Business process model for process improvement: an investigation of the tendering process in aconstruction company

This research pioneers, at least in the academic community, the development of (1) an explicit and flexible business process model for a construction company, (2) a modelling approach for the model and (3) an appropriate business process framework using the model. It is motivated by the need for business process improvement in construction companies and the idea of Business Process Management about establishing an effective framework to integrate business and IT by separating the business processes from the underlying applications and then creating a business process model that enables top-down (that is, business drives IT development) and bottom-up (vice versa) redesigns to flexibly cope with the company’s strategic development. A multi-round investigation into the tendering process of a construction company in Hong Kong is conducted in this research. To increase the generalizability in the findings, a large and representative company is selected. With no relevant model and approach, the author first uses a qualitative research method and case study method for data collection. Since both methods cannot provide sufficient guidance for further data collection and analysis, Grounded Theory is adopted in the second round of investigation. Its theoretical sampling and saturation rules are used to identify the relevant data, while its open, axial and selective coding methods are adopted to analyze the data systematically. Models, a modelling approach and framework are eventually developed in the third round by using Grounded Theory, narrative scenario, ontology, and Supplier-Input-Process-Output-Customer (SIPOC). Finally, model validation and implementation evaluation are conducted. After the four rounds, the three research objectives are achieved. Firstly, an explicit and flexible reference model for a tendering process is developed. It explicitly captures the interdependencies of roles, key activities, activity sequence and information flow. Its process components (“P”), value-based modules containing chains of activities constrained by the information for supplier, input, output and customer (“S-I-O-C”), can be flexibly reused in different contexts like Traditional tendering/Design & Build tendering. Secondly, a SONG modelling approach is established. A reusable, readable and accurate business process model can be generated by using (i) Grounded theory to collect and analyze data systematically, (ii) Narrative scenario to describe the existing practice accurately, (iii) Ontology modelling to generate reusable process components with category grouping, and (iv) SIPOC to capture the aforementioned constraints. Finally, an effective Seven-step Framework is formulated. It allows the use of top-down analysis (i.e. goal-driven approach) and bottom-up analysis (i.e. problem-driven approach) to identify the potential process redesigns comprehensively. Then, the existing business practices can drive the development of new IT applications, and vice versa, to satisfy the different needs of the companies at different times. This research has significant implications. Its model, the modelling approach and framework could serve as reference templates and methodologies for researchers and practitioners, shedding light on improving the business process to cope with the changes in company strategies and clients' needs, bridging the business-IT gap, integrating examples of existing application software, providing the process library/taxonomy for training employees and computing automation, and facilitating collaboration with partners in the construction industry.