PRODUCTS & SERVICES IN PROCESSES

The Products and Services in processes, are referred to the tangible (products) or intangible (services) outputs that are directly generated, transformed, delivered, or supported by the sequential execution of a specific business process..

Here's how they fit:

• Products (as outputs of processes):

  • Tangible Outputs: These are physical goods created through manufacturing, assembly, or other transformative processes. The processes themselves are the mechanisms that take inputs and apply specific steps to produce a finished, deliverable item.

  • Process Focus: The processes involved in product creation are designed around efficiency, quality control, standardization, inventory management, and distribution of physical goods.

• Services (as outputs of processes):

  • Intangible Outputs: These are actions, performances, experiences, or consultations provided to a customer or user. The processes involved are focused on direct interaction, information delivery, problem-solving, or providing a specific benefit. Services are often co-produced with the customer and are consumed as they are rendered.

  • Process Focus: Service processes prioritize customer interaction, personalization, speed, consistency of delivery, and the expertise of the service provider.

Key Distinctions in the Process Context:

• Process as the Creator/Deliverer: Products and services are the direct results of this "doing."

• Sequential Generation: Products and services don't just appear; they are built up or delivered step-by-step through a process. Each activity within the process contributes to the final output.

• Measurement of Process Effectiveness: The quality, speed, and cost of the products and services delivered are direct measures of how effective the underlying processes are.

• Customer Interaction Points: For services, especially, the process design often defines specific interaction points where the customer engages with the service delivery. For products, these interactions might be more indirect (e.g., ordering online, receiving delivery).

In essence, products and services in processes are the value propositions realized through the structured execution of workflows, representing the ultimate tangible or intangible outcomes that a business's operational efforts are designed to produce for its customers.