In order to lay the foundations for later chapters, this chapter provides the essential definitions and backgrounds in the context of process innovation. In addition to the introduction, Chap. 1 contains the following subchapters. Section 2.2 explains function-oriented and process-oriented organization. Section 2.3 illustrates production and system theory in the context of the different perspectives on processes. Section 2.4 defines the term process, Sect. 2.5 that of process management, and Sect. 2.6 that of process innovation. Section 2.7 provides explanations for various process types. Section 2.8 then explains the elements of processes, and Sect. 2.9 explains the relationship between strategy, business model, process, and technology. Section 2.10 concludes the second chapter with a summary and review questions.