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Value-oriented process modeling : integrating financial perspectives into business process re-design

By Jan vom Brocke, Jan C. Recker and Jan Mendling

Abstract

Purpose – Financial information about costs and return on investments are of key importance to strategic decision-making but also in the context of process improvement or business engineering. In this paper we propose a value-oriented approach to business process modeling based on key concepts and metrics from operations and financial management, to aid decision making in process re-design projects on the basis of process models.\ud Design/methodology/approach – We suggest a theoretically founded extension to current process modeling approaches, and delineate a framework as well as methodical support to incorporate financial information into process re-design. We use two case studies to evaluate the suggested approach.\ud Findings – Based on two case studies, we show that the value-oriented process modeling approach facilitates and improves managerial decision-making in the context of process re-design.\ud Research limitations / implications – We present design work and two case studies. More research is needed to more thoroughly evaluate the presented approach in a variety of real-life process modeling settings.\ud Practical implications – We show how our approach enables decision makers to make investment decisions in process re-design projects, and also how other decisions, for instance in the context of enterprise architecture design, can be facilitated. \ud Originality/value – This study reports on an attempt to integrate financial considerations into the act of process modeling, in order to provide more comprehensive decision making support in process re-design projects

Topics: 080603 Conceptual Modelling, 150399 Business and Management not elsewhere classified, Process Modeling, Financial Planning, Re-engineering, Return on Investment, Capital Budgeting
Publisher: Emerald
Year: 2010
DOI identifier: 10.1108/14637151011035633
OAI identifier: oai:eprints.qut.edu.au:26230

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