Oct 112020

It may seem obvious that Functions and Processes are very different things. When it comes to a Target Operating Model (TOM) there is plenty of scope for confusion.

A functional model describes the grouping of capabilities of an organisation, whereas a process defines a sequence of steps. However, it is not always that simple. Some functions, for example Independent Price Verification (IPV) are also processes.

Below I have given my definitions. What are your thoughts? Please comment below.


A capability, or a grouping of related activities that must be done by a person or a system in order to deliver the overall business strategy

A function does not illustrate inputs, outputs, connections between functions or the business roles involved in executing the function.


A Business Process is the execution of a sequence of related steps in response to an event that leads to a clearly defined deliverable or outcome. A number of business role may contribute to the execution of an end-to-end Business Process.

A process does not define a function; instead a function will be made up of many processes, which can span multiple functions


Please leave your thoughts below.

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