Modeling and Governance of Procurement as a Service Responsive to Business Events

Modeling and Governance of Procurement as a Service Responsive to Business Events

Darko Galinec (Ministry of Defense, Croatia) and Ksenija Klasic (K & K LLC, Croatia)
DOI: 10.4018/978-1-60960-138-6.ch019
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Abstract

The procurement as business discipline and function of equipping process has started the process of transformation from an administrative competence and necessity to a strategic capability (Kyte, 2006). To be efficient its processes have to be interoperable in the processing, semantic and technological way with other functions and processes of the business system; end-to-end process integration of the business system should be obtained. It is important to fully understand and document user requirements before development of the procurement (business) process. This results in the need for the development of a defined, articulated, communicated and managed model of procurement process. On the level of conceptual system modeling (business process owner’s perspective) (ZIFA, 2010) this article shapes a new procurement model, in form of business service with appertaining processes, activities and other services necessary forits accomplishment. At logical and physical modeling level (designer’s and builder’s perspective) (ZIFA, 2010) service oriented perspective (SOA) has been considered, as well as Web services as technological concept for the implementation of the shaped procurement service model at the conceptual level of the system. Application of the shaped model requires organizational, process and system changes of the business system, that is, procurement function must develop the culture of service provider, avoiding the role of corporate purchasing controller. Event-Driven Business Process Management (EDBPM) is nowadays an enhancement of BPM by new concepts e.g. Event Driven Architecture (EDA). In this paper The position and the role of business service modeling within entire business process management (BPM) discipline has been established as well.
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Process Of Procurement Function As A Service

Procurement professionals must increasingly be viewed and used as partners, with shared objectives and accountability for project (procurement) success. Although these professionals may not report directly to the project manager, they should be, like the project manager, accountable to the same people and for the project’s success.

Procurement professionals, based on training and good judgment, must be empowered to exercise discretion to ensure a successful outcome, rather than adhere to rigid processes. Rigid processes will make the job of procurement professionals more difficult because they will no longer rely on the process to make decisions. Professionals will need to be well-trained and render expert judgments, often altering processes to ensure that a good outcome is achieved.

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