The Role of Business Processes in Digital Transformation of the Organization

Abstract

Business processes reflect the nature and the reason of existence of the organization. They determine the structure of information system that supports them. There from comes the importance of business processes, as well as culture and technology within the organization. Nowadays, when organizations are under great pressure from competitive market and changes in the environment, the capability of changing its own processes through digital transformation paradigm will play the main role in sustaining the organization's position on the market. Although digital transformation is a contemporary term, it covers the usage of existing methods from different areas like business processes, management by measurement, organizational culture etc. The way we see business processes is usually through process models. Regardless the notification we use, these models help in understanding the way organization does its business and are the basis for the work optimization/redesign, activity-based costing analysis, or the development of information system's architecture. This paper proposes a set of methods related to business processes that can be used in digital transformation of the organization itself or digital transformation of virtual organization encompassing all the members of industry product or service value chain.