Introduction

In this lesson, we will delve into the modelling of processes at the highest level, known as the enterprise level. At this level, we are concerned with understanding the big picture of how an organization operates and how it adds value to its customers. We'll look at three valuable techniques for understanding enterprise-level processes: Value Proposition, SIPOC and Value chain analysis.

Lesson summary

Enterprise level processes are the set of activities and workflows that help a company achieve its strategic goals. One important aspect of enterprise level processes is understanding value propositions.

Value proposition

A value proposition is a statement that explains what benefits a product or service will deliver to customers and how it is different from competing offerings. For example, a value proposition for a smartphone might be that it has a longer battery life than other models on the market. Understanding the value proposition of a product or service is essential for businesses as it helps them define their target market and develop effective marketing strategies.

SIPOC

Another crucial concept in enterprise level processes is SIPOC, which stands for Suppliers, Inputs, Process, Outputs, and Customers. SIPOC is a framework that helps analyze and understand the different elements involved in a process. It provides a structured way of mapping out the entire process and identifying the key steps and stakeholders.

Value chain analysis

Finally, value chain analysis is a technique that allows businesses to understand the activities that create value for their customers. The value chain consists of primary activities and support activities. Primary activities are those involved in the production, delivery, and after-sales service of a product or service. Support activities, on the other hand, are those that enable the primary activities to take place efficiently. For example, if we take an online shopping platform, the primary activities would include sourcing products, marketing, warehousing, and delivery. The support activities would include IT support, human resources, and finance. By analyzing each activity in the value chain, businesses can identify areas for improvement and potential cost savings.

Homework

Study this part of the book:

• Chapter 7: From Introduction (page 164) to Business process models: Event-Response level (page 176).