The Extensive Guide to Business

Processes
Published On June 11, 2020 • BPM
Everyone talks about business processes, but there remains a lot of confusion
regarding them. To provide some clarity, here is all the information you’ll need regarding
what they are, and why your business needs to understand them.

What is a business process?

A business process is a series of steps performed by a group of stakeholders to achieve
a concrete goal. Each step in a business process denotes a task that is assigned to a
participant. It is the fundamental building block for several related ideas such as
business process management, process automation, etc.

While there’s a deluge of things written and said about business process management,
it’s essential to understand why they are so important to your business.

The importance of business processes

The need for and advantages of a business process are quite apparent in large
organizations. A process forms the lifeline for any business and helps it streamline
individual activities, making sure that resources are put to optimal use.
 Key reasons to have well-defined business processes
 Identify what tasks are important to your larger business goals
 Improve efficiency
 Streamline communication between people/functions/departments
 Set approvals to ensure accountability and an optimum use of resources
 Prevent chaos from creeping into your day-to-day operations
 Standardize a set of procedures to complete tasks that really matter to your business

The 7 steps of the business process lifecycle

1. Step 1: Define your goals

What is the purpose of the process? Why was it created? How will you know if it is successful?

2. Step 2: Plan and map your process

What are the strategies needed to achieve the goals? This is the broad roadmap for the process.

3. Step 3: Set actions and assign stakeholders

Identify the individual tasks your teams and machines need to do in order to execute the plan.

4. Step 4: Test the process

 Run the process on a small scale to see how it performs. Observe any gaps and make adjustments.

5. Step 5: Implement the process

Start running the process in a live environment. Properly communicate and train all stakeholders.

6. Step 6: Monitor the results

Review the process and analyze its patterns. Document the process history.

7. Step 7: Repeat

If the process is able to achieve the goals set for it, replicate it for future processes.

An example of a business process

As an example, let’s consider the hiring process of an HR department. Right from
posting the job opening to onboarding the employee, there are multiple steps involved in
the process. Although this can vary from organization to organization, a simple workflow
might look like this:

 The HR executive posts the job update

 Multiple candidates apply in a portal
 The HR executive screens the candidates and filters the best-fits
 The selected candidates are called for the next stages of the recruitment
 The right candidate is chosen at the last stage of the recruitment
 Salary and policy negotiations take place
 The offer letter is sent and the candidate accepts

This is then followed by a long employee onboarding process.

☛ Here are 6 real-world business process examples.

What are the essential attributes of an ideal business

process?
There are 4 essential attributes that constitute an ideal business process:

1. Finite – A good business process has a well-defined starting point and ending point. It
also has a finite number of steps.

2. Repeatable – A good business process can be run an indefinite number of times.

3. Creates value – It ultimately aims at translating creation of value into executable

tasks and does not have any step in the process just for the sake of it. In other words, if
any step in the process isn’t adding value, it should not exist.

4. Flexibility – It has an in-built nature to be flexible to change and is not rigid. When
there is any scope for improvement that is identified, the process allows that change to
be absorbed within itself without operationally affecting its stakeholders as much.
 What are some terms related to business process?
Business process automation is a technology-driven strategy to automate a business
process in order to accomplish it with minimum cost and in a shorter time. It is extremely
useful for both simple and complex business processes. Some areas where business
process automation is greatly helpful are:

 Achieving greater efficiency

 Reducing human error
 Adapting to changing business needs
 Clarifying job roles and responsibilities

BPM is a systematic approach to make an organization’s processes more efficient and

dynamic in order to meet the changing needs of business. Continuous improvement is
one of the core underlying philosophies of BPM and it aims to put it at the centre of all
BPM initiatives. BPM is an ongoing approach to continuously make execution of
business processes better. Several cloud and on-premise software solutions are
available to implement BPM.

Business process modeling is a diagrammatic/structural representation of flow of

business activities in an organization or function within an organization. Its primary use
is to document and baseline the current flow of activities in order to identify
improvements and enhancements for speedy accomplishment of tasks. Usually, they
follow a standard such as Business Process Modeling Notation (BPMN), which is a
globally accepted standard that most process professionals easily identify with.
However, process modeling software like Kissflow enables even a business user to
model a process based on business steps, without having to know any modeling
notation.

Business process improvement is a strategic planning initiative that aims at reshaping

business processes based on operations, complexity levels, employee skills, etc. in
order to make the entire process more meaningful, efficient, and contribute to overall
business growth. It is a rather drastic way to rediscover more efficient ways to run a
business process rather than taking small incremental steps. It usually starts with
process mapping and its core aim is to align IT resources with organizational business
goals. There are a lot of process improvement tools in the market that’ll help you out
with this.

Business process reengineering is a complete redesign of business processes after

thorough analysis in order to bring drastic impact. It involves identifying the core of
inefficiency, culling out tasks that don’t add any value, and even implementing a top-to-
bottom change in the way a process is designed in order to bring about an overall
transformation.

Business process optimization takes an existing process and uses analytics and

business process mining tools to weed out bottlenecks and other significant
inefficiencies in a process.
Business process mapping is a procedure to document, clarify, and break down process
sequences into logical steps. The mapping is either done in written format or visualized
using flow charts. Choose a process mapping software that empowers business users
to map all the processes based on logical steps with an intuitive visual interface.

Business process analysis is the process of identifying business requirements and

deciding on solutions that best solve business problems. This can consist of process
improvement, policy development, organizational change, or strategic planning.

Business process integration is the ability to define a process model that defines the
sequence, hierarchy, events, and execution logic and movement of information between
systems residing in the same enterprise.

Business process simulation is a tool for the analysis of business processes to measure
performance, test process design, identify bottlenecks, test changes, and find how a
process operates in different environmental conditions with different datasets.

Business process transformation is a term that means radically changing a series of

actions needed to meet a specific business goal. This is aimed at ensuring that a
company’s employees, goals, processes, and technologies are all in line with each
other.

Business process flow is a representation of the process that you’re creating. It usually
looks like a form or flow chart. Every business process flow is composed of stages, and
inside each stage, there are fields (or steps) to complete.

Business process monitoring is the active monitoring of processes and activity to help
management gain insight into important transactions and processes within an
enterprise. This helps management understand how their processes are functioning,
and if they’re aligned with the company’s business goals.

Benefits of using business process software

BPM solutions are uniquely designed to boost efficiency of processes across verticals
and organizations. Implementing them brings a host of business benefits such as:

Reduction of risks

BPM software helps prevent and fix errors and bottlenecks thereby minimizing risks.

Elimination of redundancies

Monitoring processes allows for identification and elimination of duplicated tasks.

Implementing BPM software also enhances resource allocation to ensure human effort
is invested only in relevant tasks.
Minimized costs

Improved visibility into processes helps zero in on wasteful expenditure. This way costs
are kept to a minimum and savings are boosted.

Improved collaboration

Transparency fostered by BPM software boosts collaboration between internal teams as

well as external vendors and buyers. Everyone is aware of responsibilities as well as
timelines and bottlenecks.

Agility

Optimized processes enable greater agility in organizational operations. Minimized

errors, bottlenecks, and duplication facilitate quicker turnaround times.

Improved productivity

When processes are shipshape, approvals are faster and information retrieval is easier.
Tasks are routed sequentially without human intervention. These benefits significantly
boost productivity of teams.

Higher efficiency

Comprehensive dashboards in BPM software provide bird’s-eye view of process

performance. It helps managers ensure that turnaround times are short and accuracy
levels are high.

Higher compliance

With BPM software, it’s easier and more methodical to create audit trails and comply
with industry regulations and standards.

Time to create your business processes

Well-designed business processes set up your teams on the path to success. Everyone
is clear on their roles and responsibilities and work with a clear vision towards the end
goal.

The situations when companies hired expensive consultants for designing business
processes are fading away. You don’t want another person to create a business
process for you when you are the expert that knows the in and out of your business.

Did you know you can create a business process in 15 minutes with Kissflow? The no-
code platform keeps it simple while letting you design sophisticated business
processes. Try it out and see how easy it is.
6 Business Process Examples To Inspire
Your Organization
Published On February 12, 2019 • BPM

When you’re attempting to optimize efficiency in your organization, it’s natural to seek
ideas or inspiration from other businesses. If you’re looking for workflow management
applications, the right business process examples can help you make smarter choices.

6 Real-World Examples of Business Processes

We could wax poetic about Kissflow’s capabilities, but instead of that, here’s a list of 6
compelling BPM examples from our clients instead. All of these are actual Kissflow
customers who have use this powerful tool to make a difference in their workplaces.

YMCA of Metropolitan Chicago

Background:
 YMCA of Metropolitan Chicago had a network of facilities, which were rented out for
various events. The requests were initially handled with Lotus Notes.

Challenges:

Lotus Notes proved difficult for printing, tracking information, collecting data, and
approving requests. They eventually migrated to G Suite and other software, but they
burned through their software budget quickly. The YMCA of Metro Chicago still needed
workflow software that was easy to build and integrate, but it had to come at the right
price.

Solution:

Kissflow solved these challenges by:

 simplifying approvals with mobile requests

 making printing possible
 enabling more efficiency with data insights on process performance
 ensuring ease of use through sign-ins made easy with Google integration

Softbank Telecom
Background:

Before Kissflow, Softbank Telecom used spreadsheets and email for all processes. It

became difficult to include all stakeholders and notify them over email. Softbank’s
position was typical of other business process examples because approvals were also
getting delayed because authorities were frequently on the move.

Challenges:

Softbank used Concur to manage expenses and travel reimbursements for a while but it
was quite expensive in the long run.

Solution:

 With Kissflow, Softbank was able to turn things around easily.

 They could create apps very quickly–in a matter of minutes
 Authorities were able to approve requests on their mobiles phones
 Employees didn’t require training for the tool–just a ten-minute briefing
 The application was cost-effective compared to other software

⋙ Check out why these 6 BPM Software are at the top of the

competition!
Verisys
Background:
 Verisys provides healthcare departments professional data aggregation for compliance
and risk mitigation products and services.

Challenges:

Verisys handles multiple approvals daily that include core and non-core operations.
They were carried out via emails. Many of them were falling through the cracks. Manual
coordination for every approval was extremely tedious and time-consuming.

Solution:

When Verisys implemented Kissflow, they started by automating the purchase approval
process. Now they also use it for employee onboarding and off-boarding processes.
They’ve observed

 easier coordination between departments

 improved recruitment processes
 simple setup and implementation of the application
 increasing efficiency through implementation across teams

McDermott International
Background:

McDermott International is an oil and gas infrastructure company that had 6,500 global
users but only 6 IT support members in 2015. Many expensive applications were
purchased and integration became time-consuming.

Challenges:

Finance and supply chain departments needed help to automate processes. Initial trials
with Sharepoint wasn’t satisfactory. Nintex required the use of standard development
methodology, which became frustrating. Like other enterprise business process
examples, workflow request backlogs kept growing exponentially.

Solution:

Kissflow addressed their issues by

 empowering finance and supply chain teams to automate their own processes with little to no IT involvement and no training
 enabling cost savings with a reasonable pricing model
 optimizing time and effort
 streamlining processes across other departments

Bergstrom Automotive
Background:

Bergstrom Automotive is the number one automobile dealer in Wisconsin with 44

dealerships and thousands of employees. Standardizing and monitoring workflows
across dealerships was very difficult.
 Challenges:

In 2014, there was a serious issue in Bergstrom’s accounting write-off process. Multiple
employees scattered across the state had to provide approval. Sending them forms by
mail was time-intensive and led to a frequent loss of forms and signatures.
Consequently, they lost a lot of money in the write-off processes.

Solution:

Implementing Kissflow helped Bergstrom to:

 optimize time and mail costs by eliminating paper-intensive practices

 gain the insight that service managers needed to be involved to efficiently stop the write-off
 save money by stopping write-offs when required
 design transparent processes that improved individual accountability

Davenport University
Background:

Davenport University is a multi-campus university that also offers online courses. Like
all universities, they struggled to foster cross-departmental coordination. Limited
budgets restricted their software choices.

Challenge:

The Academic Information Systems department observed that every process was
heavily reliant on paper and manual intervention. Departments were rife with
inefficiencies. The internal IT department estimated a three-year wait to create
electronic forms.

Solution:

Kissflow automated three processes:

1. Student course requisitions
2. Academic scheduling
3. Transport coordination

Post implementation, Davenport University reported the following benefits:

 Ease of use – no programming know-how required

 Reduced turnaround time for requisitions and approvals
 Ability to collect, track, and analyze data
 Heightened efficiency in operations supported by responsive support teams

Found these business process examples inspiring? To fuel your operational efficiency,
sign up for a free trial with Kissflow Process.
Business Process Definition

What is a Business Process?

A business process is a collection of linked tasks which find their end in
the delivery of a service or product to a client.   A business process has
also been defined as a set of activities and tasks that, once completed,
will accomplish an organizational goal.  The process must involve clearly
defined inputs and a single output. These inputs are made up of all of
the factors which contribute (either directly or indirectly) to the added
value of a service or product. These factors can be categorized into
management processes, operational processes and supporting business
processes.
Management processes govern the operation of a particular
organization’s system of operation. Operational processes constitute the
core business. Supporting processes such as human resources and
accounting are put in place to support the core business processes.
The definition of the term business process and the development of this
definition since its conception by Adam Smith in 1776 has led to such
areas of study as Operations Development, Operations Management
and to the development of various Business Management Systems. 
These systems, in turn, have created an industry for BPM
Software which seeks to automate process management by connecting
various process actors via technology.
A process requires a series of actions to achieve a certain
objective. BPM processes are continuous but also allow for ad-hoc
action. Processes can be simple or complex based on number of steps,
number of systems involved etc. They can be short or long running.
Longer processes tend to have multiple dependencies and a greater
documentation requirement
Business process
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 A business process, business method or business function is a collection of
related, structured activities or tasks by people or equipment in which a specific
sequence produces a service or product (serves a particular business goal) for a
particular customer or customers. Business processes occur at all organizational levels
and may or may not be visible to the customers.[1][2][3] A business process may often be
visualized (modeled) as a flowchart of a sequence of activities with interleaving decision
points or as a process matrix of a sequence of activities with relevance rules based on
data in the process.[2][3][4][5] The benefits of using business processes include improved
customer satisfaction and improved agility for reacting to rapid market change. [1]
[2]
 Process-oriented organizations break down the barriers of structural departments and
try to avoid functional silos.[6]

Contents

 1Overview
 2History
o 2.1Adam Smith
o 2.2Frederick Winslow Taylor
o 2.3Peter Drucker
o 2.4Other definitions
 3Related concepts
o 3.1Workflow
o 3.2Business process re-engineering
o 3.3Business process management (BPM)
o 3.4Knowledge management
o 3.5Total quality management
o 3.6Information technology as an enabler for business process management
 4Importance of the process chain
 5Policies, processes and procedures
 6Reporting as an essential base for execution
 7Supporting theories and concepts
o 7.1Span of control
o 7.2Information management concepts
 8See also
 9References
 10Further reading

Overview[edit]
A business process begins with a mission objective (an external event) and ends with
achievement of the business objective of providing a result that provides customer
value. Additionally, a process may be divided into subprocesses (process
decomposition), the particular inner functions of the process. Business processes may
also have a process owner, a responsible party for ensuring the process runs smoothly
from start to finish.[2]
Broadly speaking, business processes can be organized into three types, according to
von Rosing et al.:[6]

1. Operational processes, which constitute the core business and create the primary value
stream, e.g., taking orders from customers, opening an account, and manufacturing a
component
2. Management processes, the processes that oversee operational processes,
including corporate governance, budgetary oversight, and employee oversight
3. Supporting processes, which support the core operational processes,
e.g., accounting, recruitment, call center, technical support, and safety training
A slightly different approach to these three types is offered by Kirchmer: [2]

1. Operational processes, which focus on properly executing the operational tasks of an

entity; this is where personnel "get the things done"
2. Management processes, which ensure that the operational processes are conducted
appropriately; this is where managers "ensure efficient and effective work processes"
3. Governance processes, which ensure the entity is operating in full compliance with
necessary legal regulations, guidelines, and shareholder expectations; this is where
executives ensure the "rules and guidelines for business success" are followed
A complex business process may be decomposed into several subprocesses, which
have their own attributes but also contribute to achieving the overall goal of the
business. The analysis of business processes typically includes the mapping or
modeling of processes and sub-processes down to activity/task level. Processes can be
modeled through a large number of methods and techniques. For instance,
the Business Process Modeling Notation is a business process modeling technique that
can be used for drawing business processes in a visualized workflow.[1][2][4][6] While
decomposing processes into process types and categories can be useful, care must be
taken in doing so as there may be crossover. In the end, all processes are part of a
largely unified outcome, one of "customer value creation." [6] This goal is expedited with
business process management, which aims to analyze, improve, and enact business
processes.[2]

History[edit]
Adam Smith[edit]
An important early (1776) description of processes was that of economist Adam
Smith in his famous example of a pin factory. Inspired by an article
in Diderot's Encyclopédie, Smith described the production of a pin in the following way: [7]
”One man draws out the wire; another straights it; a third cuts it; a fourth points it; a fifth
grinds it at the top for receiving the head; to make the head requires two or three distinct
operations; to put it on is a peculiar business; to whiten the pins is another ... and the
important business of making a pin is, in this manner, divided into about eighteen
distinct operations, which, in some manufactories, are all performed by distinct hands,
though in others the same man will sometimes perform two or three of them.”
Smith also first recognized how the output could be increased through the use of labor
division. Previously, in a society where production was dominated by handcrafted
goods, one man would perform all the activities required during the production process,
while Smith described how the work was divided into a set of simple tasks, which would
be performed by specialized workers.[3] The result of labor division in Smith’s example
resulted in productivity increasing by 24,000 percent (sic), i.e. that the same number of
workers made 240 times as many pins as they had been producing before the
introduction of labor division.[7]
It is worth noting that Smith did not advocate labor division at any price and per se. The
appropriate level of task division was defined through experimental design of the
production process. In contrast to Smith's view which was limited to the same functional
domain and comprised activities that are in direct sequence in the manufacturing
process,[7] today's process concept includes cross-functionality as an important
characteristic. Following his ideas, the division of labor was adopted widely, while the
integration of tasks into a functional, or cross-functional, process was not considered as
an alternative option until much later. [8]
Frederick Winslow Taylor[edit]
American engineer, Frederick Winslow Taylor greatly influenced and improved the
quality of industrial processes in the early twentieth century. His Principles of Scientific
Management focused on standardization of processes, systematic training and clearly
defining the roles of management and employees. [3] His methods were widely adopted in
the United States, Russia and parts of Europe and led to further developments such as
“time and motion study” and visual task optimization techniques, such as Gantt charts.
Peter Drucker[edit]
In the latter part of the twentieth century, management guru Peter Drucker focused
much of his work on simplification and decentralization of processes, which led to the
concept of outsourcing. He also coined the concept of the "knowledge worker — as
differentiated from manual workers — and how knowledge management would become
part of an entity's processes.[9][10]
Other definitions[edit]
Davenport (1993)[11] defines a (business) process as:
”a structured, measured set of activities designed to produce a specific output for a
particular customer or market. It implies a strong emphasis on how work is done within
an organization, in contrast to a product focus’s emphasis on what. A process is thus a
specific ordering of work activities across time and space, with a beginning and an end,
and clearly defined inputs and outputs: a structure for action. ... Taking a process
approach implies adopting the customer’s point of view. Processes are the structure by
which an organization does what is necessary to produce value for its customers.”
This definition contains certain characteristics a process must possess. These
characteristics are achieved by a focus on the business logic of the process (how work
is done), instead of taking a product perspective (what is done). Following Davenport's
definition of a process we can conclude that a process must have clearly defined
boundaries, input and output, that it consists of smaller parts, activities, which are
ordered in time and space, that there must be a receiver of the process outcome- a
customer - and that the transformation taking place within the process must add
customer value.
Hammer & Champy’s (1993)[12] definition can be considered as a subset of Davenport’s.
They define a process as:
”a collection of activities that takes one or more kinds of input and creates an output that
is of value to the customer.”
As we can note, Hammer & Champy have a more transformation oriented perception,
and put less emphasis on the structural component – process boundaries and the order
of activities in time and space.
Rummler & Brache (1995)[13] use a definition that clearly encompasses a focus on the
organization’s external customers, when stating that
”a business process is a series of steps designed to produce a product or service. Most
processes (...) are cross-functional, spanning the ‘white space’ between the boxes on
the organization chart. Some processes result in a product or service that is received by
an organization's external customer. We call these primary processes. Other processes
produce products that are invisible to the external customer but essential to the effective
management of the business. We call these support processes.”
The above definition distinguishes two types of processes, primary and support
processes, depending on whether a process is directly involved in the creation of
customer value, or concerned with the organization’s internal activities. In this sense,
Rummler and Brache's definition follows Porter's value chain model, which also builds
on a division of primary and secondary activities. According to Rummler and Brache, a
typical characteristic of a successful process-based organization is the absence of
secondary activities in the primary value flow that is created in the customer oriented
primary processes. The characteristic of processes as spanning the white space on the
organization chart indicates that processes are embedded in some form of
organizational structure. Also, a process can be cross-functional, i.e. it ranges over
several business functions.
Johansson et al. (1993).[14] define a process as:
”a set of linked activities that take an input and transform it to create an output. Ideally,
the transformation that occurs in the process should add value to the input and create
an output that is more useful and effective to the recipient either upstream or
downstream.”
This definition also emphasizes the constitution of links between activities and the
transformation that takes place within the process. Johansson et al. also include the
upstream part of the value chain as a possible recipient of the process output.
Summarizing the four definitions above, we can compile the following list of
characteristics for a business process:

1. Definability : It must have clearly defined boundaries, input and output.

 2. Order : It must consist of activities that are ordered according to their position in time and
space (a sequence).
3. Customer : There must be a recipient of the process' outcome, a customer.
4. Value-adding : The transformation taking place within the process must add value to the
recipient, either upstream or downstream.
5. Embeddedness : A process cannot exist in itself, it must be embedded in an
organizational structure.
6. Cross-functionality : A process regularly can, but not necessarily must, span several
functions.
Frequently, identifying a process owner, (i.e., the person responsible for the continuous
improvement of the process) is considered as a prerequisite. Sometimes the process
owner is the same person who is performing the process.

Related concepts[edit]
Workflow[edit]
Workflow is the procedural movement of information, material, and tasks from one
participant to another.[15] Workflow includes the procedures, people and tools involved in
each step of a business process. A single workflow may either be sequential, with each
step contingent upon completion of the previous one, or parallel, with multiple steps
occurring simultaneously. Multiple combinations of single workflows may be connected
to achieve a resulting overall process.[15]
Business process re-engineering[edit]
Business process re-engineering (BPR) was originally conceptualized by Hammer and
Davenport as a means to improve organizational effectiveness and productivity. It
consisted of starting from a blank slate and completely recreating major business
processes as well as the use of information technology for significant performance
improvement. The term unfortunately became associated with corporate "downsizing" in
the mid-1990s.[16]
Business process management (BPM)[edit]
Though the term has been used contextually to mixed effect, "business process
management" (BPM) can generally be defined as a discipline involving a combination of
a wide variety of business activity flows (e.g., business process automation, modeling,
and optimization) that strives to support the goals of an enterprise within and beyond
multiple boundaries, involving many people, from employees to customers and external
partners.[17] A major part of BPM's enterprise support involves the continuous evaluation
of existing processes and the identification of ways to improve upon it, resulting in a
cycle of overall organizational improvement.
Knowledge management[edit]
Knowledge management is the definition of the knowledge that employees and systems
use to perform their functions and maintaining it in a format that can be accessed by
others. The Duhon and the Gartner Group have defined it as "a discipline that promotes
an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of
an enterprise's information assets. These assets may include databases, documents,
policies, procedures, and previously un-captured expertise and experience in individual
workers."[18]
Total quality management[edit]
Total quality management (TQM) emerged in the early 1980s as organizations sought
to improve the quality of their products and services. It was followed by the Six Sigma
methodology in the mid-1980s, first introduced by Motorola. Six Sigma consists of
statistical methods to improve business processes and thus reduce defects in outputs.
The "lean approach" to quality management was introduced by the Toyota Motor
Company in the 1990s and focused on customer needs and reduction of wastage. [19][20][21]
Information technology as an enabler for business process
management[edit]
Advances in information technology over the years, have changed business processes
within and between business enterprises. In the 1960s, operating systems had limited
functionality, and any workflow management systems that were in use were tailor-made
for the specific organization. The 1970s-1980s saw the development of data-driven
approaches, as data storage and retrieval technologies improved. Data modeling rather
than process modeling was the starting point for building an information system.
Business processes had to adapt to information technology because process modeling
was neglected. The shift towards process-oriented management occurred in the 1990s.
Enterprise resource planning software with workflow management components such as
SAP, Baan, PeopleSoft, Oracle and JD Edwards emerged, as did business process
management systems (BPMS) later.[22]
The world of e-business created a need to automate business processes across
organizations, which in turn raised the need for standardized protocols and web
services composition languages that can be understood across the industry.
The Business Process Modeling Notation (BPMN) and Business Motivation
Model (BMM) are widely used standards for business modeling. [2][3][4] The Business
Modeling and Integration Domain Task Force (BMI DTF) is a consortium of vendors and
user companies that continues to work together to develop standards and specifications
to promote collaboration and integration of people, systems, processes and information
within and across enterprises.[23]
The most recent trends in BPM are influenced by the emergence of cloud technology,
the prevalence of social media, mobile technology, and the development of analytical
techniques. Cloud-based technologies allow companies to purchase resources quickly
and as required independent of their location. Social media, websites and smart phones
are the newest channels through which organizations reach and support their
customers. The abundance of customer data collected through these channels as well
as through call center interactions, emails, voice calls, and customer surveys has led to
a huge growth in data analytics which in turn is utilized for performance management
and improving the ways in which the company services its customers. [24]
Importance of the process chain[edit]
Business processes comprise a set of sequential sub-processes or tasks with
alternative paths, depending on certain conditions as applicable, performed to achieve a
given objective or produce given outputs. Each process has one or more needed inputs.
The inputs and outputs may be received from, or sent to other business processes,
other organizational units, or internal or external stakeholders.[1]
Business processes are designed to be operated by one or more business functional
units, and emphasize the importance of the “process chain” rather than the individual
units.
In general, the various tasks of a business process can be performed in one of two
ways:[1]

1. manually
2. by means of business data processing systems such as ERP systems
Typically, some process tasks will be manual, while some will be computer-based, and
these tasks may be sequenced in many ways. In other words, the data and information
that are being handled through the process may pass through manual or computer
tasks in any given order.

Policies, processes and procedures[edit]

The above improvement areas are equally applicable to policies, processes, detailed
procedures (sub-processes/tasks) and work instructions. There is a cascading effect of
improvements made at a higher level on those made at a lower level. [25]
For example, if a recommendation to replace a given policy with a better one is made
with proper justification and accepted in principle by business process owners, then
corresponding changes in the consequent processes and procedures will follow
naturally in order to enable implementation of the policies.

Reporting as an essential base for execution[edit]

Business processes must include up-to-date and accurate reports to ensure effective
action.[26] An example of this is the availability of purchase order status reports for
supplier delivery follow-up as described in the section on effectiveness above. There
are numerous examples of this in every possible business process.
Another example from production is the process of analysis of line rejections occurring
on the shop floor. This process should include systematic periodical analysis of
rejections by reason, and present the results in a suitable information report that
pinpoints the major reasons, and trends in these reasons, for management to
take corrective actions to control rejections and keep them within acceptable limits.
Such a process of analysis and summarisation of line rejection events is clearly superior
to a process which merely inquires into each individual rejection as it occurs.
Business process owners and operatives should realise that process improvement often
occurs with introduction of appropriate transaction, operational, highlight, exception
or M.I.S. reports, provided these are consciously used for day-to-day or periodical
decision-making. With this understanding would hopefully come the willingness to invest
time and other resources in business process improvement by introduction of useful and
relevant reporting systems.

Supporting theories and concepts[edit]

Span of control[edit]
The span of control is the number of subordinates a supervisor manages within a
structural organization. Introducing a business process concept has a considerable
impact on the structural elements of the organization and thus also on the span of
control.[27]
Large organizations that are not organized as markets need to be organized in smaller
units – departments – which can be defined according to different principles.
Information management concepts[edit]
Information management, and the organization infrastructure strategies related to it, are
a theoretical cornerstone of the business process concept, requiring "a framework for
measuring the level of IT support for business processes.

DEFINITION

business process

Posted by: Margaret Rouse

WhatIs.com

  
 Contributor(s): Mekhala Roy and Emily McLaughlin








A business process is an activity or set of activities that can accomplish a

specific organizational goal. Business processes should have purposeful
goals, be as specific as possible and have consistent outcomes.

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Business process management (BPM) is a systematic approach to improving

those processes and it helps achieve business goals. If an organization is
unable to perform certain business processes internally due to costs or
resources, the company might utilize business process outsourcing (BPO).
Many organizations contract specific business tasks, such as payroll, human
resources (HR) or accounting, to a third-party service provider.

To measure the success of a business process, organizations track the

successful completion of different steps within the process --
i.e., benchmarks -- or reaching the endpoint of the process. When a business
process is not helping an organization reach a goal within a timeline or with
the resources at hand, there are a number of strategies you can use for
improvements. Organizations might focus on business process visibility to
identify issues in process performance or execution.

Business process mapping provides organizations with a visual representation

of how the different processes function and gives organizations better visibility
into how the business works. It can also help boost the operational
effectiveness of a business.

History and evolution

The works of economist Adam Smith, academic and author Thomas

Davenport, engineer Frederick Taylor and management guru Peter Drucker
have had a major influence on how organizations define and handle business
processes.

Smith, the author of The Wealth of Nations, first recognized how the use of
labor division -- dividing work into a set of tasks performed by experts -- could
lead to an increase in productivity.

What is a business process?

Taylor's innovations in industrial engineering resulted in organizational
productivity improvements. He is credited with transforming the workplace
with his ideas on organizing work, task fragmentation and job measurement.

Drucker -- described as the father of modern management -- focused on the

simplification and decentralization of processes and introduced the concept of
outsourcing.

Davenport defined the business process as a set of logically related tasks

performed to achieve a defined business outcome. According to Davenport,
processes make up the structure that helps organizations complete the tasks
required to produce value for its customers.

Business process vs. business procedure and business function

While a business process is a series of related tasks that result in the desired
output, a business procedure is a clearly stipulated way of undertaking a
business process. A business procedure details teams and the people
responsible for each part of the process, as well as the specifications
applicable to each of these parts.

A business function is an organizational unit of a business with a specific set

of responsibilities and activities that it executes to help the business carry out
its overall objectives and processes.

Business processes categories

Depending on the organization, industry and nature of work, business

processes are often broken up into different categories. These categories
include:

 Operational processes -- or primary processes: Operational or primary

processes deal with the core business and value chain. These processes
 deliver value to the customer by helping to produce a product or service.
Operational processes represent essential business activities that
accomplish business objectives, e.g., generating revenue. Some examples
of this include taking customer orders and managing bank accounts.

 Supporting processes -- or secondary processes: Supporting processes

back core processes and functions within an organization. Examples of
supporting or management processes include accounting, HR
management and workplace safety. One key differentiator between
operational and support processes is that support processes do not
provide value to customers directly.

 Management processes: Management processes measure, monitor and

control the activities related to business procedures and systems.
Examples of management processes include internal
communications, governance, strategic planning, budgeting, and
infrastructure or capacity management. Like supporting processes,
management processes do not provide value directly to the customers.
Business process management

Business process management is a strategy that organizations employ to

oversee their business processes to ensure they are operating smoothly. It
can help with process improvement by aiding management review and can
control organizational processes to ensure they are efficient and effective.
Organizations use BPM software to monitor and control automated and non-
automated business processes and to help improve their management
processes.

Business process management activities include steps like business process

modeling, execution, monitoring and optimization.
Business process monitoring

Business process monitoring is the method of employing analytics to monitor

the performance of a process. Process monitoring is used to detect elements
like process cycle time, errors and cost.

Organizations use functional monitoring to assess the functional performance

of a process. Technical monitoring helps measure the technical efficiency of
an application by supervising and logging aspects such as response times
and downtimes.

TECHTARGET

Business process categories

 Business process visibility

Business process visibility provides enterprises with a full view of each of their
processes, boosts operational responsiveness and expedites decision-
making. It helps management teams determine whether their processes are
aligned with key business objectives and goals, and whether the
accompanying procedures that help make a process successful are operating
accurately.

Business process monitoring can also help improve business process visibility
by helping to identify possible problems.

Business process modeling or mapping

Business processes are often depicted visually with a flow chart showing a
sequence of tasks with certain benchmarks or decision points. Business
process mapping or modeling illustrates pictorially, through graphs and charts,
how certain processes flow into others.


Margaret Rouse asks:

What kind of KPIs does your

organization use to measure a
business process?
Join the Discussion

There are a few different ways to think about business process mapping
and workflow.

 Sequential business process: Sequential business processes are

outlined on a document with clear start and endpoints. When following this
process map, an organization performs a series of actions in order to
complete a task within the constraints of a predetermined timeline.

 Status-driven business process: A status-driven business process

doesn't have strict start and endpoints. These processes can finish at any
stage depending on workflow changes, the nature of production or the
office culture. Also, it is typical for status-driven processes to recur or cycle
on the same step in the process.

 Parallel business process: When activities in a business process are

executed in parallel, they are carried out simultaneously. In this type of
business process execution, the activities on all the branches must be
completed before the next step in the business process can commence.

What is a Business Process

[2+ Practical Examples]

Article
   on P ROCES S IMPR OVEMENT  by AM IT  ON  TALLY FY

A business process is a series of repeatable steps taken by a team or company to achieve some
sort of business goal: managing deliveries, assembling products, onboarding employees, etc.
 The key aspect of a business process is repeatability – a process is not a one-time thing.

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Let’s say the process is employee onboarding. To onboard an employee, your organization
would have to…

1. Prepare & hand out the right paperwork

2. Assign them a role in the company
3. Prepare all of their tech – access to communication, project management tools, etc.
4. Prepare the workstation
5. Introduce to their team & colleagues
6. etc.
Every step here is structured and repeatable. No matter how many employees you hire, you’d
have to go through the exact same steps. If a step is missed, it might lead to a very disoriented
employee & an unproductive day. On the bright side, the process is very easy to map out or
organize using software, maybe even turn it into a checklist.

The main benefit of business processes is that they streamline your business. You can, for
example, tell your manager to go “onboard this new employee,” and maybe get some results. Or,
they might forget to have them sign some critical document & end up getting sued within a year.
With a structured business process, on the other hand, the manager knows exactly what they
have to do step-by-step.

This, in turn, makes your business much more efficient…

 Clearer Responsibilities – Everyone knows what task they’re supposed to be working on. So,
you won’t have employees working on the same task, for example, or a task being left undone because no
one thought it was their job
 Fewer Errors – Since everyone’s on top of their work, there’s much less room for human error
 Higher Productivity – With the tasks communicated properly around the organization, your
employees will end up being more productive, as less time is spent on organizational issues
 Lowered Costs –  With the added productivity, employees will have much better “output,” as
they spend less time on useless work and more on the tasks that really matter

What's the easiest way to have all your company playbooks and
know-how in one place?
Find out here
Business Process Examples
There are countless business process examples all around – it’s something that can be found in
every organization. Whether you’re a small startup doing content marketing or a giant
corporation manufacturing state-of-the-art smartphones, you’re doing all this through business
processes.

Client Onboarding Process

When onboarding new clients, an agency has to display professionalism, courtesy, and expertise.
If you end up acquiring a big client, the last thing you want to happen is your team sitting there
and wondering, “Ok, so what next?”

If you have a clear, defined client onboarding process, however, that’ll be a thing of the past. For
the sake of an example, let’s look at the case with a marketing agency.

1. Schedule an initial meeting. Get to know the client’s business, how the industry works, how’s
the competition, etc.
2. Assess company goals & assets. Know what your client wants from you, and how you can use
their strengths to achieve those goals
3. Define KPIs. The client will want to have a way to measure your progress, making sure that
you’re bringing in results
4. Create an action plan. What your team is going to do within the week, month, year, etc.
5. Pitch the client. See if they like the proposed strategy. If not, start over. If they do, assign all the
tasks to the right team members.

Content Marketing Process

Content marketing can be a very hectic mess unless you organize it into clear business processes.
Unless you work on this, you’ll end up having 20 work-in-progress articles lost in limbo, a very
confused designer, and a confused follower-base – desperately waiting for their weekly article.

Depending on your strategy, there are a lot of different ways to establish content marketing
workflows.

For the sake of an example, let’s go through a very basic publishing process…

1. The content writer takes up & finishes the first draft of an article. Includes descriptions of any
custom images that are to be used in the article
2. The marketer gathers influencer contact information, to be used for advertising and marketing
once the article is done
3. The editor proof-reads the article, makes points on grammar, style, spelling, etc.
4. The designer creates custom images as asked, sending them over to the content writer
5. The writer takes the comments into consideration, fixes any mistakes, and adds the images to the
article
6. The SEO expert makes sure that the article meets the right optimization best-practices &
publishes the article
7. The marketer uses a combination of advertising & email outreach to make sure that the article is
read
 Want to learn how to structure, improve and automate your content marketing
processes? Check out our step-by-step guide!

Business Process Mapping, Improvement,

Re-Engineering & Automation
Business processes are, essentially, the building blocks of any organization.

The thing is, though, that for a lot of businesses, the processes are unorganized and implicit.
Everyone has a general idea of what’s going on and what needs to be done, but it’s not on paper
or is not tracked through software.

To get most out of your business processes, there are 4 things you could do.

Business Process Mapping

Business Process Mapping is pretty straightforward – you probably have a pretty good idea of
how your business works. If you’ve been doing it for a while, then you definitely know the ins
and outs of it!

So, you’d want to put down all your processes on paper. You could either use actual paper for
this, a flowchart software, or workflow management software. From then on out, you can use the
graph to analyze or keep track of your processes.

As a given, the more advanced your tool is, the more benefits you’ll get. Workflow software, for
example, in addition to allowing for mapping, also lets you keep track of the process in real time.

Business Process Improvement (BPI)

Once you have all the processes down, you’ll get an even better idea on how your business
works. That would eventually lead you to initiate a business process improvement
(BPI) campaign – from a top-down view, it’s very easy to spot weaknesses in your processes.
Sometimes you’ll find tasks that are completely useless, others, you’ll find more efficient ways
to do them.
In some cases, you’ll find that some tasks are completely useless and can be skipped. In others,
you might find a much better, faster way to do them.

Business Process Automation (BPA)

One way to improve your business processes is to just put technology into the mix – and that’s
where business process automation (BPA) comes in. Any task that is extremely menial – that is,
too much manual labor – there’s a chance that software can do it much better and faster.

Say, for example, a team member has to email the person who’s responsible for the next step of a
process. Rather than having to manually do it, business process management software
(BPMS) could do it for them.

 Want to learn more about BPMS? Check out our comparison post of some of
the best BPM tools out there!

Business Process Re-Engineering (BPR)

In some cases, you’ll realize that your processes are just completely out of date. Rather than take
something old and add up on it, it’s going to be much easier to just completely re-do them.

Business Process Re-Engineering (BPR) means taking your old processes and finding new ways
to carry them out. This can be with the help of technology, for example. Instead of manually
doing accounting in the form of a physical ledger, you could adopt some accounting
software that makes the old process completely redundant.

A more recent example is using smart contracts for BPR. DNN, decentralized news network,

powers it’s publishing system through smart contracts. The submitted articles need to be
reviewed by different readers in order to select the best one and push it to the editors and
ultimately to the publishers. Smart contracts can help you move the articles through the
publishing pipeline, stage after stage, while reducing biases and increasing efficiency.

Conclusion
Now that you have a good idea of how business processes work, you might want to start
mapping them out and possibly carrying out a BPI or BPR initiative.

And the best way to do that is through Workflow Management Software. Map, optimize, and
streamline your processes with Tallyfy – simply by adopting software, you’re already taking the
first step in making your processes more efficient.
What Is Business Process? –
Types, Importance, & Examples
BY RAHUL BHADANA ·  JULY 21, 2019 ·  MANAGEMENT ESSENTIALS
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The success of a business is the ultimate goal for any entrepreneur although one

wrong step can become an enormous problem and it may cost a fortune to rectify
that single mistake.
A business process is about those right steps which play a vital role in delivering
an offering to the customers.

Table of Contents
What Is Business Process?
A business process is a series of interlinked steps which are assigned to every
stakeholder for a specific work to deliver a product or service to the customer.

Each stakeholder performs a specific task they are specialised in to achieve a

concrete goal. These steps are often repeated many times by multiple users in a
standardized and optimized way.

Business Process Examples

Business processes are represented as a workflow or flowchart of logical steps. To
further break it down here are two  examples of a business process:

A company needs to hire an eligible person for the job of a product manager –

Here are necessary steps need that to be taken in this process.
1. First, the HR manager will publish an advertisement on a job portal by
mentioning the required skills and qualifications for the eligible applicants.
2. Once the required number of applications are received, someone from the
team will contact the interested applicants and ask them to come for the
interview.
3. An interview will be conducted where the candidates have to pass several
rounds to secure the job position.
4. The most suitable candidate(s) will be selected based on the predetermined
passing scores and expectations.
5. The HR manager will make the selected candidate(s) sign certain documents
and contracts.
6. The selected candidate(s) will be trained by the assigned trainers according
to the job requirements.
7. Later, required tools, credentials and paperwork will be given to the new
employee.
This process will be repeated in a standardized and optimized way whenever the
company needs to hire a new employee.
A company which develops mobile applications is planning to launch a new
IOS application.
Here are necessary steps need that to be taken in this process.
1. First, market research will be conducted to find out what the market desires.
2. After the research, the company will find the best efficient resources to
develop the application according to the market need.
3. Another market research will be conducted to validate the hypothesis of
the product market fit. This will involve the release of the MVP.
4. The reviews from the innovators and early adopters will be taken to refine
and modify the offering further.
5. After the modifications, the company will build a marketing
strategy to promote the application.
6. A beta version of the app will be launched to validate the revenue model and
other features.
7. In the final, the app will be released in the play store.

Also Read:  Talent Management - Definition, Importance, & Components

Whenever a new mobile application will be launched the same process will be
repeated with some changes and reengineering.
Types of Business Process
1. Primary Processes: These are the fundamental processes of a business
through which a company delivers the end product to the customer.  Every step
involving in these processes works towards adding value to the final offering.
2. Support Processes: Support processes don’t add value to the final product
directly but they make an environment for primary processes to operate
efficiently and effectively. These processes support the everyday operations of
an organisation.
3. Management processes: Management processes govern operations,
corporate governance and strategic management. These processes set goals and
standards which lead to the efficient and effective working of primary and
support processes. Besides planning, these processes also involve monitoring
and control of other business processes. Management processes are used to
manage a business through strategic planning, tactical and operational
planning.
Importance Of Business Process
If you can’t describe what you are doing as a process, you don’t know what you’re
doing. – W. Edwards Deming
Business processes have always played a vital role in the proper functioning of an
organisation and in its structure. A well planned and strategized business process
will help a business in the following ways:

 Reduced expenditure and risk: a business process reduce expenditure and

risk by already laying out the most efficient ways of doing the jobs considering
the potential future shortcomings.
 Reduce human error: it reduces the human error by distributing tasks to
people who are specialised in it.
 Improving efficiency: it enhances the productivity of a department by
mapping out moves and relevant steps which are best for the business.
 More customer focused: a business process is a customer-oriented move. It
continuously updates the company about the customer wants and reviews
about the product/service.
 Bridging communication gaps: It bridges the communication gap between
the company and its customers through reviews and market research.
 Better time management: business process improves time efficiency by
developing strategies and flowcharts to minimize the time taken to do certain
activities.
 Adaption of new technology: business process often keeps changing and
improves over time. The company adopts new technologies to keep their feet
on the ground by improving business process according to the latest
technologies.
Above benefits can only be achieved if all the principles and methods are mapped
out in an optimised and standardized way. The company which failed to do so will
face the following problems:

 Failure to recognise any problem: a company which doesn’t focus on its

business processes will often fail to recognise the exact problem that prevented
it to achieve the goals due to its inability to set standardised processes.
 Low motivation in employees: due to the absence of a competent business
process, the employees of the company will get demotivated as they might get
placed in the departments for which they do not hold enough knowledge.
 Lack of change implementation: companies will often repeat the same
errors over and over again as there will be no system to recognise the problem
and to implement change in the process.
 Time-consuming efforts: without proper flowcharts and workflow, specific
work will take more time to be done than normal.
 Lower efficiency: if there is no proper business process a company cannot
be productive and its efficiency will be lower than a company with a proper
business process.  A business process increases efficiency by laying out steps
and possible ways to do a task.
 High risk and increased expenditure: companies which do not have an
adequate business process they often failed to see the future risks and they are
also incompetent to find a cost-effective way to do a task.

Also Read:  MoSCoW Method Explained

After gaining the required skills and knowledge of business process, the next step
should be finding the suitable BPR and BPM tools to create a process which can be
repeated in several ways.

Business Process Management (BPM)

Business process management focuses on discovering, optimizing, modelling, 
monitoring and analysing the business activities and managing previous business
processes. Its primary agenda is to manage the business process to achieve tangible
and intangible goals. Business process management leads its way to other steps
such as business process design and business process modelling.

Business process management often involves the use of BPM tools which adds
value to a company in terms of higher productivity, reduced expenditure, better
control and higher visibility.

Business process management tools are used for optimising, measuring and

automating a business process. They effectively help in managing the business
process. Some best BPM tools available in the market are Appian, Comidor,
Processmaker and Pega.
Go On, Tell Us What You Think!
Did we miss something?  Come on! Tell us what you think about our article
on what is a business process in the comments section.
 What is a Business Process?
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A set of activities that are performed in coordination in an organizational and technical environment and jointly realize a business goal is
known under the term “business process

business process
By  Vangie Beal

Related Terms
 process
 business Web transaction processing
 process owner
 forms processing
 process automation
 Agile Unified Process
 RUP - Rational Unified Process
 HTAP - hybrid transaction analytical processing
 BPM - business performance management
 OLE for Process Control

(biz´n&s pros´ses) (n.)

(1) A business transaction that requests information from or changes the data in a database.

(2) A specific event in a chain of structured business activities. The event typically changes the state of data and/or a

product and generates some type of output. Examples of business processes include receiving orders, invoicing,

shipping products, updating employee information, or setting a marketing budget. Business processes occur at all

levels of an organization's activities and include events that the customer sees and events that are invisible to the

customer. The term also refers to the amalgam of all the separate steps toward the final business goal.

Business Process
Last Updated: January 24, 2017

Definition - What does Business Process mean?

A business process refers to a wide range of structured, often chained, activities or
tasks conducted by people or equipment to produce a specific service or product for a
particular user or consumer. Business processes are implemented to accomplish a
predetermined organizational goal. Business processes occur at all organizational
levels; some are visible to customers, while others are not.
The term business process may also refer to the cumulative effects of all steps
progressing toward a business goal. This sequence of steps can be most clearly
depicted using a flowchart.
A business process is also known as a business method.

Techopedia explains Business Process

The three types of business processes are:

 Management Processes: The processes that govern the operation of a system.

 Operational Processes: The processes that constitute the core business of the
organization and create the primary value stream.
 Supporting Processes: The processes that support the core processes.
Examples include accounting and technical support.

Examples of business processes include:

 Invoicing
 Shipping products
 Receiving orders
 Updating personnel data
 Determining marketing and other budgets

Business Process Definition

Adam Smith conceptualised the term business processes in 1776.
A business process is a collection of linked tasks or activities,
decisions and events which end with the delivery of a service or
product to a client (a business goal). Often visualised with
flowcharts they have proven to be a good way to depict an
otherwise very complex and intricate process.
A business process must have clearly defined inputs and outputs.
Inputs make up all of the contributions for a product or service.
These factors can be categorised into three terms: management
processes, operational processes and supporting business
processes.

Management processes – processes which regulate control over a

system, such as strategic management.

Operational processes – core businesses values which generate

the primary value stream such as taking an order from a
customer.

Supporting processes – as suggested processes which support the

operational processes. A good example would be health & safety
or recruitment.

Business processes aim to increase the satisfaction of your

customer with either your products or services while also
decreasing the resources and time required to provide it.

A documented business process provides great clarity and insight

into where tasks can be improved. When readily available to the
workforce it can also give a great opportunity for new staff to
quickly catch up to speed or to learn their activities relevance in
the entire spectrum of a process. It also allows the people who do
the work to make suggestions on how to improve standard
procedures.
Example of a Business Process in the Gluu platform:

In the above image, we can see a process map for one of Gluu’s
Business Processes, in this case running a content marketing
campaign. Business processes can be very complex so
documenting them in a map like this can be a great reference for
staff as mentioned previously. Gluu provides a visual tool for
people to understand at a glance. But, you can also click on any of
these elements for more information previously provided by the
process owner. It’s also encouraged for those who do the work to
contribute their knowledge on how to complete a task through
comments and labels to help find the most effective method for
completing the process.

In this example above, for instance, we frequently update our

business process when we find a more effective way to
communicate ideas for a new piece or find a new community who
we think will find out articles useful.
 Business Process Definition
 MAY 18, 2019 
 IN BUSINESS PROCESS MANAGEMENT

What is Business Process?

Business Process Definition
Gartner defines “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 define its processes, 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 process about 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 a Business Process is,
the BPM discipline has been developed in order to automate the 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
implementing a 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
monitor the performance of every Business Process. Read more about 10 benefits of
utilizing Business Processes.
The most essential attributes of Business Process
1. Repeatability
The main feature of Business processes is repeatability. These Business Processes
are thought to be the every-day 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.
2. Flexibility
Many businesses do not update or change the main processes but always there is
empty space to improve the Business Process. For that reason, every Business Process
should be flexible without affecting its stakeholders.

3. Specific
All Business Processes should be well-defined by describing the start point, the end
point 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.
4. Measurable
The most important feature of the Business Process 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.
Types of Business Process
It is essential for every company to identify, analyze and optimize its Business
Processes, but the most important step is to categorize them. There is a variety of
factors that determine how these Business Processes can be categorized in order to be
automated such as the type of interaction or how important they are. Some of these
types are the Primary Processes, Support Processes, Management Processes and
finally Quality Management Processes.  Also, these processes span the industries
vertically and horizontally by including any type of business operation. Learn more
about the way of Business Process categorization.
More specific some types of Business Processes can be:
 Manufacturing
 Marketing
 Sales
 Banking
 Travel
 Logistics
 HR
Business Process Example
According to all the above, one Business Process can be about document approval so
that it is ensured that work is approved every time by 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:
 The workflow, or the process, starts when the user starts the relative process.
So, the first step contains a user form that should be completed with the relative
information such as the title of the document, the file of the document, the
deadline, and other information. Also, some fields can be pre-completed such as
the user who starts the process, the manager of this user, the date, etc. When the
user hits Submit, a message/notification can be sent to the team leader/manager
along with all the information and the document.
 The team leader receives the document for review and approval. In order to let
the workflow run, the manager should take one of the given decisions (Approve,
Need Improvements, Reject). According to the decision, the stages are different.
 If the decision is “approved”, the workflow continues and informs the creator
of the document that it has been approved.
 If the decision is “needs improvements”, the team leader can add some
comments. So, the creator receives the comments in order to improve the
document. Once the process of this stage has been finished by the creator, the team
leader receives again the document in order to approve it. This continues until the
team leader agrees to send the proposal to the group lead manager for the final
review.
 If the decision is “rejected”, the process should be finished.
The description of the Business Process can be designed as a workflow. A sample of
this perspective is displayed in the above image. Study more workflows
examples designed by Comidor or read more about some signs you need Workflow
Automation.

Definition
Related Terms
A series of logically related activities or tasks (such as planning, production, or sales) performed
together to produce a defined set of results.

Read more: http://www.businessdictionary.com/definition/business-process.html

Use 'business process' in a Sentence

The CEO of western airlines had a meeting with all of his flight attendents to find out what they
believed the best business process for marketing refreshments on their flights.
18 people found this helpful
The business process was clearly explained to the new team so at this point all they have to do is
execute.
17 people found this helpful
I was explained the business process and didn't know what I was getting into because it was way too
complicated.
Read more: http://www.businessdictionary.com/definition/business-process.html

Business Development vs. Sales

By: Jeffrey Glen
Business development and sales are two important aspects of the selling life cycle and
while it can be easy to focus on one over the other neither should be neglected. This
article will explain both aspects of the sales cycle and provide a clear distinction when it
comes to business development vs. sales.

Sales
Sales refers to the short term need to close a sale, get an agreement signed, or
ultimately do what needs to be done to sell whatever it is you are selling. Sales
techniques and strategies are really based on what it takes to 'close the deal', which is
crucial to any business. If you get customers in the door but cannot get them to buy a
product, there is a problem with your sales strategy.

Sales strategies are focused on the individual buyer and what needs to be done for
them to pull out their wallet, or click on the buy button when it comes to online selling.
Companies typically set sales volume targets for a period (weeks, months, and
quarters) and have strategies in place where the individuals responsible for actually
selling can make those targets.
Business Development
Business development relates to the process of identifying and executing agreements
with potential new customers. Taken further it can also refer to partnering with other
companies to deliver product to customers or securing preferential supplier
arrangements.

The focus of business development is really on new business and opportunities, as

opposed to managing relationships with customers you are already selling to. It's really
about new opportunities to develop and explore in terms of both new customers and
also new ways of partnering with others to deliver to new customers. Business
development is that first point of contact and relationships, after which customers are
handed off to other aspects of the marketing and selling team in terms of responsibility.

When the stereo-typical image of a marketing executive schmoozing with clients and
wining and dining buyers this is often a business development executive working on
new relationships. Business development often involves a great deal of social
interaction and working with new clients to woo them over. This type of sales interaction
in many companies is reserved for the 'big fish' that represent a significant impact on
the business if they become a customer, as understandably Sony doesn't take every
prospective TV buyer out for dinner and a football game. Companies often tailor their
business development time and funds to the target opportunities that are available and
appropriate to their marketplace.
Business Development vs. Sales
Sales and business development are both important aspects of the overall selling
process and each deserve attention in terms of planning. Business development can be
crucial when it comes to winning over big new target customers, and to an extent
'selling' to them is part of the process. However, with existing customer bases it is still
important to ensure that Sales management and planning is also given attention in the
business. Ignoring either aspect of the selling process can result in missing
opportunities or not capitalizing fully on those opportunities that do present themselves.

Top 10 Business Processes: Our List of

Greatest Hits

Alex Gallia

January 23, 2019

Business Processes , Process Street

Whether the number of possible business processes  is finite or infinite is
debatable. Needless to say, there are a lot.

You can start with a broad, complex discipline like operations,  mapping out  the
general, high-level process, and go on to create a vast amount of sub-processes
that fall under the same area.

How granular you go is really up to you, and depends on what is most suitable for
the way you conduct business.

There are, however, a number of processes that are absolutely essential to

efficiently running any kind of business, regardless of size, industry, or location.

Processes that, without clear documentation  and management, will cause

bottlenecks that stifle growth or at worst, force an organization to close its doors.
In this post, we’re going to be looking at what we, here at Process Street , have
identified as the top 10 business processes that you should care about and focus
on continuously optimizing.

These are the big dogs. The greatest hits.

Each process will be paired with at least one fully customizable template  that will
help you get started or evaluate and refine your current processes depending on
what stage you are at in mapping out and implementing your own.

My hope is that you will not only extract valuable insight from this article, but also
find ways to apply the templates that have been provided in a way that is practical
and useful for your team or organization as a whole.

Let’s get into it.

Oh, and bear in mind, these are in no particular order.

Top 10 business processes: The greatest hits

1. Product development

Let’s start with the heart of every business – the product(s).

Why is a product development process important?

In short, because it is the foundational process that provides you with the greatest
opportunity to maximize the value you bring to customers and help the company
grow, not to mention positively impacting society with reliable, functional tools.
How your team goes from ideation and concept generation to introducing the
product to the market is, in other words, a business-critical process.

Source

It is also one that will always have room for improvement because it is subject to
time. As your business grows, product lines expand, and unforeseen market
changes demand you to adapt, so too will your product development process
demand optimization.

“Challenges along the product life cycle, such as the changing marketing, changing
customer preferences, new competitors, poor product design, going after the wrong
target market, off-base pricing, off-target go-to-market strategy, and a lack of post-
launch research can result in a shortened product life-cycle. To minimize these
challenges, companies should conduct research for ideation, validation,
development of a go-to-market strategy, and post-launch.” – Insights Association,
The Importance of Process in New Product Development
In addition to conducting thorough research and testing, it is also imperative that
development teams maintain strong communication with customers throughout the
development process, to refine the product according to the feedback they receive.

The Wall Street Journal discussed the importance of this point in The Path to
Developing Successful New Products . After surveying more than 300 employees at
28 companies, they found that more than 80% of the top performers said they
periodically tested and validated customer preferences during the development
process, compared with just 43% of bottom performers.

And so, it’s clear that a lot goes into successfully developing a new product.

The template embedded below is a basic project management checklist  that

provides a framework to shape your product development process around, and can
be easily customized as you see fit.

2. Sales process

A heart cannot beat without blood, and a product cannot be used without being
sold. Following product development, sales is the next giant in our list of top 10
business processes.

According to the Sales Management Association , 90% of the highest-performing

companies use a formal, guided sales process. This is compelling, but hardly
surprising, especially to those of you who have first-hand experience seeing the
before and after of implementing a formal sales process.

It’s on our greatest hits list for a reason.

Source

The sales process  is a great example of one that contains lots of sub-processes, all
of which are equally important to closing a deal.

A sales process will go through the various stages of the buyer’s journey, along
with specific tactics and guidelines for salespeople to follow at any given stage.

Within each stage there are various other processes that can be defined,
documented, and managed for high levels of productivity and sales execution.
Such processes include qualifying a lead, creating a compelling pitch deck,
presenting a demo, and ultimately handing over a new customer to the customer
success team.

The template below is for a standard BANT sales qualification call  to guide sales
reps through the process of effectively understanding a prospect’s needs and
identifying the best way to address them.

In addition, here are a few other popular sales templates you may be interested in
incorporating into your processes:

 Order Processing Checklist

 Sales Presentation Template

 Closing the Sale Checklist

 Sales to Service Handoff Process

All Process Street templates can be integrated  with CRM software

like Salesforce  and Close.io  as well as other sales tools  to automatically pass data
back and forth, collaborate with team members, complete tasks, and ultimately
improve sales productivity.
3. Procurement

Procurement is a lot more than just purchasing . It involves selecting vendors,
establishing payments terms, strategic vetting, and negotiation as well as the
actual purchasing of supplies.

All of these processes are essential components of what is referred to as

the Procure-To-Pay Cycle .
Source

A streamlined procurement process brings many benefits to business performance.

Firstly, you want to build strong, trusting relationships with your vendors . Doing so
will eliminate a huge amount of frustrating and costly misunderstandings arising
from poor communication.
Furthermore, strong vendor relationships are much more likely to enable you to
explore potential advantages like year-over-year price reductions, quantity
discounts, and improvements in quality.

“You will not become a sustainable growth company if you do not have building
and nurturing strong vendor relationships as one of your core strategies.
Businesses cannot grow in a vacuum. We grow together, learning to leverage the
resources that each brings to the table.” – Arlin Sorensen, Founder and CEO of the
Heartland Companies

Secondly, a well-documented and executed procurement process will enhance your

ability to continuously identify and evaluate opportunities for a more cost-effective
strategy, as well as the ability to foresee potential shortcomings that risk slowing
production and/or will require additional staffing or external assistance.

In other words, it allows for the monitoring of the procuring process  to determine
how actual performance compares with planned activities, and alerting the relevant
departments accordingly to make adjustments.

The template below is a purchase order workflow  checklist that guides you through
the process of creating a purchase requisition, receiving approval (both internally
and from the vendor), creating the official purchase order, and confirming delivery
details.

By integrating this checklist into your current processes, you can automatically
assign tasks to the relevant individuals, pass important data to and from your
vendor management tools, communicate directly with vendors, and track the
progress of every purchase order in real-time.
Here are a few additional procurement-related templates to help you streamline
other components of your procure-to-pay cycle:

 Supplier Evaluation Checklist

 Contract Negotiation Checklist

 Order Fulfillment Checklist

 Creating an Invoice

 Accounts Payable Process

4. Client onboarding

How you onboard a new client is heavily dependent on your industry, business
model, growth strategy, and numerous other factors. Regardless, it should always
be a core area of focus given the increasing importance of customer loyalty in
today’s digital economy.

Research by Bain & Company found that increasing customer retention rates by

5% increases profits by 25% to 95% , and it is widely agreed in the SaaS
community that the cost of acquiring a new customer is anywhere from 5-25% more
expensive than retaining an existing one.

Companies, particularly in the SaaS space, can no longer afford to leave new
customers to their own devices as soon as they’ve sealed the deal, as they may
well feel disengaged and commit to an alternative before they’ve even had the
chance to realize the value of your product. There are simply so many alternatives
out there, and customers can stray with just a few clicks.
And so, there’s no doubt that a well-refined onboarding process  for new customers
is incredibly valuable.

The primary goal is to make the handoff from sales to customer success  as smooth
as possible, swiftly followed by a welcome packet and continuous education by the
account manager to demonstrate the best ways to use the product in a way that is
tailored to the customer’s specific needs.
Source

We know how to help you make that happen, every time, without exception.

Developing and helping you establish effective processes for client onboarding is
our bread and butter.

We have a variety of industry-based templates , from marketing agencies to

financial planners, that provide a comprehensive, actionable guide to onboarding
new clients.

They are some of our most popular templates, enabling companies

like DenaliTEK  and Wodify  to build long-term, fruitful relationships with happy
customers.

Below is a client onboarding checklist for marketing agencies . The checklist can be
integrated with your CRM to automatically create and populate a new checklist with
customer data when a lead status, or another trigger of your choice, is changed to
record the transition from lead to customer.

You can also set up numerous other automation rules to assign tasks, attach files,
add comments, and much more. No manual work required.

Listed are a few other of our client onboarding templates. You can find the full list,
along with a description of each, here .

 Client Onboarding For Financial Planners

 High Touch Client Onboarding for SaaS Companies

 Client Onboarding Checklist for a Managed Service Provider

  Client Onboarding Checklist for Real Estate Sales

5. Customer support

I mentioned in the previous section that once the transition from sales to customer
success is made, the account manager must educate the customer on how to use
the product to extract the most value. Well, this is to be paired with offering
constant support in the most informed and responsive way they can.

Of course, no one wants to be pestered all the time with offers to help, that’s not
what I’m saying.

Rather, it’s about managing incoming support tickets in the most efficient way
possible, and having the willingness to speak on the phone for half an hour to
resolve issues experienced by the customer.
These processes do not need to be complicated, just effective.

If, however, you are of the opinion that providing support on the fly is good enough
and you don’t need formal processes, here’s why you are wrong .

Below is the customer support template  we use to manage our support tickets at
Process Street.

It is short, simple, and effective.

After filling out some basic info about the ticket, the customer support rep selects
what “type” of ticket has been received, depending on the type of question/issue
raised by the customer.
It’s a straightforward way to create an audit trail of all support tickets and ensure
they are responded to as fast as possible.

We encourage you to integrate the checklist with your support software, such
as Intercom , so that a checklist is automatically created and assigned to a support
rep when a ticket has been received.

A couple of other useful templates for customer service:

 Customer Feedback Checklist

 Churn Prevention Checklist

6. Employee onboarding

The rest of the top 10 processes in our greatest hits list are internal. We’ve covered
sales and customer success, now the focus is on managing the processes that
keep your business running smoothly and, hopefully, growing at an extraordinarily
fast rate!

The first major one to tackle is employee onboarding .

Research conducted on the importance of a good onboarding experience is

compelling, to say the least.

According to the Society of Human Research Management (SHRM) :

 69% of employees are more likely to stay with a company for three years if they
had a successful onboarding experience.
  New employees were 58% more likely to stay with an organization for more than
three years if they went through a structured onboarding program.

 Organizations with a standard onboarding process benefit from 50% more

productivity from new hires.

It’s hard to turn a blind eye to such significant numbers.

So far, we’ve developed 6 employee onboarding checklists  that you can choose
from to set up a formal process.

Below is a general onboarding checklist  that guides you through onboarding a new
hire, from before their first day to the end of their first month.

To better understand the impact our onboarding checklists can have on your
business, check out how A-Team Lending made employee onboarding paperless ,
and how Renegard  uses Process Street to improve productivity, quality control, and
employee onboarding.

A few other employee onboarding templates:

 Call Center Employee Onboarding Checklist

 Retail Employee Onboarding Checklist

 Restaurant Employee Onboarding Checklist

 Salesperson Onboarding Checklist for Startups

 Developer Onboarding Checklist for Startups

7. Content promotion

Next up, one of the main driving forces of marketing – promoting content.
There are so many outlets these days to help you reach potential customers from
all over the world, but how are you making sure that you are effectively utilizing
every channel you have at your disposal?

Additionally, what steps are you taking to optimize your content for  SEO  and
content syndication?

Formulating a clear document to manage the content promotion process and

instilling it in a digital checklist powered by automation means that you can verify
every piece of content you create is being prepared and promoted exactly as you
want it to be.
Source

For example, a lot goes into planning, writing, reviewing and publishing a blog post,
it’s normal to feel like the hard work is over once it’s gone live.

But this is simply not the case.

The most important work, in terms of marketing success, starts as soon as you
press the publish button. Think of it in terms of sales. A customer has just signed
the dotted line, amazing, you’ve closed a big deal after months of hard work. But
now the real work begins – onboarding the customer and providing ongoing support
to retain them for as long as possible.

The same goes for blog posts and other forms of content, its success lies in the
measures you take to promote after it has been published.

Below is a content promotion checklist  that will guide you through a comprehensive
promotion process, from inserting deep-links to sharing on social media and even
repurposing your content to maximize its value, both externally and internally.

A few other handy templates for managing content:

 Updating Old Blog Content For SEO

 Visual Content Publishing Checklist

 Blog Post Production Checklist

 The Ultimate Blog Post Editing Checklist

8. Financial planning

The world of finance is complicated.

There are countless rules and regulations that must be complied with, and its
lucrative nature makes it an attractive industry to work in for many youngsters,
which in turn raises the importance of thorough planning and preparation to make
up for a lack of experience.

A more seasoned financial manager will undoubtedly have a process for

completing various tasks, but they are likely undocumented and cannot be followed
dynamically through a digital checklist, so there is still room for improvement.

And what better way to prepare than by working through a process embedded in a
checklist that ensures you are doing everything you need to, and then some.

The template embedded below guides a venture capitalist through the startup due
diligence process , and has proven to be one of our most popular templates.

It is a comprehensive checklist, taking you through various aspects including

evaluating the founding team, financial viability, competition, and legal analysis,
racking up a total of 43 tasks.

A few other finance-related templates:

 Private Equity Due Diligence Checklist

 Financial Management For New Projects

 Annual Financial Report Template

 Investor Pitch Checklist

9. Accounting management

There is a lot of responsibility that comes with managing a company’s accounts and
creating legally compliant reports, from budgets to cash flow statements and
balance sheets.

It’s tricky business, and slip-ups simply cannot happen. If and when they do,
as human error  is inevitable, it can have severe repercussion for an organization
both financially and in terms of their reputation.

These kinds of tasks that have to be done right, on time, every time, without fail,
are exactly the kind for which formal processes are most appropriate, and
important.

While human error cannot be completely eliminated, it can be minimized with clear,
enforced processes that are tracked in real-time to prevent releasing any false or
incomplete information.

We work with a number of accounting firms to help them ensure that every process
is being executed the way its supposed to. In our template library, we have over a
dozen accounting templates that range from onboarding accounting staff to
invoicing clients, to bank reconciliation and end of year reporting.

The template below is an accounts receivable process  that is designed to, well,
help you get paid as fast as possible!

There is conditional logic  built into the template. Task 3 requires you to fill in a set
of basic details concerning the buyer, and then asks you to answer two questions
that will add or remove tasks based on your answer.
The two questions are:

 Is this the first time you are expecting a payment from this buyer?

 Are you providing the buyer with goods or services?

If you select “Yes” for the first question, for example, then 3 previously hidden
tasks under the subheader “Establish your credit practices” will appear.

Through our integration with Zapier , you can connect all these checklists with the
accounting tools you already use, like Quickbooks , Freshbooks , and Xero .

A few other useful accounting templates:

 Accounts Payable Process

 Budget Preparation Checklist

 Cash Flow Report Checklist

 Business Tax Preparation Checklist

10. Process improvement

Business processes are created to be continuously refined and must be adaptive to

how your company is evolving.

Some processes will naturally be less susceptible to change than others. Client and
employee onboarding processes, for example, are much more likely to require
adjustments than the process for creating an annual financial report.
Nevertheless, all of them can be adjusted to be more efficient as you gain real-life
insight into how they are being executed by your team members and have to meet
changing legal requirements.

It is, therefore, tremendously valuable to have a solid process for process

optimization , because it allows you to accurately evaluate how well it’s working and
identify areas that can be tweaked without disrupting daily workflows.

Not only can you implement changes quickly, but running through a simple process
in the form of a digital checklist means that every change you make will be
recorded, along with who made the change, when, why, and how. Every detail is
there for managers to review if and when they would like to.

So you can make changes with minimal wasted time and effort, and at the same
time increase business transparency.

Below is a template for optimizing a process . It begins with answering a number of

pertinent questions regarding the process that you are looking to optimize, such as
activities that advance it, the relevant department(s) and team members(s), and
information that is carried over between the steps.

It then guides you through rethinking the methods currently used, removing non-
essential steps, and thinking about which steps could be automated to minimize
unnecessary manual work.

What do you think of our list of greatest hits? Is there another beast of a process
that I’ve missed? How are you getting on with the checklist templates? Let me
know in the comments below!
 What is Business Process Management?
BPM is a way of looking at and then controlling the processes that are present in an organization.
It is an effective methodology to use in times of crisis to make certain that the processes are
efficient and effective, as this will result in a better and more cost efficient organization. 

The term business process management covers how we study, identify, change, and monitor
business processes to ensure they run smoothly and can be improved over time. Often framed in
terms of the daily flow of work – and yes, “workflow” generally does fit under the process
improvement umbrella – it is an important piece of the access and use puzzle since no or poor
process really degrades your ability to get at and leverage information.

BPM is best thought of as a business practice, encompassing techniques and structured methods.
It is not a technology, though there are technologies on the market that carry the descriptor
because of what they enable: namely, identifying and modifying existing processes so they align
with a desired, presumably improved, future state of affairs. It is about formalizing and
institutionalizing better ways for work to get done.

Successfully employing BPM usually involves the following:

 Organizing around outcomes not tasks to ensure the proper focus is maintained
 Correcting and improving processes before (potentially) automating them; otherwise all
you’ve done is make the mess run faster
 Establishing processes and assigning ownership lest the work and improvements simply
drift away – and they will, as human nature takes over and the momentum peters out
 Standardizing processes across the enterprise so they can be more readily understood and
managed, errors reduced, and risks mitigated
 Enabling continuous change so the improvements can be extended and propagated over
time
 Improving existing processes, rather than building radically new or “perfect” ones,
because that can take so long as to erode or negate any gains achieved

BPM should not be a one-time exercise. It should involve a continuous evaluation of the
processes and include taking actions to improve the total flow of processes. This all leads to a
continuous cycle of evaluating and improving the organization.

The steps that can be recognized in BPM are:

 Analyze
 Re-design and model
 Implement
 Monitor
 Manage
 Automate

Getting information to where it needs to go, when it needs to go there, is only part of the solution
– much of the rest involves first requesting the insights you need, and then having those insights
communicated to you in an immediately usable format. This is what reporting and querying
software is all about.

Success depends in large measure on how well you label the data in your repositories so it can be
identified and included when an appropriate query comes along. A major boost toward
accomplishing this goal exists in the form of the Common Warehouse Metamodel (CWM), a
complete specification of syntax and semantics that data warehousing and business intelligence
tools can leverage to successfully interchange shared metadata.

Released and owned by the Object Management Group (OMG), the CWM specifies interfaces
that can be used to enable the interchange of warehouse and business intelligence metadata
between warehouse tools, warehouse platforms, and warehouse metadata repositories in
distributed heterogeneous environments. It is based on three standards:

 UML - Unified Modeling Language, an Object Management Group (OMG) modeling

standard
 MOF - Meta Object Facility, an OMG metamodeling and metadata repository standard
 XMI - XML Metadata Interchange, an OMG metadata interchange standard

CWM models further enable users to trace the lineage of data by providing objects that describe
where the data came from and when and how it was created. Instances of the metamodel are
exchanged via XML Metadata Interchange (XMI) documents.

The simplest of these is cleverly known as routing or simple workflow. It moves content – very
often in the form of conventional documents – from one place or person to another, and when
task A is complete, it allows for task B to begin. Routing tends to be ad-hoc, without any
automated rules processing, and with little or no integration between the process management
and the affected applications. Instead, it is pretty much person-to-person.

Workflow is more than just simply moving things from A to B to C to D because it allows tasks
to be carried out in parallel, saving time and increasing productivity. Able to manage multiple
processes taking place at the same time, it accommodates exceptions and conditions by applying
user-defined rules.

BPM itself is perhaps the "ultra" process improvement technique because it explicitly addresses
the complexity of inter-application and cross-repository processes, and incorporates data-driven,
as well as, content-driven processes – all on an ongoing basis.
Usually driven by business rules, it involves a lot of operational analysis and flow charting, and
the more sophisticated offerings in the space include not only process designers, but also
simulation tools so processes can be run virtually to identify bottlenecks or other issues related to
either people or underlying infrastructure.

We must bear in mind that business processes should include the mobile workforce and how
mobile device factor into the accomplishment of the overall organizational goals. 

Business Systems and Processes.

The Systems Thinker Blog

What Is a Business Process, and Why Should You Care (A
Lot)!
Ron Carroll

A business is made up of people, products, and processes organized to profitably find and keep
customers. Many companies fail because owners and managers are unable to create effective
business processes that accomplish this fundamental objective.

So, what exactly is a business process? And how can you create processes that will help your
company achieve greater customer loyalty, profitability, and growth?

Simple Definitions

There are business process experts who get deep in the weeds when defining a business
process or trying to distinguish it from a business procedure or a business system. However, for
entrepreneurs and owners of small to midsize businesses, a few simple definitions will suffice for
our discussion.

 Business Procedure – a sequence of actions taken to accomplish a task (emphasis on

following steps in a specified order).

 Business Process – a series of ordered activities that transform inputs into higher-value
outputs (emphasis on transforming materials or information into a product or service).

 Business System – a group of interacting, interrelated, or interdependent elements

forming a unified whole (emphasis on related parts working together for a desired
outcome).

A Process is Just a Recipe

As a business owner or manager, you may use these terms interchangeably. They are all business
activities designed to produce a specific, pre-determined, and consistent result. They include
your processes for marketing and sales, hiring and training employees, customer service,
production, order fulfillment, accounting, and many more, some unique to your industry or
company.

Business systems and processes—whether in the store, the office, or the workshop—are your
unique recipes for getting work done. They are governed by the Law of Cause and Effect. The
result (effect) of a business process is determined by the ingredients used (e.g., forms, checklists,
materials, supplies, equipment, software, people, and so forth) and the procedure followed
(cause). The only way to get a better process result is to improve the ingredients or the
procedure of the recipe.

For example, when you carefully follow the detailed instructions of a chocolate cake recipe, you
get the same result every time. However, we all agree there are chocolate cakes and then there
are CHOCOLATE CAKES!  (e.g., Chocolate Thunder). They may go by the same name, but the
unique recipe makes all the difference.

The same is true with your recipe for generating sales leads or hiring the best people. A little
change in ingredients or procedures can give you far superior results!  

Correctly designed, your business systems and processes support the mission, strategy, and
goals of your organization. While people may come and go, the successful recipes you have
created remain constant. Furthermore, the better your recipes are, the greater the customer
loyalty, profitability, and growth you will enjoy!

Simply put, 100% of your business is made up of systems and processes (recipes) that can be
managed and improved by applying correct principles to fine-tune 1) the ingredients or 2) the
procedures. There is no other way!
Three Types of Business Processes

Effective systems and processes are the essential building blocks of your company. There are
three general types to consider:

1. Management processes include planning, organizing, controlling, and leading—the

activities for governing your business (e.g., developing strategy, management meetings,
and board of directors or advisors).

2. Operational Processes constitute your core business functions and create the primary
value stream for customers (e.g., lead generation, sales, purchasing, production, order-
fulfillment, shipping, and customer service).

3. Supporting processes uphold and sustain the core processes (e.g., accounting, hiring,
information systems, safety, and custodial).

Most business systems and processes are unique to your company (like fingerprints) and
differentiate you from all other companies unless you are a franchise. They include sub-systems
or sub-processes that focus on the details of your business activities. For example, a marketing
process has a sub-process called lead generation, which has sub-processes such as print
advertising, radio, social media, or a website. It is in the details—the sub-systems and processes
—that profit dollars are made or lost!

Good business systems and processes have three primary purposes: 1) to attract customers,
exceed their expectations, and transform them into loyal fans, 2) to eliminate operational waste
and inefficiencies that rob profit and 3) to create differentiation and domination in your target
market.

Michael Gerber, the author of E-Myth Revisited, teaches, “Organize around business functions,
not people. Build systems [and processes] within each business function. Let systems run the
business and people run the systems. People come and go but the systems [and processes] remain
constant.”

Describing a Process: Procedure vs. Checklist

When the steps of a task are performed in a specific order, the term “sequential steps” or
“procedure” is used. For example, in a furniture shop, you first cut the wood, then sand the
wood, and finally paint the wood. Doing these three things in the right order is essential. Your
finished product would be unacceptable if you painted the wood before you sanded and prepared
it.

A flowchart diagram with boxes and arrows—indicating steps, decision points, branches, and
loops—sometimes makes it easier to describe a multi-path process than does a written procedure.
Using the furniture example, if the wood has a rough edge when it arrives at painting, your
decision is to reject the wood and send it back to the preparation stage. There it is re-sanded and
returned to painting. After painting, a branch in the process might also send different colors of
wood to separate pallets for storage.

When the steps in a process can be performed in any order, a simple “checklist” is all that is
needed. For example, your office custodian might empty the trash, dust the furniture, and
vacuum the floor. However, it doesn’t really matter in what order the tasks are completed.
Checklists are easy business systems that do not require flowcharts and can usually be created
rather quickly.

Remember: While much thought, planning, and experimentation may go into developing a high-
performance business system or process (see Your First Business Improvement Workshop),
everything learned is eventually reduced to a single procedure or checklist that is used by the
people who operate the system. Their responsibility is to follow that procedure with exactness
until the system is improved. If you encourage and reward innovation, system operators will also
drive the improvement process.

Processes Are for Customers

A primary purpose of your business processes is to provide value for customers—to transform
information or material into something that customers want, and which meets their specifications
and expectations. Customers can be those who ultimately buy your products or
services; however, business processes also serve the similar needs of your internal
customers (see Your Five Different Customers).

For example, in your business operations, the next step in a business process is the customer of
the previous step in that process. In an assembly line, station two is the internal customer of
station one. The order-fulfillment department is the customer of the order-processing department.
The sales team is a customer of the advertising or lead generation team. Each “customer” in a
chain of business activities looks for added value, and also wants their specifications and
expectations to be met.

In addition, employees are important customers of the business. They too have specifications
(e.g. work hours, wages, and benefits) and expectations (e.g., rewarding assignments and
opportunities for advancement). Whether spoken or not, if you fail to meet their requirements,
they will eventually go somewhere else. Good business processes support the learning and
growth of your people and inspire their loyalty.
All of your business processes must deliver four basic things to its external and internal
customers: 1) quality—low defects, does what is supposed to do, 2) speed—on schedule, meets
deadlines, no delay, 3) low cost—high perceived value, competitively priced, and 4) pleasurable
buying experience—no hassle, “killer customer care.”

Business Process Development

Learning how to develop good business processes is the Master Skill of the entrepreneur. All
business functions—marketing, finance, and operations—fall within the scope of this single skill
mastery. What’s more, the true value of your business is found in the maturity of its business
processes—their ability to produce desired results consistently.  (How would you and others
grade your current business systems and processes?)

Below are ten characteristics of an effective, efficient, and even exceptional business system or
process:

1. The process is built with the customer in mind. (Does this business system or process
help turn your customers into loyal followers by meeting or exceeding their expectations?
Does it help your workers perform at their best and get top results, even when you’re not
around?)

2. The process represents “best practices” or your best-known way of doing something. (Are

you getting less than 1% errors? Is the process as fast as it could be? Be honest. Is this the
best you can do, or could you make the process better?)

3. The business process is designed with one primary purpose (more than one purpose
usually means that processes are wrongly combined).  In addition, the process has no
unnecessary steps and little or no idle time between steps.  (Is the process stable, steady,
and paced with sales orders and fulfillment? Are the process goals aligned with your
company goals?)
 4. The system or process has an owner or team leader. (Who is accountable for and reports
the results of the process? Is the person rewarded for exceeding performance standards or
making improvements?)

5. There is ongoing and updated documentation on how to execute the process properly,
including the handling of details and exceptions. (Do workers fully understand the
process and can easily repeat it with consistent results? Have you created a
winning recipe?)

6. The process is as simple as possible to get the job done, but not simpler. (Can you lesson
complexity, customization, and exceptions in products and services? Can you reduce the
physical path, clutter, barriers, and distractions? Can you drop unprofitable product-lines
or services?)

7. There is a sufficient focus on system details to eliminate most bottlenecks, inefficiencies,

delays, mistakes, defects, and rework. (Every process has waste. Have you reduced it to a
minimum? Do you accumulate defects for later handling or do you properly fix problems
in the process as they occur?)

8. The business system is not hampered by poor planning (lack of materials or labor) or
stop-start work-flow as people switch between processes. (Are your workers losing
productivity or making excessive errors caused by shifting assignments, multitasking,
being “spread too thin,” or “wearing too many hats”?)

9. The system has performance standards, and results are measured. (Are you “managing by
the numbers” for maximum profit? Do you celebrate success?)

10. Workers get ongoing feedback about system-performance and are recognized or
rewarded for exceptional results. (Do people always know how they are performing in
relation to the goal? Is feedback self-administered, and in real-time like a sporting event?
Simple tip: To improve performance, increase the frequency of the feedback.)

Quality + Speed = Low Cost

By creating business processes that have minimal mistakes, defects, and rework (quality), you
will reduce waste and increases process speed. By eliminating delay, downtime, and other speed
bumps, you will boost sales throughput. This powerful one-two punch of quality and speed will
give you the lowest possible operational costs and provide your customers with the greatest
value.

Outstanding business systems and processes are the “magic formula” for success! Superior
quality and speed are the “secret sauce” that will wow customers, boost profit, blow the
competition away, and make your company remarkable!

Wrapping Up
Well-designed business systems and processes increase efficiency, accomplish objectives, and
give customers what they want every single time. They are your answer to weak sales growth,
customer dissatisfaction, poor performance/productivity, waste of resources, employee turnover,
excessive costs, slow cash flow, low profit margins, daily frustration, and every other business
problem.

Whether in the store, the office, or the workshop, developing effective business systems and
processes begins with good system design. After creating a flowchart or checklist, and acquiring
the components necessary to operate the system, you now focus on improving its quality and
speed. Measuring system-performance provides feedback for making adjustments and
improvements.

More specifically, each step in the process flowchart contributes value to the customer. The
process generates output that meets quality standards, with no accumulation of rejects or rework.
The workload is level, uses standardized tasks, and is paced with the input of sales orders.
Bottlenecks that delay order completion are eliminated. “Speed bumps” such as clutter, poor
layout, and downtime are minimized. Employees are well-trained and incentivized when
possible. People and systems learn and improve from the ongoing feedback of process results.

So, what exactly is a business process, and why should you care (a lot)?

In the game of work, good systems and processes embody your distinctive business strategy.
They are your means to increase customer value and product demand. They enable you to
differentiate yourself in a crowded marketplace. They help you maximize efficiency for greater
profit, more personal income, and the ability to share financial rewards with others. In addition to
people and products, processes give your company a unique identity and place in the world.

Is it worth it to learn the Master Skill of system development? A thousand times, “YES”!

There is an art and a science to creating exceptional business systems and processes and growing
a remarkable business enterprise. I invite you to check out the Box Theory™ Way today and
discover our eCourse and breakthrough business-process software, specially designed for small
to mid-size businesses.

*****Special Alert: My Retirement is Your Gain*****

To give back to the entrepreneurial community, I HAVE DECIDED TO GIVE AWAY MY

VALUABLE SYSTEMS-BUILDING SOFTWARE, ecOURSE, AND OTHER
INFORMATION ABSOLUTELY FREE. By filling out the form on this page, you will go
directly to a download page. This is not hype. There is no catch. You will receive a software
product and a “college equivalent” eCourse on how to develop effective business systems and
processes. Customers have been paying for this software and eCourse for fourteen years (see
What Cutomers Are Saying).

I will show you how to eliminate business frustrations and make more money by creating
remarkable systems and processes that boost customer loyalty, profitability and growth. The
application of these strategies has proven to be of great worth for owners of many small and mid-
size businesses. Put me to the test!

You will learn the following, and much more:

 How to become a Systems Thinker and raise your business I.Q. by 80 points—
OVERNIGHT.

 What six elements are found in every great business system.

 How you can remove waste and inefficiency, and build a results-driven organization.

 Why good systems and processes are the essential ingredient to start, grow, fix or
franchise (replicate) your business.

You have nothing to lose and everything to gain. I will not be trying to sell you because you are
getting everything for FREE, much more than I have described here. I won’t be contacting you;
however, you can contact me for help with the software or your business at any time. Please
browse around my website. If you have any questions, email me, Ron Carroll,
at boxtheorygold@gmail.com.

I hope you enjoy and benefit from this FREE offer. It was a labor of love for me to develop.
Becoming a Systems Thinker and using the Box Theory™ methodology will be one of the best
decisions you have ever made.

I’ll be cheering you on from my quiet fishing hole in the mountains of Utah.

“The software is AMAZING!”

“Thank you for this amazing software. Where were you all these years :)!” (Orlando
Salazar., kitchen and bath remodeling).
Can I just say that this is AMAZING!!!! You have to get this out to the business world. I
am so glad I found you on the internet.Thank you, this is making my task of creating
an operations manual and systems for my business, SO MUCH EASIER!!!” (Nanette D.,
wellness and weight loss).

“My goodness, how far our company has come since we started using your system and
software!” (Roger I., wedding receptions and banquets).

“You have been great to work with!”

“Thank you so much! You’ve really helped me with my business and made a believer
out of me when it comes to systems thinking. With your coaching, I now understand
how everything works together, what my priorities are, and how to solve problems. The
pricing and product packaging systems you helped me with is a big part of my success.
And you have been great to work with. Thanks, again!” (Amanda B. CEO, online beauty
products).

WOW! The Software Is Great! I’ll be eating this up all weekend. Can’t wait to share
results with you. Thanks for the call. (Jay M.)

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provided!” (Brian A., physical fitness supplements).

“One of the top five books I have ever read.”

“Just wanted to share – I have read this entire ebook already and I have to say that it
is in the top 5 books I have ever read, and I read A LOT of books. Thanks for sharing
your wisdom” (Geoff R., Athletic Performance).
“Thank you so much for this amazing ebook … I really love it and plan to start applying
the principles in my business right away” (Rana A.).

“The introduction and forward of the ebook (eCourse) was great. Already I love it. Good
writing style, it’s keeping me entertained. So far, it seems like I won’t have trouble
staying interested” (Mackalie F., nursery and landscaping).

“I finished the E-Course today,(absolutely fantastic stuff) and just ordered the software
a couple minutes ago” (Dave C., installation of wireless towers).

“It has occurred to me while reading The Box Theory ebook, that almost all of the
things in here apply to your personal life too. Improving your personal life doesn’t
happen by accident either. Sloppy personal systems, sloppy results” (Kimball H.).

“I would also like to wish you great success personally and with  Box Theory Gold.  The
course is valuable to any entrepreneur” (Stephen P., international logistics).

“Turned my business around,” “Quandum Leap,” “Indespensible”

“I knew a lot about computers and not so much about how to manage a business. I
struggled to make a profit. With the Box Theory software and coaching I learned the
right way to run and grow my business. Since improving my inventory system I have
started to see a proft. Ron gave me the tools and understanding that really turned my
business around” (David C., Business Technologies, national computer sales and
service).

“Thanks so much for creating this software which has given my business the ability to
take Quantum Leaps that otherwise may have taken another lifetime to hammer out.”
(Mark F., serving people with developmental disabilities).

“I am in Box Theory software every day. It keeps me focused on what I can do to

improve my several companies (multiple company version). We have created many
systems at this point and I find the software indespensible for working on my business
operations. I would never want to go back to the old way of doing things” (Gail C.,
forever an entrepreneur).
“Provides a lot of value,” “Love it!,” Will build a “franchise” with
it.

“I used the Box Theory software as a major part of my college internship

program. I worked without pay for two semesters but provided a lot of value to my
employer by defining and documenting the company’s business processes. The software
taught me a lot about what it takes to run a good business. I am grateful for the
experience and opportunity to learn from this product” (Dallin Haskell, student intern).

“I purchased the Box theory silver from you about two years ago. I love it!” (Jeremiah
G., education).

“I am really enjoying the Box Theory Software and know that it is going to help me
tremendously with our systems, and eventually being able to franchise the company. I
have around 50 hours so far working within the software and look forward to our
coaching session” (Michael M., landscaping and lawn care).

“Inspired,” “Excellent,” “Packed,” “Big Fan,” “Impressed with

everything”

“Holy Cow!  What an absolutely PACKED Newsletter (‘Six Ways to Increase Worker
Desire and Capability’). Great stuff at every turn! I remain a big fan of your newsletters
as they are quite inspirational and content rich. Thanks for taking the time to produce
them each week. You’ve likely heard this before but a collection of your articles would
make for a great book” (Matt Edison).

“I have been working through your 10 day e-course. I am very impressed with
EVERYTHING you are doing! I would like to use your software as a basis for my
consulting business” (Sarah R.).
“A great article Ron…. The solutions such as personalities, ownership, training, work
environment, scorekeeping, feedback, recognition and celebration could potentially add
massive value to my business. Thank you once again for an inspiring article” (James D.,
digital marketing, UK).

“This is an excellent volume of your newsletter (‘What New Marketing Systems Could
Double Your Sales’).  You always seem to say the common sense stuff BETTER than
anyone else! I continue to be a big fan” (Sherry B., marketing consultant).

“This was truly amazing!!! Am an ardent follower of the great wealth of knowledge you
are sharing on business systems and development. This was truly Hooah!!!“ (Robert
D.).

“Again, I think your “The Systems Thinker Newsletter” is some of the best material in
this space I have seen.  You really are terrific with this subject matter.  I think you are
absolutely phenomenal and respect you tremendously!  I mean that! ……I read them
more than you’ll ever know. You are doing an absolutely fantastic job!” (Calvin C., CEO,
commercial appraisal group)

“It is uncanny how spot on your newsletters are” (Mack F.).

Box Theory™ Gold Software: “Brilliant, amazing, magical, must

have!”

“I am now proficient with the Box Theory Gold software and

implementing the system tools at my work place. The more I indulge in the Box Theory
Way, the more I am amazed by this powerful methodology.

“The real value of the Box theory Way is how it brings together recognised principles
from tested best practices such as Six Sigma, Lean Operations, Balanced Scorecard and
the Theory of Constraints. My MBA studies did not take such an integrated view of
business and rather reinforced a detailed vertical understanding of business functions.
The Box Theory Way brings everything together with its emphasis of systems thinking.

“ISO 9001 and 9004 principles have a very strong alignment with Box Theory Way in
that they both ensure business systems deliver products and services that are fit for
purpose. This puts the Box Theory Way amongst the best business frameworks.
“The more I read the Box Theory Way, the simpler it gets. I use the high performance
attributes as a checklist for all the systems and processes that I use in my work and its
true power is from its ease of use.

“There is something magical about the Box Theory Way once you get it! Brilliant,
amazing, must have!” (Muroro Dziruni, SAMSA, South Africa)

“The answer I’ve been looking for after many years.”

“When I discovered Box Theory Gold, I finally found the answer I was looking for after
many years. Box Theory Gold software not only has a way to organize the systems, but
also a unique way of assessing what systems to work on first that can have the biggest
impact on a business. The tools to build and maximize each system are built right in,
and once you have them created, it also provides a framework for measuring and
managing those systems.  From the start, Ron was eager to help in any way he could
and volunteered several hours on the phone to get me going.

“As an avid believer in Michael Gerber’s book, The E-myth, I started my CPA firm with
the belief that everything in business should be systematized.  I created numerous
checklists and procedure documents over several years.  Major problems I faced were
determining what to do first, how to organize it in a consistent manner and how to
provide it to my employees in a way they could understand. Box Theory software
solved my problem” (Wade Carpenter, CPA, Carpenter and Company).

“I just love your course, software and lessons. Your course gave me the courage to
finally take the plunge and hire two part time people & a college student to help me
with my business. . . . Your offer to talk to us complimentary is very kind. Thank you
for all you do to help small business owners like myself.  Much appreciated” (Maria F.,
financial services).
“Thank You, Thank You, Thank You!”

“I had been searching for software that could map out business processes for our
clients in a logical way for many years.  Stored in a common area that everyone can
access, that would be easy to understand, and follow consistently. We even considered
building something ourselves but never got around to finding the time for that.  Then I
found Box Theory Gold.

“I knew from the moment I saw it that that Box Theory Gold was exactly the kind
software I was looking for.  It is simple enough for anyone to use and understand, so
our clients are able to document their business processes, yet flexible enough to handle
almost any type of business process mapping I need for my clients.

“We now can provide them a copy of Box Theory Gold with standard processes that
most companies use, as samples to begin working with. Training their employee to
build upon those and add their specific process is easy to do. Generally is only takes a
couple of hours and they are “off to the races”. When they get stuck or don’t
understand something, the examples you include helps them “get it” right away.

“Our clients have found the use of Box Theory Gold to be extremely helpful in
understanding the impact every process, in every area of their business, has on
ensuring happy customers; which leads to more revenue. Our company would not be as
effective as we are without your software.

“Our clients now grow predictably, operate with better efficiency, and consistently
provide superior service to their customers. This allows them to dominate their
competitors and increase sales each day; which makes us look like great consultants.
So again:  Thank You, Thank You, Thank You! (David Brydson, CEO, BestFit Solutions,
management consulting company, target client size is 25-100 employees).
“I’m a true-blue believer.”

“My business is a wild animal that Box Theory has helped me tame. In my chaotic
world, systems thinking is the only thing that consistently makes sense. It grounds me,
helps me see my business as it really is, and makes it easy to understand and solve
problems. I’m a true-blue believer.

“Every business owner should use the Box Theory method and software if they want to
get the best possible results. I highly recommend it!” (Ryan B., social media and search
engine optimizers)

“Box Theory software is very valuable for a business getting started but also has tools
for a more established company to reduce costs and run more smoothly. It is a
surprisingly versatile and powerful software product for the relatively low cost. I use it
every day” (Ron G., manufacturing).

“I shaved 25% off the process time, with a corresponding

increase to profit.”

“We have achieved exceptional results from many Box Theory systems we have put in
place, but a perfect example is our PPC Marketing System. Before we created a written
system in Box Theory Gold, we had a system that was undocumented. I didn’t realize
this was seriously affecting our productivity. Once we documented the systems process,
Box Theory gave us a checklist to follow. . . The first time I followed the process
myself, just to see if having a checklist could decrease the 8 hours it usually takes me,
I shaved 2 hours off my time. That’s a time savings of 25%!
“For the next client, I had an employee follow the system checklist. It took her 6 hours
and 15 minutes. That’s not only a 30% reduction in time spent delivering the service,
and a corresponding increase in profit, it also normalized the time required to perform
the service.

“Over the last several months, we have found that all our employees are performing
the service at the 6 hour mark. Because of Box Theory Gold and the system checklist it
produced, there’s no more time wasted trying to remember what to do. I don’t have to
answer questions about what to do first, second, etc. and the time it takes to perform
the work has decreased significantly … and because I’m still charging the same price for
the service, that directly impacts our bottom line.

“By the way, I love Box Theory Gold and your book was enlightening! When I read
Michael Gerber’s E-Myth, I thought, “Wow! Systems are the answer!” But he didn’t
explain how to use them at all. I honestly don’t know how he wrote 3 or 4 books
without ever explaining how to use them. Your information is clear, and concise. You
were the one who helped me understand how to put the information to use in my
business and how easy it can bel” (Michael Miller, Mindwhirl, Internet marketing and
lead generation).

“Real gold,” “Empowering,” “Eye-opener,” “I save every

newsletter”

“Wow Ron.Your newsletters are real gold! You are among the few that don’t fill your
newsletter with fluff. I always get real value from reading them. Thank you for
helping to make us all better” (Sherry B., marketing consultant).

“I find your business systems thinking tools quite empowering” (4 Legacy Consulting,

South Africa).

“Great newsletter, keep them coming. Used the break-even spread sheet yesterday and
found that my rates have to be $10 an hour higher or I would probably have been in a
bit of bother in about 6 months” (Chris P. engineering company).

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how to create growth-producing, customer-pleasing,
waste-removing, profit-boosting, business systems, and
processes.
 I’ve had a successful
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owners. In the last fifteen years, I developed and sold a unique and powerful software
for building highly-effective business systems and processes. It’s now time to retire
(again), but the software, methodology, and underlying principles will live forever.

Learning the art and science for developing remarkable systems and processes is the
Master Skill required of every entrepreneur or business manager. For that reason, I am
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Scorecard, and SWOT Analysis.

 Develop excellence in your people, products, and processes; create a results-

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Principles and Practices for Achieving Effective Business Systems

and processes

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2nd version for larger/established companies; see left-panel bookmarks in pdf
for a version that suits you)

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Systems and Processes. (must read: Password: $ystems101; first “S” is a
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 5. Business Systems 101 (PowerPoint Video; 17 minutes)

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Business Processes
LEARNING OBJECTIVES

Upon successful completion of this chapter, you will be able to:

 define the term business process;
 identify the different systems needed to support business processes in an organization;
 explain the value of an enterprise resource planning (ERP) system;
 explain how business process management and business process reengineering work;
and
 understand how information technology combined with business processes can bring an
organization competitive advantage.

INTRODUCTION
The fourth component of information systems is process. But what is a process and how
does it tie into information systems? And in what ways do processes have a role in
business? This chapter will look to answer those questions and also describe how
business processes can be used for strategic advantage.

WHAT IS A BUSINESS PROCESS?

We have all heard the term process before, but what exactly does it mean? A process is
a series of tasks that are completed in order to accomplish a goal. A business process,
therefore, is a process that is focused on achieving a goal for a business. If you have
worked in a business setting, you have participated in a business process. Anything
from a simple process for making a sandwich at Subway to building a space shuttle
utilizes one or more business processes.

Processes are something that businesses go through every day in order to accomplish
their mission. The better their processes, the more effective the business. Some
businesses see their processes as a strategy for achieving competitive advantage. A
process that achieves its goal in a unique way can set a company apart. A process that
eliminates costs can allow a company to lower its prices (or retain more profit).
DOCUMENTING A PROCESS

Every day, each of us will conduct many processes without even thinking about them:
getting ready for work, using an ATM, reading our e-mail, etc. But as processes grow
more complex, they need to be documented. For businesses, it is essential to do this,
because it allows them to ensure control over how activities are undertaken in their
organization. It also allows for standardization: McDonald’s has the same process for
building a Big Mac in all of its restaurants.

The simplest way to document a process is to simply create a list. The list shows each
step in the process; each step can be checked off upon completion. For example, a
simple process, such as how to create an account on eBay, might look like this:

1. Go to ebay.com.
2. Click on “register.”
3. Enter your contact information in the “Tell us about you” box.
4. Choose your user ID and password.
5. Agree to User Agreement and Privacy Policy by clicking on “Submit.”

For processes that are not so straightforward, documenting the process as a checklist
may not be sufficient. For example, here is the process for determining if an article for a
term needs to be added to Wikipedia:

1. Search Wikipedia to determine if the term already exists.

2. If the term is found, then an article is already written, so you must think of another term.
Go to 1.
3. If the term is not found, then look to see if there is a related term.
4. If there is a related term, then create a redirect.
5. If there is not a related term, then create a new article.

This procedure is relatively simple—in fact, it has the same number of steps as the
previous example—but because it has some decision points, it is more difficult to track
with as a simple list. In these cases, it may make more sense to use a diagram to
document the process:
Process diagram for determining if a new term should be added to Wikipedia (click to enlarge).

MANAGING BUSINESS PROCESS DOCUMENTATION

As organizations begin to document their processes, it becomes an administrative task

to keep track of them. As processes change and improve, it is important to know which
processes are the most recent. It is also important to manage the process so that it can
be easily updated! The requirement to manage process documentation has been one of
the driving forces behind the creation of the document management system. A
document management system stores and tracks documents and supports the following
functions:
 Versions and timestamps. The document management system will keep multiple
versions of documents. The most recent version of a document is easy to identify and will
be served up by default.
  Approvals and workflows. When a process needs to be changed, the system will
manage both access to the documents for editing and the routing of the document for
approvals.
 Communication. When a process changes, those who implement the process need to be
made aware of the changes. A document management system will notify the appropriate
people when a change to a document is approved.

Of course, document management systems are not only used for managing business
process documentation. Many other types of documents are managed in these
systems, such as legal documents or design documents.

ERP SYSTEMS

An enterprise resource planning (ERP) system is a software application with a

centralized database that can be used to run an entire company. Let’s take a closer look
at the definition of each of these components:
An ERP System (click to enlarge)
 A software application: The system is a software application, which means that it has
been developed with specific logic and rules behind it. It has to be installed and
configured to work specifically for an individual organization.
 With a centralized database: All data in an ERP system is stored in a single, central
database. This centralization is key to the success of an ERP—data entered in one part of
the company can be immediately available to other parts of the company.
  That can be used to run an entire company: An ERP can be used to manage an entire
organization’s operations. If they so wish, companies can purchase modules for an ERP
that represent different functions within the organization, such as finance, manufacturing,
and sales. Some companies choose to purchase many modules, others choose a subset
of the modules.

An ERP system not only centralizes an organization’s data, but the processes it
enforces are the processes the organization adopts. When an ERP vendor designs a
module, it has to implement the rules for the associated business processes. A selling
point of an ERP system is that it has best practices built right into it. In other words,
when an organization implements an ERP, it also gets improved best practices as part
of the deal!

For many organizations, the implementation of an ERP system is an excellent

opportunity to improve their business practices and upgrade their software at the same
time. But for others, an ERP brings them a challenge: Is the process embedded in the
ERP really better than the process they are currently utilizing? And if they implement
this ERP, and it happens to be the same one that all of their competitors have, will they
simply become more like them, making it much more difficult to differentiate
themselves?

Registered trademark of SAP

This has been one of the criticisms of ERP systems: that they commoditize business
processes, driving all businesses to use the same processes and thereby lose their
uniqueness. The good news is that ERP systems also have the capability to be
configured with custom processes. For organizations that want to continue using their
own processes or even design new ones, ERP systems offer ways to support this
through the use of customizations.

But there is a drawback to customizing an ERP system: organizations have to maintain

the changes themselves. Whenever an update to the ERP system comes out, any
organization that has created a custom process will be required to add that change to
their ERP. This will require someone to maintain a listing of these changes and will also
require retesting the system every time an upgrade is made. Organizations will have to
wrestle with this decision: When should they go ahead and accept the best-practice
processes built into the ERP system and when should they spend the resources to
develop their own processes? It makes the most sense to only customize those
processes that are critical to the competitive advantage of the company.

Some of the best-known ERP vendors are SAP, Microsoft, and Oracle.

BUSINESS PROCESS MANAGEMENT

Organizations that are serious about improving their business processes will also create
structures to manage those processes. Business process management (BPM) can be
thought of as an intentional effort to plan, document, implement, and distribute an
organization’s business processes with the support of information technology.

BPM is more than just automating some simple steps. While automation can make a
business more efficient, it cannot be used to provide a competitive advantage. BPM, on
the other hand, can be an integral part of creating that advantage.

Not all of an organization’s processes should be managed this way. An organization

should look for processes that are essential to the functioning of the business and those
that may be used to bring a competitive advantage. The best processes to look at are
those that include employees from multiple departments, those that require decision-
making that cannot be easily automated, and processes that change based on
circumstances.

To make this clear, let’s take a look at an example.

Suppose a large clothing retailer is looking to gain a competitive advantage through

superior customer service. As part of this, they create a task force to develop a state-of-
the-art returns policy that allows customers to return any article of clothing, no questions
asked. The organization also decides that, in order to protect the competitive advantage
that this returns policy will bring, they will develop their own customization to their ERP
system to implement this returns policy. As they prepare to roll out the system, they
invest in training for all of their customer-service employees, showing them how to use
the new system and specifically how to process returns. Once the updated returns
process is implemented, the organization will be able to measure several key indicators
about returns that will allow them to adjust the policy as needed. For example, if they
find that many women are returning their high-end dresses after wearing them once,
they could implement a change to the process that limits – to, say, fourteen days – the
time after the original purchase that an item can be returned. As changes to the returns
policy are made, the changes are rolled out via internal communications, and updates to
the returns processing on the system are made. In our example, the system would no
longer allow a dress to be returned after fourteen days without an approved reason.

If done properly, business process management will provide several key benefits to an
organization, which can be used to contribute to competitive advantage. These benefits
include:
  Empowering employees. When a business process is designed correctly and supported
with information technology, employees will be able to implement it on their own authority.
In our returns-policy example, an employee would be able to accept returns made before
fourteen days or use the system to make determinations on what returns would be
allowed after fourteen days.
 Built-in reporting. By building measurement into the programming, the organization can
keep up to date on key metrics regarding their processes. In our example, these can be
used to improve the returns process and also, ideally, to reduce returns.
 Enforcing best practices. As an organization implements processes supported by
information systems, it can work to implement the best practices for that class of business
process. In our example, the organization may want to require that all customers returning
a product without a receipt show a legal ID. This requirement can be built into the system
so that the return will not be processed unless a valid ID number is entered.
 Enforcing consistency. By creating a process and enforcing it with information
technology, it is possible to create a consistency across the entire organization. In our
example, all stores in the retail chain can enforce the same returns policy. And if the
returns policy changes, the change can be instantly enforced across the entire chain.

Business Process Reengineering

As organizations look to manage their processes to gain a competitive advantage, they

also need to understand that their existing ways of doing things may not be the most
effective or efficient. A process developed in the 1950s is not going to be better just
because it is now supported by technology.

In 1990, Michael Hammer published an article in the Harvard Business Review entitled

“Reengineering Work: Don’t Automate, Obliterate.” This article put forward the thought
that simply automating a bad process does not make it better. Instead, companies
should “blow up” their existing processes and develop new processes that take
advantage of the new technologies and concepts. He states in the introduction to the
article:[1]

Many of our job designs, work flows, control mechanisms, and organizational
structures came of age in a different competitive environment and before the
advent of the computer. They are geared towards greater efficiency and control.
Yet the watchwords of the new decade are innovation and speed, service, and
quality.

It is time to stop paving the cow paths. Instead of embedding outdated

processes in silicon and software, we should obliterate them and start over. We
should “reengineer” our businesses: use the power of modern information
technology to radically redesign our business processes in order to achieve
dramatic improvements in their performance.

Business process reengineering is not just taking an existing process and automating it.
BPR is fully understanding the goals of a process and then dramatically redesigning it
from the ground up to achieve dramatic improvements in productivity and quality. But
this is easier said than done. Most of us think in terms of how to do small, local
improvements to a process; complete redesign requires thinking on a larger scale.
Hammer provides some guidelines for how to go about doing business process
reengineering:

 Organize around outcomes, not tasks. This simply means to design the process so that,
if possible, one person performs all the steps. Instead of repeating one step in the
process over and over, the person stays involved in the process from start to finish.
 Have those who use the outcomes of the process perform the process. Using
information technology, many simple tasks are now automated, so we can empower the
person who needs the outcome of the process to perform it. The example Hammer gives
here is purchasing: instead of having every department in the company use a purchasing
department to order supplies, have the supplies ordered directly by those who need the
supplies using an information system.
 Subsume information-processing work into the real work that produces the information.
When one part of the company creates information (like sales information, or payment
information), it should be processed by that same department. There is no need for one
part of the company to process information created in another part of the company.
 Treat geographically dispersed resources as though they were centralized. With the
communications technologies in place today, it becomes easier than ever to not worry
about physical location. A multinational organization does not need separate support
departments (such as IT, purchasing, etc.) for each location anymore.
 Link parallel activities instead of integrating their results. Departments that work in
parallel should be sharing data and communicating with each other during their activities
instead of waiting until each group is done and then comparing notes.
 Put the decision points where the work is performed, and build controls into the process.
The people who do the work should have decision-making authority and the process itself
should have built-in controls using information technology.
 Capture information once, at the source. Requiring information to be entered more than
once causes delays and errors. With information technology, an organization can capture
it once and then make it available whenever needed.

These principles may seem like common sense today, but in 1990 they took the
business world by storm. Hammer gives example after example of how organizations
improved their business processes by many orders of magnitude without adding any
new employees, simply by changing how they did things (see sidebar).

Unfortunately, business process reengineering got a bad name in many organizations.

This was because it was used as an excuse for cost cutting that really had nothing to do
with BPR. For example, many companies simply used it as an excuse for laying off part
of their workforce. Today, however, many of the principles of BPR have been integrated
into businesses and are considered part of good business-process management.

REENGINEERING THE COLLEGE BOOKSTORE

The process of purchasing the correct textbooks in a timely manner for college classes has
always been problematic. And now, with online bookstores such as Amazon competing directly
with the college bookstore for students’ purchases, the college bookstore is under pressure to
justify its existence.
But college bookstores have one big advantage over their competitors: they have access to
students’ data. In other words, once a student has registered for classes, the bookstore knows
exactly what books that student will need for the upcoming term. To leverage this advantage
and take advantage of new technologies, the bookstore wants to implement a new process that
will make purchasing books through the bookstore advantageous to students. Though they may
not be able to compete on price, they can provide other advantages, such as reducing the time
it takes to find the books and the ability to guarantee that the book is the correct one for the
class. In order to do this, the bookstore will need to undertake a process redesign.
The goal of the process redesign is simple: capture a higher percentage of students as
customers of the bookstore. After diagramming the existing process and meeting with student
focus groups, the bookstore comes up with a new process. In the new process, the bookstore
utilizes information technology to reduce the amount of work the students need to do in order to
get their books. In this new process, the bookstore sends the students an e-mail with a list of all
the books required for their upcoming classes. By clicking a link in this e-mail, the students can
log into the bookstore, confirm their books, and purchase the books. The bookstore will then
deliver the books to the students.

College bookstore process redesign (click to enlarge). 

ISO CERTIFICATION
 Many organizations now claim that they are
using best practices when it comes to business processes. In order to set themselves
apart and prove to their customers (and potential customers) that they are indeed doing
this, these organizations are seeking out an ISO 9000 certification. ISO is an acronym
for International Standards Organization (website here). This body defines quality
standards that organizations can implement to show that they are, indeed, managing
business processes in an effective way. The ISO 9000 certification is focused on quality
management.

In order to receive ISO certification, an organization must be audited and found to meet
specific criteria. In its most simple form, the auditors perform the following review:

 Tell me what you do (describe the business process).

 Show me where it says that (reference the process documentation).
 Prove that this is what happened (exhibit evidence in documented records).

Over the years, this certification has evolved and many branches of the certification now
exist. ISO certification is one way to separate an organization from others. You can find
out more about the ISO 9000 standard here.

SUMMARY

The advent of information technologies has had a huge impact on how organizations
design, implement, and support business processes. From document management
systems to ERP systems, information systems are tied into organizational processes.
Using business process management, organizations can empower employees and
leverage their processes for competitive advantage. Using business process
reengineering, organizations can vastly improve their effectiveness and the quality of
their products and services. Integrating information technology with business processes
is one way that information systems can bring an organization lasting competitive
advantage.
 STUDY QUESTIONS

1. What does the term business process mean?

2. What are three examples of business process from a job you have had or an
organization you have observed?
3. What is the value in documenting a business process?
4. What is an ERP system? How does an ERP system enforce best practices for an
organization?
5. What is one of the criticisms of ERP systems?
6. What is business process reengineering? How is it different from incrementally
improving a process?
7. Why did BPR get a bad name?
8. List the guidelines for redesigning a business process.
9. What is business process management? What role does it play in allowing a company to
differentiate itself?
10. What does ISO certification signify?

EXERCISES

1. Think of a business process that you have had to perform in the past. How would you
document this process? Would a diagram make more sense than a checklist? Document
the process both as a checklist and as a diagram.
2. Review the return policies at your favorite retailer, then answer this question: What
information systems do you think would need to be in place to support their return policy.
3. If you were implementing an ERP system, in which cases would you be more inclined to
modify the ERP to match your business processes? What are the drawbacks of doing
this?
4. Which ERP is the best? Do some original research and compare three leading ERP
systems to each other. Write a two- to three-page paper that compares their features.

1. Hammer, Michael. "Reengineering work: don't automate, obliterate." Harvard Business

Review 68.4 (1990): 104–112. ↵

LICENSES AND ATTRIBUTIONS

What is Business Process
Management?
Ariel Russo  -  December 09, 2019 - 5 min read
Processes are the core of a business. They exist in every department
and team, and they are critical to the outcome of operations. You can
think of business processes as a blueprint that defines the
pathways and flow of activities that run within and between
different business functions. But moving from point “A” to point “B”
along these pathways, and doing it as efficiently as possible, doesn’t
come without effort. It takes time, resources, and bit of good planning
to make sure your blueprint is sound, and work is running smoothly.
That’s where business process management comes into play.

What Is Business Process Management?

Business Process Management (BPM) is the practice of
designing, executing, monitoring and optimizing business
processes. It is a methodology (not a product) that can turn your
business into a well-oiled machine. Done correctly, it is also carried
out with the intention of continual improvement.

Many people confuse BPM as simply workflow automation.

However, true BPM should be centered around driving
outcomes (like process improvement or efficiency gains) and must
take into account the complete, end-to-end process at
hand. Processes can be structured and have a predictable path from
start to end, or they can be unstructured with a less predictable path to
a goal. Naturally, the processes or workflows that are structured and
repeatable are the ones that make good candidates for automation.

Automation is possible through tools like BPM software, which

supports the application development of technology solutions to carry
out business processes. Check out this blog, to learn more about BPM
software in its current form.

Benefits of Business Process Management

If done properly, BPM can bring many benefits to your business. Here
are a few:

 Cost efficiency: By streamlining operations and

collaboration, and reducing duplicative efforts,
companies can decrease costs while improving
productivity.   

 Increased productivity: The practice of BPM

often leads to automation of repetitive tasks,
removing bottlenecks, and reducing unnecessary
steps.

 Better employee and customer

satisfaction: Instead of spending time doing
boring and repetitive tasks, employees can spend
more time in activities that bring more value to
the business and the customer.

 Stronger corporate strategy: By aligning BPM

with business outcomes, organizations can
improve their overall performance and resource
optimization.
Why Is Business Process Management
Important?
Business process management is about conducting business in
the most efficient way possible. That can mean optimizing resource
allocation, eliminating bottlenecks, reducing process duplication,
speeding up transactions, etc. Employing this outcome-oriented
methodology helps organizations deliberately improve operations, as
well as their bottom line. In doing so, they can become stronger and
more prepared to weather any storms influenced by the market.

Use Cases/Examples
The scope of use cases for business process management is
incredibly broad. This methodology could be applied to almost any
workflow or function for the purpose of greater efficiency and
process improvement. Some use case examples include:

 Expense Approval

 Travel Request

 Inventory Management

 Order fulfillment

 Credit card request

 Employee onboarding

Business Process Management Life Cycle

As indicated by the definition provided earlier in this article, business
process management operates in a continuous cycle. Opinions on the
naming and granularity of each stage differ depending on who you’re
asking, but I’d suffice to say the following is a safe summary of the
complete lifecycle:

Design – Identify existing processes as well as areas for

improvement. Map the flow of work between people and systems and
evaluate any dependencies or handovers.

Execute – Carry out processes identified and designed in the

previous step. This can be done manually or using automation.

Monitor – Track processes to stay up to date on their status and

performance. Flag areas that are underperforming or serving as
potential bottlenecks.

Optimize – Use the information gathered in the monitoring phase to

make process improvements to achieve cost savings or greater
efficiencies.
Business Process Management Market
To be clear, BPM is a practice, not a market. There are BPMS
vendors offering tools to support this practice, and there are also
vendors providing sets of tools to address a wider spectrum of
use cases, including BPM. A good example of the latter is low-code
technology. 

Using Low-Code to Solve for BPM

Low-code platforms like OutSystems remove the complexity of
development through configurable tools, resources, and
reusable components. This way, your team can quickly create or
change simple or complex BPM solutions with minimal
effort through a built-in workflow engine without worrying about the
different steps for modeling and implementing business processes. If
you want to see how this works, I invite you to watch this short
webinar about building workflows and complex logic with a low-code
platform.

By now you may be asking: what’s the advantage of using a low-code

solution, instead of a traditional BPM tool? Well, here’s what you can
do with low-code for BPM:

 Create and deliver digital processes to the

business 10x faster than using traditional
development methods. This way, you can build
and use your processes within days rather than
months (or years);

 Build customer-centric processes that address

their real needs, while eliminating internal silos
and replacing tools that hinder your customer’s
experience;

 Test, measure, and experiment with new

business processes and models, easily create
minimum viable processes, and gather insights
that support continual improvement.

Want to learn more about how to automate and optimize your

business processes with low-code? Then check out our OutSystems
for Business Process Management page.

 bpm

 
 Business process technology

 
 automation
 
 low code

Ariel Russo

Ariel is a product marketing professional with a passion for storytelling. Her

career has centered around SaaS and PaaS offerings, particularly within
the IT space. Now, as a Vertical Product Marketing Manager at
OutSystems, Ariel helps companies across multiple industries understand
how low-code development can propel their business into the future.

What is a business process?

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35 Answers

Anuj Patel
Answered October 16, 2015
Originally Answered: What's a business process?
This is really ambiguous question. Here I tried to define & elaborate it.

A business process is a collection of linked tasks which find their end in the delivery of
a service or product to a client. A business process has also been defined as a set of
activities and tasks that, once completed, will accomplish an organizational goal.

There are some steps that involved in business process, such as,

 Analyze
 Re-design
 model
 Implement
 Monitor
 Manage
 Automate
Business process is typically important factor for any successful business, it also measure on
how well you label the data in your repositories so it can be identified and included when an
appropriate query comes along.

The Definitions of the 3 Types of

Business Processes
January 1, 2016

Pierre Veyrat

BPM

To determine the Definitions of the 3

Types of Business Processes we should
consider two main factors
 Direct contact with customers.
 The value (degree of benefit) provided to customers.
Both are very important as they take into account fundamental aspects such as:

 Contact with customers should always be satisfactory and exceed their

expectations.
 Customers characterize the degree of benefit they receive by whether or not the
process meets their expectations or exceeds it.

Let’s look at this classification in detail to better understand the definitions of the 3 types
of business processes.

The definition of the Primary or Essential process

 Considered to be the most important processes.
 There is direct contact with customers.
 Providing value to customers directly.
 Reaching or exceeding the standards of the company.
 Always considering the entire value chain.

The definition of the Support process

 Formally established.
 Supports the primary processes
 No contact with customers.
 Doesn’t provide value to customers directly.

The definition of the Management process

 Formally Established.
 Coordinates the activities of the primary and support processes.
 Improve business processes efficacy and efficiency.
 Measures, monitors, and controls.
 Doesn’t provide value to customers directly.

Now that you’ve read about the definitions of the business processes learn more
about Analysis and improvement of business processes: best practices.

Concrete examples of the types of

business processes
We have selected for you 4 different types of business processes that have already been
mapped by HEFLO. Each has different characteristics and goals.

Examples of management processes like these are very useful for those who want to have
an initial idea of how to model a process in their company.

Business process definition #1: Procurement and

acquisitions process definition
This type of business process involves several levels of approval, different departments
and several decisions. The aim is to ensure more transparency, saving time and resources,
in addition to fighting fraud and collusion (access the complete flowchart description
here).
Business process definition #2: Hiring process
definition
Attracting the best talent and choosing the right people to do the most appropriate
functions according to their profile is a process that requires a lot of care from the
company.

It is important to note that the hiring solicitant must interact with both the Department of
Human Resources and with the Manager of their area, which leads to the creation of 3
lanes in this type of business process model, see (complete step by step and
documentation here):
Business process definition #3: The onboarding of
new employees process definition
Among these four examples of types of business process definitions, the onboarding
(integration) of new employees is the most complex, requiring no less than 5 pools to be
properly modeled.

This is due to the importance of onboarding new employees, so they soon feel right at
home and can count on the resources and information needed to rapidly implement all of
their potential for the company (complete step by step and documentation here).
Business process definition #4: Sales process
definition
Nothing is more important than after all of the production processes, planning, HR, R&D
etc., that the sales process is done well. Without it, the company will not have revenue!

With this in mind, the sales process must be agile and its time properly controlled,
avoiding any lost opportunity to serve a customer. Check it out (complete flowchart and
documentation here)
As you can see, each of these different types of business processes has a degree of varied
complexity. The more activities and sub-processes, the greater the number of pools and
lanes necessary for its proper mapping.

Importance of Business Process

Mapping
To achieve an effective management process it is necessary, first of all, to thoroughly
analyze the company’s situation at the moment (AS IS). Also, make a clear detailed
description of the mapping process. With this job done, you can take time to do
evaluations, simulations, and modeling which will form the basis for any future
implementation of improvements.

Learn more:

 Process mapping, a methodology for better control, check it out here.

 Understand the definition of business process mapping.

The Level of Detail in Business Process

Modelling
As you have seen, there are different types of business processes. When modeling these
processes in a company you need to take into account the level of detail that will be
presented. The ways the process diagram is viewed depends on how it is created.

Note that when building the process diagram, details regarding the type and amount of
information will increase in the following order:

Corporate Overview Diagram

 Value chain vision.
 Graphical form.
 Summaries.
 Covers a single sheet.
 Related to the business environment.
Business Vision Diagram
 Representation of the macro-processes.
 Details of the value chain.
 Covers all of the macro-processes.

Operational Overview Diagram

 Representation of the processes, sub-processes and activities.
 Details the Business Vision.
 Details what’s being done, not how it’s done.

System Overview Diagram

 The most detailed.
 Covers: software, integration points, data traffic (process and informational flow).
 You need IT team support.

View more:

 Check out the HEFLO BPMN modeling tool.

 Quiz: Do you know the 3 types of business processes? Test your knowledge.
 The definition of business process modeling BPM – Understand the concepts
 Examples of business process modeling.

BPM is Business Process Management

The ultimate goal of a BPM project is to add value to the business. Therefore, it is
essential to ally with technology so that we can have quick access to secure, updated and
quality information. Only then can we transparently demonstrate the results and how they
contribute to the value of in-house training.

Check: Understand the definition of business process and learn about its useful

applications.

Managing business processes means planning, implementing, monitoring, controlling and

improving. This is exactly what intuitive and flexible BPM tools allow you to do for your
company.