Business Process as a Service (BPaaS) vs BaaS — It’s confusing therefore we solve it!
A business uses systems and tools to run and deliver value to the end customer.
Many businesses can be described by business processes. A business process describes which activities and input factors are relevant in a particular context, to create a particular outcome.
But how does it change, if either the “business process” or “business” itself gets delivered in an “as-a-Service” model?
This is what we are going to explore in this blog!
For context, BaaS can be following terminologies:
- Banking as a Service: Providing banking infrastructure which is often tightly regulated as a service.
- Backend as a Service: Cloudflare defines this as: “Backend-as-a-Service (BaaS) is a cloud service model in which developers outsource all the behind-the-scenes aspects of a web or mobile application so that they only have to write and maintain the frontend.”
- This blog will focus on Business as a Service as it is much closer correlated to BPaaS.
What is Business as a Service (BaaS)? — Definition
I define Business as a Service as a holistic package that offers business software (SaaS) in combination with the process management and lifecycle (BPM), collaboration tools, and management decision support (Decision Intelligence). The BaaS purpose is to hyper-automate running a whole business in a highly integrated fashion and deliver pre-packaged “Business Templates”
What is the difference to Business Process as a Service (BPaaS)?
BPaaS is following a similar path but is much more specialized and offers “Business Process Templates”. BPaaS is offering an end-to-end business process in the cloud. Inclusive of the monitoring, improvement, and optimization of this particular business process. It Is not intended to run a whole business unit or organization with all its nuts and bolts, like communication channels between Line of Business or making strategic decisions on the company's future direction.
What are the advantages and disadvantages of BaaS?
An advantage of BaaS is that it will allow Founders to accomplish specific organizational goals and leapfrog businesses by providing relevant tools, operating models, SLAs, and integrated sets of transactional and collaborative activities out of the box.
The other side is, that BaaS is definitely not as flexible in configuring and implementing business processes as BPaaS. It’s rather a concept intended to be used for small-and-medium-sized companies where the scope of operations is much better to define than in a multi-national conglomerate.
Have a look at already published articles:
- Business Process as a Service (BPaaS) vs Software as a Service (SaaS)
- Business Process as a Service (BPaaS) vs Business Process Outsourcing (BPO)
- Who is offering BPaaS and how does the market look like?
- Why can BPaaS profit so much from Business Process Reengineering?
- Why will process mining change the game for BPaaS?
- BPaaS loves RPA. A power couple!
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- Join our vibrant LinkedIn Community to get the latest news about BPaaS and engage with like-minded people!
