AMBIDEXTROUS BUSINESS PROCESS MANAGEMENT IN A COMMERCIAL BANK: THE FIVE DIAMOND METHOD FOR EXPLORATIVE BPM
Keywords:
Organisational Ambidexterity, Business Process Management, Five-Diamond Method for Explorative BPM, BankingAbstract
The purpose of this paper is to provide an integrated theoretical framework that conceptualizes the
relations between Business Process Management (BPM) and organizational ambidexterity and a practically
orientated Method for explorative Business Process Management tested for application in a Bulgarian commercial
bank. Using the theoretical framework this paper aims to examine the role of organizational ambidexterity in BPM;
to propose a distinction between exploitative and explorative business processes based on theory and with practical
approach when a bank engages in digitalization and innovative activities while improving its core business processes
and operations. Furthermore, the paper discusses the idea of explorative Business Process Management aimed to
ensure that organizations systematically integrate emerging opportunities, such as those brought about by digital
technologies or changing customer needs, in order to offer new value propositions. Thus, an explorative BPM
method for proactively integrating opportunities into business processes is presented and analytically discussed. The
methodology in the paper regards the Five Diamond Method for explorative Business Process Management,
developed by T. Grisold, S. Groß, K. Stelzl, Jan vom Brocke, Jan Mendling, M. Röglinger and M. Rosemann, which
aims at enabling explorative Business Process Management in organizations. The method, combining Business
Process Management methods with Innovation Management methods (mainly divergent and convergent thinking),
provides possibilities to identify innovation opportunities resulting from digital technologies and changing customer
needs, and to integrate these opportunities into new business processes with novel value propositions.
The application of the Five Diamond Method of explorative BPM is tested in a commercial bank through
information acquired by personal observations, bank strategical papers, annual reports, internet research and four
brainstorming sessions. The findings of this paper suggest that there is a need for banks to adjust the management of
their business processes with innovation management if they are deliberate to foster innovations and to be truly
ambidextrous. The conclusions of the paper confirm that the Five Diamond Method leads to useful solutions in
banking sector in a competitive post-covid environment since the method distinguishes between business and
technology trends as relevant opportunity sources in the digital age. Moreover, the findings confirm that a
commercial bank basing on business process management can implement innovation management towards
becoming an ambidextrous organization thus fulfilling customers’ expectations of digitalization and new value
proposition.
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