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(Re)Designing Business Processes Using Markov Theory and Constrained State, Transition and Actor Role Spaces

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  • Sérgio Guerreiro

    (Instituto Superior Técnico, Portugal / INESC-ID, Portugal)

Abstract

Decision-making processes are the utmost important to steer the organizational change whenever business process workarounds are attempted during operational times. However, to decide the non-compliant situations, e.g., bypasses, social resistance, or collusion; the business manager demands contextualized and correct interpretations of the existing business process redesign options to cope with workarounds. This article explores the need to aid the decision-making process with a full constructional perspective to optimize the business processes redesign. So, the Markov decision process is combined with the body of knowledge of business processes, in specific, the concepts of designing enterprise-wide business transactions. This methodology supports the management initiatives with more knowledge about the value of business processes redesign. A classical chain of Order-to-Cash business processes (the order, the production, the distribution and the selling of goods) illustrate the benefits of this quantitative approach. Results obtained for business processes redesign in reaction to workarounds are reported. The analysis results show that this approach can anticipate the sub-optimal solutions before taking actions and highlights the impact of discount factors in the final obtained value. The contribution of this novel conceptual integration to the business processes community is the forecast of value function of business transaction redesign options when facing non-compliant workarounds. From related literature, business processes compliance usually comprises offline computation and the redesign is only considered in the forthcoming business processes instances. This article is innovative in the sense that it anticipates the value impact of a redesign, allowing more effective decisions to be taken.

Suggested Citation

  • Sérgio Guerreiro, 2019. "(Re)Designing Business Processes Using Markov Theory and Constrained State, Transition and Actor Role Spaces," International Journal of Knowledge-Based Organizations (IJKBO), IGI Global, vol. 9(2), pages 43-61, April.
  • Handle: RePEc:igg:jkbo00:v:9:y:2019:i:2:p:43-61
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