Business processes have always played a critical role in corporate activities. However, their position and significance have not remained constant over time. As business environments and technologies have evolved, so too have the expectations placed on processes.
In this article, we first look back at how the role of business processes has changed over time. We then explore the “redefinition” that is now being demanded with the emergence of AI.
- Up to the 1960s: The Era of Individual-Dependent Work
- 1970s–1980s: Processes for Standardization and Control
- Late 1990s–Early 2000s: Process Fixation through ERP
- Late 2000s–Around 2010: Reclaiming the Process Perspective
- Late 2010s–Early 2020s: The Era of Digital Technology and Automation
- Late 2010s–: The Shift to Data-Driven Processes
- Redefining Business Processes in the Age of AI
Up to the 1960s: The Era of Individual-Dependent Work
Before the period of rapid economic growth, business operations were heavily dependent on individual experience, intuition, and craftsmanship. Work practices were largely tacit, highly personalized, and difficult to reproduce.
- Work succeeded when handled by experienced individuals
- Knowledge transfer relied mainly on verbal communication
- Work was something to be “learned by doing”
At this stage, the need to explicitly define and manage work as business processes was still limited.
1970s–1980s: Processes for Standardization and Control
As organizations expanded and workforces grew, dependency on individuals began to be recognized as an operational risk. During this period, business processes were developed as a mechanism to ensure that:
- Consistent results could be achieved regardless of who performed the work
- Quality could be assured by following defined procedures
Processes were embedded in manuals, internal rules, and function-based organizational structures, and gradually came to be seen as something that had to be enforced and complied with.
Late 1990s–Early 2000s: Process Fixation through ERP
From the late 1990s through the early 2000s, ERP systems spread rapidly. Finance, procurement, inventory, and HR were integrated, and using a single, standardized process across the entire organization became a priority.
This era was characterized by the following assumptions:
- Processes can be defined in advance
- The To-Be state is provided as “best practice”
- Integration and standardization take precedence above all else
Business processes were treated as something to be selected and implemented. Value was placed less on continuous improvement and more on alignment and uniformity.
Late 2000s–Around 2010: Reclaiming the Process Perspective
Once ERP implementations reached maturity, several issues became apparent:
- Difficulty in making flexible changes to operations
- Exception handling spilling outside of systems
- A lack of true end-to-end, cross-functional perspectives
In response, concepts such as BPM and end-to-end processes regained attention.
This period was not purely about improvement, but rather about reframing processes that had been fixed within systems as objects of design once again.
Late 2010s–Early 2020s: The Era of Digital Technology and Automation
As cloud computing, APIs, and RPA entered practical use, discussions around processes shifted from how to design them to where to automate them.
- Automation at the level of individual tasks
- Reduction of manual work and increased processing speed
- Digital initiatives focused primarily on efficiency
Business processes were positioned as targets for the application of digital technologies. At the same time, new challenges emerged, such as local optimization and increasing overall complexity.
Late 2010s–: The Shift to Data-Driven Processes
Alongside these trends, another significant change took place: the rise of data-based process understanding and improvement, led by process mining.
- Visualization based on actual execution logs
- Identification of gaps between designed and real processes
- Continuous monitoring through KPIs and PIs
As a result, business processes shifted from being “things to be drawn” to “things to be observed and evaluated.”
Processes were no longer something merely to follow or implement, but objects to be measured and continuously improved.
Redefining Business Processes in the Age of AI
A Question Still in Progress
What comes next cannot yet be clearly defined as a specific era. However, as AI takes on a growing share of business processes, fundamentally different questions are beginning to emerge.
In traditional process design, human roles and decision points were explicitly defined through mechanisms such as application forms, approval flows, and workflows.
Who makes a decision, who approves it, and which rules apply—these elements were built directly into the process design.
As AI increasingly performs business tasks, this assumption changes.
For example, when an image of a receipt is submitted to a generative AI system, the system can extract the information, determine the appropriate account, check compliance with policies, and proceed directly to payment. Such mechanisms are already becoming a reality.
From an operational perspective, this is highly convenient. At the same time, however, it becomes harder for humans to see:
- Why this expense was approved
- Which policy was applied
In traditional processes, policies and decision criteria were visible through application fields and approval routes. In AI-driven automation, that preparatory structure is largely eliminated.
As a result, it paradoxically becomes less clear where human decision-making is involved and where accountability lies.
This is why, in the age of AI, what is required goes beyond simply complying with formal processes. A higher level of process awareness and decision-making awareness is demanded on the human side.
- Which decision layer am I responsible for right now?
- Should this decision be delegated to AI?
- At which points am I personally accountable?
These questions must be consciously considered at every level—executives, managers, and frontline staff alike.
Redefining business processes in the age of AI may not be about advancing automation itself, but rather about redesigning the boundaries of human judgment and responsibility.
Conclusion
The role of business processes has continuously evolved in response to the assumptions of each era. This evolution does not end in the age of AI. On the contrary, business processes are becoming more important than ever.
This is because business processes represent a design philosophy that defines how organizations make decisions and where they assume responsibility.
At Insightis, we will continue to explore—structurally and critically—the redefinition of business processes in the age of AI, grounded in this historical evolution.