Line of Business of PRocesses

A Line of Business (LOB) in process refers to a distinct and specialized area of a company's operations that focuses on a particular set of products, services, or customer segments. It is a way to categorize and organize a company's diverse activities into more manageable and focused units. 

Each LOB is typically responsible for:

• Specific Products/Services: Offering a defined range of goods or services within the organization.

• Target Customers: Serving a particular customer group or market segment.

• Unique Processes: Having its own set of tailored business processes to deliver its specific offerings. 

• Dedicated Resources: Often having its own management structure, budgets, and resources (human, financial, technological) allocated to achieve its specific objectives.

How LOBs relate to processes:

• LOB as the "What" Being Processed; Process as the "How it's Processed":

  1. An LOB identifies what specific value the company offers and to whom.

  2. Processes within that LOB detail how that value is created, delivered, and supported.

• Collection of Specific Processes:  

  1. Each LOB is fundamentally characterized by the unique collection of processes that define its operations. These processes are tailored to the LOB's specific offerings and customer base.

• Operational Alignment and Management: Defining LOBs through their processes helps in:

  1. Operational Clarity: Provides a clear picture of the specific workflows that generate value within that LOB.

  2. Process Ownership: Enables the assignment of responsibility for the performance and continuous improvement of the distinct processes that make up the LOB's operations.

  3. Resource Allocation for Execution: Allows for the allocation of human resources (process performers), specific applications, and budgets directly to the execution and optimization of processes within that LOB.

  4. Performance Monitoring: LOBs provide a framework for measuring the performance of specific business areas. Key performance indicators (KPIs) can be tracked for each LOB, including the efficiency and effectiveness of its underlying processes.

  5. Process Grouping: LOBs act as logical groupings for related business processes. Instead of having a single, massive set of processes for the entire organization, processes are often organized and managed within each LOB.

  6. Process Specialization: Processes within a specific LOB are designed and optimized to meet the unique requirements and characteristics of that LOB's products, services, and customers.

Basically,  LOB in processes signifies that processes are not generic but are contextualized and aligned with the specific value streams and strategic goals of a particular segment of the business.