PurposeAlthough businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to provide insights into how AI creates business value by investigating the mediating role of Business Process Management (BPM) capabilities.Design/methodology/approachThe integrative model of IT Business Value was contextualised, and structural equation modelling was applied to validate the proposed serial multiple mediation model using a sample of 448 organisations based in the EU.FindingsThe results validate the proposed serial multiple mediation model according to which AI adoption increases organisational performance through decision-making and business process performance. Process automation, organisational learning and process innovation are significant complementary partial mediators, thereby shedding light on how AI creates business value.Research limitations/implicationsIn pursuing a complex nomological framework, multiple perspectives on realising business value from AI investments were incorporated. Several moderators presenting complementary organisational resources (e.g. culture, digital maturity, BPM maturity) could be included to identify behaviour in more complex relationships. The ethical and moral issues surrounding AI and its use could also be examined.Practical implicationsThe provided insights can help guide organisations towards the most promising AI activities of process automation with AI-enabled decision-making, organisational learning and process innovation to yield business value.Originality/valueWhile previous research assumed a moderated relationship, this study extends the growing literature on AI business value by empirically investigating a comprehensive nomological network that links AI adoption to organisational performance in a BPM setting.

PurposeAlthough improving customer experience (CX) has always been one of the top priorities of business process management (BPM), the evidence on the actual contribution made by traditional BPM to improving CX and customer experience management (CXM) is mixed. Recently, new and enhanced capability areas have been added to the traditional BPM frameworks, yet it is unclear which of them contribute to CXM. Moreover, it is not known which of them are necessary and which are sufficient conditions. The aim of this research is to shed light on the research gap concerning which BPM capabilities, especially new and enhanced ones, are relevant to CXM.Design/methodology/approachQuantitative data from 268 medium and large companies in 3 EU countries were analysed using hierarchical linear regression analysis and necessary condition analysis.FindingsThe results show that traditional BPM capabilities are a necessary condition for CXM, but with minor significance. Most highly significant necessary conditions and also most highly or medium significant sufficient conditions belong to the People or Culture area. Agile Process Improvement is the only new or enhanced BPM capability area in the Methods/IT area that is a necessary and also a sufficient condition for CXM maturity. Advanced Process Digitalisation was identified as neither a significant necessary nor a sufficient condition for CXM.Originality/valueThis research contributes to better understanding of the role played by BPM for CXM, where previous research provides mixed results.

Od leta 2019 se lahko slovenska mala in srednje velika podjetja (MSP) prijavljajo na razpise za vavčerje za digitalizacijo, s pomočjo katerih lahko pridejo do potrebnih sredstev za digitalno preobrazbo. Namen prispevka je ugotoviti, kakšen je pomen vavčerjev za digitalizacijo za slovenska MSP ter predlagati izboljšave sistema, ki jih lahko ključni odločevalci uporabijo pri sestavi nadaljnjih shem sofinanciranja. Na podlagi intervjujev s predstavniki štirinajstih slovenskih MSP, s tremi zunanjimi izvajalci ter s predstavnico DIHS smo oblikovali pet predlogov za izboljšanje sistema vavčerjev za digitalizacijo: manj dokumentacije, večja transparentnost, sprememba višine sofinanciranja glede na dodatne dejavnike, posodobitev odobritvenih kriterijev in posodobitev vavčerja za digitalni marketing.

Previous research has increased our understanding of individual digital transformation (DT) activities, roles, responsibilities, and related dilemmas, yet a comprehensive insight is missing with respect to the organizational forms that are most appropriate for developing the capabilities needed for successful DT. The purpose of this paper is to identify the main organizational characteristics and organizational forms for a successful DT and to identify influential factors that impact decisions about suitable organizational forms. Drawing on two case studies, we look at how companies can develop digital capabilities through different configurations of organizational forms. Findings show that decisions on organizational forms have to be influenced by digital culture, IT department's role, and the goals of DT. Moreover, top management leadership is more important than a formal digital strategy, and DT projects must be executed by coordinated interdisciplinary teams. The presented research offers a comprehensive insight on how companies can develop digital capabilities that enable a successful DT by developing their organizational forms, i.e., by combining the different DT actions, actors, their roles and responsibilities, their interplay, implementing DT strategies, and combining the design of digital software solutions with the design of organizational routines and practices.

The BPM 2022 Blockchain, RPA and CEE Forum deal with emerging technologies and techniques in business process management.

Advances in Artificial Intelligence (AI) technologies are creating new opportunities for organizations to improve their performance; however, as with other technologies, many of them have difficulties leveraging AI technologies and realizing performance gains. Research on the business value of information technology (IT) suggests that the adoption of AI should improve organizational performance, though indirectly, through improved business processes and other mediators, but research so far has not extensively empirically investigated the way AI creates business value. The paper proposes a capability-based view of AI adoption based on the conception that, with the adoption of AI, an organization develops AI-enabled capabilities – abilities to mobilize AI resources to effectively exploit, create, extend, or modify its resource base. This leads to higher organizational performance through cognitive process automation, innovation, and organizational learning. The first step in this research is to clarify the AI adoption construct. The goal of the paper is thus to provide a conceptual definition, and deeper insights into the components of the AI adoption construct at the organizational level.

Various management approaches have been proposed to maintain good organizational performance on a continuous basis, with corporate performance management (CPM) and business process management (BPM) being two major groups. While the conceptual connection between CPM and BPM might see obvious, their actual empirical connection with performance remains poorly understood. In this article, we address this gap and develop a theoretical model that explicates the causal paths from CPM via BPM toward organizational performance in terms of a set of hypotheses. Based on a survey, we find that the effect of CPM on organizational performance is largely mediated by CPM-BPM orchestration and process performance. With this study, we respond to recent calls for novel studies in this area and highlight the impact of well-orchestrated CPM and BPM initiatives on organizational performance.

Companies face huge challenges in managing their digital transformation in terms of key actors, their roles and the way they interplay. Based on a survey of 181 large and medium-sized Slovenian companies, we discover six differently successful organizational patterns. The most successful identified pattern is the business–IT partnership approach, where top management and the IT department are responsible for the digital transformation, and the CIO is an orchestrator and a member of top management. However, this is not the only possible successful approach for digital transformation. Recommendations and possible evolutionary paths for companies in each pattern are also outlined in the paper, including the importance of orchestrating the activities and actors of digital transformation and its strategic role.

Business process modeling, simulation, and an evaluation of different alternative scenarios for improvement has been proven to be promising tools for decreasing the risk related to business process reengineering projects. Business renovation as the highest level of strategy for managing change in an organization is the key element of electronic business orientation. Business process simulation is investigated as a tool for deriving an additional in-depth understanding of how the process is executed, an identification of the sources of the problems observed during the process execution, etc. An example of how simulations can be used for understanding a process and evaluation of how the proposed improvements and introduction of electronic business will influence the system performance is presented. Key-Words: simulation modeling, business process modeling, process maps, e-business, business renovation, business process reengineering

PurposeA poor relationship between top management and IT personnel is often denoted as a business–IT gap. In an era of digital transformation, bridging this gap and establishing a strong relationship between business and IT are more important than ever before. The purpose of this paper is thus to examine a particular link between business and IT managers – a partnership relationship – together with the factors facilitating it.Design/methodology/approachA partnership construct is developed based on interdisciplinary studies and transferred to the business–IT context since it is not generally used in IT disciplines. The model was empirically tested with structural equation modelling using data obtained from 221 IT managers in Slovenian companies.FindingsThe results show that both the perceived value of IT and the business orientation of the IT department exert a positive influence on the partnership, while a mere technology-oriented IT department has a negative effect on the partnership relationship. Furthermore, the paper also presents the prerequisites for a business-oriented IT department.Originality/valueIn this digitalisation era, IT is becoming even more important for its strategic role in organisations. There is thus a strong need to bridge the business–IT gap. Despite significant efforts made to close this gap, it remains a major issue. This research contributes to understanding the business–IT gap and presents the key factors for ensuring a partnership relationship is in place. The study also combines the views of social exchange theory and knowledge-based theory and upgrades findings concerning the influence of social facilitators on collaboration outcomes.

Purpose The paper investigates differences in the success of business process management (BPM) initiatives and their connection with organizational culture. The purpose of this paper is to identify propositions on characteristics of BPM initiative that are favorable for its success according to dominant organizational culture. Therefore, the authors' aim was to identify connections of organizational commitment to BPM and dimensions of business process orientation (BPO) with dominant organizational culture. Design/methodology/approach As a research design, the authors used a questionnaire to collect data on the BPM adoption practices of organizations in Austria, Croatia and Slovenia with more than 50 employees. BPM adoption was measured with BPO and organizational culture with Competing Values Framework (CVF). Non-parametric tests have been applied for the analysis. On this survey data, the authors conducted statistical tests to identify those factors that discriminate successful from unsuccessful BPM initiatives. Findings The study revealed empirical insights about characteristics of successful BPM initiatives in different organizational cultures. There are several statistically significant differences with respect to the success of BPM adoption. The chance of success appears to be higher: when the BPM initiative is rolled out in the entire organization if the organization has Clan, Market or Hierarchy culture; when the BPM is run on a continuous basis in Hierarchy culture and repeatedly in Adhocracy culture; when a top-down approach is used in organizations with Market or Hierarchy dominant culture; when the BPM initiative has a strategic role and formal responsibilities are defined in Clan and Hierarchy cultures. Originality/value The authors' empirical findings provide the basis for the formulation of detailed propositions on the interaction of various factors and their impact on BPM adoption in connection to organizational culture. In this way, the authors' contribution is situated in the inductive research cycle and informs theory building for BPM adoption.

Digital transformation presents many challenges for established companies that are increasingly aware that digitalisation is primarily a business challenge that requires changes in organizational culture, people, business processes and business models. Previous research shows that Slovenia is lagging behind in this respect. This paper contributes to the knowledge of the situation in the field of digital transformation in Slovenian large and medium-sized companies and to a better understanding of the key factors of successful digital transformation, which is the basis for taking appropriate decisions and further development of activities in Slovenian companies. The analysis is based on a survey conducted in June and July 2017, which examined the various aspects of digital transformation, such as its strategic role, digital culture, digital maturity and organizational aspects. The results of the analysis confirm that Slovenian companies are in general less digitally mature than their peers around the world. Investing only in information technology does not increase digital maturity; it is higher in the companies where the business role of informatics was recognized. A digital organizational culture is important for the successful digital transformation of companies.

Digitization and the associated digital transformation is becoming one of the greatest challenges in companies. Numerous studies examine factors that enable digital transformation and the impact of digital transformation on business operations. In any case, one of the prerequisites for successful digital transformation is also an understanding between senior management and IT, which takes care of the implementation of digitization projects. Despite efforts to create an appropriate relationship between IT and senior management, there is still a gap between the two in many companies. The aim of this article is therefore to contribute to the understanding of this gap by highlighting the factors that lead to a partnership. In particular, the results of a study of 221 information technology executives underscore the importance of business and management knowledge in bringing about a partnership. It is precisely because of the consequences of inadequate informatization that the problem addressed in this paper is very topical, and the desire to bridge the gap or increase collaboration between business management and information technology.

In recent period, business process management (BPM) has been increasingly a matter of interest for numerous authors as well as numerous organizations, due to the understanding of business processes as the core part of every organization. Significant efforts have been put into researching and implementing BPM within organizations. This paper's goal is to present the current state of BPM maturity and usage of social BPM within the companies operating in Croatia and Slovenia by analysing data collected by the PROSPER research group through questionnaires. Moreover, organizational culture is included in the analysis as well. Results indicate higher BPM maturity level and higher usage of social BPM within Slovenian companies than within Croatian ones and some other differences regarding dominant organizational cultures have also been found.

(a) Situation faced: Snaga is a Slovenian public company that provides a series of waste treatment services for 368,000 citizens of the Municipality of Ljubljana and ten other municipalities. In 2006, prior to adopting BPM and implementing a new information system, the company had obsolete and non-integrated IT solutions that did not provide sufficient support to the business operations. The existing business processes were not well organized, resulting in unnecessary duplication of work and excessive delays. The company also faced new challenges in waste management and new legislation that dictated the development of waste-processing technologies. (b) Action taken: The company’s executives were aware that the company’s way of doing business was inadequate and that changes were necessary if the company was to improve its business operations and maintain its competitive advantage. The company comprehensively transformed its business operations and adopted BPM in order to undertake the critical examination, rethinking, and then redesigning of current business processes, practices, and rules. The BPM project was conducted in three phases: (1) planning for strategic business transformation, (2) business process restructuring and information architecture development, and (3) information system development and implementation in six interdependent projects. (c) Results achieved: Adopting BPM brought considerable benefits to the company. A key change brought by the BPM adoption was the transition from a functional to a more process-oriented organization with an increased customer focus. The company implemented an ERP solution to support the redesigned business processes, established process ownership and a BPM office, and introduced KPIs to measure the performance and efficiency of processes and business operations using a business intelligence solution. BPM became a way of life at Snaga, and the company has undergone considerable transformation in the last decade, evolving from a traditional, functionally organised and managed company in 2005 to a process-oriented company in 2010. Today it is one of the most effective and efficient municipal utility companies in Europe. In the past 2 years, the company also transformed itself from focusing on waste collection and delivery to separate waste collection, waste processing and promoting a zero-waste society. The company’s operating results improved significantly from 2012 to 2015, and in the 10 years ending in 2015 increased the waste it processed after collected separately from 16 to 145 kg per user, which ranked the company at the top of the industry in Europe. (d) Lessons learned: The involvement—rather than just support—of top management is one of the most important critical success factors in all phases of BPM adoption. The role of the chief process officer, who was enthusiastic and encouraging during all stages of the project, and business drivers were particularly important, and the chief process officer’s communication approach contributed to the employees’ openness to change, which was essential for success. The professional guidance of external consultants was also helpful. Identifying key performance indicators and persons responsible for their achievement was the most important critical success factor I the production phase. The company also integrated the BPM philosophy with ISO 9001:2015 into a strong management system.

Research provides mixed evidence that corporate performance management (CPM) and business process management (BPM) initiatives contribute to better business performance. Although many studies emphasize the links between these initiatives, evidence from research and practice shows they are usually organized and conducted as separate projects. Scholars suggest that, if these initiatives are executed coordinately, the aligned positive impacts on process and organizational performance should be higher and more successful. However, the empirical evidence is still lacking. In response, we conduct a quantitative survey-based study to examine the interrelated role of CPM-BPM alignment in predicting process performance. The model is empirically tested through the partial least squares (PLS) approach to structural equation modeling (SEM). Our results show that CPM-BPM alignment has a positive direct impact on process performance and mediates the CPM maturity impact on process performance.

Organizational culture affects the success of business process management (BPM) adoption. Since organizational culture is very difficult to change, organizations should adapt their approach towards BPM adoption to suit the existing organizational culture. The aim of this paper is to find out what approach towards BPM adoption might be appropriate in an organization with Hierarchy-Market culture. For this, we conducted a case study of a large insurance company in South-East Europe. Our findings show that elements, such as formal and well organized approach, and emphasis on benefits of BPM contributed to BPM adoption success in the studied organization with Hierarchy-Market culture.

Purpose – The purpose of this paper is to examine how business process management (BPM) is incorporated within organisational structure. The authors demonstrate how a strategic interest in BPM and formal responsibilities for BPM activities shape the efficiency, quality and agility of BPM initiatives. By conducting field research, useful empirical insights were drawn about the necessary conditions for ensuring the success of BPM initiatives. Design/methodology/approach – A questionnaire survey of BPM adoption practices was conducted among private- and public-sector organisations with more than 50 employees. A cross-national sample of 60 Croatian and 51 Slovenian companies is analysed by applying a subsampling strategy and using inferential statistics methods. Findings – The study clearly shows how particular structural decisions can foster the operational excellence of BPM initiatives. Formal process roles and specialised BPM units were recognised as important drivers of organisational success. In addition, how strategic support and related structural choices create a synergistic effect and make process efforts worthwhile is explained. Practical implications – The research findings offer useful benchmarking of current BPM practices. The developed BPM commitment matrix represents a simple tool for self-assessment. Its path-dependent logic provides guidelines for improving the outcomes of BPM governance in general, and BPM initiatives specifically. Originality/value – The paper extends previous research by showing the performance effects of several BPM governance practices. The results clearly suggest that the best outcomes of BPM initiatives were achieved by organisations that had introduced a strategic approach to BPM, along with having defined a centralised BPM responsibility and assigned decentralised process ownership roles.

The purpose of this paper is to empirically evaluate the relationship between the maturity of hotels’ information systems and their performance. This study uses customized models of information system (IS) maturity and hotel performance measurement. Since we wanted to include the intangible aspects of performance, we opted for an adapted application of the Balanced Scorecard model. In the empirical part of the paper, fundamental constructs of the model are verified, while the individual items are further evaluated by employing discriminant analysis to distinguish hotels with relatively low and high performance levels. The findings demonstrate the existence of a significant and positive relationship between IS maturity and two dimensions of performance in the hospitality industry – process quality and guest relationships. The level of employee development and financial performance do not seem to be related to IS maturity. Although representative, the sample is relatively small, and the primary data were collected in a single country. The paper provides a framework of IS maturity items in the hospitality industry which seem to contribute to hotels’ business performances. As such, it can serve as a practical framework relevant for IT management in tourism and hospitality. The paper addresses a topic already discussed in a range of industries, although it does not seem to have been empirically evaluated by many studies of the tourism and hospitality industry. In addition, a new theoretical model of IT maturity in tourism and hospitality is proposed.