Abstract
Across its own functional and geographic structures, every organization has many processes with the same, or similar outputs and inputs. These processes comprise comparable activities, are constrained by similar rules, and are supported by like resources. They are common processes. They could be identical processes; multiple instances of the same process. Consider the corporate process, Purchase Goods, based on a global standard to use a single contracted supplier. At the same time, credible arguments can be made for local variations on these common processes to meet local requirements. Should a local variation of Purchase Goods be allowed in a location where the sole supplier has no office? In planning the implementation of a large software application for use in 30 countries, to what extent should local practice be allowed to customize the corporate application, potentially creating 30 different instances of the application? Is 30 too many? How about 10? 20? How many is too many? At what point does the cost-benefit balance shift away from global standardization to favor local relevance?
In this chapter, we address complex issues about process standardization. A Global BPM Framework is described that facilitates management of the conflicting demands of standardization for global efficiency versus variation for local effectiveness.
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Notes
- 1.
For a real case on the challenge of globalization and localization in BPM see the Hilti case in vom Brocke et al. (2014).
- 2.
Operating in 30 countries with 6,000 staff, its banking, finance and leasing services are essentially the same in most places. The company is a major player in each of its markets. Total operating income is €1 billion and the company is profitable with excellent credit ratings. Global efficiency objectives and the desire for common systems make global standardization attractive. The contrary attraction for local specialization is driven by local customer demands and regulatory requirements. These are ongoing discussions. The ultimate choices are not just financially and operationally significant, they are mission critical.
- 3.
Supply Chain Council, http://www.supply-chain.org/.
- 4.
- 5.
Some aspects of the Global BPM Framework are derived from the published models and training material of BPTrends Associates. http://www.bptrends.com and Harmon (2007).
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Tregear, R. (2015). Business Process Standardization. In: vom Brocke, J., Rosemann, M. (eds) Handbook on Business Process Management 2. International Handbooks on Information Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45103-4_18
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