State-of-the-Art of Process Execution

What is Process Execution?

Process execution refers to the actual implementation and management of business processes within an organization. It encompasses all the steps and activities necessary to carry out a defined business process from start to finish, including the practical execution, monitoring, and optimization of planned workflows and tasks.

Essential Aspects of Process Execution

Implementation of Business Processes:

This involves the practical execution of planned processes in daily operations, including the assignment of tasks to employees or teams, the use of resources, and adherence to prescribed workflows.

Processing of Master and Transaction Data:

Master data includes fundamental information about customers, products, suppliers, employees, assets, and other central business objects, while transaction data comprises dynamic information such as orders, payments, and deliveries. Both types of data have to be processed seamlessly and accurately, maintaining data integrity and consistency.

Creation and Storage of Documents:

This requires to efficiently create and centrally store all necessary documents such as contracts, reports, work instructions, and forms. This not only ensures structured and easily accessible documentation but also consistent management and versioning of information.

Automation:

A key aspect of modern business operations is the facilitation of process automation. This reduces manual intervention, minimizes errors, and increases efficiency. For example, recurring tasks can be executed automatically without human intervention.

Monitoring and Control:

This involves the continuous monitoring of ongoing processes to ensure they proceed as planned. Deviations can be identified and corrected through real-time monitoring and reporting.

Flexibility and Adaptability:

Another important aspect is the ability to adapt and optimize processes. Based on collected data and insights, processes can be flexibly modified to become more efficient or to respond to new requirements.

Integration:

This incorporates the integration of various systems and departments within an organization, ensuring that all necessary information and resources are available and work together smoothly.

How Does Process Execution Differ from Process Design?

Both process management disciplines differ fundamentally in their focus and objectives within business process management: While process design involves the planning and structuring of workflows, process execution focuses on the actual implementation and execution of these planned processes.

How Does Process Execution Differ from Process Design?

Process execution and process design differ fundamentally in their focus and objectives within business process management: While process design involves the planning and structuring of workflows, process execution focuses on the actual implementation and execution of these planned processes.

Process Design

Process Execution

Why is Process Execution Important for Businesses?

Process execution is crucial for businesses as it directly affects the efficiency, quality, and competitiveness of their operations. Here are some key reasons why process execution is so important:

Efficiency Improvement:

• Optimize Resource Utilization: Well-executed process execution ensures optimal use of resources by efficiently assigning and completing tasks.
• Save Time: Automation and standardization of processes save time that would otherwise be spent on manual and redundant tasks.

Quality Improvement:

• Consistency and Standardization: Consistent execution of processes leads to uniform quality of products and services, enhancing customer satisfaction.
• Error Reduction: Defined workflows and automation minimize human errors, resulting in higher accuracy and reliability.

Transparency and Traceability:

• Monitoring: Process execution allows real-time monitoring of activities, enabling immediate identification and resolution of issues.
• Documentation and Audit Trails: Every action and decision is documented, improving traceability and compliance.

Competitive Advantage:

• Faster Time-to-Market: Efficient process execution enables businesses to bring new products and services to market more quickly.
• Improved Customer Satisfaction: Higher quality and reliability lead to more satisfied customers, strengthening customer loyalty and competitive advantage.

Innovation and Continuous Improvement:

• Data-Driven Decisions: Collecting and analyzing process data allows businesses to make informed decisions and continuously improve.
• Fostering Innovation: Efficient processes free up time for creative and innovative tasks by automating routine work.

Compliance and Risk Management:

• Regulatory Compliance: Standardizing processes ensures businesses meet all legal and regulatory requirements.
• Risk Minimization: Clearly defined processes and continuous monitoring help identify and mitigate potential risks early.

Example: Approval of Project Invoices

The approval of project invoices is a critical process ensuring projects are billed correctly and all services rendered are accurately recorded and approved. Efficient process execution helps minimize errors, increase accuracy, and shorten payment cycles. Here is an example of how process execution for project invoice approval might look:

1. Capture and Preparation:

   • Time and Cost Recording: Project employees record their working hours and project-related costs (e.g., material costs, travel expenses) in a time recording and cost recording system.
   • Collecting Receipts: Employees collect all relevant receipts and documents supporting the recorded costs.

2. Submission of the Project Invoice:

   • Invoice Creation: Project managers or responsible employees create a comprehensive project invoice summarizing all recorded times and costs.
   • Completeness Check: The invoice is checked for completeness and accuracy before submission for approval.

3. Approval Request:

   • System Submission: The complete project invoice is submitted in the project management or billing system for approval.
   • Automatic Notification: The system sends a notification to the responsible approvers (e.g., project managers, department heads) indicating a new invoice for review.

4. Review by Approvers:

   • Detailed Review: Approvers review the submitted invoices for accuracy, alignment with the project budget, and contract terms.
   • Clarification of Discrepancies: In case of discrepancies or uncertainties, approvers contact the relevant employees for clarification.

5. Approval or Rejection:

   • Approval: If the project invoice is correct, the approver approves it in the system.
   • Rejection and Feedback: If the invoice contains errors, it is rejected, and the employee receives a notification with an explanation and a request for correction.

6. Forwarding to Accounting:

   • Automatic Forwarding: After approval, the project invoice is automatically forwarded to the accounting department for further processing and invoicing.
   • Notification: The accounting department receives a notification about the received, approved project invoices.

7. Processing and Invoicing:

   • Invoice Creation: Accounting creates a customer invoice based on the approved project invoice.
   • Invoice Submission: The invoice is sent to the customer, either electronically or by mail.
   • Payment Tracking: Accounting monitors payment receipt and manages reminders in case of late payments.

Trends in Process Execution

Process execution is continuously evolving, driven by technological innovations and changing business requirements. Here are some of the key trends currently shaping process execution:

Cloud-Based Solutions:

Cloud technologies provide scalable and flexible solutions for process execution. They allow businesses to access their systems from anywhere, facilitate collaboration, and reduce IT costs by eliminating the need for hardware investments.

No-Code Platforms:

These platforms enable users without programming knowledge to create and adapt processes. This promotes agility and innovation, allowing business processes and data to be optimized quickly and easily.

Automation:

Automation plays a central role in modern process execution. Technologies allow companies to automate repetitive and rule-based tasks, increasing efficiency, reducing errors, and lowering costs.

Real-Time Data Analysis and Business Intelligence (BI):

Modern process execution systems use real-time data analysis and BI tools to provide immediate insights into their processes, enabling proactive decisions and faster adjustments to market changes.

Artificial Intelligence (AI) and Machine Learning (ML):

AI and ML are increasingly being integrated into process execution to make processes smarter and more adaptive. They enable predictive analytics, real-time workflow optimization, and deeper insights into process data.

Internet of Things (IoT):

The integration of IoT into process execution allows real-time data collection and analysis from connected devices. This is particularly useful in manufacturing and logistics, where IoT supports the monitoring and optimization of production lines and supply chains.

Process Mining:

Process mining tools analyze IT system log data to visualize and optimize real process flows. This helps companies uncover hidden inefficiencies and continuously improve their processes.

Cybersecurity:

With increasing digitization and interconnection of processes, the importance of cybersecurity is growing. Modern process execution systems integrate advanced security features to protect data and processes from cyberattacks.

Compliance and Sustainability:

Companies are increasingly focusing on ensuring their processes are not only efficient but also sustainable and compliant with regulations. Process execution systems help meet compliance requirements and pursue sustainability goals.

These trends show that process execution is becoming increasingly intelligent, connected, and automated. Companies that recognize and implement these trends early can enhance their efficiency, reduce costs, and secure their competitiveness in the long term.

Common Problems for Small and Medium-Sized Enterprises

Small and medium-sized enterprises (SMEs) often face specific challenges when it comes to efficiently executing their business processes. These problems can significantly impact productivity and competitiveness. Here are some of the most common difficulties SMEs experience in process execution:

Resource Shortage:

• Personnel: SMEs often do not have enough employees to handle all processes smoothly.
• Finances: Budgets are often tight, meaning not every single problem can be addressed with separate investments. Priorities must be set.
• Technology: IT infrastructure is sometimes outdated, hindering process automation and optimization.

Lack of Standardization:

• Inconsistent Workflows: Without standardized processes, errors and inconsistencies can occur, reducing efficiency.
• Documentation Gaps: Insufficient documentation of processes can lead to misunderstandings and mistakes.

Technology Barriers:

• Complexity: Traditional tools for process execution can be complicated and challenging to implement.
• Integration: Integrating different systems and data sources is often a challenge.

Resistance to Change:

• Corporate Culture: A culture that is skeptical of changes and new technologies can block improvements.
• Training: Employees often require training to use new tools effectively, which costs time and money.

Lack of Expertise:

• Know-How: There is often a lack of expertise in process optimization, leading to inefficient workflows.
• Consulting Costs: External consultants are expensive and often not within the budget of SMEs.

Communication Problems:

• Departments: Poor communication between departments leads to information silos and inefficient workflows.
• Transparency: Without clear transparency, it is difficult to monitor progress and identify problems in a timely manner.

Scalability Issues:

• Growth: Processes that work well in small companies are often not scalable.
• Flexibility: Limited flexibility in adapting processes can hinder growth.

Data Security and Compliance:

• Regulation: Compliance with legal regulations can be complicated and costly.
• Data Protection: Insufficient security measures increase the risk of data loss and breaches.

Insights into Better Process Execution

Process Execution Systems (PES) are specifically designed for SMEs. They go beyond traditional workflow management systems by providing a comprehensive platform that enables companies to manage, automate, and optimize their entire operational workflows and centralize related data and documents. From simple task management to complex process automation, PES offer a variety of features that allow organizations to increase their efficiency and quality while improving their agility.

Automation and standardization of Workflows:

Automation and standardization of processes through configurable user interfaces and workflows in a no-code environment. Companies can independently optimize their processes without extensive IT or consultant expertise.

Real-Time Monitoring:

Monitoring the status of each process in real-time, allowing supervisors and team members to see the current status at any time.

Workspaces, Notifications, and Reminders:

Collaboration tools facilitate teamwork and communication. Automated notifications and reminders for employees ensure that no steps are overlooked or forgotten.

Data Integrity:

Ensuring data integrity through centralized data and document capture and storage.

Reporting and Analysis:

Creating reports and analyses to review process progress, identify trends, and improve planning and decision-making.

Flexibility and Adaptability:

Quick and easy modification, adjustment, or extension of processes to meet changing or growing business requirements.

Conclusion

A Process Execution System (PES) provides SMEs with a comprehensive solution to optimize their process execution. By automating routine tasks, improving standardization, centralizing data, and promoting better communication and collaboration, a PES can significantly enhance the efficiency and quality of business processes. Additionally, it supports compliance with regulatory requirements and protects sensitive data, ultimately contributing to increased competitiveness and sustainability of the business.