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Process Improvement through Economically Driven Routing of Instances

Title data

Bolsinger, Manuel ; Elsäßer, Anna ; Helm, Caroline ; Röglinger, Maximilian:
Process Improvement through Economically Driven Routing of Instances.
In: Business Process Management Journal. Vol. 21 (2015) Issue 2 . - pp. 353-378.
ISSN 1758-4116
DOI: https://doi.org/10.1108/BPMJ-02-2014-0011

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Abstract in another language

Purpose – Process improvement is a fundamental activity of the BPM lifecycle. However, practitioners still lack concrete guidance and adequate objectives for process improvement. Moreover, improvement projects typically tie up considerable amounts of capital and are very risky. Thus, more guidance is needed on how to derive concrete recommendations for process improvement in a goal-oriented manner. – Design/methodology/approach – We propose a decision model that determines along which paths the instances of a process should be routed to maximize the value contribution of the process. To do so, the decision model requires a process model and a set of historical process instances as inputs. – Findings – The decision model builds on the idea that only the parameters of the process, i.e., the values according to which it is decided on which path an instance traverses the process, can be modified, with-out altering the structure of the process. The decision model determines the parameter setting that maximizes the value contribution of the process, which is measured in terms of the expected cash flow of the process. When determining the optimal parameter setting, the decision model considers that different instances and paths have different cash flow effects. – Practical implications – We prototypically implemented the decision model and report on the insights from a demonstration example that is based on the order verification process of an IT distributor. – Originality/value – The decision model complements existing approaches to process improvement as it reveals additional improvement potential by focusing on the decision points in a process without altering the structure of the process. The decision model also enables identifying an optimal parameter setting, as a concrete recommendation for process improvement, in line with the principles of value-based BPM.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Business process management; process improvement; process design; decision model; economic valuation
Institutions of the University: Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Professorship Business Information Systems and Value Oriented Process Management
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Professorship Business Information Systems and Value Oriented Process Management > Professorship Business Information Systems and Value Oriented Process Management - Univ.-Prof. Dr. Maximilian Röglinger
Research Institutions
Research Institutions > Research Centres > Forschungszentrum für Modellbildung und Simulation (MODUS)
Research Institutions > Affiliated Institutes
Research Institutions > Affiliated Institutes > Fraunhofer Project Group Business and Information Systems Engineering
Research Institutions > Affiliated Institutes > FIM Research Center Finance & Information Management
Research Institutions > Research Centres
Result of work at the UBT: Yes
DDC Subjects: 000 Computer Science, information, general works > 004 Computer science
300 Social sciences > 330 Economics
Date Deposited: 05 Jun 2015 09:12
Last Modified: 31 Aug 2018 09:55
URI: https://eref.uni-bayreuth.de/id/eprint/14610