Process cascade- and segmentation-based organizational design: A case study

Business process orientation means focusing on the organization´s business processes instead of placing emphasis on functional structures or hierarchies. In this paper we discuss the approach of process cascading and segmentation, a design principle which helps organizations to build its structure around its customer-oriented business processes. Cascading of processes is an approach where the organization´s business process design is based on internal customer-supplier relationships which ensure that every business process of the organization has a clearly defined (internal) customer which places an order and also receives the results. Segmentation of business processes refers to the idea of creating process variants of business processes which face heterogeneous market and/or customer. Both principles - cascading and segmentation of business processes - complement each other. We show how these design principles are applied in practice by using an Austrian manufacturing firm as a case study.