Processes & Transactions
(Tactical level)
Processes and Transactions are the constituents of Value Management at a Tactical level.
Definitions
Processes and transactions are the operational instantiation of the 3 Business Functions at tactical level.
- Processes: Processes are sets of interrelated activities using some values as inputs and having other values as outputs, following specific operating schemes.
- Transactions: Transactions are transfers of certain values between actors, following specific streams.
Processes & Transactions and Values
The different values coming out of the Super-Processes (strategic level) have a precise nature at tactical level:
- The Target Value, in the organization's perspective, consists in the Products (Goods and Services) that it provides to its Targets.
- The Captured Value consists in the Revenues the organization gets from its customers and in the Supplies it gets from different actors (Sources).
- The Integrated Value consists in the Resources of the organization (cash is not consirered as a Resource).
These Values are the operational units for Processes and Transactions.
Process View: the Process Quadrant
The Process Quadrant shows the way the processes are coordinated with regard to the different types of input and output values.
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- All Processes use Resources and Supplies as inputs
- The output of Market Function-related Processes is Products (Goods & Services)
- The outputs of Capture Function-related Processes are Revenues and Supplies
- The output of Industry Function-related Processes is Resources
Transaction View: the Transaction Loops
A Transaction Loop shows the way a specific type of transaction is performed.
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Transactions consist in incoming and outgoing streams of values, exchanged with transaction counterparts. A "contracting stream" is also necessary between the parties to define and trigger the value transfers.
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