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.

- 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.

 

 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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