New
Business & Information Systems Engineering (2024) AI Processed
Building the Processes Behind the Product: How Digital Ventures Create Business Processes That Support Their Growth
This study investigates how digital ventures create and adapt their internal business processes to support rapid firm growth. Utilizing a qualitative multiple case study design across seven digital ventures, the authors analyze process changes in key operational areas such as sales, recruitment, and product management.
Problem
Although business process management literature recognizes that digital technology can facilitate business process changes, the specific technology characteristics that enable these adaptations remain underexplored. Moreover, fast-growing digital ventures face severe operational scaling challenges that require continuous process flexibility and structure.
Outcome
- Identified four distinct patterns of business process change in digital ventures: creating minimum viable processes, creating encapsulated processes, creating centralized control flow integrations, and creating centralized data flow integrations.
- Revealed that digital ventures typically start with flexible, human-orchestrated processes supported by low-specificity tools before migrating to specialized enterprise systems to boost efficiency.
- Showed how proxy communication tools and centralized analytics systems are used to reduce system complexity and eliminate data silos in maturing ventures.
- Revealed that digital ventures typically start with flexible, human-orchestrated processes supported by low-specificity tools before migrating to specialized enterprise systems to boost efficiency.
- Showed how proxy communication tools and centralized analytics systems are used to reduce system complexity and eliminate data silos in maturing ventures.
What it means for you
- CIO / IT Executive: On Monday morning, initiate a review of our current proxy communication tool usage and explore options for centralizing our analytics systems to proactively address potential data silos as we scale.
- IT Manager: On Monday morning, identify one key operational process (e.g., sales lead qualification) that is currently human-orchestrated and explore if a 'minimum viable process' could be documented and supported by a low-specificity tool for immediate iteration.
- Business Strategist: On Monday morning, map out the current flow of data for our top 2 growth-driving products and identify one area where centralized data flow integration could significantly reduce friction and improve speed to market.
- Researcher: On Monday morning, begin compiling a list of digital ventures that have recently experienced rapid growth and categorize their initial process creation patterns based on the four distinct patterns identified in the research (MVP, encapsulated, centralized control, centralized data).
- Policymaker: On Monday morning, task a working group to investigate how current regulatory frameworks might be hindering the adoption of flexible, technology-enabled business processes in rapidly scaling digital ventures.