Business process

What business processes change most often

Depending on the frequency of changes the typical structure of business processes of the organization can be separated into three main units.

Standard business processes

Standard business processes and practicians who are identical to all industries (accounting, management of finance, payroll, etc.) are the first. Differentiation is here only that some organizations perform these procedures better than others (make less mistakes in reports).

Most the organizations use the integrated solution packages on the basis of which the Chief information officer builds the corporate information system (CIS) for automation of similar business processes. Either the packet of ERP, or a set of solutions, "the best in the class" is for this purpose used (best-of-breed) which are integrated by forces of IT department, or custom development.

For automation of these business processes the accounting systems are most often used. These are the package or developed under the order systems, known in the market, which support processing of the main transactions and manage master data, critical for business. Extent of changes in them is low as their functions are accurately defined and are often regulated by internal and external acts. The term of life of such systems exceeds 15 years, cases when systems developed for a mainframe run are known and perform the function smoothly for 30-40 years. In IT architecture such applications take the place where changes are practically not required.

Signs of the accounting systems:

• Support the key transaction focused processes. The main objective – to do it is more qualitative, than competitors but not to do differently, than competitors. It is what is called "do business"
• Manage the most important master data
• Often the automated processes/function serve as an object for control from the regulator, external audit or for serious legal responsibility
• Are the centralized source of corporate standards
• Widespread format – a packet of deeply integrated applications (suite). This and priory-integration is considered main advantage of the package systems
• The most widespread delivery method of software – licensing, but options of cloud solutions are possible
• Lifetime of the accounting systems – 15-20 years

Differentiators

The second block includes business processes and the practicians directly affecting company competitiveness (distinguishing it from other similar companies). Business leaders often come to IT service with the ideas that it is necessary to make that the company worked better and differed from competitors. These ideas assume certain changes of the existing processes, information flows and already working applications.

Systems differentiators are applications which automate unique for the company or specific to the industry in which the company, functions/processes works. How the company performs these functions, distinguishes it from competitors and provides competitive advantage. Such systems require quite frequent reconfiguration to correspond to changes in business models, practicians and also customer requirements and the market. Duration of lifecycle of applications differentiators – 3-5 years. During their creation standard packets, but with higher level of customization and setup of applications can be used.

Applications differentiators are directed "by the person outside", i.e. have external interfaces for support of customer interaction, partners, suppliers, regulators, etc. They can be a part of products and services which supply to the market banks, insurance companies or, for example, airlines (for example, booking systems of air tickets Sabre from American Airlines and Apollo from United Airlines). Many of these applications are already executed on the basis of cloud computing. Many applications from discharge of best-of-breed also belong to this level.

Signs of systems differentiators:

• Support processes which the company would like to perform not as it is done by competitors
• Use data from the accounting systems, but also take and support data from other sources
• Are focused at collective work and cooperation both in the company, and out of its limits
• Have shorter lifecycle and will more often be redesigned
• Can be unrolled in a cloud computing architecture

The innovation business processes

The third block is made by absolutely new ideas which arise at business leaders from time to time. They do not know yet how to implement such ideas, and are not sure for hundred percent of the correctness, but are sure that if such idea to implement, it can have a basic impact on business development.

Systems for innovations are the new applications directed to support of those processes which appear in response to new customer needs and possibilities of the market. Most often such applications automate b2c-processes and also communication of the front office with a back office (mobile and Internet clients, mobile applications for new service, etc.). Have rather short lifecycle (no more than 12 months), for their creation internal resources can be used (in divisions of the company). The role of IT service is in providing to employees access to corporate data and safety of communications for the company. But often employees do it without IT supervision, than cause displeasure of the IT administration. However to limit business to use only of the accounting systems it is impractical. The innovation projects will appear all the same as they are more effective, but will go in a "guerrilla" form.

Signs of systems for innovations:

• Are created "occasionally" for quick implementation of the arisen innovation idea or market requirement
• Are financed and developed by business users or the third companies with assistance of IT service
• Are often projected so that to support business process within which several companies work
• Have short lifecycle and rather easy management model
• Support collective work, actively use unstructured data
• Should be able to take data from the accounting systems and systems differentiators and to return them "into place"
• As a rule, represent a combination of own developments, instruments of joint work with files, portal solutions, etc.
• Usually have an opportunity for work in a cloud and also with new gadgets (iOS, Android, etc.)