications service providers
https://www.tmforum.org/business-process-framework/
Can be generalised to be applied to other utility-type companies

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Sample Organisational Process Breakdowns

These can be used as frameworks for identifying,

categorising and structuring internal organisational
operational process competency groupings

Provide a foundation for this development to reduce the

effort and improve the quality of the results

August 17, 2016

20

APQC (American Productivity and Quality Center)

Process Classification Framework (PCF)

Not really an operational process breakdown

More an organisational competency breakdown

August 17, 2016

21

APQC PCF Generic Organisational Process

Breakdowns
Organisation

1.0 Develop Vision and Strategy

2.0 Develop and Manage Products

and Services

3.0 Market and Sell Products and

Services

4.0 Deliver Products and Services

5.0 Manage Customer Service

6.0 Develop and Manage Human

Capital

7.0 Manage Information Technology

8.0 Manage Financial Resources

9.0 Acquire, Construct, and Manage

Property

10.0 Manage Environmental Health

and Safety (EHS)

11.0 Manage External Relationships

12.0 Manage Knowledge,

Improvement, and Change

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APQC PCF - External Interaction Process/

Competency Areas
Organisation

1.0 Develop Vision and Strategy

2.0 Develop and Manage Products

and Services

3.0 Market and Sell Products and

Services

4.0 Deliver Products and Services

5.0 Manage Customer Service

6.0 Develop and Manage Human

Capital

7.0 Manage Information Technology

8.0 Manage Financial Resources

9.0 Acquire, Construct, and Manage

Property

10.0 Manage Environmental Health

and Safety (EHS)

11.0 Manage External Relationships

12.0 Manage Knowledge,

Improvement, and Change

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APQC PCF Generic Organisational Process

Breakdowns

APQC model mixes pure operational/delivery

processes/competencies with strategy and planning topics

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APQC PCF Model - Operational Process Develop and

Manage Products and Services Generic Process
Breakdown
Develop And Manage Products And Services

Manage Product And Service Portfolio

Develop Products And Services

Evaluate Performance Of Existing Products/Services

Against Market Opportunities

Design, Build, And Evaluate Products And Services

Define Product/Service Development

Requirements

Test Market For New Or Revised Products And

Services

Perform Discovery Research

Prepare For Production

Confirm Alignment Of Product/Service Concepts

With Business Strategy

Manage Product And Service Life Cycle

Manage Product And Service Master Data

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APQC Model - Operational Process Market and Sell

Products and Services - Generic Breakdown
Market And Sell Products And Services

Understand Markets,
Customers, And Capabilities

Develop Marketing Strategy

Develop Sales Strategy

Develop And Manage

Marketing Plans

Develop And Manage Sales

Plans

Perform Customer And

Market Intelligence
Analysis

Define And Manage

Channel Strategy

Develop Sales Forecast

Establish Goals, Objectives,

And Metrics For Products
By Channels/Segments

Generate Leads

Evaluate And Prioritise

Market Opportunities

Define Pricing Strategy To

Align To Value Proposition

Develop Sales
Partner/Alliance
Relationships

Establish Marketing
Budgets

Manage Customers And

Accounts

Define Offering And

Customer Value
Proposition

Establish Overall Sales

Budgets

Develop And Manage

Media

Manage Customer Sales

Establish Sales Goals And

Measures

Develop And Manage

Pricing

Manage Sales Orders

Establish Customer
Management Measures

Develop And Manage

Promotional Activities

Manage Sales Force

Track Customer
Management Measures

Manage Sales Partners And

Alliances

Develop And Manage

Packaging Strategy
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APQC Model - Operational Process Deliver Products

and Services - Generic Breakdown
Deliver Products And
Services
Plan For And Acquire
Necessary Resources

Procure Materials And

Services

Produce/Manufacture/
Deliver Product

Deliver Service To Customer

Manage Logistics And

Warehousing

Develop Production And

Materials Strategies

Develop Sourcing
Strategies

Schedule Production

Confirm Specific Service

Requirements For
Individual Customer

Define Logistics Strategy

Manage Demand For

Products And Services

Select Suppliers And

Develop/Maintain
Contracts

Produce Product

Identify And Schedule

Resources To Meet Service
Requirements

Plan And Manage Inbound

Material Flow

Create Materials Plan

Order Materials And

Services

Schedule And Perform

Maintenance

Provide Service To Specific

Customers

Create And Manage

Master Production
Schedule

Appraise And Develop

Suppliers

Perform Quality Testing

Ensure Quality Of Service

Plan Distribution
Requirements

Maintain Production
Records And Manage Lot
Traceability

Establish Distribution
Planning Constraints
Review Distribution
Planning Policies
Assess Distribution
Planning Performance
Develop Quality Standards
And Procedures
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APQC Model - Operational Process Manage

Customer Service - Generic Breakdown
Manage Customer Service

Develop Customer
Care/Customer Service Strategy

Plan And Manage Customer

Service Operations

Measure And Evaluate Customer

Service Operations

Plan And Manage Customer

Service Work Force

Measure Customer
Satisfaction With Customer
Requests/Inquiries Handling

Define Customer Service

Policies And Procedures

Manage Customer Service

Requests/Inquiries

Measure Customer
Satisfaction With CustomerComplaint Handling And
Resolution

Establish Service Levels For

Customers

Manage Customer Complaints

Develop Customer Service

Segmentation/Prioritisation

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eTOM Business Process Framework

Designed for telecoms utilities but it can be generalised

and effectively applied to many other (utility)
organisations

Structure consists of operational (vertical) process groups

and cross-functional (horizontal) process groups

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eTOM Business Process Framework Overview

Customer

Strategy,
Infrastructure
and Product

Strategy, New Ideas, Products And

Associated Supporting Infrastructure
Moved to Production and Steady-State
Operations

Enterprise
Management

August 17, 2016

Operational
Processes Sales,
Fulfillment,
Assurance, Billing
and Support

Operations

Fundamental Supporting
Business Processes Needed To
Run Any Business
30

eTOM Business Process Framework - Detail

Strategy, Infrastructure and Product
Strategy and
Commit

Infrastructure
Lifecycle
Management

Product
Lifecycle
Management

Operations
Operations
Support and
Readiness

Fulfilment

Assurance

Billing and
Revenue
Management

Marketing and Offer Management

Customer Relationship Management

Service Development and Management

Service Management and Operations

Resource Development and Management

Resource Management and Operations

Supply Chain Development Management

Supplier/Partner Relationship Management

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Operations Organisation Pillar Sub-Processes

Operations Pillar

Customer Relationship
Management

Service Management
and Operations

Resource
Management and
Operations

CRM - Support and

Readiness

Customer Interface
Management

Service Management
and Operations
Support and
Readiness

Resource
Management and
Operations Support
and Readiness

Marketing Fulfilment
Response

Selling

Service Configuration
and Activation

Order Handling

Supplier/Partner
Relationship
Management

Resource Provisioning

Supplier/Partner
Relationship
Management Support
and Readiness

Supplier/Partner
Requisition
Management

Resource Trouble
Management

Resource Performance
Management

Supplier/Partner
Problem Reporting
and Management

Supplier/Partner
Performance
Management

Problem Handling

Service Problem
Management

Resource Data
Collection and
Distribution

Resource Mediation
and Reporting

Supplier/Partner
Settlements and
Payments
Management

Supplier/Partner
Interface
Management

Customer Quality of
Service/SLA
Management

Retention and Loyalty

Service Quality
Management

Manage Workforce

Bill Invoice
Management

Bill Payments and

Receivables
Management

Service Guiding and

Mediation

Bill Inquiry Handling

Charging

Manage Billing Events

Manage Balances

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CRM Cross Functional Process And Operational

Process Groups
Cross-Functional Processes
Operations
Support and
Readiness

Fulfilment

Operational Process Groups

CRM - Support and

Readiness

Customer
Relationship
Management

Assurance

Billing and
Revenue
Management

Customer Interface Management

Marketing Fulfilment
Response

Problem Handling

Bill Invoice
Management

Selling

Customer Quality of
Service/SLA
Management

Bill Payments and

Receivables
Management

Order Handling

Bill Inquiry Handling

Retention and Loyalty
Charging
Manage Billing Usage
Data
Manage Account
Balances

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Customer Relationship Management Process Area

and Sub-Processes Levels 0 and 1
Customer Relationship
Management

CRM - Support and Readiness

Customer Interface
Management

Marketing Fulfilment
Response

Selling

Order Handling

Problem Handling

Customer Quality of
Service/SLA Management

Retention and Loyalty

Bill Invoice Management

Bill Payments and Receivables

Management

Bill Inquiry Handling

Charging

Manage Billing Events

Manage Balances

August 17, 2016

Generic breakdown of high-level

CRM processes and associated
functions
Considers the fundamental
knowledge of customers needs and
includes all functionalities necessary
for the acquisition, enhancement
and retention of a relationship with
a customer
Concerned with customer service
and support
Involves retention management,
cross-selling, up-selling and direct
marketing for the purpose of selling
to customers
Includes the collection of customer
information and its application to
personalise, customise and integrate
delivery of service to a customer, as
well as to identify opportunities for
increasing the value of the customer
to the organisation
34

Customer Relationship Management Process Area

and Sub-Processes Levels 0,1 and 2
Customer Relationship
Management
CRM - Support
and Readiness

Customer
Interface
Management

Marketing
Fulfilment
Response

Selling

Order Handling

Problem Handling

Customer Quality
of Service/SLA
Management

Retention and
Loyalty

Bill Invoice
Management

Bill Payments and

Receivables
Management

Bill Inquiry
Handling

Charging

Manage Billing
Events

Support Customer
Interface
Management

Manage Contact

Issue and
Distribute
Marketing
Collaterals

Manage Prospect

Determine
Customer Order
Feasibility

Isolate Customer
Problem

Assess Customer
Quality of
Service/SLA
Performance

Establish and
Terminate
Customer
Relationship

Apply Pricing,
Discounting,
Adjustments and
Rebates

Manage Customer
Billing

Create Customer
Bill Inquiry Report

Perform Rating

Enrich Billing
Events

Support Order
Handling

Manage Request
(Including Self
Service)

Track Leads

Qualify
Opportunity

Authorise Credit

Report Customer
Problem

Manage Quality
of Service/SLA
Violation

Build Customer
Insight

Create Customer
Bill Invoice

Manage Customer
Payments

Assess Customer
Bill Inquiry Report

Apply Rate Level

Discounts

Guide Billing
Events

Support Problem
Handling

Analyse and
Report on
Customer

Negotiate
Sales/Contract

Track and Manage

Customer Order
Handling

Track and Manage

Customer
Problem

Analyse and
Manage Customer
Risk

Produce and
Distribute Bill

Manage Customer
Debt Collection

Authorise
Customer Bill
Invoice
Adjustment

Aggregate Items
For Charging

Mediate Billing
Events

Support
Retention and
Loyalty

Mediate and
Orchestrate
Customer
Interactions

Acquire Customer
Data

Complete
Customer Order

Close Customer
Problem Report

Personalise
Customer Profile
for Retention and
Loyalty

Track and Manage

Customer Bill
Inquiry Resolution

Manage Customer
Charging
Hierarchy

Report Billing
Event Records

Support
Marketing
Fulfilment

Cross/Up Selling

Issue Customer
Orders

Create Customer
Problem Report

Validate
Customer
Satisfaction

Report Customer
Bill Inquiry

Support Selling

Develop Sales
Proposal

Report Customer
Order Handling

Correct and
Recover Customer
Problem

Support Customer
Quality of
Service/SLA

Manage Sales
Accounts

Close Customer
Order

Report Customer
Quality of Service
Performance
Create Customer
Quality of Service
Performance
Degradation
Track Report
and Manage
Customer Quality
of Service
Performance
Resolution
Close
Customer
Quality of Service
Performance
Degradation
Report

Manage Balances

Close Customer
Bill Inquiry Report

Manage
Campaign

Manage Customer
Inventory
Manage Product
Offering
Inventory
Manage Sales
Inventory

This shows a possible breakdown of

lower-level CRM processes and functions

Support Bill
Invoice
Management
Support Bill
Payments and
Receivables
Management
Support Bill
Inquiry Handling

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Cross Functional Processes And The Customer

The customer sees across the structure and is not

concerned with but is all too often aware of the
operational elements, their complexity and lack of
interoperability

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Customer Relationship Management

Customer is a short-hand term for any external party the

organisation interacts with

An organisation will have many different types of customer

Interaction sequence depends on the type of products and

services the organisation provides

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Process Oriented Architecture And Customer

Relationship Management

Approach reduces variability and introduces consistency

into customer (external party) experiences

Enables handling of larger volumes of interactions more

efficiently

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CRM Operational Success Formula

CRM operational success is measured as the sum of

successful outcome of each interaction for each customer
for each customer type
Each
Customer
Type

August 17, 2016

Each
Customer

Each
Customer
Interaction

(Interaction Outcome) )

(
(
)

39

Customer Service Journeys

Customer (or external party) journeys are organisation

interaction sequences pursued by customers as they use
the services provided by the organisation

Interaction sequence depends on the type of products and

services the organisation provides

Journeys are not always sequential

Steps in journey involve interactions with different

organisational operational processes

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Sample High Level Customer Service Journey Buy

And Pay For A Product/Service
Do Not
Pursue
Interest

Do Not
Pursue
Interest

Do Not
Accept
Offer/
Accept
Other
Supplier

Look For
Information
/ Awareness
and Interest
Generated

Look For
Details on
Specific
Product/
Service/
Offer

Report
Fault/
Complaint

Query Usage
Statement
and Bill, Pay
Bill

Change
Mind Before
Completing

Cancelled
Because of
Delivery/
Provision
Problems

Receive,
Evaluate
Offer,
Negotiate
and
Compare

Decide To
Buy
Product/
Service

Pass
Enrolment,
Buy/
Subscribe
and Receive
Product/
Service

Receive and
Pay Usage
Statements
and Bills

Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer

Renew,
Evaluate
Alternatives
and
Negotiate

Decide to
Leave/
Cancel
Service

Accept
Counteroffer

Do Not
Complete
August 17, 2016

Leave

41

Sample Customer Service Journey

High-level and simplified example of a utility-type service

provider operating in a competitive environment

Every customer (external interacting party) journey will

have a direct sequence indicating success from the
organisations view and a number of alternate paths

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Service Journey And Operational Processes

Multiple alternate routes of service journey require

operational complexity

Service journey is an abstraction of the associated

operational processes

Operational processes represent organisational

competencies

Operational complexity needs to masked from service

journeys

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Sample Customer Service Journey Phases And

Steps
Phase

Step

Research/Consider

Look For Information/ Awareness

and Interest Generated
Look For Details on Specific
Product/ Service/ Offer
Receive, Evaluate Offer, Negotiate
and Compare
Decide To Buy Product/ Service

Inquire/Evaluate

Decide/Negotiate
Buy/Subscribe
Use/ Bill and Pay/
Change/ Upgrade/
Complain/Report
Fault/ Leave

Description

Look for general information and/or be made aware of the existence of

the organisation and its products/services
Investigate specific offer or promotion and/or make contact with
organisation to get specific details on product/service
Receive and evaluate a specific offer. Negotiate the details of the offer
and compare the offer with that from other suppliers/service providers
Make a decision to buy a specific product/service from the selected
supplier/service provider
Pass Enrolment, Buy/ Subscribe
The customer is successfully setup and passes any checks. Buy the
and Receive Product/ Service
specific product/service, do not change before completion and receive
the product/service successfully from the supplier/service provider
Receive and Pay Usage Statements Use the product/service, receive usage information and bills and pay
and Bills, Pay Bill
bills
Query Usage Statement and Bill
Query usage information and bill
Report Fault/ Complain
Report a fault in the delivery or usage of the product/service or make a
complaint
Upgrade/ Buy Additional Product/ Buy new or additional products/services or respond to upgrade/replace/add
offer
Service/ Respond to Offer
Renew, Evaluate Alternatives and Renew at the end of the contracted period, evaluate alternatives from
Negotiate
the current and other organisations and negotiate product/service and
price

Decide to Leave/ Cancel Service

Accept Counteroffer
August 17, 2016

Give notice to leave and cancel service

Accept counteroffer and stay with organisation
44

Sample Customer Journey Organisation Processes

Interacted With

The customer (external interacting party) will interact with

organisation competency areas/processes during the
journey
Primary processes directly involved in the interaction
Enabling processes indirectly involved in the interaction, such as
support, readiness, management, analysis, reporting

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Sample Customer Journey Primary And Secondary

Processes
Phase

Step

Research/ Consider Look For Information/

Inquire/ Evaluate

Awareness and Interest

Generated
Look For Details on Specific
Product/ Service/ Offer
Receive, Evaluate Offer,
Negotiate and Compare

Decide/ Negotiate Decide To Buy Product/ Service

Buy/ Subscribe and Receive
Buy/Subscribe
Product/ Service

Use/ Bill and Pay/ Receive and Pay Usage

Change/ Upgrade/ Statements and Bills, Pay Bill
Complain/ Report
Query Usage Statement and Bill
Fault/ Leave
Report Fault/ Complain
Upgrade/ Buy Additional
Product/ Service/ Respond to
Offer
Renew, Evaluate Alternatives
and Negotiate
Decide to Leave/ Cancel Service
Accept Counteroffer
August 17, 2016

Primary Processes

Secondary Processes

Manage Contact

Record, Track, Analyse and Report on Customer Contacts

Manage Information Content and Access

Track Leads
Manage Prospect

Respond to Customer and Issue and Distribute

Marketing Collateral
Qualify Customer
Negotiate Sales/Contract
Acquire Customer Data
Cross/Up Selling
Develop Sales Proposal

Manage Sales Accounts

Determine Customer Order Feasibility

Authorise Credit
Complete Customer Order
Issue Customer Orders
Fulfil Order
Apply Pricing, Discounting, Adjustments and Rebates
Create Customer Bill
Produce and Distribute Bill

Track and Manage Customer Order Handling

Report Customer Order Handling
Manage Inventory
Manage Deliveries

Receive and Handle Inquiry

Track Inquiry to Completion
Respond to Query
Receive and Handle Fault Report/Complaint
Track Fault Report/Complaint to Completion
Respond to Fault Report/Complaint
Manage Contact
Negotiate Sales/Contract
Cross/Up Selling
Develop Sales Proposal

Collect Billing Information

Manage Customer Billing
Manage Customer Payments
Manage Customer Debt Collection
Record, Track, Analyse and Report on Customer Contacts

Record, Track, Analyse and Report on Customer Contacts

Build Customer Insight

Analyse and Manage Customer Risk
Personalise Customer Profile for Retention and Loyalty
Validate Customer Satisfaction
Manage Information Content and Access

Negotiate Sales/Contract
Cross/Up Selling

Manage Termination
46

Primary And Secondary Processes

Operational processes, both primary and secondary, can

be invoked multiple times during the service journey

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47

So What Is A Process

Set of activities triggered by one or more events or statuses, requiring on

or more inputs and performed in structured interim contingent outcomedependent order or sequence to generate one or more outputs and cause
one or more outcomes
Process is the self-contained unit that completes a given task
Process can consist of sub-processes and/or activities
Process and its constituent activities, stages and steps can be decomposed
into a number of levels of detail, down to the individual atomic level
Process analysis and design is concerned with optimising an existing or
new process and focussing on efficiency and adding value
Process is primarily concerned with its outcomes and outputs
Activities and their sequence that generate outcomes and outputs are largely
secondary
Activity and sequence view is useful for identifying opportunities for efficiencies,
resource optimisation, monitoring progress, collecting volumetric information and
detecting problems, duplicated effort, bottlenecks, resource constraints and non
value-adding activities

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So What Is A Process

A process has nothing to do with value: it should but it does

not have to
This is desirable but not mandatory

A defined process can have many attributes

Each activity in a defined process can have many attributes
such as:
Required Role/Skill

An instantiated process can have many attributes such as:

Start
End
Process Version
Assigned Priority
Participants and Activities
Outcome(s)
Output(s)

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49

Process Decomposition
Trigger(s)

Output(s)

Process
Required Input(s)

Outcome(s)

Processes can be represented at different levels of detail

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Process Routing

Activities within processes can be linked by routers that

direct flow and maintain order based on the values of
output(s) and the status of outcome(s)
Trigger(s)

Output(s)

Activity

Trigger(s)

Outcome(s)

Trigger(s)

Output(s)

Output(s)
Router

Activity
Required
Input(s)

Required
Input(s)

Outcome(s)

Activity
Required
Input(s)
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Outcome(s)

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Sample Partial Process Decomposition Levels Buy

And Pay For A Product/Service
Customer Contact
Management

Collect and Validate

Requirements

Information Request
Fulfilment Response

Process Information and

Create Quotation

Provide Quotation

Issue Quotation

Sell

Follow-up on QUotation

Handle and Fulfil Order

Manage Negotiations

Buy Product/Service
Receive Customer Bill
Inquiry
Bill Invoicing
Billing
Handle Payment

Bill Payments and

Receivables
Management
Bill Inquiry Handling

Assess Customer Bill

Inquiry

Authorise Customer Bill

Invoice Adjustment
Track and Manage
Customer Bill Inquiry
Resolution
Report Customer Bill
Inquiry

Analyse Detailed Bill

Inquiry
Determine Appropriate
Bill Adjustment
Record Customer Bill
Invoice Adjustment
Issue Adjusted Bill

Close Customer Bill

Inquiry
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Process Inputs And Outputs/Outcomes

Output(s)

Trigger(s)

Delivered and
Billed for
Product/Service

Customer
Interest

Buy And Pay For A

Product/Service
Required Input(s)

Outcome(s)

Customer and
Product/Service
Details

Customer Buys
and Pays for
Product/Service

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Service Journey And Operational Processes

Look For
Information/
Awareness
And
Interest
Generated

Look For
Details on
Specific
Product/
Service/
Offer

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Receive,
Evaluate
Offer,
Negotiate
and
Compare

Decide To
Buy
Product/
Service

Pass
Enrolment,
Buy/
Subscribe
and
Receive
Product/
Service

Receive
and Pay
Usage
Statements
and Bills

Query
Usage
Statement
and Bill,
Pay Bill

Report
Fault/
Complaint

Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer

Renew,
Evaluate
Alternatives
and
Negotiate

Decide to
Leave/
Cancel
Service

Accept
Counteroffer

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Customer (External Party) Experiences Journey

Identification And Definition

Customer (external party) experiences journeys identification and

definition is required to understand which journeys are to be
mapped to organisational operational process competency
groupings and optimised

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Interactions Between Organisation Processes

Use Case

Use Case

Use Case

Use Case

Use Case

Business
Retail
Supplier Use Case
Customer Customer Use Case

Public

Service
Provider

Use Case
Use Case

Dealer

SubContractor

Regulator
Agent

Identify possible use cases for each external interacting

partner

Define the journey for each use case

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Business Model Canvass

Consider using the Business Model Canvass (developed by Alexander

Osterwalder) to analyse and evaluate each use case
Divides business into nine elements in four groups
Infrastructure

Key Partners - the key partners and suppliers needed to achieve the business model
Key Activities - the most important activities the business must perform to ensure the
business model works
Key Resources - the most important assets to make the business model work

Offering

Value Propositions - the value, products and services provided to the customer

Customers

Customer Relationships - the customer relationships that need to be created

Channels - the channels through which the business reaches its customers
Customer Segments - the types of customers being targetted by the business model

Finances

Cost Structure - the most important costs incurred by the business model
Revenue Streams - the sources through which the business model gets revenue from
customers

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Business Model Canvass

Key Partners

Key Activities

Value Propositions

Customer Relationships

Who are our key partners?

Who are our key suppliers?
What Key Resources do we acquire
from partners?
What Key Activities do partners
perform?

MOTIVATIONS FOR
PARTNERSHIPS

Optimisation and economy

Reduction of risk and uncertainty
Acquisition of resources and skills

What key activities do our value

propositions require
What are our distribution channels?
What are our customer relationships?
What are our revenue streams?

CATEGORIES

Production
Problem Solving
Platform/Network

Key Resources
What key resources are required by our
Value propositions Distribution channels
Customer relationships
Revenue streams

What value do we deliver to our

customers?
Which of our customers problems are
we helping to solve?
What bundles of products and
services do we offer to each customer
segment?

What type of relationship does each of our

customer segments expect us to establish
and maintain with them?
What ones have we already established?
How are they integrated into our business
model?
How much do they cost?

CHARACTERISTICS

EXAMPLES

Novelty
Performance
Customisation
Getting the Job Done
Design
Brand
Status
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability

Physical
Intellectual
Human
Financial

Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation

What value are customers really willing to pay for?

What are they currently paying for?
How are they currently paying?
How would they prefer to pay?
How much does each revenue stream contribute to overall revenue?

Cost Driven leanest cost structure, low price value proposition, maximum automation, extensive
outsourcing
Value Driven focussed on value creation, premium value proposition

SAMPLE CHARACTERISTICS

Fixed costs
Variable costs
Economies of loading
Economies of scale

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Mass market
Niche market
Segmented
Diversified
Multi-sided platform

Awareness - How do we raise awareness

about our products and services
Evaluation How do we help customers
evaluate our value proposition?
Purchase How do we allow customers
purchase specific products and services?
Delivery How do we deliver a value
proposition to customers?
After Sales How do we provide postpurchase customer support?

Revenue Streams

For whom are we creating

value?
Wo are our most important
customers?

Through which channels do our customer

segments want to be reached?
How are we reaching them now?
How are our channels integrated?
Which ones are most cost-efficient?
How are we integrating them with customer
processes?

Cost Structure

CHANNEL PHASES

IS THE BUSINESS MORE:

Channels

TYPES OF RESOURCES

What are the most important costs inherent in the business model?
Which key resources are the most expensive?
Which key activities are the most expensive?

Customer
Segments

TYPES

Asset sale
Usage fee
Subscription fees
Lending/renting/leasing
Licensing
Brokerage fees
Advertising

FIXED PRICING

DYNAMIC PRICING

List price

Product feature dependent

Customer segment dependent

Volume dependent

Negotiation/bargaining
Yield management
Real-time market

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Business Model Canvass And Use Case Identification

Locate each use case within the Business Model Canvass to

understand its context and potential contribution to the
business

This approach provides an understanding of the benefits of

implementing a use case and assists with their definition

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Identification Of High Potential Value Use Cases

Select party or parties included in the use cases

Select the objective such as sell more, improve service

time, prevent customer loss, reduce cost of service,
increase efficiency
Not all use cases can be implemented because of time, cost and
resource constraints

Review use cases to identify those with the greatest

potential

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Definition Of Use Cases

Use the use case analysis to prioritise their

implementation based on a balanced view

Use cases must be viewed within the context of campaign

management

Use cases and their associated offers need to be

understood as a whole so there are no gaps or
inconsistencies

You need to understand the impact of use cases on the

organisation in areas such as increased workload and
affect on revenue and margin
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Use Cases And External Party Journey Stages

Depending on the nature of the organisation and the type

of product/service supplied, external parties will interact
differently
Once-off products
Continuous services

External party interactions will have a standard journey

through processes/functions and exceptions/deviations
from this happy path

External party journey will differ depending on party type

and the type of product/service supplied

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Mapping Uses Cases To Internal Process Competencies

Use Case

Use Case

Use Case

Use Case

Use Case
Use Case

Business
Retail
Supplier Use Case
Use
Case
Customer Customer

Public

Service
Provider

Use Case
Dealer

SubContractor

Regulator
Agent

Core Processes
and Process
Competencies
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Mapping Uses Cases To Internal Process Competencies

External Interaction Paths Experience Use Case/Journey

Organisational Operational
Process Competency Grouping

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POA High Level Reference Architecture

Reference Data Manager

Process Creator and Mapper

Process Library and Explorer

Enter and Maintain Organisation

and Process Reference Data

Create and Maintain Definitions

of Operational and CrossFunctional Journey Processes,
their Mappings and Their
Versions

Maintain Library of Versions of

Operational and Cross-Functional
Journey Processes and Provide
Role-Based Access

Process Manager/ Operator

Process Dashboard

Process Workbench

Allow Processes to Be
Instantiated and Operated in
Response to Requests, Manage
Notifications, Alerts and
Escalations

Provide Role-Based
Administration and Management
Analysis and Reporting Access to
Inflight and Historical Processes

Provide Role-Based Access to

Participants in Inflight and
Historical Processes

Process Data Collector

Collect and Maintain Information
on Instantiated Processes

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POA High Level Reference Architecture

View of what is required to implement and operate a

process oriented architecture and the operational
components

This requires:
1. Structured approach to identifying, categorising and structuring
internal organisational operational process competency
groupings
2. Customer (external party) experiences journeys identification
and definition
3. Mapping of experiences journeys to internal operational
competencies

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POA High Level Reference Architecture Components

Reference Data
Manager

Process Creator
and Mapper

Process Library
and Explorer

Process
Dashboard

Process
Workbench

Create Process
Definitions CrossFunctional and
Operational Mappings

Process Manager/
Operator

2
Initiate Processes
Based On Triggers,
Allocate and Notify
Participants

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View Status of In Flight Processes

5
Collect Information on
Inflight Processes

Process Data
Collector

Allow Processes to
be Viewed and
Worked on By
External and
Interval Participants

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Dual View Of ProcessesExternal Process

View Step

External View
Look For
Information/
Awareness
And
Interest
Generated

Look For
Details on
Specific
Product/
Service/
Offer

Receive,
Evaluate
Offer,
Negotiate
and
Compare

Decide To
Buy
Product/
Service

Pass
Enrolment,
Buy/
Subscribe
and
Receive
Product/
Service

Receive
and Pay
Usage
Statements
and Bills

Query
Usage
Statement
and Bill,
Pay Bill

Report
Fault/
Complaint

Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer

Renew,
Evaluate
Alternatives
and
Negotiate

Decide to
Leave/
Cancel
Service

Accept
Counteroffer

Internal View

Internal Process
View Step

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Process Oriented Architecture And Digital

Transformation

The object of digital transformation is the extension of

internal processes to specific parties over specific channels
outside the organisation

When you extend business processes outside the

organisation, you need to ensure cross-functional/crosscapability operation

External parties are not concerned with process limitations

caused by a siloed organisation not operating efficiently

Process Oriented Architecture is a key enabler of

successful digital transformation
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Summary

A Process Oriented Architecture is a way of linking process areas to actual (desired)

interactions customer (external interacting party) service journeys through the
organisation
Allows two views of any process to be maintained and operated
External view that experienced by user
Internal view that worked on by the organisational competency

There will always be two views of any process

The complexity of internal organisational operational process competency groupings needs
to be masked from the customer (external party)
There are discontinuities and disconnections between the natural interaction sequence and
the way the organisation responds to these interactions
This leads to differences between customer (external party) expectations and what actually
happens
Process Oriented Architecture links organisation competencies to these contact and
experience sequences and journeys
Enables end-to-end view, across cross functional and operational areas
It is the glue that bonds customer (external party) interaction sequences with operational processes and
structures
Enables straight through processing

Process Oriented Architecture is a key enabler of successful digital transformation

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More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

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