[OR] [P2] [S2] [MII] Understanding Service-Centric vs Process-Centric Approaches

[P2] [S2] Additional Explanation

Understanding Service-Centric vs Process-Centric Approaches in Mapping Interconnections and Interdependencies

Introduction

A fundamental shift in operational resilience is the transition from a process-centric view of operations to a service-centric perspective.

Traditional business continuity and risk management practices have long focused on internal processes; however, modern regulatory expectations (e.g., MAS, BSP, BNM, PRA/FCA) emphasise prioritising Critical Business Services (CBS)—services delivered to external stakeholders.

Within the context of Mapping Interconnections and Interdependencies (OR Phase 2 – P2-S2), understanding the distinction between service-centric and process-centric approaches is essential.

This chapter defines both concepts, explains their roles, and provides a structured comparison to guide the effective implementation of operational resilience.

Purpose of the Chapter

The purpose of this chapter is to:

• Define service-centric and process-centric approaches
• Explain how each approach influences the mapping of interconnections and interdependencies
• Highlight their differences and complementary roles
• Guide organisations in transitioning towards a service-centric resilience model

Definition of Process-Centric Approach

What is a Process-Centric Approach?

A process-centric approach focuses on the internal activities, workflows, and operational steps that an organisation performs to deliver its products or services.

It emphasises:

• How work is performed
• Sequence of activities and tasks
• Operational efficiency and control

Key Characteristics

• Oriented around business functions and departments
• Focuses on process flows and procedures
• Measures success based on process performance (e.g., cycle time, throughput)
• Typically aligned with traditional BCM and operational risk frameworks

Example

In a banking environment:

• Account opening involves steps such as data entry, KYC verification, approval workflows, and account creation
• Each step is analysed as part of a process flow

Definition of Service-Centric Approach

What is a Service-Centric Approach?

A service-centric approach focuses on the end-to-end delivery of a service to an external customer or stakeholder, particularly those services where disruption would cause intolerable harm.

This aligns directly with the concept of Critical Business Services (CBS) in operational resilience.

Key Characteristics

• Oriented around customer outcomes and service delivery
• Focuses on end-to-end service continuity
• Measures success based on the ability to remain within impact tolerance
• Integrates multiple processes, systems, and stakeholders into a single service view

Example

Instead of focusing on the process of account opening, a service-centric view considers:

• “Deposit and Account Services” as a CBS
• Encompasses all underlying processes, systems, people, and third parties required to deliver that service

Service-Centric vs Process-Centric: Key Differences

Relationship Between Service-Centric and Process-Centric Approaches

These approaches are not mutually exclusive—they are hierarchically related:

• Service-centric approach sits at the top
• Process-centric approach provides the underlying detail

Key Insight

All services are delivered through processes, but not all processes represent critical services.

Practical Interpretation

• A service-centric view identifies what must be protected
• A process-centric view explains how the service is delivered

Role in Mapping Interconnections and Interdependencies

Process-Centric Mapping

Process-centric mapping focuses on:

• Workflow sequences
• Task dependencies
• System interactions within a process

This helps identify:

• Operational bottlenecks
• Process inefficiencies
• Control gaps

However, it may fail to capture end-to-end service impact.

Service-Centric Mapping

Service-centric mapping focuses on:

• End-to-end service delivery chains
• Interconnections across functions and entities
• Interdependencies between resources supporting CBS

This enables organisations to:

• Understand how disruptions affect customers
• Identify critical dependencies across the ecosystem
• Assess the ability to remain within impact tolerance

Integrated Mapping Approach

A robust operational resilience framework requires integration of both approaches:

Why the Shift to Service-Centric is Critical

Regulatory Expectations

Regulators increasingly require organisations to:

• Identify Critical Business Services
• Set impact tolerances
• Conduct scenario testing at the service level

This cannot be achieved through a purely process-centric lens.

Managing Systemic and Cascading Risks

Service-centric mapping enables organisations to:

• Identify cross-functional dependencies
• Understand third-party and sector-wide risks
• Detect cascading failures across interconnected systems

Enhancing Customer-Centric Resilience

Ultimately, resilience is measured by:

• Customer impact
• Market confidence
• Regulatory compliance

A service-centric approach ensures that resilience efforts are aligned with these outcomes.

Common Challenges in Transition

Organisations often encounter the following challenges when shifting approaches:

• Over-reliance on existing process maps
• Difficulty defining CBS clearly
• Organisational silos limiting end-to-end visibility
• Resistance to change from process owners

Addressing these requires:

• Strong governance
• Clear definitions of CBS
• Cross-functional collaboration

Practical Guidance for Implementation

To effectively adopt a service-centric approach while leveraging process-centric strengths:

Step 1: Identify Critical Business Services (CBS)

• Focus on services with external impact
• Align with regulatory definitions

Step 2: Map Supporting Processes

• Break down CBS into sub-CBS and processes
• Use process-centric mapping for detail

Step 3: Identify Interconnections

• Map how components are linked

Step 4: Identify Interdependencies

• Assess what components rely on each other

Step 5: Validate Through Scenario Testing

• Test resilience at the service level, not just the process level

The distinction between service-centric and process-centric approaches is fundamental to the effective implementation of operational resilience.

• The process-centric approach provides the operational detail and control needed to execute activities efficiently
• The service-centric approach provides the strategic lens required to ensure continuity of services that matter most

Organisations that successfully integrate both approaches can move beyond compliance and achieve true resilience—ensuring that Critical Business Services remain available even under severe but plausible disruption scenarios.

In the context of mapping interconnections and interdependencies, adopting a service-centric perspective ensures that mapping efforts are not merely technical exercises but strategic enablers of resilience, risk management, and customer protection.