2.3 Business Processes and Development of the BPI Framework
2.3.4 Business Process Integrity (BPI) Framework
A business process that enables the organisation to produce an output (goods or services) that is according to a business goal and is accurate in terms of information, complete in terms of output, in the designated time and meets the quality standards set, is seen to have integrity. The key characteristics that constitute and define the dimensions of integrity need to be explored further. The literature presented above addresses some of the dynamics involved in BPI; nevertheless further analysis needs to be conducted.
The concept of BPI is relatively under-researched in the field of IS and thus no common working definition is provided for what constitutes business process integrity. This section will attempt to answer a secondary research question put forward in chapter 1:
- what constitutes business process integrity in organisations adopting propriety ERP products?
The framework developed in this section will develop separate dimensions that together constitute business process integrity in organisations and in doing so answer the research question posed. The integrated framework is generic in the sense that it can be applied to any organisation that adopted an artefact or IS that governs the business processes. These could potentially include ostensibly professionally orientated organisational environments such as manufacturers or retailers and other public entities such as academic institutions. It therefore is designed in a manner that is not centred on one type of organisation, but rather a large organisation that adopted an IT artefact (which is embedded in the processing and structures of the system). The framework is defined by five identified dimensions. Each dimension will be analysed individually.
2.3.4.1 Efficiency
Efficiency is a dimension identified as leading to a successful BPO. It can be described as the extent to which the business process is completed in a manner that reduces operational costs and decreases the input-to-output conversion ratio (Karimi et al., 2007). Therefore the goal of efficiency in terms of BPI is related to a reduction in cycle time and increased productivity of the process completed. It results in “achieving desired effects or results with minimal waste of time and effort” (Clegg et al., 2006:52). If the integrity of the dimension is upheld, it will increase the speed of delivery of an output as well as reduce the time and cost thereafter.
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A hindrance to the integrity of this dimension will involve the decrease of production yield by the organisation and result in increased rework needed to complete the intended business process. These impediments to the business process will directly affect both cost and time.
2.3.4.2 Effectiveness
Effectiveness in relation to the business process involves enhancing the quality of work produced by end users and better access to complete and correct information or data. An increase in the accuracy of the data produced will result in a more effective information processing system that adds value to operations. If the integrity of the dimension is upheld, decision-making, planning, resource management and delivery will improve (Karimi et al., 2007). Increased effectiveness results in increased quality, value and accuracy of the business process.
A hindrance to integrity results in a decrease in the value of operations, a decrease in access to correct data and information and a decrease in the functionality of the system. The business process will also be crippled by the fact that integration is hindered. The resultant outcome is a decrease in quality and service of output produced by the business processes.
2.3.4.3 Flexibility
The flexibility of the business process is the ability of firms to adjust to changing environments. Gebauer and Schober (2006) identify the ability to accommodate a certain amount of variation regarding the requirements of the organisation as a key characteristic of a business process. The ability to adapt business processes to the needs and demands of the environment is essential in the current information and knowledge economy. Organisations are required to be more agile in their processes and as a result be able to accommodate variation in business processes.
Hindrances to flexibility and the subsequent integrity of the business process result in the organisation being unable to adapt to changing requirements or business environments. This hindrance to the integrity of the dimension can result in decreased agility and customisation of the processes to meet requirements. This results in decreased extensiveness of operations and lack of support for the system, leading to increased cost, loss of output and loss of vendor input.
2.3.4.4 Policy Adherence
A key dimension not addressed by the literature is that of policy adherence. The policy in an organisation has a major effect on the enactment of end users of the system. Policy is enforced to ensure that the organisation is conducting operations in a manner that is in line with both ethical considerations and according to laws and regulations enforced by the environment. It ensures that
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output is in accordance with the intended design of the business process. Policy adherence in the business process warrants a fair, equitable, competitive and cost-effective system and ensures that fraud or corruption is not committed in the process (Alvarez, 2008; Azad & King, 2008). Another important dynamic is values and culture in the organisation (Hofstede, 2001). If users enact a business process with the correct moral integrity, the policy embedded in the process will produce an outcome that meets the integrity dimension. There is a strong correlation between leadership principles and the value dimension of the organisation when referring to policy adherence. A hindrance to the integrity of the policy has obvious implications. In the majority of cases these implications result in fraud, corruption and favouritism in the organisation. This results in a decrease in competitiveness and an increase in unauthorised and irregular expenditure.
2.3.4.5 Traceability
Another key dimension that the literature does not directly address is that of traceability in relation to the integrity of the business process. Tractability is defined by acceptable internal controls to ensure that end users comply with the rules defined by the organisation (Strong & Volkoff, 2010). It allows the organisation to monitor performance and, in doing so, enhance their strategic decision- making and information control. The dimension is comparable to Clegg et al.’s (2006) research into organisational power. They argue that the surveillance of end users will define the way in which they enact technology. The premise extends the theory in that a certain level of traceability of this enactment will support the outcome of the business process.
A lack of traceability causes the loss of the artefact as a “system of control”, resulting in outcomes that are not according to the intended design of the business process (Ignatiadis & Nandhakumar, 2009). Individuals are free to enact technology in different and unintended ways (Boudreau & Robey, 2005). However, if the traceability of the enactment is hindered, it affects the integrity of the business process and indirectly the BPO. This leads to corruption and fraud as well as unauthorised or irregular expenditure. Too much control, as will be argued, can also influence the integrity of the business process. Users will not be able to complete their activities in an efficient and effective manner and therefore hinder the integrity. The traceability dimension is therefore important in terms of the outcomes of a business process. However, the mechanism to enforce this traceability needs to form a cumulative balance.
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Table 1: BPI Framework
BPI Dimensions
Dimension Definition
Efficiency (ECI) “reducing cost and cycle time, increasing productivity process and improving quality and service”
Effectiveness (ETI)
“improving decision-making, planning, resource management and delivery. Increased functionality, enhanced quality of users’ work, access to data and information, high-level data integration, data forecasts and improved quality of
operations”
Flexibility (FXI) “more flexibility in response to changing business requirements or environments”
Policy Adherence (PAD) “fair, equitable, competitive and cost-effective system and minimises fraud, corruption, favouritism as well as unfair and irregular practice”
Traceability (TRC) “acceptable internal controls to ensure that end users comply with rules and legislation of the LGO and monitoring performance in the process”
Process (Operational) Integrity “ensure that the business process does not affect end users’ operational capacity at later stages in the process conducted”
Information (Data) Integrity “ensuring that the business process does not affect end users’ operational capacity at later stages in the process conducted”
It is beneficial at this point to provide a working definition for what constitutes business process integrity and its applied meaning on a meta-level:
Business Process Integrity (BPI) constitutes the completion of a standard business process in a manner that is efficient, effective, flexible, adheres to policy and can be traced within the ERP
system. In order for integrity to be upheld, each dimension must be adhered to entirely. The enactment of end users in the system is the overarching principle of BPI and the dimensions defined. Each dimension is influenced by the ways in which users enact technology and the subsequent effects of this enactment. The underlying construct governing this enactment is the values installed in the organisation, with each integrity dimension affected by the values and culture embedded. Management and leadership principles based on a collective culture can prescribe this in order to complete a business process in accordance with the intended design. Leadership in the
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organisation facilitates the creation of the prescribed culture and values required to ensure the success of the BPI dimensions10.
The complex and underlying soft issues of the BPI framework is important, as they have a direct effect on the end users’ enactment. This enactment is determined by a multitude of factors that affect the way in which they complete a segment of the business process. These include policy, management, developers of the system, external environmental factors and the artefact itself11. These factors form the basis of how users will look to uphold the integrity of the business process.