According to all the above, one Business Process can be about document approval so that it is ensured that work is approved every time in the same way. Approval processes can be a type of workflow, which is a sequence of work from initiation to completion. Thus, the steps for document approval could be:
What is Business Process | Business Process Definition
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Gartner defines a business process “as an event-driven, end-to-end processing path that starts with a customer request and ends with a result for the customer. Business processes often cross-departmental and even organizational boundaries“. In other words, the term business process refers to a set of activities or tasks, often connected and automated, triggered by an event to carry out a predetermined specific organizational goal such as a service or a product. Each activity, included in a process, is assigned to a specific member of a team or to an entire group of the business.
Every business should take into account the business process definition in order to analyze and measure the results to ensure that the process is meeting expectations and is getting better. Usually, these activities can be visualized as a workflow of connected stages that can be performed in parallel or sequentially depending on specific rules or decisions. That means that every person in the company should follow the exact same steps. If someone misses one step, it will probably lead to a disoriented employee and the productivity will be reduced.
For example, if there is a business process for document approval, this document will pass from many stages and persons in order to review it. If someone misses the step and does not continue the process, the responsible person might lose the deadline and finally, the document will not be approved. On the other hand, it is very helpful to monitor in which stage the process is, and to whom the task is assigned to be completed by utilizing BPM software.
Since 1776, when Adam Smith had first described what is a business process, the BPM discipline and BPI methodologies have been developed in order to automate process management by integrating people, data, and technology into one platform.
Why are Business Processes important?
According to the above, anyone can assume that well-defined business processes are so important as to hire the right person. And this is the right answer. Business processes are important because they depict how things and tasks are done inside the company. After that, you can improve them by optimizing them and automating them by implementing BPM software in your business. There are several benefits of using Business Process Management Software in your business such as better collaboration, automation of repetitive tasks which reduce the working time, or monitoring the performance of every Business Process. Read more about 10 benefits of utilizing Business Processes.
The main feature of business processes is repeatability. These business processes are thought to be the everyday processes of a business and are totally part of an organization, whether they are visible to customers or not. Well-defined business processes must involve multiple defined inputs, which are affected by different factors, and contribute to the final output value.
Many businesses do not update or change the main processes but always there is empty space to improve a business process. For that reason, every business process should be flexible without affecting its stakeholders.
All business processes should be well-defined by describing the start point, the endpoint, and the series of these steps. Also, the creators of the processes should decide the reason why the process is automated and determine the individuals that perform in every step.
The most important feature of business processes is how effective these processes are for a business in order to figure out if one business has the benefit of the business process automation. Thus, business processes should be measurable in every part, to identify which part of the process works well or not. It is well known that nothing can be better without measuring first.
What is a Business Process? Definition, Examples, and Advantages
A business process is a collection of business tasks and activities that when performed by people or systems in a structured course, produces an outcome that contributes to business goals. In this article, we teach the definition of business processes and look at its advantages, examples, and related business terms.
Some of these processes are executed strictly within the documented guidelines, while some are attempted with more flexibility. This differs based on the priority and importance of the business outcome derived from the process.
Nevertheless, a business cannot function without the proper execution of its processes. In this article, we will dig deeper into the concept of a business process, its examples, advantages, references, and importance in your business operations.
Table of Content
A business process is defined as a collection of business tasks and activities that when performed by people or systems in a structured course, produce an outcome that contributes to the business goals. A business process includes at least one of, but not limited to, the following elements:
Business processes are invented to derive and contribute to organizational goals. The continuous and repeated execution of business processes is pivotal to successful business operations and business growth.
These are the most common activities involved globally in an employee offboarding process. Through acknowledgment and negotiation discussions, the business tries to reason with and retain the employee. The notice period and final settlement procedures help the employee and company get clarity on the terms of the contract pending after the resignation. The project planning and handover activities help the business make sure that daily processes are not affected due to the resignation of the employee. Finally, the exit interview provides the business an opportunity to improve with detailed feedback on the company operations and policies.
Business processes are the backbone of your business operations, which is why improving them is of strategic importance to your business. According to Gartner, implementing a business process management strategy increases the success rate of your projects by 70%.
Business processes are often confused with projects and procedures. Processes are finite, flexible, and repeatable, and generate value post their execution. Let us understand how they differ from projects and procedures.
A project is focused on creating something new or implementing a change, whereas a process is focused on creating value by repeatedly performing a task. Simply put, projects are activities that you have never performed in your business before, whereas processes are activities that you do repeatedly.
For example, making your daily cup of coffee is a process. You like to add the same ingredients in the same amount and make it every day. There are almost no chances of the taste going wrong, but if it does, I know how that bugs you!
But trying to make an Instagram trending coffee recipe from Korea isn’t something you do every day. You are experimenting with new ingredients and methods, which make it a project. It is new, exciting, and you don’t know how it is going to pan out.
A process is a flow of business activities that are connected toward the achievement of a business outcome, whereas a procedure is a prescribed way of undertaking a process or part of a process. While a process is a set of defined actions, a procedure is a set of instructions that are detailed in nature.
Examples of Business Processes
Processes vary depending upon the type, industry, location, etc., of a business, but there are a few processes that are practiced across all these segments of businesses around the globe. To make this easy to understand, we will look at examples of such processes.
Common Terms Related To Business Processes
Business Process Improvement is defined as a management practice used to improve the efficiency and effectiveness of business processes by discovering, mapping, documenting, analyzing, and redesigning processes. We will learn more about why you should invest in improving your business processes further in this article.
Business process mapping is defined as the activity of creating a workflow diagram of a process to gain a clear understanding of the process and how it overlaps with other processes. It is a business process documentation tool that uses visual aids to document and communicate the details of a process across the company. Read this guide to learn everything about business process mapping.
Business process documentation is the process of outlining a detailed description of how a process needs to be executed. It is a technique undertaken by businesses to make their processes learnable, viewable, and improvable. It primarily focuses on answering the question – ‘how is the process implemented?’. Learn more about business process documentation with this detailed guide.
Business process discovery is defined as a set of techniques that build a representation of an organization’s current business processes, which include their workflows, structures, and elements. Learn everything you need to know about process discovery in this article.
Business process automation is defined as the practice of using technology to automate complex and redundant business processes and workflows. It helps businesses save manual efforts, reduce costs, improve efficiency, and optimize process performance.