This paper provides an analysis of two chosen ways to integrate business process management with organizational strategies. The two approaches are compared, and a reflection about the viability of one of these processes is supplied.
Definition and Formulation of Organizational Strategy
In their article, Marjanovic and Freeze (2012) assert that in contemporary companies, organizational strategies need to be formulated and defined while utilizing the achievements of business process management and knowledge management. In other words, it is stated that strategic planning of a company should be carried out while taking into account the models of business process management and knowledge management due to the fact that these allow for formulating more concrete goals, choosing better methods to achieve them, and setting the bounds for the strategy.
On the other hand, Skrinjar and Trkman (2013) state that the strategy of a company ought to be aligned with its competitive environment, as well as with the information technology and systems which it utilizes when doing various business tasks. In other words, an organizational strategy is defined and formulated while taking into account the type and amount of competition that the firm faces, and the nature of information technologies it employs.
Thus, the articles are similar in that they propose to define and formulate an organizational strategy while taking into account several factors, but differ in which factors they offer to align the strategy with: the types of business process management a firm employ (Marjanovic & Freeze 2012) or the competitive environment it is in (Skrinjar & Trkman 2013). Also, both authors offer to adjust the organizational strategy with some type of information management within the company: with knowledge management (Marjanovic & Freeze 2012) or with the types of information technologies and systems (Skrinjar & Trkman 2013) that the enterprise utilizes.
How Business Process Management Is Integrated With Organizational Strategy
On the whole, it can be seen that the articles propose different approaches to the integration of business process management and an organizational strategy. For instance, Marjanovic and Freeze (2012) do not view the integration of business process management into an organizational strategy as a separate action, procedure, or process which should be carried out when the two already exist. Instead, an organizational strategy should be formulated while taking into account the type of business process management, which is utilized (or is planned to be utilized) in that company.
On the contrary, Skrinjar and Trkman (2013) propose to align organizational strategy with the competitive environment and information technologies and information management processes; business process management, on the other hand, should be integrated afterward, with the aim of improving the business process orientation to make these processes more purposefully aimed at specific goals; this means that business process management is implemented after an organizational strategy is adopted, and aims to meet the purposes and goals which have been identified previously.
Thus, the two approaches are rather different: while in the article by Marjanovic and Freeze (2012), it is proposed to mutually adjust business process management and organizational strategy, the article by Skrinjar and Trkman (2013), in fact, offers to implement business process management in a company where an organizational strategy has previously been defined and formulated.
In the article by Marjanovic and Freeze (2012), the crux of the approach to the integration of business process management and organizational strategy is that these should be chosen, defined, and formulated simultaneously so that the business process management is aligned with the organizational strategy from the very beginning of its implementation, whereas the organizational strategy is formulated in a manner that allows for its correspondence to business process management.
On the whole, it can be asserted that this approach should be regarded as potentially highly effective. This is because an organizational strategy should not be formulated “off the top of one’s head,” but instead should be carefully considered and aligned with a variety of factors, including the potential capabilities of the business, the estimated availability of different types of resources, the methods of implementation of numerous processes, and so on.
Therefore, it is apparently sound advice to mutually align an organizational strategy and business process management techniques, for this ought to permit for formulating a strategy that takes into account the manner in which various actions and processes will take place in a company, therefore allowing for its more effective and efficient operation. It is also important to point out the fact that Marjanovic and Freeze (2012) also propose to align strategic planning with the practices of knowledge management that are used or are to be used in an organization, which also may permit for the creation of a more effectual strategy, eventually letting the business to better achieve its goals and objectives.
Due to these reasons, the approach offered by Marjanovic and Freeze (2012) should work well in companies. The organizational strategy and business process management should be aligned at the very beginning to allow for setting attainable goals and choosing adequate, implementable methods that would permit for reaching these goals.
Marjanovic, O & Freeze, R 2012, ‘Knowledge‐intensive business process: deriving a sustainable competitive advantage through business process management and knowledge management integration’, Knowledge and Process Management, vol. 19, no. 4, pp. 180-188.
Skrinjar, R & Trkman, P 2013, ‘Increasing process orientation with business process management: critical practices’, International Journal of Information Management, vol. 33, no. 1, pp. 48-60.