Integrating Life Cycle Assessment into Business Process Management for Sustainability-Oriented Process Analysis and Re-design

Core Concepts

A framework called SOPA that combines Life Cycle Assessment and Activity-Based Costing to enable holistic analysis of the environmental impact of business processes and support sustainability-driven process re-design.

Abstract

The paper proposes a framework called SOPA (Sustainability-Oriented Process Analysis) that integrates Life Cycle Assessment (LCA) and Activity-Based Costing (ABC) into the Business Process Management (BPM) life cycle. The key highlights are: SOPA extends the BPM life cycle by incorporating LCA for a holistic assessment of the environmental impact of business processes, going beyond the limited focus on metrics like carbon emissions and energy consumption in existing approaches. SOPA utilizes ABC to assign environmental impact measures from LCA to individual process activities, enabling a detailed analysis of the environmental cost of each activity and the overall process. SOPA supports sustainability-oriented process re-design by leveraging business process simulation to evaluate the environmental impact of different process alternatives and identify the least impactful variant. The framework is evaluated through a case study of a hiring process in a university setting, demonstrating the practical applicability of SOPA. The authors provide a prototypical implementation of SOPA as open-source software to facilitate its adoption and further development.

Stats

"Given the continuous global degradation of the Earth's ecosystem due to unsus-tainable human activity, it is increasingly important for enterprises to evaluate the effects they have on the environment." "Toxic substances introduced into the environment as a result of e.g. wasteful manufacturing, play a significant role in the endangerment of biodiversity and promotion of risks to human health — a loss of biodiversity is closely linked to threats towards human life and its surrounding environment." "Industrial activity and production of heat and electricity, have been identified as key contributors to climate change."

Quotes

"Only when their impact is known, business can take useful and directed measures in order to reduce that impact." "Nonetheless, existing literature underlines that integrating sustainability into BPM is a worthwhile research effort in terms of research opportunity and relevance." "Notably, the integration of LCA into BPM has been identified as a key research gap."

Key Insights Distilled From

SOPA: A Framework for Sustainability-Oriented Process Analysis and Re-design in Business Process Management

by Finn Klessas... at arxiv.org 05-03-2024

https://arxiv.org/pdf/2405.01176.pdf

Deeper Inquiries

How can SOPA be extended to consider the social and economic dimensions of sustainability in addition to the environmental aspect?

SOPA can be extended to consider the social and economic dimensions of sustainability by incorporating additional metrics and analysis methods into the framework. Here are some ways to achieve this extension: Social Impact Metrics: Integrate social impact assessment tools and indicators into the framework. This could include evaluating factors such as employee well-being, diversity and inclusion, community engagement, and human rights considerations within the business processes. By incorporating social impact metrics, SOPA can provide a more comprehensive view of sustainability that includes the well-being of people affected by the processes. Economic Sustainability Analysis: Include economic sustainability indicators in the analysis process. This could involve assessing the financial costs and benefits of different process alternatives, considering factors such as resource efficiency, cost savings, and long-term financial viability. By incorporating economic sustainability analysis, SOPA can help organizations make decisions that are not only environmentally friendly but also economically sustainable in the long run. Integrated Sustainability Assessment: Develop a holistic sustainability assessment framework within SOPA that combines environmental, social, and economic dimensions. This integrated approach would allow for a comprehensive evaluation of the overall sustainability impact of business processes, considering the triple bottom line of people, planet, and profit. Stakeholder Engagement: Involve stakeholders from diverse backgrounds, including employees, customers, suppliers, and local communities, in the sustainability analysis process. By incorporating stakeholder perspectives, SOPA can ensure that the social and economic impacts of business processes are accurately captured and addressed.

How can SOPA be adapted to support sustainability-oriented process analysis and re-design in other domains beyond business process management, such as product design or supply chain management?

SOPA can be adapted to support sustainability-oriented process analysis and re-design in other domains by customizing the framework to fit the specific requirements and characteristics of those domains. Here are some ways to adapt SOPA for domains beyond business process management: Product Design: In product design, SOPA can be tailored to assess the environmental impact of different design choices, materials, and manufacturing processes. By integrating life cycle assessment (LCA) methods specific to product design, SOPA can help designers optimize products for sustainability by considering factors such as recyclability, energy efficiency, and carbon footprint. Supply Chain Management: For supply chain management, SOPA can be modified to evaluate the sustainability performance of supply chains, including transportation, sourcing, and distribution processes. By incorporating supply chain-specific metrics and data sources, SOPA can identify opportunities for reducing environmental impact, improving social responsibility, and enhancing economic efficiency across the supply chain. Customized Impact Metrics: Develop domain-specific impact metrics and indicators relevant to the particular context of product design or supply chain management. This may involve collaborating with experts in the respective fields to identify key sustainability criteria and performance measures that align with industry standards and best practices. Integration with Existing Tools: Integrate SOPA with existing tools and software commonly used in product design and supply chain management to streamline the sustainability analysis process. This could involve interoperability with CAD software for product design or supply chain management platforms for data collection and analysis. By adapting SOPA to these domains and customizing the framework to address their unique sustainability challenges and requirements, organizations can effectively analyze and redesign processes to enhance sustainability performance beyond business process management.