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Value Orientation in Process Management

Author

Listed:
  • Hans Buhl
  • Maximilian Röglinger
  • Stefan Stöckl
  • Kathrin Braunwarth

Abstract

There is no doubt that at least since the 1990s process orientation has evolved into one of the central paradigms of organizational design. Since then, all process management subtasks have matured. Process management decisions, however, lack economic foundation. They are usually based on qualitative or technical criteria or on plausibility considerations that do not necessarily comply with typical objectives in a market economy. Consequently, design alternatives are hardly comparable and an integrated valuation of a company’s assets is impossible. The status quo is astonishing for several reasons: First, process management decisions usually imply investment projects with different risk/return positions and capital tie-up. Second, the need for designing processes according to their contribution to corporate objectives has been explicated repeatedly. Third, the paradigm of value-based management is an accepted theoretical framework from economic research that enables to consistently valuate the risk/return effects of decisions across functional areas, hierarchy levels, and asset classes. This suggests the hypothesis that process management in general as well as the goal orientation of process management decisions in particular have evolved almost independently of value-based management. In the paper at hand, this hypothesis is confirmed based on a sample of process management publications. We therefore explicate the research gap as regards value orientation in process management. In order to bridge the gap between value-based management and process-oriented organizational design, we transfer economically well-founded objective functions to process management decisions. Copyright Gabler Verlag 2011

Suggested Citation

  • Hans Buhl & Maximilian Röglinger & Stefan Stöckl & Kathrin Braunwarth, 2011. "Value Orientation in Process Management," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(3), pages 163-172, June.
  • Handle: RePEc:spr:binfse:v:3:y:2011:i:3:p:163-172
    DOI: 10.1007/s12599-011-0157-5
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    References listed on IDEAS

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    3. Florian Probst & Hans Buhl, 2012. "Supplier Portfolio Management for IT Services Considering Diversification Effects," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(2), pages 71-83, April.
    4. Martin Lehnert & Maximilian Röglinger & Johannes Seyfried, 2018. "Prioritization of Interconnected Processes," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 60(2), pages 95-114, April.
    5. Alexander Linhart & Maximilian Röglinger & Katharina Stelzl, 2020. "A Project Portfolio Management Approach to Tackling the Exploration/Exploitation Trade-off," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(2), pages 103-119, April.
    6. Patrick Afflerbach & Manuel Bolsinger & Maximilian Röglinger, 2016. "An economic decision model for determining the appropriate level of business process standardization," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 335-375, August.
    7. Patrick Afflerbach & Martin Hohendorf & Jonas Manderscheid, 0. "Design it like Darwin - A value-based application of evolutionary algorithms for proper and unambiguous business process redesign," Information Systems Frontiers, Springer, vol. 0, pages 1-21.
    8. Paul Glowalla & Ali Sunyaev, 2013. "Process-Driven Data Quality Management Through Integration of Data Quality into Existing Process Models," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(6), pages 433-448, December.
    9. Martin Lehnert & Alexander Linhart & Maximilian Röglinger, 2016. "Value-based process project portfolio management: integrated planning of BPM capability development and process improvement," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 377-419, August.
    10. Maciejczak, Mariusz, 2014. "Process Maturity Of Short Food Supply Chains," Journal of Central European Green Innovation, Karoly Robert University College, vol. 2(4), pages 1-15.
    11. Hans Ulrich Buhl & Björn Steven Häckel & Florian Probst & Josef Schosser, 2016. "On the Ex Ante Valuation of IT Service Investments," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 58(6), pages 415-432, December.
    12. Patrick Afflerbach & Gregor Kastner & Felix Krause & Maximilian Röglinger, 2014. "The Business Value of Process Flexibility," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 6(4), pages 203-214, August.
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