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Sungwon KANG Jihyun LEE Danhyung LEE Jongmoon BAIK
As business values pursued by today's organizations are abstract concepts, measurement of these values and their achievement is not straightforward. This paper proposes a value achievement measuring and managing framework, which recursively decomposes business values to construct a value hierarchy and then links it with the business process hierarchy. The framework makes it possible to measure value achievement, trace values to processes, and take necessary actions in response to the measured progress in value achievement.
The ultimate purpose of a business process is to promote business values. Thus, any process that fails to enhance or promote business values should be improved or adjusted so that business values can be achieved. Therefore an organization should have the capability of confirming whether a business value is achieved; furthermore, in order to cope with the changes of business environment, it should be able to define the necessary measures on the basis of business values. This paper proposes techniques for measuring a business process based on business values, which can be used to monitor and control business activities focusing on the attainment of business values. To show the feasibility of the techniques, we compare their monitoring and controlling capabilities with those of the current fulfillment process of a company. The results show that the proposed techniques are effective in linking business values to relevant processes and integrating each measurement result in accordance with the management level.