Definition and Understanding Company Processes
Business process is a sequence of activities or tasks performed by individuals, teams, or systems to achieve a specific organizational goal. It creates an output, which can be either a service or a product.
- Business processes involve inputs (resources) and creates outputs (services, products)
- It is defined workflow, often spanning multiple departments and stakeholders.
Business Process Orchestration and Management
- Within a company, there are numerous business processes, making it essential to manage and coordinate them effectively.
- This coordination is facilitated by the organization’s management.
- Business processes are organized and executed by employees, who are grouped into organizational units.
- This structure allows for clear division of responsibility in performing business processes.
Business Process Government and Formalization
- Business processes are governed by company policies and Standard Operating Procedures (SOPs), which provide clear guidelines on how each activity should be executed.
- These guidelines ensure consistency, accountability, and efficiency across the organization.
- In essence, processes define how a company operates, delivers value to customers, and achieves efficiency.
- Managing and improving these processes is critical to mitigating risks and driving organizational success.
Basic Types of Company Business Processes
Every organization has main processes that creates the value and ensure the production or provision of services to customers (core processes), as well as supporting processes that ensure the functioning and management of all the organization's resources.
- Core Business Processes
- Supporting Business Processes
- Management Processes
Examples of the Most Important Business Processes for an SME
- Sales and Marketing Processes
- Procurement Processes
- Production or Service Delivery Processes
- Financial Management Processes
- HR Management Processes
- IT management processes
- Asset and Facility Management Processes
Why Managing Business Processes Is Important
- Efficiency: Managed processes reduces errors and saves time.
- Risk Mitigation: Identifying bottlenecks or inefficiencies helps avoid potential pitfalls. Processes are sources of risks.
- Managing work and tasks: Well-defined processes can grow with the business.