written by | September 28, 2022

Business Process: Definition and Advantages with Examples

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Table of Content


Processes are found in every organisation, and companies have become what they are today thanks to these systems. People use business processes to make their jobs easier and contribute to achieving specific business goals. They are a collection of repeatable activities, and there is no right or wrong in how they're used or implemented. Some processes are executed in strict accordance with company guidelines, while other processes are used on a priority or need-only basis.

But most importantly, organisations cannot function without good frameworks and business processes designed to lead them up to building them. 

Did you know?

Only 4 per cent of businesses track and manage their business processes.

What is a Business Process?

A process can be defined as a fixed, consistent, measurable, and specific methodology - having start and endpoints throughout the user journey. And processes are a collection of methods or techniques used to move projects forward as a whole.

Business processes are activities and systems that comprise various elements such as data, employees, tasks, and operational workflows. They are designed to be continuous by nature and contribute towards the progress of achieving organisational goals. Every business is different, and no framework is the same. A business process may change over time and be flexible, agile, and adaptive, depending on customer requirements or user preferences.

Also Read: Business Ideas for Students - Easy to Start Business Ideas for Students in India

Business Process Example

There are multiple business processes in an organisation and it may vary depending on from the industry and size, but certain core business processes remain the same. Therefore, we’ll look into two most common examples of business process. 

Sales Process

Sales is a fundamental aspect of all businesses and affect different segments of organisations across the globe. Making good sales is a critical mission, and without sales processes, it would be hard to generate enough profits. Common sales processed include:

Sending out business proposals to clients

  • Billing and invoicing
  • Negotiations
  • Receiving orders and pre-orders
  • Updating sales records
  • Delivery of products/services

The structure of a sales process is flexible and not fixed. Some elements of the sales workflow may change over time, depending on organisational requirements.

Customer Service

Customer service is an important part of business processes and requires tending to client requirements. Delivering excellent customer service is a great way to boost business revenue and reputation and establish credibility in the industry. Examples of customer-related business processes are:

  • Answering customer queries and resolving issues
  • Invoice and order processing
  • Acknowledge customer concerns and provide status updates
  • Customer onboarding and accounting
  • Marketing, research, and product development
  • Taking surveys and filing customer complaints

Terminology Associated with Business Processes

Many common terms are used to refer to various business processes, as listed below.

Also Read: Best Eco-Friendly Business Ideas in India

Business Process Management 

Business process management is described as a method where organisations improve the efficiency and performance of management by optimising business operations. In simpler terms, it is about documenting, discovering, analysing and redesigning processes. 

Business Process Mapping

Processing mapping is the act of designing workflow diagrams to get a clear understanding of business processes and how they overlap with each other. It is a documentation tool which acts as a visual aid and communicates ideas to team members. You can learn more about business process mapping by drawing diagrams, documenting systems, and implementing solutions.

Business Process Documentation

Business process documentation is about maintaining structured documents that outline processes. It is used by businesses to make techniques and workflows learnable. Employees need to be teachable, and good documentation practices help break down various processes. It can give answers to common questions and make jobs easier as well.

Business Process Discovery

Business process discovery is a user journey where business owners learn more about their existing business processes. This phase can uncover various vulnerabilities and give security insights too. It focuses on accurately representing an organisation's elements and provides a bird's-eye-view of how everything works.

Business process discovery uncovers hidden elements and costs involved in your organisation. You learn about regulatory compliance, taxation laws, legal policies, and so much more. Some businesses don't have cyber security insurance, and process discovery programs dig into the details. If your company is missing something, it will let you know, so you don't get sued or run into any critical risks in the future.

Also Read: What are Some of the Best Business Ideas under 10 Lakh?

Business Process Automation

Business process automation uses technology solutions to automate business processes and involves eliminating manual labour. The goal is to free up time and space so that employees can focus on more productive tasks. Automation can significantly speed up information processing, reduce data storage costs, and optimize data warehousing. All this contributes to increased business efficiency, performance, and convenience. 

Business Process Handoffs

A business process handoff is a process of transferring information or authority over to another individual, department, or organisation. Every organisation has data migration requirements, and there is a time when they have to move away from legacy architectures. Business process handoffs are critical for ensuring smooth employee signoffs, resignations, team restructures, operational continuity, etc. 

You want to be careful with handoffs since you don't want employees leaving negative reviews about your organisation while signing off. A good handoff experience can make employees recommend your company to their friends. And who knows? They may return to your organisation and work with you in the future again.

Importance of Improving Business Processes

Improving business processes help organisations ensure higher rates of customer satisfaction and business continuity.  Businesses that prioritise process improvement are known to have fewer incidents of data breaches, ransomware, and security events. The most important reasons why you want to improve your business processes are:

Save Money

It gets easier to identify resources which are underutilised by the business and getting wasted. There's a lot of money spent on assets, and businesses can figure out which ones to prioritise the most. Costs can be cut down on production, deployment, and deliveries as well. Once your processes are set in place, acquiring new clients is a seamless task.

Saving money equals increasing investments for your business, and this leads to more profits long-term and helps scale up your organisation much faster. You can optimise your spending, conduct cash flow analysis, and enjoy seamless accounts management.

Improves Customer Experience

Customers want to purchase products and services from companies with stable or recurring subscriber bases. Process improvement eliminates errors in the production workflows and re-engineers existing solutions with better techniques. It also encourages employees to spend less time on redundant tasks and focus on deep work, thus boosting workplace productivity. 

Enhances Quality of Life

Improving business processes lead to better business outcomes, more revenue, and higher quality of life. Employees can enjoy salary hikes as the company scales up and be open to promotions. It keeps everyone happy, and your customers are also delighted with super services. When there are no hiccups in business operations, the company runs smoothly, thus reducing work stress.

Take Up Less Time

Your organisation will become more efficient and require less time to do the same amount of work. You'd be amazed at how fast your workflows become once you streamline business processes. Process improvements have major impacts on machinery maintenance and production pipelines and boost employee morale. There are no disruptions at the supply chain level and logistics, and customers get their products delivered on time right up to their doorstep. In short, it makes everybody's lives easier. Less time taken to deliver high-quality services establishes credibility in the industry.

Your organisation gets recognised as a brand, and word spreads. This also means you're likely to get returning customers, maximise leads to sales conversions, and get referrals. It's important to take control of your business processes before it's too late. Take advantage of optimisation and enjoy the benefits of improving your workflows! You'll have easier time managing operations and spend far less effort generating sales revenue.

Conclusion:

If you'd like to get started in improving your business, the best place to begin would be to evaluate your current processes. Analyse your workflows, review key performance indicators (KPIs), and look at business processing systems as a whole. A seamless business model will set up the stage for smooth operations and lay a strong foundation. 
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FAQs

Q: What are the core elements of a business process improvement roadmap?

Ans:

There are four core elements: discovery, improvement, platforms,  and management. Discovery deals with understanding business processes and analysing systems, identifying opportunities, finding out weak points and highlighting strengths.

Q: How do I write a business process?

Ans:

The first step to writing an effective business process is to begin identifying an organisation's goals. Create a structured plan for your tasks and assign them to respective departments. Do a test run of the plan and see how it works. If it's good, continue, or else - improvise, adapt, and change it. Your business process proposal will vary depending on the organisation's goals and requirements.

Q: What are the 7 main steps in a business process lifecycle?

Ans:

7 main steps of a business process lifecycle are:

  • Defining goals
  • Planning and mapping processes
  • Setting actions and assigning stakeholders
  • Testing workflows
  • Monitor results
  • Implement findings
  • Repeat and reiterate

Q: What are the 5 major business processes?

Ans:

The 5 major business processes are human resource management, project management, business development, marketing and sales, and accounting and finances.

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.