An important aspect of business models are processes or more specifically supply chains, which, according to Porter, are “a collection of operations, through which a product is designed, produced, distributed, delivered and supported”. In the end, it is about upholding a value proposition!

Accordingly, a business process is meant to deliver a performance according to previously defined criteria to keep the business running − Run-the-Business (RTB).

Business process management in brief

The Conception of the business process management encompasses multiple levels:

  • On the strategic level, we look at the business sectors of an organisation including the relevant key success factors.
  • On the technical-conceptional level, the derivation of processes occurs as part of process management which includes the phases of process demarcation, modulation and guidance.
  • Lastly, on the operational level, the automation of procedures is a significant factor of success for quality enhancement and cost reduction.

The process model is represented after Gadatsch in three partial cycles. Process maps are eventually a helpful tool for visualisation that can be subdivided into guidance and management processes, core business processes and support processes.
Out of the numerous methods for systematic modulation of processes, the Business Process Model and Notation (BPMN) due to greater language scope, organisation in the form of pools and the restriction on the process is basically a standard.

Value creation processes of an insurance company

Regarding the value creation processes of an insurance company along the reference model of the University St. Gallen/synpulse – taking into account the dynamics of customer journeys -, I consider four processes worth mentioning:

  • Processes in product development of insurance companies could in the future increasingly be automated through the use of previously discussed technology.
  • The “classic” sales process is currently still strongly shaped by the broker but through the use of bots, the line between man and machine will become blurred.
  • In many operation and service processes the revision of existing data as a requirement for the automation project still presents a great challenge. The intended acceleration of processes will lead to potential queries being dealt with immediately and business transactions being finalised directly.
  • Damage expenditures is one of the biggest cost items in an insurance company. Through the possibilities of intelligent data analysis, machines could take on increasingly complex cases and automise procedures.

Briefly a word about process mining, which, in my opinion, is the next step in the evolution of process optimisation. Through the orientation towards “production lanes”, processes can e. g. be directly compared (benchmarking). On the basis of process mining technology, the leap from static process analysis to business process management in real time becomes achievable.

Conclusion

Business process management is the common thread of this series of blog entries. Rightfully, it experiences a renaissance because digital transformation leads to a pervasive business transformation, the ability to monitor processes due to the increasing momentum becomes more and more important and collaborative organisational models also require a rethinking of business process management. Digitalisation has far-reaching consequences, supply chains morph into supply networks and going forward, the classic insurance will become part of a multi-layered service package.