Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.
A business process is any series of steps performed by people or automated systems to accomplish a goal. A business process is often referred to as a workflow. Workflows are created to solve problems and perform actions that need to be completed regularly.
Types of Business Process
There are many types of business processes. These include:
- Customer service
- Order processing
- Product development
- Marketing campaigns
- Human resource management
- Financial transactions
- Legal services
- Quality assurance
- Supply chain management
Developing a new product, generating and fulfilling an order, creating a marketing plan, and hiring an employee are examples of business processes, and the ways organizations accomplish their business process can be a source of competitive strength.
A business process may appear simple at first glance. In reality, however, it usually consists of many steps that need to be managed to ensure its successful completion. These steps often involve human interaction and communication. Each step may have numerous possible outcomes in terms of performance, cost, quality, safety, and time.
Business Process of an Enterprise
An enterprise's business processes are defined by their purpose, content, structure, and governance. The purpose defines what the entity does for its customers; the content defines the information, products, services, and/or activities that the entity provides and sells to customers; the structure specifies how the work gets done internally; and the governance specifies who has control over the processes, tasks, documents, and systems that are involved.
The enterprise's business processes are designed and implemented to meet the requirements of its customers and internal staff. Typically, they are structured to satisfy customer demand, align with corporate strategy, and minimize costs and risk. Business processes are therefore different depending on whether the organization operates vertically or horizontally, or if it is small or large, or whether it is in the public or private sector.
Business Process Management
Business Process Management (BPM) is the application of software tools and methodologies to manage processes. BPM is a set of practices and technologies that help organizations improve their performance by aligning people, information, and technology to achieve specific goals.
The term Business Process Management was coined by Michael Hammer in his book titled “Reengineering the Corporation” published in 1989. In this book, he defined BPM as “the systematic application of knowledge about how work gets done today to make it more effective, efficient, and profitable tomorrow.”
In the past few years, BPM has become a hot topic in the IT industry. Many companies have started using BPM solutions to streamline their business operations. Companies use these solutions to automate manual tasks, reduce costs, increase efficiency, and ensure compliance with regulations.