Modeling and Optimizing Organizational Business Processes through Integrated Information Systems: Evidence from Public and SME Sectors

Authors

  • Rusmin Saragih STMIK Kaputama
  • Enda Ribka Meganta P STMIK Kaputama

Keywords:

Business process, Integrated systems, Process optimization, Public organizations, Small enterprises

Abstract

In the context of both public organizations and Small and Medium Enterprises (SMEs), inefficient business processes remain a significant challenge. Fragmented information systems often hinder the optimization of these processes, leading to slower decision-making, redundant efforts, and increased operational costs. This study aims to analyze and optimize business processes by utilizing integrated information systems (IIS), providing a comparative analysis between the two sectors. The theoretical framework explores key theories such as Business Process Management (BPM) and the integration of information systems for process optimization. Previous studies highlight the differences in how IIS implementation impacts the public and SME sectors, noting challenges such as data silos, legacy systems, and resistance to change. A case study analysis methodology was employed to assess the effectiveness of IIS across both sectors. Business Process Modeling (BPMN) was used to visualize business processes before and after optimization, and process performance was measured through key metrics such as time reduction, error rates, and cost efficiency. The results show that IIS integration improved business process efficiency by an average of 28%, with reductions in redundancy and faster decision cycles observed in both sectors. Public organizations benefited from enhanced service delivery and better resource management, while SMEs gained competitive advantages through streamlined operations and increased responsiveness to market demands. The comparison reveals that integrated systems had a greater operational impact than traditional isolated process reengineering methods. Public organizations faced more regulatory and governance challenges, while SMEs leveraged their flexibility for faster integration. Recommendations for both sectors include focusing on overcoming barriers such as resistance to change and investing in system modernization. Future research should explore the long-term effects of IIS integration and further sector-specific comparisons.

References

[1] Z. Khan, Arun, A. Raju Kumar, J. Talha, and P. Ranjith, “Challenges and Solutions in Managing Scattered Applications in Micro, Small, and Medium Scale Enterprises,” Lect. Notes Networks Syst., vol. 1159, pp. 613 – 623, 2025, doi: 10.1007/978-981-97-8526-1_49.

[2] I. J. S. Mansour, M. B. Mat Rejab, and H. Bin Mahdin, “Review in Adoption of DevOps, AIOps, DataOps, GitOps, MLOps in IT MLEs in Germany,” Int. J. Eng. Trends Technol., vol. 72, no. 12, pp. 64 – 76, 2024, doi: 10.14445/22315381/IJETT-V72I12P106.

[3] G. R. Ruiz, Using organizational culture to resolve business challenges. 2023. doi: 10.4018/978-1-6684-6567-7.

[4] R. C. Papademetriou and D. A. Karras, “Towards a thorough evaluation framework of software tools suitable for small and medium size enterprises focusing on modelling and simulating business processes,” Lect. Notes Bus. Inf. Process., vol. 275, pp. 161 – 182, 2017, doi: 10.1007/978-3-319-57222-2_8.

[5] D. A. Karras and R. C. Papademetriou, “A systematic review of analytical management techniques in business process modelling for smes beyond what-if-analysis and towards a framework for integrating them with BPM,” in BMSD 2017 - Proceedings of the 7th International Symposium on Business Modeling and Software Design, 2017, pp. 99 – 110. doi: 10.5220/0006527900990110.

[6] H. Raharjo and H. Eriksson, “Exploring differences between private and public organizations in business excellence models,” Int. J. Oper. Prod. Manag., vol. 37, no. 12, pp. 1795 – 1816, 2017, doi: 10.1108/IJOPM-09-2015-0593.

[7] A.-M. Udroiu and S.-A. Dan-Suteu, “IT solutions designed for the management of activities in the Romanian public institutions,” Stud. Informatics Control, vol. 29, no. 1, pp. 87 – 98, 2020, doi: 10.24846/v29i1y202009.

[8] J. J. Pangaribuan, H. Margono, O. P. Barus, Y. A. Pratama, and A. Maulana, “Sales, Purchase, and Inventory Information System Design at SMEs,” in Proceedings - 2022 1st International Conference on Technology Innovation and Its Applications, ICTIIA 2022, 2022. doi: 10.1109/ICTIIA54654.2022.9935929.

[9] H. Eriksson, “Outcome of quality management practices: Differences among public and private, manufacturing and service, SME and large organisations,” Int. J. Qual. Reliab. Manag., vol. 33, no. 9, pp. 1394 – 1405, 2016, doi: 10.1108/IJQRM-03-2014-0031.

[10] K. Schedler and U. Helmuth, Process management in public sector organizations. 2015. doi: 10.4324/9781315693279-25.

[11] M. Z. Elbashir, S. G. Sutton, H. Mahama, and V. Arnold, “Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence,” Account. Financ., vol. 61, no. S1, pp. 1775 – 1814, 2021, doi: 10.1111/acfi.12644.

[12] D. Ori and Z. Szabo, “Towards dynamic fit assessment for strategic alignment using enterprise architecture models,” in 2019 13th International Conference on Software, Knowledge, Information Management and Applications, SKIMA 2019, 2019. doi: 10.1109/SKIMA47702.2019.8982388.

[13] E. Kucharska, K. Grobler-Dębska, J. Gracel, and M. Jagodziński, “Idea of impact of ERP-APS-MES systems integration on the effectiveness of decision making process in manufacturing companies,” Commun. Comput. Inf. Sci., vol. 521, pp. 551 – 564, 2015, doi: 10.1007/978-3-319-18422-7_49.

[14] G. Retamozo-Falcon, J. Silva, and D. Mauricio, “Model for the improvement of processes using Lean techniques and BPM in SMEs,” in Proceedings of the 2019 IEEE 26th International Conference on Electronics, Electrical Engineering and Computing, INTERCON 2019, 2019. doi: 10.1109/INTERCON.2019.8853806.

[15] R. Karina, A. K. Siti-Nabiha, and T. Jurnali, “Usage of Big Data in the Integrated Information System: A Case Study in Transportation Company,” Adv. Sci. Technol. Innov., pp. 179 – 190, 2025, doi: 10.1007/978-3-031-89889-1_21.

[16] W. A. Aziz, “Business process reengineering impact on SMEs operations: Evidences from GCC region,” Int. J. Serv. Oper. Manag., vol. 33, no. 4, pp. 545 – 562, 2019, doi: 10.1504/IJSOM.2019.101590.

[17] N. H. M. Hassan, K. Ahmad, and H. Salehuddin, “Diagnosing the issues and challenges in data integration implementation in public sector,” Int. J. Adv. Sci. Eng. Inf. Technol., vol. 10, no. 2, pp. 529 – 535, 2020, doi: 10.18517/ijaseit.10.2.10271.

[18] Z. Irani, R. M. Abril, V. Weerakkody, A. Omar, and U. Sivarajah, “The impact of legacy systems on digital transformation in European public administration: Lesson learned from a multi case analysis,” Gov. Inf. Q., vol. 40, no. 1, 2023, doi: 10.1016/j.giq.2022.101784.

[19] G. Fletcher and M. Griffiths, Overcoming the legacy of processes, systems and people. 2025. doi: 10.4324/9781032668932-14.

[20] R. L. Mathule and B. M. Kalema, “User acceptance of legacy systems integration,” in 2016 IST-Africa Conference, IST-Africa 2016, 2016. doi: 10.1109/ISTAFRICA.2016.7530602.

[21] F. Gonzalez-Lopez and G. Bustos, “Integration of Business Process Architectures within Enterprise Architecture Approaches: A Literature Review,” EMJ - Eng. Manag. J., vol. 31, no. 2, pp. 127 – 140, 2019, doi: 10.1080/10429247.2018.1522565.

[22] L. M. Oliveri, D. D’Urso, N. Trapani, and F. Chiacchio, “An NFC application for the process mapping automation for SMEs,” in Procedia Computer Science, 2024, pp. 298 – 307. doi: 10.1016/j.procs.2024.01.029.

[23] D. Danang, H. Haryani, Q. Aini, F. A. Ramahdan, and J. Edwards, “Empowering digital literacy through blockchain based alphasign for secure and sustainable e-governance,” 2025.

[24] D. Danang, A. B. Santoso, and M. U. Dewi, “CICA Framework: Harnessing CSR, AI, and Blockchain for Sustainable Digital Culture,” Int. J. Adv. Comput. Sci. & Appl., vol. 16, no. 11, 2025.

[25] D. Danang, I. A. Dianta, A. B. Santoso, and S. Kholifah, “Hybrid CNN GRU Framework for Early Detection and Adaptive Mitigation of DDoS Attacks in SDN using Image Based Traffic Analysis,” Int. J. Inf. Eng. Sci., vol. 2, no. 2, pp. 66–78, 2025, doi: 10.62951/ijies.v2i2.292.

[26] D. Danang, S. Siswanto, W. Aryani, and P. Wibowo, “Hybrid Federated Ensemble Learning Approach for Real-Time Distributed DDoS Detection in IIoT Edge Computing Environment,” J. Eng. Electr. Informatics, vol. 5, no. 1, pp. 9–17, 2025, doi: 10.55606/jeei.v5i1.5099.

[27] H. R. D. Putranti, D. Danang, T. Da Silva, and A. A. B. Pujiati, “Integrating Hands-on and Virtual Learning for Environmental Sustainability: Eco Enzyme Soap Making at Stella Matutina,” REKA ELKOMIKA J. Pengabdi. Kpd. Masy., vol. 6, no. 1, pp. 88–97, 2025.

Downloads

Published

2026-01-17