What is a Business Process? Impact and Examples

Understanding the business process definition is crucial for success. Business processes shape how work gets done and goals are met. They boost productivity, cut costs, and keep customers happy.

Every company relies on well-defined business process steps and workflows to function. Effective business process management is essential for process improvement and growth.

This article provides a business process overview. We will cover:

• Business process meaning and why processes matter

• Different types of processes

• Real-world examples

• Business process management

• Process modeling and optimization through business process reengineering

Definition of Business Process and Key Components 

A business process is a series of structured, interconnected tasks and activities that produce a specific, measurable result. 

It helps staff understand the workflow and achieve goals. A well-defined process starts with a clear objective and transforms inputs into desired outputs using various resources. 

Business process development focuses on designing and documenting these processes for efficiency.

Core Business Process Elements

The key components of a business process include:

1. Process Objective:
   A clear statement describing the specific goal the process aims to achieve.

2. Inputs:
   Data, information, materials, and other resources are needed to start and execute the process.

3. Activities/Tasks:
   Specific actions or operations performed to reach the process objective.

4. Resources:
   People, tools, technologies, and facilities are required to carry out the activities.

5. Outputs:
   Results or products generated from the process.

6. Responsibilities:
   Definition of who is responsible for each activity, including specific roles and departments, such as the process owner.

7. Controls:
   Mechanisms to monitor, regulate, and refine the process to meet predefined standards through process monitoring.

8. Timeline:
   A schedule outlining the process lifecycle, including when each activity should begin and end and major milestones.

Characteristics of Effective Processes

Effective business processes have several key qualities:

• Simplicity:
  Good processes are intentionally kept simple to minimize errors.

• Clarity:
  The process should be easy to understand.

• Repeatability:
  A process should be able to be executed consistently.

• Adaptability:
  Processes should be flexible enough to withstand various conditions.

• Measurability:
  Effective processes allow for monitoring, process analysis, and improvement through key performance indicators.

• Documentation:
  Well-documented processes, through process documentation, prevent reliance on tribal knowledge and set standards for control.

Business Process vs. Business Procedure

While often used interchangeably, business processes and procedures have distinct differences:

Types of Business Processes

Business processes form a complex network that shapes how organizations function. They can be grouped into three main categories: operational, supporting, and management processes.

Each type plays a unique role in helping a company meet its goals and objectives. Process decomposition breaks down these high-level processes into subprocesses and tasks.

Operational Processes

Also known as core or primary processes, operational processes directly create customer value creation and generate revenue for the organization. These customer-facing processes are often managed using systems like ERP, CRM, or vertical SaaS. Some examples of common business processes include:

• Manufacturing products

• Taking customer orders

• Processing payments

• Delivering products to customers

• Managing bank accounts

Supporting Processes

Supporting or secondary processes enable core processes. They are needed to keep the operations running although they don't directly generate revenue.

These processes align with specific departments and serve internal customers. Examples include:

• Human Resources management

• Finance and Accounting

• IT management

• Asset and workplace management

• Purchasing and supplier relations

Some specific supporting processes are:

• Bookkeeping and payroll processing

• Recruitment of new employees

• Maintenance of machinery and equipment

• Building management

• Cybersecurity management

Management Processes

Management processes measure, monitor, and control activities related to business procedures and systems. They help turn strategy into reality by overseeing and directing resources to ensure core processes are carried out efficiently.
These processes focus on planning, coordinating, and budgeting for example:

• Internal communications

• Governance

• Strategic planning

• Budgeting

• Infrastructure or capacity management

Business Process Sofware Integration

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Why Choose Mobile2B?

• Improve Workflows: Streamline your processes and eliminate bottlenecks.
• Increase Efficiency: Automate repetitive tasks to focus on key initiatives.
• Better Decision Making: Leverage real-time data for informed decisions.
• Customizable Solutions: Tailored to your specific business needs.

Transform your operations and reach your business goals with Mobile2B’s solutions. Book a free consultation now and explore how we can take your business processes to the next level.

Real-World Examples of Business Processes

Sales Process

A sales process involves several steps: prospecting, connecting, researching, presenting, handling objections, closing, and nurturing.

Customer Service Process

A customer service process involves operations to ensure a satisfactory experience for each customer. It aims to assist customers with their needs, maintain clear communication, and offer quick, effective responses. 

Manufacturing Process

Manufacturing processes are methods businesses use to produce products by converting raw materials or components into finished goods using machinery and automated systems. Types of manufacturing processes include:

• Discrete Manufacturing: Building distinct, individual items.

• Repetitive Manufacturing: Producing standardized goods in large quantities.

• Batch Manufacturing: Creating goods in groups or batches.

• Job Shop Manufacturing: Fulfilling custom or specialized orders.

• Continuous Manufacturing: Non-stop creation of goods.

Real-world examples of manufacturing process improvements:

• Audi Japan KK:
  Audi streamlined its finance department's approval process, reducing processing time by 75% and saving 60 hours per week.

• Magna:
  Magna optimized their compliance processes, saving 2,500 hours annually.

• Adidas:
  Adidas standardized processes across multiple departments, reducing time to market by two-thirds.

Conclusion

This article explained the importance of business processes and how they work. Different types, from sales to manufacturing, help firms run smoothly and grow. Business process management is key to designing, executing, and optimizing these processes.

Good processes boost output, cut costs, and keep customers happy. Keeping processes simple, clear, and adaptable is essential. Process modeling and simulation help analyze and improve processes. Process automation and business process software ensure efficient execution. Process integration ensures smooth flow and process transformation allows for necessary redesigns. Well-managed processes are vital to success in any field.

FAQs

What does 'business process' mean, and can you provide examples?

A business process refers to a series of structured tasks or activities performed by individuals or systems within an organization to achieve a specific objective. These tasks are systematically organized to meet a predetermined goal, often involving business process automation and workflow optimization.

Can you give an example of a business process from everyday life?

Onboarding a new employee is a common business process. It includes steps like HR preparing the necessary paperwork and the team lead facilitating the new hire's integration into the team, both socially and in terms of work responsibilities.

What are some critical business processes in organizations?

Key business processes include managing financial and physical assets, developing business strategies and plans, creating new products, and raising capital to fund operations. These processes are part of the organization's value chain and are crucial for business process improvement and efficiency.

Could you provide an example of a business process?

An example of an operational business process is product manufacturing. This process directly adds value to a company's customers and employees and is crucial for generating revenue. It includes activities such as managing the order-to-cash cycle, delivering products to customers, and implementing business process reengineering for better efficiency. Business rules engines can help automate decisions within these processes to improve overall workflow.