SaaS Architecture: Process Architecture Analysis

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Today we talk about analyzing process architecture in SaaS architecture.

Business process concepts

A business process is a systematic set of work methods developed by an enterprise to achieve its goals. It consists of a series of sequential business activities that transform resources (inputs) into valuable results (outputs) according to established rules. The process needs to take into account the specific situation of the enterprise and the available resources, and aims to create value for the customer while achieving the enterprise's goals.

By sorting out and designing business processes, we can clarify the allocation of responsibilities and performance requirements. This not only guides and promotes the construction, optimization and integration of processes, but also breaks down interdepartmental barriers and effectively manages corporate change and operations, thereby significantly improving overall operational efficiency.

In the business architecture design phase, business process plays a key role. It not only affects the effective utilization of enterprise resources, but also directly determines the design of application services in the application architecture.

There are 2 core perspectives on business processes:

End-to-end process: emphasizes cross-departmental collaboration and overall efficiency throughout the entire business chain, from the beginning of customer demand to the end of final satisfaction.
Functional Processes: Focuses on the specialized division of labor within each department to ensure the efficient operation of each functional area.

These two processes complement each other and together they build the complete business system of an organization.

End-to-end process

Simply put, the end-to-end process is the entire process from the initiation of the customer's need to the final customer's need being fulfilled.

The end-to-end process is a concrete realization and optimization of the value stream. As mentioned in the previous article, by sorting out the value stream, we can focus on customer needs and find out which links are creating value for customers and which links are wasteful. Then, based on these links, an efficient end-to-end process is formed.

Moving from value streams to end-to-end processes is to process and systematize the enterprise's value creation. By optimizing end-to-end processes, companies can improve efficiency, reduce costs, and better meet customer needs. The value of end-to-end processes includes:

Comprehensive understanding of the business: by sorting out the complete process from the initiation of requirements to their fulfillment, revealing the articulation of each link and potential problems, it is like a clear roadmap that indicates the direction of work.
Focus on core objectives: The end-to-end process starts with the customer's real needs. By focusing on these needs, we can provide a more precise product or service and avoid wasting resources.
Enhance enterprise responsiveness: In the face of rapidly changing market and customer needs, clear processes enable organizations to quickly adjust their strategies. When new needs arise, organizations can quickly combine existing process modules to respond to market opportunities in a timely manner.

How does the end-to-end process slice and dice?

End-to-end processes can be segmented based on a customer's core business scenarios. This approach ensures that process design is always centered on the customer's needs, allowing organizations to better understand and optimize the customer experience while improving internal operational efficiencies.

For example, in the retail industry, sales-type end-to-end processes can be segmented based on the customer's purchasing channels and consumption scenarios. For example, we can divide the process into the following categories:

Online channel sales process: including the sales process of own mall and social media platforms (e.g. WeChat, Jitterbug, etc.).
Offline store sales process: covers the sales process of different types of stores such as traditional brick-and-mortar stores, flagship stores and flash stores.
Takeaway platform sales process: sales process for cooperation with third-party takeaway platforms.

Additionally, within a single channel, we can break down the process based on different delivery methods. For example:

Instant delivery process: for items that need to be delivered quickly.
Appointment Pickup Process: Allows customers to place an order online and choose a convenient time to pick up their order at the store.
Store service process: the whole process of service for customers in a physical store.

Functional Processes

Functional processes are job specifications developed by various departments of an organization to accomplish specific tasks.

What is the value of functional processes? By organizing and refining functional processes, the workflow of each department becomes clear and well-defined. This provides a reliable foundation module for building end-to-end processes. The value of functional processes includes:

Seeing the Integrity of Enterprise Management: Functional processes are structured so that an organization can look at the integrity of its functions from a business perspective. Since the organizational structure of an enterprise is usually based on a functional division of labor, sorting out the processes of each function is like conducting a comprehensive physical examination of the enterprise and identifying areas that need to be improved.
Build end-to-end processes: Sorting out functional processes makes the work of each department clearer. This provides a reliable foundation for building end-to-end processes. Without a functional process structure, end-to-end processes may need to be duplicated and do not accurately reflect the actual management of the organization.

How are the functional processes sliced and diced?

The key lies in the division of "business objects" as the core. Business objects refer to documents, forms or data with business meaning generated in business activities, which record the complete process of business matters. Slicing and dicing functional processes on the basis of business objects ensures that each process covers a complete range of business matters and avoids over-splitting or ambiguity.

Take the cake processing workflow as an example, starting from the submission of the processing order, through the collaterals, ingredients, baking, laminating and decorating, until the processing is completed. The whole process is centered around the processing order as an object, and should not be split into independent processes, so as not to lead to the process is not closed-loop, increasing the complexity of management.

By taking the business object management closure as the core and cutting up the functional processes, enterprises can unify the granularity of the process to ensure that each department has the same standard when sorting out the process.

From value streams to business processes

The "Value Stream" is the strategic blueprint for the business, summarizing the overall value creation process; the "End-to-End Process" is the specific implementation plan of this blueprint, depicting the operational details of each link in detail.

Value streams provide organizations with a macro view, while end-to-end processes translate it into concrete steps that can be executed. This translation from concept to ground ensures that organizations can effectively translate strategic intent into day-to-day operations.

Example: Business Processes in a New Retail Organization

The figure below shows a typical end-to-end process of booking a cake online and delivering it to your home, which includes the functional processes of multiple departments. For example, the customer service department is responsible for receiving, confirming cake details and dispatching orders. The central kitchen is responsible for cake production, while the logistics department is responsible for delivery.

The workflow of each of these departments reflects the specific implementation of the functional process. The sequence of activities within each department's swim lane accurately reflects that department's responsibilities and specific operational steps within the overall business process.

Taking a holistic view, we can clearly observe how each function works together to fulfill the entire process from order receipt to final delivery.

summarize

This paper takes an in-depth look at process architecture in business architecture, focusing on the following areas:

Concept of Business Processes: explains that business processes are systematic ways of working in a business to achieve its goals and emphasizes their importance in business operations.
Core Perspectives: Two core perspectives, End-to-End Processes and Functional Processes, are introduced, describing their role in an organization's business system.
End-to-End Processes: its definition, value, and cut-throughs are discussed in detail, emphasizing the importance of focusing on the customer's needs.
Functional processes: their definitions, values and slicing methods were described, emphasizing the importance of dividing them with business objects at their core.
The relationship between value streams and business processes: explains how to translate value streams from the strategic level into concrete business processes that can be executed.

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