What is meant by process-centric Business Application Classification?

Process centric business application classification refers to the categorization of business applications based on their specific function or purpose. Business applications are software programs that help organizations automate and streamline various business processes, such as accounting, customer relationship management, and project management.

There are several ways to classify business applications, including by type of function, deployment model, and target audience. For example, business applications can be classified as operational, which support the day-to-day running of the organization, or strategic, which help organizations achieve long-term goals. They can also be classified based on how they are deployed, such as on-premises, cloud-based, or as a hybrid of both. Business applications can also be classified based on their target audience, such as consumer-facing applications or enterprise-level applications.

Classifying business applications is important for organizations because it helps them understand the various options available and choose the most suitable software for their specific needs. It also helps organizations understand the potential benefits and drawbacks of different types of applications and make informed decisions about which ones to invest in.

A popular method is to classify applications using The APQC process classification framework (PCF).  The PCF is a standardized framework for organizing and categorizing business processes. Developed by the American Productivity & Quality Center (APQC), the PCF is used by organizations around the world to improve the efficiency and effectiveness of their business processes.

The PCF is a hierarchical framework that consists of six levels:

1. Process group: This is the highest level of the PCF and includes broad categories of business processes such as finance, human resources, and operations.
2. Process category: This level includes more specific categories of business processes that fall within a particular process group. For example, within the finance process group, there may be categories such as accounts payable, accounts receivable, and budgeting.
3. Process area: This level includes more detailed categories of business processes that fall within a particular process category. For example, within the accounts payable process category, there may be areas such as vendor invoice processing and employee expense reimbursement.
4. Process: This level includes specific business processes that fall within a particular process area. For example, within the vendor invoice processing process area, there may be processes such as vendor invoice review and approval, and vendor invoice payment.
5. Subprocess: This level includes smaller, more specific steps or tasks that are part of a particular process. For example, within the vendor invoice review and approval process, there may be subprocesses such as verifying the accuracy of the invoice and approving the invoice for payment.
6. Activity: This is the lowest level of the PCF, and includes the individual actions or tasks that are required to complete a particular subprocess.

The PCF is designed to be flexible and scalable and can be used to classify and organize business processes at any level of granularity, from high-level process groups down to individual activities. By using the PCF to classify and organize their business applications and processes, organizations can gain a better understanding of how their processes fit together and how they contribute to the overall goals and objectives of the organization. This can help organizations improve the efficiency and effectiveness of their processes, and ultimately drive better business performance.