Exploring blockchain technology in international trade

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shuchih Ernest Chang ◽  
Yi-Chian Chen ◽  
Tzu-Ching Wu
Keyword(s):  
International Trade ◽  
Business Process ◽  
Process Model ◽  
Business Processes ◽  
Process Efficiency ◽  
Practical Case ◽  
Content Type ◽  
Letter Of Credit ◽  
Blockchain Technology ◽  
Smart Contract

Purpose The purpose of this paper is to explore the applicability of blockchain technology in international trade process from a perspective of letter of credit payment. Design/methodology/approach A blockchain-based re-engineering process is designed by employing the blockchain and its affiliated smart contract technology to harvest the benefits of distributed ledger and distributed business workflow automation. Findings Comparative analysis and feasibility study were conducted to identify and validate the prospects, in terms of facilitating process flow and enhancing overall trade performance, of the proposed blockchain-based international trade process model. Practical implications Traditional trade processes suffer from a great number of issues about intermediaries, information latency and trust, which, in turn, hinder overall process efficiency. The emerging blockchain technology may have potentials to mitigate those issues by revolutionizing business processes across enterprise borders in various industries. Originality/value This study contributes to the conceptual design of a blockchain- and smart-contract-based process along with a provision of practical case in business process re-engineering. Further endeavors devoted to blockchain research and application across different sectors are suggested to reach better performance of business process operations.

scholarly journals Business processes exceptions in relation to operational performance

2019 ◽  
Vol 25 (5) ◽  
pp. 908-922 ◽  
Author(s):  
Remco Dijkman ◽  
Oktay Turetken ◽  
Geoffrey Robert van IJzendoorn ◽  
Meint de Vries
Keyword(s):  
Business Process ◽  
Process Model ◽  
Business Processes ◽  
Process Models ◽  
Operational Performance ◽  
Normal Flow ◽  
Throughput Time ◽  
Content Type ◽  
Business Process Models ◽  
Practical Implications

Purpose Business process models describe the way of working in an organization. Typically, business process models distinguish between the normal flow of work and exceptions to that normal flow. However, they often present an idealized view. This means that unexpected exceptions – exceptions that are not modeled in the business process model – can also occur in practice. This has an effect on the efficiency of the organization, because information systems are not developed to handle unexpected exceptions. The purpose of this paper is to study the relation between the occurrence of exceptions and operational performance. Design/methodology/approach The paper does this by analyzing the execution logs of business processes from five organizations, classifying execution paths as normal or exceptional. Subsequently, it analyzes the differences between normal and exceptional paths. Findings The results show that exceptions are related to worse operational performance in terms of a longer throughput time and that unexpected exceptions relate to a stronger increase in throughput time than expected exceptions. Practical implications These findings lead to practical implications on policies that can be followed with respect to exceptions. Most importantly, unexpected exceptions should be avoided by incorporating them into the process – and thus transforming them into expected exceptions – as much as possible. Also, as not all exceptions lead to longer throughput times, continuous improvement should be employed to continuously monitor the occurrence of exceptions and make decisions on their desirability in the process. Originality/value While work exists on analyzing the occurrence of exceptions in business processes, especially in the context of process conformance analysis, to the best of the authors’ knowledge this is the first work that analyzes the possible consequences of such exceptions.

scholarly journals Blockchain-Enabled Trade Finance Innovation: A Potential Paradigm Shift on Using Letter of Credit

2019 ◽  
Vol 12 (1) ◽  
pp. 188 ◽  
Author(s):  
Shuchih Ernest Chang ◽  
Hueimin Louis Luo ◽  
YiChian Chen
Keyword(s):  
Paradigm Shift ◽  
Business Processes ◽  
Poor Performance ◽  
Future Application ◽  
Trade Finance ◽  
Letter Of Credit ◽  
Blockchain Technology ◽  
Distributed Ledger ◽  
Smart Contract

This paper explores a potential paradigm shift in trade finance utilizing blockchain technology. Traditionally, the centralized operating model has governed trade finance and the manner in which traders handle business processes. However, such heavy reliance on centralized authorities has made for poor performance, the lack of flexibility and transparency, and vulnerability to malicious alteration. The blockchain, as a distributed ledger technology (DLT), has attracted growing attention and has the potential to disrupt legacy finance procedures such as payment by letter of credit (L/C). International trade players may benefit from the technological reengineering of financial processes through the implementation of blockchain- and smart contract-based platforms. From the conceptual perspective of a paradigm shift, this study analyzes the feasibility of blockchain innovation in trade finance through modern blockchain-based L/C initiatives. Moreover, this study also explores blockchain applications in terms of logistics tracking and how it integrates with trade finance procedures. This study contributes to the understanding of a blockchain paradigm shift with a multi-case study. The results may illuminate the potential future application of blockchain finance and provide researchers with an illustrative example of other finance-related capabilities. Studies of trade-related topics such as customs clearances, insurance, and logistics applications need to be addressed in the future to create a comprehensively trustless environment and facilitate the automation of trade.

Blockchain-based smart contract for international business – a framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepankar Sinha ◽  
Shuvo Roy Chowdhury
Keyword(s):  
International Trade ◽  
Data Structure ◽  
Value Chain ◽  
Information Structure ◽  
International Standards ◽  
Future Research ◽  
Global Trade ◽  
Content Type ◽  
Blockchain Technology ◽  
Smart Contract

Purpose Cross border trade, involving different business environments between the sellers’ and buyers’ countries, may result in conflicts because of asymmetry in the information structure across the borders. The International Chambers of Commerce (ICC) has laid down ground rules on terms of shipment and payment, enabling harmonization and standardization of business process, and fixing of responsibilities for international trade. The international commercial (INCO) terms by ICC define the duties, obligations and cost borne by the exporter and the importer. An exporter’s uncertainty looms once the goods cross his/her border. Therefore, there is a need for a smart contract that is secured, transparent, legitimate and trustworthy. The authors propose a blockchain technology-based smart global contract (BTGC) framework for international trade. Design/methodology/approach In this paper, the authors develop the framework based on value chain analysis (VCA) of international trade and an ontology-driven-blockchain-design approach. The paper analyzes the sequence of activities in the value chain of global trade, the terms of the contract, the data structure templates, the validation rules and the points-of-failure, and proposes the smart contract blockchain structure. Findings This paper proposes the BTGC framework considering the INCO terms 2020; it provides the validation rules and the probability of failures; and identifies the elements that cause the halting of contracts and conditions of creation of side blockchains. The framework also includes the governance of the BTGC system. Research limitations/implications The proposed framework not only has implications at the firm level as it automates and secures a global sale contract but also is expected to harmonize the global-trade process as well. The developers may use the attributes, data structure templates and the rules identified in this paper for developing the GC software. Future research may consider using case analysis, class diagrams and the related steps for developing the blockchain software. Originality/value This paper proposes a complete value chain of global contract (GC) concerning exports, an ontology of GC and a blockchain-based smart-contract framework based on global standards. Besides, it specifies the elements of fraud (such as the non-integration of side chains) and uncertainty, i.e. the probability of failures. Such a framework will harmonize the global-trade process and build an international standards for smart GC based on blockchain technology (ISSGCBT), which is not yet done.

scholarly journals How high-tech entrepreneurs bricole the evolution of business process management for their activities

2015 ◽  
Vol 21 (1) ◽  
pp. 152-171 ◽  
Author(s):  
Severine LeLoarne ◽  
Adnane Maalaoui
Keyword(s):  
Business Process ◽  
Process Model ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
High Tech ◽  
Critical Approach ◽  
Content Type

Purpose – The purpose of this paper is to focus on how entrepreneurs anticipate and change their company’s business process management after developing a radical innovation. The paper is based on a critical approach to business process modelling (BPM) that posits that – in spite of all the claims, guides and tools that companies employ to help them modelise their processes – business processes are developed and improved (or at least changed) by individuals who negotiate, anticipate and compromise to make these changes occur. Thus, BPM is more a matter of “bricolage” (Levi-Strauss) than an established and defined plan. Based on this position, the paper analyses how a business process model emerges in the early phases of a high-tech new venture when the entrepreneur lacks a valid template to form a conceptual representation of the firm’s business processes. Design/methodology/approach – The authors adopt a perspective based on the concept of bricolage. By analysing and comparing the discourse of 40 entrepreneurs – involved in an activity based on a radical innovation and 20 involved in an activity based on a more incremental concept – the authors are able to answer the two research questions. Findings – Entrepreneurs who develop a new activity based on any radical or incremental innovation generally base the BPM of their company and the evolution of this process on existing models. However, BPM generally differs based on the nature of the innovation. Thus, entrepreneurs who develop a new activity based on a radical innovation do not design a single BPM for their company but a portfolio of BPMs. The process by which such entrepreneurs develop such a portfolio is mainly conducted in a step-by-step and iterative approach that utilises “whatever is at hand” (Levi-Strauss, 1966). Originality/value – First, this study extends existing methods for and approaches to considering BPM. Second, this research partly answers the call for integration among different theoretical backgrounds and approaches that consider BPM.

Obtaining secure business process models from an enterprise architecture considering security requirements

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luis San Martín ◽  
Alfonso Rodríguez ◽  
Angélica Caro ◽  
Ignacio Velásquez
Keyword(s):  
Business Process ◽  
Process Model ◽  
Enterprise Architecture ◽  
Business Processes ◽  
Process Models ◽  
Security Requirements ◽  
Content Type ◽  
Model Driven ◽  
Transformation Rules ◽  
Secure Business Process

PurposeSecurity requirements play an important role in software development. These can be specified both in enterprise architecture models and in business processes. Enterprises increasingly carry out larger amounts of business processes where security plays a major role. Business processes including security can be automatically obtained from enterprise architecture models by applying a model-driven architecture approach, through a CIM to CIM transformation. The aim of this article is to present the specification of transformation rules for the correspondence between enterprise architecture and business process model elements focusing on security.Design/methodology/approachThis work utilizes motivational aspects of the ArchiMate language to model security in the business layer of enterprise architectures. Next, a set of transformation rules defined with the Atlas Transformation Language are utilized to obtain the correspondence of the enterprise architecture elements in a business process, modelled with a security extension of BPMN.FindingsA total of 19 transformation rules have been defined. These rules are more complex than element to element relations, as they take into consideration the context of the elements for establishing the correspondence. Additionally, the prototype of a tool that allows the automatic transformation between both models has been developed.Originality/valueThe results of this work demonstrate the possibility to tackle complex transformations between both models, as previous literature focuses on semantic correspondences. Moreover, the obtained models can be of use for software developers applying the model-driven approach.

Public services: a standard process model following a structured process redesign

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamal K. Mukherjee ◽  
Laura Reka ◽  
Rudina Mullahi ◽  
Keldi Jani ◽  
Jonida Taraj
Keyword(s):  
Business Process ◽  
Public Service ◽  
Process Model ◽  
Public Services ◽  
Case Study Research ◽  
Standard Process ◽  
Content Type ◽  
Process Redesign ◽  
Resource Reuse ◽  
The Government

PurposeDespite widespread adoption of business process reengineering (BPR) for better delivery efficiency of public services, a structured approach continues to elude the most value-adding phase of BPR: business process redesign. From another viewpoint, the rising currency of Whole-of-Government (WoG) and “shared services” initiatives signal an unmissable trend toward resource reuse across public service agencies (PSAs) through business process standardization (BPS). This research invokes BPS into process redesign to produce a process redesign framework (PRF) and deploys the same to build a standard process model (SPM) for services of the government of Albania (GoA).Design/methodology/approachThe methodology follows the design science research (DSR) paradigm, wherein best practices extracted from literature are synthesized with stakeholder inputs to design the PRF and SPM, both of which are then evaluated with case study research.FindingsAdoption of PRF/SPM on a WoG basis will not only reduce service lead time but also enable a variety of public services to share the same process, thereby further saving costs for GoA. The research outputs will accelerate reengineering and subsequent digitalization of public service operations.Research limitations/implicationsImplementing SPM will maximize resource reuse and help offer uniform and integrated public services to GoA's customers. It will also enable demand-driven staff mobilization across GoA agencies. The proposed PRF/SPM have limitations in that they consider only flow aspects of service processes with aspects of conversion being ignored.Originality/valueThis research fulfills the need for a systematic approach to process redesign and prepares GoA for a WoG treatment to its BPR efforts.

A theory of contingent business process management

2019 ◽  
Vol 25 (6) ◽  
pp. 1291-1316 ◽  
Author(s):  
Sarah Zelt ◽  
Jan Recker ◽  
Theresa Schmiedel ◽  
Jan vom Brocke
Keyword(s):  
Information Processing ◽  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Empirical Studies ◽  
Theory Development ◽  
Process Performance ◽  
Research Strategies ◽  
Content Type

Purpose Many researchers and practitioners suggest a contingent instead of a “one size fits all” approach in business process management (BPM). The purpose of this paper is to offer a contingency theory of BPM, which proposes contingency factors relevant to the successful management of business processes and that explains how and why these contingencies impact the relationships between process management and performance. Design/methodology/approach The authors develop the theory by drawing on organizational information processing theory (OIPT) and applying an information processing (IP) perspective to the process level. Findings The premise of the model is that the process management mechanisms such as documentation, standardization or monitoring must compensate for the uncertainty and equivocality of the nature of the process that has to be managed. In turn, managing through successful adaptation is a prerequisite for process performance. Research limitations/implications The theory provides a set of testable propositions that specify the relationship between process management mechanisms and process performance. The authors also discuss implications of the new theory for further theorizing and outline empirical research strategies that can be followed to enact, evaluate and extend the theory. Practical implications The theory developed in this paper allows an alternative way to describe organizational processes and supports the derivation of context-sensitive management approaches for process documentation, standardization, monitoring, execution and coordination. Originality/value The theoretical model is novel in that it provides a contextualized view on BPM that acknowledges different types of processes and suggests different mechanisms for managing these. The authors hope the paper serves as inspiration both for further theory development as well as to empirical studies that test, refute, support or otherwise augment the arguments.

scholarly journals Adaptive business rules framework for workflow management

2019 ◽  
Vol 25 (5) ◽  
pp. 948-971
Author(s):  
Kanana Ezekiel ◽  
Vassil Vassilev ◽  
Karim Ouazzane ◽  
Yogesh Patel
Keyword(s):  
Real Time ◽  
Business Process ◽  
Business Processes ◽  
Object Oriented ◽  
Process Modelling ◽  
Semantic Indexing ◽  
Business Rules ◽  
Business Process Modelling ◽  
Bottom Up ◽  
Content Type

Purpose Changing scattered and dynamic business rules in business workflow systems has become a growing problem that hinders the use and configuration of workflow-based applications. There is a gap in the existing research studies which currently focus on solutions that are application specific, without accounting for the universal logical dependencies between the business rules and, as a result, do not support adaptation of the business rules in real time. The paper aims to discuss this issue. Design/methodology/approach To tackle the above problems, this paper adopts a bottom-up approach, which puts forward a component model of the business process workflows and then adds business rules which have clear logical semantics. This allows incremental development of the workflows and semantic indexing of the rules which govern them during the initial acquisition. Findings The paper introduces an event-driven model for development of business workflows which is purely logic-based and can be easily implemented using an object-oriented technology, together with a model of the business rules dependencies which supports incremental semantic indexing. It also proposes a two-level inference mechanism as a vehicle for controlling the business process execution and the process of adaptation of the business rules at real time based on propagating the dependencies. Research limitations/implications The framework is strictly logical and completely domain-independent. It allows to account both synchronous and asynchronous triggering events as well as both qualitative and quantitative description of the conditions of the rules. Although our primary interest is to apply the framework to the business processes typical in the construction industry we believe our approach has much wider potential due to its strictly logical formalization and domain independence. In fact it can be used to control any business processes where the execution is governed by rules. Practical implications The framework could be applied to both large business process modelling tasks and small but very dynamic business processes like the typical digital business processes found in online banking or e-Commerce. For example, it can be used for adjusting security policies by adding the capability to adapt automatically the access rights to account for additional resources and new channels of operation which can be very interesting ion both B2C and B2B applications. Social implications The potential scope of the impact of the research reported here is linked to the wide applicability of rule-based systems in business. Our approach makes it possible not only to control the execution of the processes, but also to identify problems in the control policies themselves from the point of view of their logical properties – consistency, redundancies and potential gaps in the logics. In addition to this, our approach not only increases the efficiency, but also provides flexibility for adaptation of the policies in real time and increases the security of the overall control which improves the overall quality of the automation. Originality/value The major achievement reported in this paper is the construction of a universal, strictly logic-based event-driven framework for business process modelling and control, which allows purely logical analysis and adaptation of the business rules governing the business workflows through accounting their dependencies. An added value is the support for object-oriented implementation and the incremental indexing which has been possible thanks to the bottom-up approach adopted in the construction of the framework.

Business process model patterns: state-of-the-art, research classification and taxonomy

2019 ◽  
Vol 25 (5) ◽  
pp. 972-994 ◽  
Author(s):  
Michael Fellmann ◽  
Agnes Koschmider ◽  
Ralf Laue ◽  
Andreas Schoknecht ◽  
Arthur Vetter
Keyword(s):  
Business Process ◽  
Process Model ◽  
Pattern Language ◽  
Future Research ◽  
Business Process Model ◽  
Content Type ◽  
Research Activities ◽  
Starting Point ◽  
Research Classification

Purpose Patterns have proven to be useful for documenting general reusable solutions to a commonly occurring problem. In recent years, several different business process management (BPM)-related patterns have been published. Despite the large number of publications on this subject, there is no work that provides a comprehensive overview and categorization of the published business process model patterns. The purpose of this paper is to close this gap by providing a taxonomy of patterns as well as a classification of 89 research works. Design/methodology/approach The authors analyzed 280 research articles following a structured iterative procedure inspired by the method for taxonomy development from Nickerson et al. (2013). Using deductive and inductive reasoning processes embedded in concurrent as well as joint research activities, the authors created a taxonomy of patterns as well as a classification of 89 research works. Findings In general, the findings extend the current understanding of BPM patterns. The authors identify pattern categories that are highly populated with research works as well as categories that have received far less attention such as risk and security, the ecological perspective and process architecture. Further, the analysis shows that there is not yet an overarching pattern language for business process model patterns. The insights can be used as starting point for developing such a pattern language. Originality/value Up to now, no comprehensive pattern taxonomy and research classification exists. The taxonomy and classification are useful for searching pattern works which is also supported by an accompanying website complementing the work. In regard to future research and publications on patterns, the authors derive recommendations regarding the content and structure of pattern publications.

Social business process management

2019 ◽  
Vol 26 (1) ◽  
pp. 191-211
Author(s):  
Patricia Bazan ◽  
Elsa Estevez
Keyword(s):  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
New Technologies ◽  
State Of The Art ◽  
Implicit Knowledge ◽  
Social Software ◽  
Social Business ◽  
Content Type

Purpose The purpose of this paper is to assess the state of the art of social business process management (Social BPM), explaining applied approaches, existing tools and challenges and to propose a research agenda for encouraging further development of the area. Design/methodology/approach The methodology comprises a qualitative analysis using secondary data. The approach relies on searches of scientific papers conducted in well-known databases, identifying research work related to Social BPM solutions and those contributing with social characteristics to BPM. Based on the identified papers, the authors selected the most relevant and the latest publications, and categorized their contributions and findings based on open and selective coding. In total, the analysis is based on 51 papers that were selected and analyzed in depth. Findings Main results show that there are several studies investigating modeling approaches for socializing process activities and for capturing implicit knowledge possessed and used by process actors, enabling to add some kind of flexibility to business processes. However, despite the proven interest in the area, there are not yet adequate tools providing effective solutions for Social BPM. Based on our findings, the authors propose a research agenda comprising three main lines: contributions of social software (SS) to Social BPM, Social BPM as a mechanism for adding flexibility to and for discovering new business processes and Social BPM for enhancing business processes with the use of new technologies. The authors also identify relevant problems for each line. Practical implications Some SS tools, like wikis, enable managing social aspects in executing business processes and can be used to coordinate simple business processes. Despite they are commonly used, they are not yet mature tools supporting Social BPM and more efficient tools are yet to appear. The lack of tools preclude organizations from benefitting from implicit knowledge owned by and shared among business process actors, which could contribute to better-informed decisions related to organizational processes. In addition, more research is needed for considering Social BPM as an approach for organizations to benefit from the adoption of new technologies in their business processes. Originality/value The paper assesses the state of the art in Social BPM, an incipient area in research and practice. The area can be defined as the intersection of two bigger areas highly relevant for organizations; on the one hand, the management and execution of business processes; and on the other hand, the use of social software, including social media tools, for leveraging on implicit knowledge shared by business process actors to improving efficiency of business processes.

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