Page 429 - Global Project Management Handbook

BUSINESS PROCESS MANAGEMENT 21-3

to the clients. “The distinction between the business processes is fluid. Depending on the
nature and services/products of an organization, a specific business process can be a pri-
mary process in one company and a secondary process in another company” (Schmelzer,
2004, p. 52).
Also, a differentiation criterion for business processes is the degree of repetition. It is
possible to distinguish between unique and repetitive business processes. Examples of
unique business processes are the merging of two companies, developing a new market,
etc. Examples of repetitive business processes are preparing a standard quotation, issuing
an invoice, etc.

Organizations for the Fulfillment of Business Processes
The fulfillment of routine business processes of a company is carried out by the roles of
the permanent organization or by working groups. For unique business processes of large
scope, temporary organizations are required in addition to the permanent structures. A
project is a temporary organization for the performance of a relatively unique, short- to
medium-term, strategically important business process of medium or large scope. A
program is a temporary organization to fulfill a unique and long-term business process of
large scope (Fig. 21.2).
Investments are long-term capital commitments in assets, for example, in machines or
buildings, but also in customer relations, in products, in the organization, or in personnel.
Several business processes are combined in an investment life cycle. For example, an
investment in an industrial plant combines the business processes “preparation of a feasi-
bility study,” “preparation of a concept,” “engineering, procurement, and construction,”
“use of the plant,” “maintenance,” and “decommissioning.”

Characteristics of
Scale
business processes
Frequency continuously uniquely uniquely
Duration short term short, medium term medium-, long term
Importance low medium – high high
Scope small medium – large large
Resource demand low medium high
Costs low – medium medium – high high
Companies
few several - many many
involved

Permanent
Organisation form organisation / Project Programme
Working group

Management Business process Project Programme
approach management management management
FIGURE 21.2 Organizations for the fulfillment of different business processes.